Financial Performance - Net investment income (NII) was $159 million, or $0.57 per share, for the quarter ended September 30, 2025, compared to $173 million, or $0.62 per share, for the previous quarter[2] - Adjusted net investment income (Adjusted NII) was also $159 million, or $0.57 per share, for the same period, down from $168 million, or $0.60 per share, in the prior quarter[2] - Net asset value (NAV) per share increased slightly to $21.99 as of September 30, 2025, from $21.93 as of June 30, 2025[2] Investment Activity - New investment fundings in the third quarter totaled approximately $1.1 billion[2] - Net investment activity for the quarter was $109 million, which included $450 million in sales to Credit Opportunities Partners JV, LLC (COPJV)[2] Distribution and Dividend - A total distribution of $0.70 per share was paid for the third quarter of 2025, comprising a $0.64 per share base distribution and a $0.06 per share supplemental distribution[2] - For the first quarter of 2026, the company expects a total distribution of approximately $0.55 per share, equating to an annualized yield of approximately 10% on the company's September 30, 2025, NAV per share[2] - The dividend yield on NAV per share was 12.7%, and the dividend yield on the market value of common stock was 18.6% as of October 31, 2025[2, 3] Portfolio and Capital Structure - The portfolio is defensively positioned with 224 portfolio companies across 23 industries[2, 10] - Exposure to the top ten largest portfolio companies by fair value was 20% as of September 30, 2025[2] - 64% of drawn leverage was unsecured as of September 30, 2025, with a weighted average effective rate on borrowings of 5.3%[2] - The company issued $400 million of 6.125% unsecured notes due in 2031 during the third quarter[2]

Financial Data and Key Metrics Changes - Old National Bancorp reported GAAP earnings per share of $0.46 for Q3 2025, with adjusted earnings per share of $0.59, reflecting an 11% increase from the prior quarter and a 28% increase year over year [7][12] - The company achieved a 20% return on average tangible common equity and a 1.3% return on assets, with an efficiency ratio below 50% [3][5] - The CET1 ratio increased by 28 basis points to over 11%, and tangible book value per share grew by 4% from Q2 and 10% year over year [7][15] Business Line Data and Key Metrics Changes - Total loans grew 3.1% annualized from the previous quarter, with production up 20% from the prior quarter [8][9] - Adjusted non-interest income was $130 million for the quarter, exceeding guidance, driven by strong performance in capital markets [12][18] - Adjusted non-interest expenses were $376 million, reflecting a full quarter impact of Bremer operations, with a low efficiency ratio of 48% [13][19] Market Data and Key Metrics Changes - Total deposits increased by 4.8% annualized, with core deposits (excluding brokered) increasing by 5.8% annualized [10][11] - Non-interest bearing deposits remained at 24% of core deposits, and brokered deposits decreased modestly [10][11] - The company achieved an approximate 85% beta on its exception price book spot rate in conjunction with the Fed rate cut in September [11] Company Strategy and Development Direction - The company is focused on organic growth and returning capital to shareholders, emphasizing that the best acquisition is itself [5][25] - Management is strategically recruiting top-tier talent and investing in future growth opportunities while enhancing efficiency [4][6] - The company aims to leverage its leading market position and capitalize on market disruptions [4][5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the credit outlook, noting a decline in criticized and classified loans and stable credit metrics [15][19] - The company anticipates continued success in executing its deposit strategy and expects to meet or exceed industry growth in 2025 [18][19] - Management highlighted that the systems conversion for the Bremer Bank partnership was successful, with positive client sentiment and operational efficiency [36][38] Other Important Information - The company repurchased 1.1 million shares late in the quarter, reflecting confidence in capital levels and the trajectory of the business [16][102] - The full run-rate cost savings from the Bremer acquisition are expected to materialize in Q1 of the following year [95][96] Q&A Session Summary Question: What drove the reduction in NII expectations for the fourth quarter? - Management indicated that the reduction from $590 million to $585 million is minor relative to the overall balance sheet size and reflects stable dynamics [22][23] Question: What are the preferred uses for capital moving forward? - Management emphasized organic growth as the primary focus, with opportunistic buybacks based on capital generation [24][25] Question: How did the systems conversion go? - Management reported that the systems conversion was the best to date, with high client satisfaction and minimal issues [36][38] Question: What is the outlook for loan growth from Bremer? - Management expects consolidated loan growth to align with overall company growth, with no significant swings anticipated [70][73] Question: How does the company view the credit environment? - Management described the credit outlook as stable to improving, with a focus on active portfolio management [97][99]

Financial Performance - Net income reached $71.9 million, a 5% increase quarter-over-quarter[4] - Net Interest Margin (NIM) expanded by 0.07% to 3.00% from 2.93% in the previous quarter, and up 22 bps from Q3 2024[4,5] - Annualized Return on Assets (ROA) improved to 0.82%, and Return on Equity (ROE) improved to 9.5%[4] - Cost of deposits decreased by 0.09% to 2.38% from 2.47%, with a spot Annual Percentage Yield (APY) of 2.31% at September 30[4] Deposits - Average Non-interest-bearing Demand Deposit Accounts (NIDDA) increased by $210 million quarter-over-quarter and $741 million year-over-year[4] - NIDDA declined by $488 million quarter-over-quarter due to normal seasonality[4,5] - NIDDA accounted for 30% of total deposits as of September 30, 2025[4,5] - Non-interest DDA was $8,625 million, a decrease of $488 million from the previous quarter but an increase of $990 million year-over-year[5] Loans and Asset Quality - Total loans decreased by $231 million, with lower yielding and non-core residential, franchise, equipment, and municipal finance down an aggregate of $245 million[4,5] - Period-end Core Commercial & Industrial (C&I) and Commercial Real Estate (CRE) loans were $15,090 million, a decrease of $69 million from the previous quarter[5] - Non-performing assets to total assets ratio was 1.10%[5] - Allowance for Credit Losses (ACL) to total loans ratio was 0.93%[5] Capital - Common Equity Tier 1 (CET1) ratio was 12.5%[4,5] - Tangible book value per share is now $39.27, an 8% year-over-year growth[4]