Old National Bancorp (ONB) Q3 2025 earnings summary

Executive summary

• Reported net income applicable to common shares was $179 million ($0.46 per share), with adjusted net income at $231.3 million ($0.59 per share), reflecting strong fundamentals and the completed Bremer Bank partnership.

• Delivered third quarter 2025 results at or above guidance, with high returns, improved efficiency, and robust credit metrics.

• Completed Bremer partnership systems conversion, now operating under a unified brand and footprint.

• Focused on organic growth, capital generation, and shareholder returns, with M&A deprioritized.

Financial highlights

• Adjusted EPS was $0.59, up 11% sequentially and 28% year-over-year; GAAP EPS was $0.46, reflecting $0.13 in merger-related expenses.

• Net interest income (FTE) rose to $583 million, up 12% sequentially and 46% year-over-year; net interest margin increased to 3.64%.

• Adjusted noninterest income grew 16% sequentially and 38% year-over-year; adjusted noninterest expense was $376 million.

• Efficiency ratio improved to 48.1% adjusted, below 50%, with GAAP at 58.8%.

• Tangible book value per share grew 4% from Q2 and 10% year-over-year to $13.15.

Outlook and guidance

• Net interest income and margin expected to remain stable or improve in Q4 2025, with NII guided at $585 million.

• Full-year loan growth guidance (excluding Bremer) is 4%-5%; deposit growth expected to meet or exceed industry averages.

• Fee income guidance increased following strong Q3 performance; other guidance lines unchanged.

• Efficiency ratio expected to improve further as Bremer cost saves are realized in Q1 2026.

• Provision expense may be volatile due to CECL model assumptions, macroeconomic factors, and loan composition.