Old National Bancorp (ONB) Q4 2024 earnings summary

Executive summary

• Achieved strong Q4 and full-year 2024 results, with net income of $150M ($0.47 EPS) in Q4 and $523M ($1.68 EPS) for the year; adjusted net income was $156M ($0.49 EPS) in Q4 and $578M ($1.86 EPS) for the year, reflecting 17% and 16% year-over-year growth, respectively.

• Maintained an offensive growth strategy, investing in talent and pursuing acquisitions, including the completed CapStar Bank acquisition and announced Bremer Bank partnership, strengthening presence in high-growth markets.

• Leadership transitions announced: President/COO Mark Sander retiring June 30, 2025, and Dan Hermann named lead independent director.

• CEO highlighted nearly 10% growth in both total deposits and total loans, and 8% growth in tangible book value year-over-year.

Financial highlights

• GAAP EPS for 2024 was $1.68; adjusted EPS was $1.86.

• Q4 2024 net interest income (FTE) was $400M, up 8% year-over-year; net interest margin (FTE) was 3.30%, down 9 bps year-over-year.

• Adjusted noninterest income grew 22% year-over-year to $96M; adjusted noninterest expense up 5% to $269M.

• Adjusted return on average tangible common equity was 17.0%; adjusted return on average assets 1.14%.

• Adjusted efficiency ratio at 51.8%; tangible book value per share up 8% year-over-year to $11.91.

Outlook and guidance

• 2025 guidance includes 4%-6% full-year loan growth, ramping through the year, and net interest income expected at $1.96B–$1.99B, assuming Bremer closes July 1, 2025.

• Noninterest income projected at $415M–$435M; noninterest expense at $1.26B–$1.28B.

• Net charge-off ratio expected at 0.20–0.30% for 2025; tax rate guidance of 22–25%.

• Deposit beta expected to accelerate from 28% in Q4 to ~40% in 2025; assumes two Fed rate cuts and stable NIB deposit mix at 24%.

• Full-year EPS expected above current analyst consensus, with positive operating leverage and normalized credit.