Old National Bancorp (ONB) Q1 2025 earnings summary

Executive summary

• Q1 2025 net income was $141M ($146M adjusted), with EPS of $0.44 ($0.45 adjusted), reflecting strong deposit franchise, solid loan growth, disciplined expense management, and stable credit quality.

• Tangible book value per share increased 13% year-over-year to $12.54.

• Regulatory approvals for the Bremer Bank partnership have been received, with legal close set for May 1, 2025.

• The Bremer partnership is expected to enhance scale, balance sheet strength, and earnings growth.

• CapStar acquisition completed April 1, 2024, adding $2.1B in loans and $2.6B in deposits.

Financial highlights

• Net interest income (FTE) for Q1 2025 was $393M, down 2% sequentially but up 8% year-over-year; net interest margin (FTE) was 3.27%.

• Adjusted noninterest income rose 21% year-over-year to $94M; adjusted noninterest expense was $263M.

• Efficiency ratio improved to 53.7% (51.8% adjusted).

• Total deposit growth was 2.1% annualized; total cost of deposits was 1.91%.

• Gains of $4.8M from sale of $71M in commercial real estate loans.

Outlook and guidance

• Full-year 2025 net interest income (FTE) expected at $2,055–$2,090M, with noninterest income of $430–$450M and noninterest expense of $1,340–$1,360M.

• Guidance assumes three 25bp Fed rate cuts and a stable five-year Treasury at 4%.

• Full-year loan growth (ex-Bremer) expected at 4%-6%, ramping up through the year.

• Net charge-off ratio projected at 0.20%–0.30% for 2025; provision for credit losses expected at $115–$125M.

• Management expects continued strong performance as the company integrates the Bremer Bank partnership.