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 10% loan and deposit growth and 8% tangible book value increase.

• Maintained an offensive growth strategy, investing in talent and acquisitions, including CapStar completion and Bremer partnership announcement, strengthening presence in Nashville and the Midwest.

• Leadership changes: President/COO Mark Sander to retire June 30, 2025; Daniel S. Hermann named Lead Independent Director.

Financial highlights

• Q4 2024 net interest income (FTE) was $400M, up 8% year-over-year; net interest margin was 3.30%, down 9 bps; adjusted noninterest income grew 22% to $96M.

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

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

• Net charge-offs were 0.21% in Q4 (0.17% excluding PCD loans); CET1 ratio ended 2024 at 11.38%.

Outlook and guidance

• 2025 guidance includes 4%-6% full-year loan growth, net interest income of $1.96B–$1.99B, and EPS above analyst consensus, 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%.

• Assumes two 25bp Fed rate cuts in 2025 and stable noninterest-bearing deposit mix at 24%.

• Expect to close Bremer partnership by mid-2025, with full integration and cost savings realized in 2026.