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Jun 30
Old National Q2 2025 Earnings Report
Old National Bancorp reported second quarter 2025 results, including net income of $121.4 million and diluted EPS of $0.34, with adjusted figures of $190.9 million and $0.53 respectively. The company also announced the appointment of Tim Burke as President and COO.
Key Takeaways
Old National Bancorp delivered strong second quarter results, driven by balance sheet growth, expansion of fee-based businesses, and expense control. The successful integration of Bremer Financial Corporation significantly contributed to a larger balance sheet and stronger capital position, positioning the company well for the remainder of the year.
Net income applicable to common shares was $121.4 million, with adjusted net income at $190.9 million.
Diluted EPS stood at $0.34, and adjusted diluted EPS was $0.53.
Net interest income on a fully taxable equivalent basis increased to $521.9 million, with net interest margin at 3.53%.
Total assets reached $70.98 billion and total deposits were $54.36 billion, reflecting significant growth primarily due to the Bremer partnership.
Old National
Old National
Old National Revenue by Segment
Revenue by Segment
Wealth and investment services fees Revenue
CapyFin.comService charges on deposit accounts Revenue
CapyFin.comMortgage banking Revenue
CapyFin.comCapital markets income Revenue
CapyFin.comCompany-owned life insurance Revenue
CapyFin.comOther income Revenue
CapyFin.comDebit card and ATM fees Revenue
CapyFin.com Forward Guidance
Old National is well-positioned for the remainder of the year, benefiting from a larger balance sheet and stronger capital position following the Bremer partnership. The company expects continued growth in its balance sheet and fee-based businesses, alongside disciplined expense management.
Positive Outlook
- Successful closing of the Bremer partnership on May 1, 2025, enhancing balance sheet and capital.
- Strong focus on growing the balance sheet and expanding fee-based businesses.
- Disciplined expense control contributing to improved efficiency.
- Commercial loan production of $2.3 billion in Q2, with a pipeline increase of approximately 40%.
- Appointment of Tim Burke as President and COO is expected to drive continued client satisfaction and community impact.
Challenges Ahead
- Significant pre-tax CECL Day 1 non-PCD provision expense of $75.6 million related to acquired loans.
- Pre-tax merger-related charges of $41.2 million impacting current quarter results.
- Increase in 30+ day delinquencies to 0.30% from 0.22% in the prior quarter.
- Preliminary regulatory Tier 1 common equity to risk-weighted assets decreased by 88 bps.
- Total risk-based capital decreased by 109 bps to 12.59%.