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Sep 30
Old National Q3 2025 Earnings Report
Old National Bancorp reported its third quarter 2025 financial results, highlighting increased net income and adjusted EPS, driven by the Bremer Bank partnership and strong operating performance.
Key Takeaways
Old National Bancorp delivered strong third quarter 2025 results, with net income applicable to common shares reaching $178.5 million and diluted EPS of $0.46. On an adjusted basis, net income was $231.3 million and adjusted diluted EPS was $0.59. The company's performance was significantly bolstered by the full quarter impact of its partnership with Bremer Bank, leading to higher net interest income and improved efficiency ratios.
Net income applicable to common shares was $178.5 million, with adjusted net income at $231.3 million.
Diluted EPS stood at $0.46, while adjusted diluted EPS was $0.59, reflecting strong underlying performance.
Net interest margin (FTE) increased by 11 basis points to 3.64%, driven by a larger balance sheet and higher asset yields.
The adjusted efficiency ratio improved to 48.1%, indicating disciplined expense management and operational leverage.
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.comDebit card and ATM fees Revenue
CapyFin.comMortgage banking Revenue
CapyFin.comCapital markets income Revenue
CapyFin.comCompany-owned life insurance Revenue
CapyFin.comOther income Revenue
CapyFin.com Forward Guidance
Old National Bancorp is well-positioned for the remainder of 2025 and beyond, with conversion activities related to the Bremer partnership now complete. The company anticipates continued benefits from its expanded balance sheet and disciplined operational focus.
Positive Outlook
- Completion of conversion activities related to the Bremer partnership is expected to streamline operations.
- The full quarter impact of the Bremer partnership has already contributed to higher net interest income and improved asset yields.
- Strong commercial loan production, up 20% from the previous quarter, indicates robust business activity.
- Resilient credit quality, with 30+ day delinquencies and nonaccrual loans remaining low, suggests a healthy loan portfolio.
- Capital ratios remain strong, with preliminary Tier 1 common equity to risk-weighted assets increasing by 28 bps.
Challenges Ahead
- The report does not explicitly state negative forward guidance. However, general economic conditions and interest rate fluctuations could pose challenges.
- Increased funding costs, although managed, could impact future net interest margin if not offset by asset yield growth.
- Merger-related charges, while accounted for, represent a significant expense in the current quarter.
- Competition in the banking sector remains a constant factor that could affect growth and profitability.
- Potential for future credit loss provisions if economic conditions deteriorate, although current credit quality is strong.