Old National Bancorp · NASDAQ:ONB
Old National Bancorp — Q2 2025 Earnings Presentation
29 slides from Old National Bancorp's earnings presentation, Jul 22, 2025
Slide 1: 2nd Quarter 2025 Financial Review
2nd Quarter 2025 Financial Review July 22, 2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements These materials contain certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”), Section 27A of the Securities Act of 1933 and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Ac
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures The Company's accounting and reporting policies conform to U.S. generally accepted accounting principles ("GAAP") and general practices within the banking industry. As a supplement to GAAP, the Company provides non-GAAP performance results, which the Company believes are
Slide 4: Second-Quarter 2025 Highlights
Second-Quarter 2025 Highlights Key Performance Drivers Reported Adjusted1 EPS $0.34 $0.53 • Completed Bremer acquisition on May 1, 2025, strengthening our presence in Minnesota and the Net Income $121 $191 surrounding Midwest markets • Total and commercial loan2 growth, excluding Return on Average A
Slide 5: Liquid, Well-Capitalized Balance Sheet
Liquid, Well-Capitalized Balance Sheet % Change End of Period Balances 2Q25 1Q25 2Q24 2Q25 vs. 1Q25 2Q25 vs. 2Q24 Available-for-sale securities, at fair value $11,005 $7,754 $7,105 42% 55% Held-to-maturity securities, at amortized cost $2,926 $2,943 $2,986 (1)% (2)% Total loans1 $47,980 $36,455 $36,
Slide 6: Earning Assets
Earning Assets Total Loans1 Total loans1 YoY • Up $11.5 billion, due to Bremer and disciplined Up 32% $47,980 loan growth $36,217 $36,455 – Excluding Bremer, total loan growth of 3.7% annualized; commercial loan growth of 4.6% annualized 6.24% 6.16% – $2.3 billion total commercial production 5.83% ◦
Slide 7: Quality, Low-Cost Deposit Franchise
Quality, Low-Cost Deposit Franchise Period-End Total Deposits Key Performance Drivers Up 36% Y oY • Period-end deposits up $13.3 billion; core deposits up $54.4 $11.6 billion $40.0 $41.0 $5.6 $3.3 – Excluding Bremer, core deposits up 0.8% annualized $3.4 $1.8 $4.0 $1.5 $18.2 • NIB deposits represent
Slide 8: Second-Quarter 2025 Results
Second-Quarter 2025 Results % Change 2Q25 1Q25 2Q24 2Q25 vs. 1Q25 2Q25 vs. 2Q24 Net Interest Income (FTE)1,2 $522 $393 $395 33% 32% Provision for credit losses - excluding CECL Day 1 non-PCD provision expense 31 31 36 —% (14%) Provision for credit losses - CECL Day 1 non-PCD provision expense3,4 76
Slide 9: Net Interest Income & Net Interest Margin
1 Net Interest Income & Net Interest Margin 1 Net Interest Income Key Performance Drivers $522 • Net interest income1 increase reflective of larger balance sheet and higher asset yields $395 $393 • NIM1 increased 26 bps vs. 1Q25 3.53% 3.33% • Strong low-cost deposit franchise 3.27% – Total deposit c
Slide 10: Noninterest Income
Noninterest Income 2Q25 1Q25 2Q24 Key Performance Drivers Bank Fees $37 $31 $30 • Increases in all line items; reflective of Bremer and organic growth of fee-based Wealth Fees 36 30 29 businesses Mortgage Fees 10 7 7 • 2Q25 mortgage activity – Production2 was $594 million compared Capital Markets 7
Slide 11: Noninterest Expense
Noninterest Expense 2Q25 1Q25 2Q24 Key Performance Drivers • Higher primarily due to elevated operating Salaries & Employee Benefits $180 $143 $145 costs and additional intangibles amortization, both related to Bremer Occupancy & Equipment 43 38 35 • Adjusted efficiency ratio1 of 50.2% Technology &
Slide 12: Credit Quality
Credit Quality Asset Quality Net Charge-Offs 1.29% 0.24% 0.24% 0.94% 0.16% 1.24% 0.21% 0.21% 0.30% 0.11% 0.16% 0.22% 2Q24 1Q25 2Q25 2Q24 1Q25 2Q25 30+ Day Delinquency Nonaccrual Loans ONB ONB, excluding PCD Allowance for Credit Losses 1 Key Credit Quality Metrics $76 $1 $4 $595 • NCOs of 21 bps excl
Slide 13: Peer Credit Data
Peer Credit Data 30+ Day Delinquency Net Charge-Offs 0.50% 0.40% 0.40% 0.30% 0.30% 0.20% 0.20% 0.10% 0.10% 0.00% 0.00% (0.10)% FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 1Q25 2Q25 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 1Q25 2Q25 1 2 1 ONB Peer Average ONB Peer Average Non-Performing Loans Net Charge-O
Slide 14: Strong Capital Position
Strong Capital Position 2Q25 1 1Q25 2Q24 Key Performance Drivers • Strong retained earnings more than offset by the CET1 capital to RWA 10.74% 11.62% 10.73% impact of the Bremer transaction and loan growth • HTM securities pre-tax unrealized losses of Tier 1 capital to RWA 11.20% 12.23% 11.33% $456
Slide 15: Update on Bremer Partnership
Update on Bremer Partnership Estimated At Expected Announcement At Close Partnership Highlights Closing Date Middle of 2025 May 1, 2025 Closing occurred earlier than 25% in 2025; anticipated adding earnings momentum Cost Savings 100% in 2026 and Unchanged thereafter One-Time Merger Expenses ~$194 Un
Slide 16: Net Interest Income Outlook
1 Net Interest Income Outlook Maintaining Neutral Quarterly NII Outlook Rate Risk Position ~ $590 ~ $575 • 59% of loans are variable/floating-rate – 93% reprice within 3 months $522 • ~$7.0 billion fixed-rate loans and securities expected to reprice over NTM • 36% of total deposits are exception pri
Slide 17: Outlook
Outlook 3Q25 Outlook Full-Year 2025 Outlook (vs. Outlook Provided in 1Q25) EOP loans, excl. Bremer up 2% - 4%, annualized up 4%-6% Unchanged (Including HFS) Net interest income (FTE basis)1 ~$575 million ~$2,065 - $2,095 million Up Noninterest income1 ~$120 million ~$435 - $455 million Up Noninteres
Slide 18: Appendix
Appendix Lo OLD NATIONAL BANCORP’
Slide 19: Diversified Loan Portfolio
Diversified Loan Portfolio CRE Non-Owner Occupied $16.0 billion Office Total Loans 4% $47.9 billion Warehouse Industrial Multifamily 4% 14% Total Loans By State Other 7% MN $10.4 22% Consumer Retail 7% 4% IL 8.6 18% IN 5.4 11% Residential CRE Non- Real Estate Owner WI 5.0 11% 17% Occupied 33% MI 3.0
Slide 20: CRE Non-Owner Occupied Maturities
CRE Non-Owner Occupied Maturities CRE NOO CRE NOO Maturing <18 Mos. Maturing <18 Mos. Current Int. Rate Int. Rate <4% ~2% of Total Loans Office Other $0.8 $5.2 <4% billion >4% billion Multifamily Maturing CRE NOO Loans • Manageable volume of loans subject to refinance risk – Predominantly multifamil
Slide 21: CRE Non Owner Occupied - Office
CRE Non Owner Occupied - Office Our Lending Looks More Like This ...Less Like This • Total office portfolio of $1.9 billion; average loans size is $3.0 million – Largest exposure of ~$60 million • 94% located in bank’s footprint, diversified by submarket • 42% of portfolio is medical office (“MOB”)
Slide 22: CRE Non Owner Occupied - Multifamily
CRE Non Owner Occupied - Multifamily Our Lending Looks More Like This ...Less Like This • Total multifamily portfolio of $6.8 billion; average loans size is $4.5 million – Largest exposure of ~$65 million • 87% located in bank’s footprint • Continued strong demand and rental rates in core markets (I
Slide 23: Granular, Long-Tenured Deposit Base
Granular, Long-Tenured Deposit Base Average Core Account Balance Deposit Highlights • Insured deposits2 >70% of total deposits • Granular low-cost deposit franchise $1.5mm – Top 20 deposit clients represents ~7% of $1.0mm total deposits; weighted average tenure > 27 years; ~62% collateralized or ins
Slide 24: Non-GAAP Reconciliation
Non-GAAP Reconciliation 2Q25 1Q25 2Q24 Net interest income $514.8 $387.6 $388.5 FTE Adjustment 7.1 5.4 6.3 Net interest income (FTE) $521.9 $393.0 $394.8 Add: Fee income 132.5 93.8 87.3 Total revenue (FTE) $654.4 $486.8 $482.1 Less: Provision for credit losses (106.8) (31.4) (36.2) Less: Noninterest
Slide 25: Non-GAAP Reconciliation
Non-GAAP Reconciliation 2Q25 1Q25 2Q24 Noninterest income $132.5 $93.8 $87.3 Less: Debt securities losses 0.0 0.1 0.0 Less: Pension plan gain (21.0) 0.0 0.0 Adjusted noninterest income $111.5 $93.9 $87.3 Noninterest expense $384.8 $268.5 $283.0 Less: Merger-related charges (41.2) (5.9) (19.4) Adjust
Slide 26: Non-GAAP Reconciliation
Non-GAAP Reconciliation 2Q25 1Q25 2Q24 Noninterest Expense $384.7 $268.5 $283.0 Less: Intangible amortization (19.7) (6.8) (7.4) Noninterest expense, excluding intangible amortization 365.1 261.7 275.6 Adjustments: Less: Merger-related charges (41.2) (5.9) (19.4) Less: Amortization of tax credits in
Slide 27: Non-GAAP Reconciliation
Non-GAAP Reconciliation 2Q25 1Q25 2Q24 Net income applicable to common shares $121.4 $140.7 $117.2 Add: Intangibles amortization, net of tax 14.7 5.1 5.6 Tangible net income applicable to common shares $136.2 $145.8 $122.8 Total adjustments, net of tax $69.4 $4.9 $26.8 Adjusted net income applicable
Slide 28: Non-GAAP Reconciliation
Non-GAAP Reconciliation 2Q25 1Q25 2Q24 Shareholders' equity $8,126.4 $6,535.0 $6,075.0 Less: Preferred equity (243.7) (243.7) (243.7) Shareholders' common equity 7,882.7 6,291.3 5,831.3 Less: Goodwill and other intangible assets (2,944.4) (2,289.3) (2,306.2) Tangible shareholders' common equity $4,9
Slide 29: 2025 Peer Group
2025 Peer Group Like-size, publicly-traded financial services companies, serving comparable demographics with comparable services as Old National Bancorp Associated Banc-Corp ASB BOK Financial Corporation BOKF Cadence Bancorporation CADE Columbia Banking System, Inc. COLB Comerica Incorporated CMA F