Old National Bancorp · NASDAQ:ONB
Old National Bancorp — Q1 2025 Earnings Presentation
49 slides from Old National Bancorp's earnings presentation, May 15, 2025
Slide 1: 1st Quarter 2025 Investment Thesis
Exhibit 99.1 1st Quarter 2025 Investment Thesis May 15, 2025
Slide 2: Executive Summary
Executive Summary Slides 5 —16
Slide 3: 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 4: 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 5: Corporate Strategy
Corporate Strategy Old National’s primary strategic objective is to be a top quartile performing “basic bank” that is a primary, trusted partner to our clients in the communities we serve, and a highly respected, highly valued employer that continually empowers our team members to grow, develop and
Slide 6: Snapshot of Old National
Snapshot of Old National Summary1 Company Description Headquarters Evansville, IN • 6th largest commercial bank headquartered in Market Cap $7,205 Midwest - top 30 banking company based in the U.S. by assets P/ TBV 180% • 280 branches and 356 ATMs Dividend Yield 2.5% LTM Average Daily Volume (Actual
Slide 7: The Best of Offense and Defense
The Best of Offense and Defense OFFENSE DEFENSE Top quartile 1Q2025 Quality, peer-leading deposit franchise financial metrics • Growth in core deposits of 2.1% annualized 1 • 15.5% Adj. ROATCE • Low total deposit costs of 191 bps • 51.8% Adj. Efficiency. Ratio1 • 74% of core deposits have tenure >5
Slide 8: Low-Risk Balance Sheet Relative to Peers
Low-Risk Balance Sheet Relative to Peers Risk-Weighted Assets / Total Assets1 3 and 15-Year Cumulative NCOs / Avg. Loans2 92% 86% 78% 75% 70% 5.69% 1.89% 0.25% 0.45% Lower Average Upper Peer Max ONB 3-Year 15-Year Quartile Quartile 3 ONB Peer Average Financial data as of or for the quarter ended 3/3
Slide 9: ONB is Building Capital Faster than Peers
1 ONB is Building Capital Faster than Peers ROA2 ROATCE2 2026E Payout Ratio3 Equity Retention Rate3,4 HWC 1.4% COLB 18.7% PNFP 11% ONB 15.4% COLB 1.3% WBS 16.7% WAL 15% UMBF 14.7% WBS 1.2% ONB 16.6% UMBF 15% WAL 13.5% SNV 1.2% SNV 16.2% WTFC 18% WBS 12.4% WTFC 1.2% ZION 16.0% ONB 22% PNFP 11.4% ONB
Slide 10: Strong TBV Per Share Growth History
1 Strong TBV Per Share Growth History % f 12 of 7 % GRo GR CA $12.54 CA 4 21 202 - 20 $11.70 2- $11.91 201 6 $11.43 202 $11.00 $10.35 $9.42 $9.00 $8.30 $8.37 $7.62 TBV Per Share CAGR (%) Old National KRX 2-Year 12.4% 9.1% 3-Year 0.6% 1.4% 5-Year 2.9% 3.7% 7-Year 5.2% 5.1% 5 6 7 8 9 0 1 2 3 4 25 201
Slide 11: ONB has Dramatically Enhanced Franchise Value
ONB has Dramatically Enhanced Franchise Value 2013 2025E Added Scale1 Assets ($B) $10 $70 + $70B in Assets AUM ($B) $6 $371 + $54B in Deposits Core EPS 2 $1.05 $2.14 + $37B in AUM TBV Per Share $7.85 $12.72 Major Markets3 Efficiency Ratio Chicago ~$16B in Deposits #9 Mkt Share 67% 54% Minneapolis ~$
Slide 12: Partnership with Bremer Financial Corporation
Partnership with Bremer Financial Corporation A Combination Creating the Premier Midwest Regional Bank Pro Forma Impact Source: S&P Capital IQ, FactSet, ONB filings and management and Bremer filings. Financial data as of the quarter ended 9/30/2024 1 Reflects pro forma balances as of 9/30/2024 for i
Slide 13: Bremer Financial Corporation Transaction Highlights
Bremer Financial Corporation Transaction Highlights Source: S&P Capital IQ, FactSet, ONB filings and management and Bremer filings. Financial data as of the quarter ended 9/30/2024. Branch data as of 6/30/2024. Pro forma impact is presented for illustrative purposes only. See disclaimer "Pro Forma F
Slide 14: Peer-Leading Deposit Franchise
Peer-Leading Deposit Franchise Period-End Total Deposits Key Performance Drivers Up 9% YoY • Period-end deposits up 2.1% annualized; core deposits $37.7 $40.8 $1.5 $41.0 $1.5 up 1.7% annualized $1.2 $4.0 $3.5 $4.0 • NIB deposits represent 23% of core deposits $13.8 $15.1 $15.2 • Spot rate of 1.90% o
Slide 15: Net Interest Income Outlook (includes Bremer)
1,2 Net Interest Income Outlook (includes Bremer) Maintaining Neutral Quarterly NII Outlook Rate Risk Position ~ $590 ~ $575 • 57% of loans are variable/floating-rate • ~$5.0 billion fixed-rate loans and securities ~ $517 expected to reprice over NTM • 34% of total deposits are exception priced at a
Slide 16: Outlook (includes Bremer)
2 Outlook (includes Bremer) 2Q25 Outlook Full-Year 2025 Outlook EOP loans, excl. Bremer up 2% - 4%, annualized up 4% - 6% (Including HFS) Net interest income (FTE basis)1 ~$517 million ~$2,055 - $2,090 million Noninterest income1 ~$105 million ~$430 - $450 million Noninterest expense1 ~$345 million
Slide 17: Financial Details
Financial Details Data as of March 31, 2025
Slide 18: Strong First-Quarter 2025 Highlights
Strong First-Quarter 2025 Highlights Key Performance Drivers Reported Adjusted1 EPS $0.44 $0.45 ▪ Granular, peer-leading deposit franchise • Total and core deposits up 2.1% and 1.7% Net Income $141 $146 annualized, respectively • NIB deposits represent 23% of core deposits Return on Average Assets 1
Slide 19: Liquid, Well-Capitalized Balance Sheet
Liquid, Well-Capitalized Balance Sheet % Change End of Period Balances 1Q25 4Q24 1Q24 1Q25 vs. 4Q24 1Q25 vs. 1Q24 Available-for-sale securities, at fair value $7,754 $7,459 $6,792 4% 14% Held-to-maturity securities, at amortized cost $2,943 $2,955 $3,001 —% (2)% Total loans1 $36,454 $36,320 $33,642
Slide 20: Earning Assets
Earning Assets Total Loans1 Total loans1 Up 8% YoY • Up $134 million, 1.5% annualized from 4Q24 $36,320 $36,454 – 2.3% annualized excluding $71 million CRE $33,642 loan sale – $1.5 billion total commercial production 6.14% ◦ 82% floating; avg yield of 6.7% 6.07% 5.83% ◦ 18% fixed; avg yield of 6.7%
Slide 21: First-Quarter 2025 Results
First-Quarter 2025 Results % Change 1Q25 4Q24 1Q24 1Q25 vs. 4Q24 1Q25 vs. 1Q24 Net Interest Income (FTE)1,2 $393 $400 $363 (2%) 8% Provision for credit losses $31 $27 $19 15% 63% 1 Adjusted noninterest income 94 96 78 (2%) 21% Net securities losses — — (1) N/M N/M 1 Adjusted noninterest expense 263
Slide 22: Net Interest Income & Net Interest Margin
1 Net Interest Income & Net Interest Margin 1 Net Interest Income Key Performance Drivers • Net interest income1 decrease reflective of $400 $393 lower accretion, fewer days and earning asset $363 mix, partly offset by lower funding costs • NIM1 decreased modestly 3 bps vs. 4Q24 • Strong low-cost de
Slide 23: Noninterest Income
Noninterest Income 1Q25 4Q24 1Q24 Key Performance Drivers Bank Fees $31 $32 $28 • Lower other income and seasonally lower bank fees Wealth Fees 30 30 28 • 1Q25 other income impacted by $4.8 million of gains on the sale of $71 million of commercial real estate loans Mortgage Fees 7 7 5 and 4Q24 impac
Slide 24: Noninterest Expense
Noninterest Expense 1Q25 4Q24 1Q24 Key Performance Drivers • Other expense impacted by lower FDIC Salaries & Employee Benefits $143 $143 $135 assessment expense and tax credit amortization Occupancy & Equipment 38 39 36 • Adjusted efficiency ratio1 of 51.8% Technology & Communication 26 25 24 Other
Slide 25: Credit Quality
Credit Quality Asset Quality Net Charge-Offs 1.23% 1.29% 0.24% 0.21% 0.98% 0.14% 0.21% 0.17% 0.27% 0.22% 0.16% 0.07% 1Q24 4Q24 1Q25 1Q24 4Q24 1Q25 30+ Day Delinquency Non-Performing Loans ONB ONB, excluding PCD Allowance for Credit Losses 1 Key Credit Quality Metrics $8 $2 $424 • NCOs of 21 bps excl
Slide 26: 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 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 1Q25 1 2 1 ONB Peer Average ONB Peer Average Non-Performing Loans Net Charge-Offs / Non-
Slide 27: Conservative Lending Limit/Risk Grades
Conservative Lending Limit/Risk Grades Borrower Asset Quality Rating In-House Direct Lending Limit (Risk Grades) 0 - Investment Grade $100.0 1 - Minimal Grade $100.0 2 - Modest Grade $87.5 3 - Average Risk $75.0 4 - Monitor $60.0 5 - Weak Monitor $45.0 6 - Watch $25.0 Borrower Asset Quality Rating (
Slide 28: Diversified Loan Portfolio
Diversified Loan Portfolio CRE Non-Owner Occupied $11.8 billion Office Total Loans 4% $36.4 billion Warehouse Industrial Multifamily 5% 15% Total Loans By State Other 5% IL $8.6 24% Consumer Retail 8% IN 5.3 14% 3% MN 3.8 10% CRE Non- Residential Owner Real Estate WI 3.7 10% Occupied 19% 32% MI 2.9
Slide 29: 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% ~1% of Total Loans Office Other $0.5 $4.2 <4% billion >4% billion Multifamily Maturing CRE NOO Loans • Manageable volume of loans subject to refinance risk – Predominantly multifamil
Slide 30: CRE Non Owner Occupied - Office
CRE Non Owner Occupied - Office Our Lending Looks More Like This ...Less Like This • Total office portfolio of $1.5 billion; average loans size is $3.1 million – Largest exposure of ~$50 million • 95% located in bank’s footprint, diversified by submarket • 41% of portfolio is medical office (“MOB”)
Slide 31: CRE Non Owner Occupied - Multifamily
CRE Non Owner Occupied - Multifamily Our Lending Looks More Like This ...Less Like This • Total multifamily portfolio of $5.5 billion; average loans size is $5.0 million – Largest exposure of ~$60 million • 85% located in bank’s footprint • Continued strong demand and rental rates in core markets (I
Slide 32: Strong Capital Position
Strong Capital Position 1Q25 1 4Q24 1Q24 Key Performance Drivers • Strong retained earnings drive capital CET1 capital to RWA 11.62% 11.38% 10.76% • HTM securities pre-tax unrealized losses of $457 million (~$343 million net of tax) Tier 1 capital to RWA 12.23% 11.98% 11.40% • No shares of common st
Slide 33: Appendix
Appendix Lo OLD NATIONAL BANCORP’
Slide 34: 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 ~8% of $1.0mm total deposits; weighted average tenure > 24 years; ~65% collateralized or ins
Slide 35: Projected Acquisition Accounting Impact
Projected Acquisition Accounting Impact (excludes acquisition of Bremer Financial Corporation) 1,2 Contractual Accretion Accretion on acquired loans and borrowings $32 • $12 million recognized in 1Q25 $30 • $30 million contractual for 2025 $21 2025 2026 2027 1 Projected Remaining Loan Discount $94 D
Slide 36: Commitment to Strong Corporate Governance
Commitment to Strong Corporate Governance • Stock ownership guidelines have been established for executive officers as follows: Position or Salary Target Ownership Guidelines Chief Executive Officer 5X salary in stock or 200,000 shares Chief Operating Officer 4X salary in stock or 100,000 shares Sal
Slide 37: Commitment to Excellence
Commitment to Excellence Trade names, trademarks and service marks of other companies appearing in this presentation are the property of their respective holders 37
Slide 38: Commitment to the Communities We Serve
Commitment to the Communities We Serve Old National’s 2024 Community Action Report (“CAR”) Report showcases our commitment to: • Strong risk management and corporate governance principles • Putting our clients at the center of all we do • Investing in our team members • Strengthening our communities
Slide 39: CAR At A Glance - 2024
CAR At A Glance - 2024 $3.2 million in Affordable Housing Program (AHP) grants through the Federal Home Loan Bank $456 MILLION in Community Reinvestment Act (CRA)-eligible community development loans that supported affordable housing, economic development, community services for low- and moderate-in
Slide 40: 2024 Executive Compensation
2024 Executive Compensation • Tied to long-term shareholder value Short-Term Incentive Compensation Performance Measure Weight Adjusted EPS 100% Pre-determined formulaic modifiers for relative deposit cost and deposit growth versus banks in the KRX Index Long-Term Equity Compensation Performance Mea
Slide 41: Board of Directors and Corporate Governance
Board of Directors and Corporate Governance 94% Independent 44% Female and minority directors Tenure 6% 75% Other public company Lead Independent Daniel Hermann was appointed as experience Director Lead Independent Director in 0-5 years January 2025 31% 6-10 years 63% Annual Elected each year for on
Slide 42: Pro Forma Earnings Per Share Reconciliation
Pro Forma Earnings Per Share Reconciliation Source: S&P Capital IQ, FactSet, ONB filings and management and Bremer filings Financial Data as of the quarter ended 9/30/2024 Pro forma impact is presented for illustrative purposes only 1 Based on 2026E median consensus estimates 2 There can be no assur
Slide 43: Non-GAAP Reconciliation
Non-GAAP Reconciliation 1Q25 4Q24 1Q24 Net interest income $387.6 $394.1 $356.4 FTE Adjustment 5.4 5.8 6.3 Net interest income (FTE) $393.0 $399.9 $362.7 Add: Fee income 93.8 95.8 77.5 Total revenue (FTE) $486.8 $495.7 $440.2 Less: Provision for credit losses (31.4) (27.0) (18.9) Less: Noninterest e
Slide 44: Non-GAAP Reconciliation
Non-GAAP Reconciliation 1Q25 4Q24 1Q24 Noninterest income $93.8 $95.8 $77.5 Less: Debt securities losses 0.1 0.1 0.0 Adjusted noninterest income $93.9 $95.9 $77.5 Noninterest expense $268.5 $276.8 $262.3 Less: Merger-related charges (5.9) (8.1) (2.9) Less: FDIC Special Assessment 0.0 0.0 (3.0) Adjus
Slide 45: Non-GAAP Reconciliation
Non-GAAP Reconciliation 1Q25 4Q24 1Q24 Noninterest Expense $268.5 $276.8 $262.3 Less: Intangible amortization (6.8) (7.2) (5.5) Noninterest expense, excluding intangible amortization 261.7 269.6 256.8 Adjustments: Less: Merger-related charges (5.9) (8.1) (2.9) Less: FDIC Special Assessment 0.0 0.0 (
Slide 46: Non-GAAP Reconciliation
Non-GAAP Reconciliation 1Q25 4Q24 1Q24 Net income applicable to common shares $140.6 $149.9 $116.3 Add: Intangibles amortization, net of tax 5.1 5.4 4.1 Tangible net income applicable to common shares $145.8 $155.3 $120.4 Total adjustments, net of tax $4.9 $6.1 $14.5 Adjusted net income applicable t
Slide 47: Non-GAAP Reconciliation
Non-GAAP Reconciliation 1Q25 4Q24 1Q24 Shareholders' equity $6,534.7 $6,340.3 $5,595.4 Less: Preferred equity (243.7) (243.7) (243.7) Shareholders' common equity 6,291.0 6,096.6 5,351.7 Less: Goodwill and other intangible assets (2,289.3) (2,296.1) (2,095.5) Tangible shareholders' common equity $4,0
Slide 48: 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
Slide 49: Old National Investor Relations Contact
Old National Investor Relations Contact Additional information can be found on the Investor Relations web pages at www.oldnational.com Investor Inquiries: Lynell J. Durchholz, CPA SVP - Director of Investor Relations 812-464-1366 lynell.durchholz@oldnational.com 49