Old National Bancorp · NASDAQ:ONB
Old National Bancorp — Q1 2025 Earnings Presentation
29 slides from Old National Bancorp's earnings presentation, Apr 22, 2025
Slide 1: 1st Quarter 2025 Financial Review
1st Quarter 2025 Financial Review April 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”), notwithstanding that such statements are not specifically identified as such. In addition, certain statements may be contain
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: First-Quarter 2025 Highlights
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 1.08% 1.
Slide 5: 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 6: 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 7: 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 8: 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 9: 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 10: 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 11: 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 12: 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 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 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 14: 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 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: Appendix
Appendix Lo OLD NATIONAL BANCORP’
Slide 18: 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 19: 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 20: 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 21: 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 22: 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 23: Projected Acquisition Accounting Impact
Projected Acquisition Accounting Impact (excludes pending 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 Discou
Slide 24: 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 25: 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 26: 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 27: 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 28: 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 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