Old National Bancorp tops Q3 estimates on strong revenue growth

Investing.com - Old National Bancorp (NASDAQ:ONB) on Wednesday reported third quarter adjusted earnings of $0.59 per share, exceeding analyst expectations of $0.56, while revenue reached $705.07 million, surpassing the consensus estimate of $696.71 million.

The bank’s strong performance was driven by higher net interest income and growth in core deposits. Net interest income on a fully taxable equivalent basis rose to $582.6 million, with net interest margin expanding 11 basis points to 3.64%.

"Old National’s outstanding quarterly results reflect our continued focus on the fundamentals and the benefits from our recent partnership with Bremer Bank," said Chairman and CEO Jim Ryan. "Furthermore, with conversion activities related to our Bremer partnership now complete, Old National is exceptionally well positioned for the remainder of 2025 and beyond."

Total deposits increased to $55.0 billion, up 4.8% on an annualized basis, with core deposits growing at an even stronger 5.8% annualized rate. Period-end total loans were $48.0 billion, up 0.6% annualized, while excluding loans acquired from Bremer, loans grew at a 3.1% annualized rate.

Credit quality remained solid with net charge-offs of $30.0 million, representing 0.25% of average loans. The provision for credit losses was $26.7 million, down significantly from $106.8 million in the previous quarter.

The bank reported a return on average tangible common equity of 15.9%, or 20.1% on an adjusted basis. The efficiency ratio improved to 48.1% on an adjusted basis, compared to 50.2% in the previous quarter.

Old National’s preliminary regulatory Tier 1 common equity to risk-weighted assets ratio strengthened to 11.02%, up 28 basis points from the previous quarter, reflecting the bank’s strong capital position.

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