Open the filing on EDGAROld National Bancorp Reports Third Quarter 2025 Results
Old National Bancorp (NASDAQ: ONB) reports 3Q25 net income applicable to common shares of $178.5 million, diluted EPS of $0.46; $231.3 million and $0.59 on an adjusted basis, respectively.
CEO COMMENTARY:
"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."
THIRD QUARTER HIGHLIGHTS:
Net Income
- Net income applicable to common shares of $178.5 million; adjusted net income applicable to common shares of $231.3 million
- Earnings per diluted common share ("EPS") of $0.46; adjusted EPS of $0.59
Net Interest Income/NIM
- Net interest income on a fully taxable equivalent basis of $582.6 million
- Net interest margin on a fully taxable equivalent basis ("NIM") of 3.64%, up 11 basis points ("bps")
Operating Performance
- Pre-provision net revenue ("PPNR") of $267.3 million; adjusted PPNR of $336.6 million, up 16%
- Noninterest expense of $445.7 million; adjusted noninterest expense of $376.5 million
- Efficiency ratio of 58.8%; adjusted efficiency ratioof 48.1%
Deposits and Funding
- Period-end total deposits of $55.0 billion, up 4.8% annualized; core deposits up 5.8% annualized
- Granular low-cost deposit franchise; total deposit costs of 197 bps, up 4 bps
Loans and Credit Quality
- End-of-period total loans of $48.0 billion, up 0.6% annualized◦End-of-period total loans up 3.1% annualized excluding loans acquired from Bremer
- Provision for credit losses ("provision") of $26.7 million
- Net charge-offs of $30.0 million, or 25 bps of average loans; 17 bps excluding purchased credit deteriorated ("PCD") loans that had an allowance at acquisition
- 30+ day delinquencies of 0.18% and nonaccrual loans of 1.23% of total loans
Return Profile & Capital
- Return on average tangible common equity ("ROATCE") of 15.9%; adjusted ROATCE of 20.1%•Preliminary regulatory Tier 1 common equity to risk-weighted assets of 11.02%, up 28 bps
Notable Items
- $69.3 million of pre-tax merger-related charges
Non-GAAP financial measure that management believes is useful in evaluating the financial results of the Company - refer to the Non-GAAP reconciliations contained in this release Comparisons are on a linked-quarter basis, unless otherwise noted Includes loans held-for-sale Includes the provision for unfunded commitments
RESULTS OF OPERATIONS
Old National Bancorp reported third quarter 2025 net income applicable to common shares of $178.5 million, or $0.46 per diluted common share.
Included in third quarter results were pre-tax charges of $69.3 million for merger-related expenses. Excluding these items and realized debt securities losses from the current quarter, adjusted net income was $231.3 million, or $0.59 per diluted common share.
DEPOSITS AND FUNDING
Growth in core deposits driven by growth from both existing and new commercial clients.
- Period-end total deposits were $55.0 billion, up 4.8% annualized; core deposits up 5.8% annualized.
- On average, total deposits for the third quarter were $54.9 billion, up $5.1 billion.
- Granular low-cost deposit franchise; total deposit costs of 197 bps, up 4 bps.
- A loan to deposit ratio of 87%, combined with existing funding sources, provides strong liquidity.
LOANS
Loan growth driven by strong commercial loan production partially offset by proactive portfolio actions.
- Period-end total loans were $48.0 billion, up 0.6% annualized.
- Excluding loans acquired in the Bremer transaction, period-end total loans were up 3.1% annualized.
- Total commercial loan production in the third quarter was $2.8 billion, up 20% from the second quarter of 2025; period-end commercial pipeline totaled $4.2 billion.
- Average total loans in the third quarter were $48.2 billion, an increase of $4.1 billion.
CREDIT QUALITY
Resilient credit quality continues to be a hallmark of Old National.
- Provision expense was $26.7 million compared to $106.8 million, or $31.2 million excluding $75.6 million of current expected credit loss ("CECL") Day 1 non-PCD provision expense related to the allowance for credit losses established on acquired non-PCD loans (including unfunded loan commitments) in the Bremer transaction in the second quarter of 2025.
- Net charge-offs were $30.0 million, or 25 bps of average loans, compared to 24 bps in the prior quarter.
- Excluding PCD loans that had an allowance for credit losses established at acquisition, net charge-offs to average loans were 17 bps compared to 21 bps in the prior quarter.
- 30+ day delinquencies as a percentage of loans were 0.18% compared to 0.30%.
- Nonaccrual loans as a percentage of total loans were 1.23% compared to 1.24%.
- The allowance for credit losses, including the allowance for credit losses on unfunded loan commitments, stood at $604.5 million, or 1.26% of total loans, compared to $594.7 million, or 1.24% of total loans.
NET INTEREST INCOME AND MARGIN
Higher reflective of larger balance sheet and higher asset yields.
- Net interest income on a fully taxable equivalent basis increased to $582.6 million compared to $521.9 million, driven by the full quarter impact of Bremer, higher asset yields and more days in the quarter, partly offset by higher funding costs.
- Net interest margin on a fully taxable equivalent basisincreased 11 bps to 3.64%.
- Cost of total deposits was 1.97%, increasing 4 bps and the cost of total interest-bearing deposits increased 5 bps to 2.57%.
NONINTEREST INCOME
Increase driven by full quarter impact of Bremer, organic growth and record capital markets revenue.
- Total noninterest income was $130.5 million compared to $132.5 million, or $111.6 million excluding a $21.0 million pre-tax gain associated with the freezing of benefits of the Bremer pension plan in the second quarter of 2025.
- Excluding the pension plan gain in the second quarter of 2025 and realized debt securities losses, noninterest income was up 16.9% driven by the full quarter impact of Bremer, organic growth and record capital markets revenue.
NONINTEREST EXPENSE
Higher reflective of the full quarter impact of Bremer, disciplined expense management drives adjusted efficiency ratio lower.
- Noninterest expense was $445.7 million and included $69.3 million of merger-related charges.
- Excluding merger-related charges, adjusted noninterest expense was $376.5 million, compared to $343.6 million, driven by the full quarter impact of Bremer.
- The efficiency ratio was 58.8%, while the adjusted efficiency ratio was 48.1% compared to 55.8% and 50.2%, respectively.
INCOME TAXES
- Income tax expense was $50.0 million, resulting in an effective tax rate of 21.5% compared to 19.5%. On an adjusted fully taxable equivalent ("FTE") basis, the effective tax rate was 24.0% compared to 24.6%.
- The effective tax rate for the second quarter of 2025 was impacted by the Bremer transaction.
- Income tax expense included $7.8 million of tax credit benefit compared to $5.8 million.
CAPITAL
Capital ratios remain strong.
- Preliminary total risk-based capital up 19 bps to 12.78% and preliminary regulatory Tier 1 capital up 29 bps to 11.49%, as strong retained earnings drive capital.
- Tangible common equity to tangible assets was 7.53%, up 3.7%.
- The Company repurchased 1.1 million shares of common stock during the quarter.
CONFERENCE CALL AND WEBCAST
Old National will host a conference call and live webcast at 9:00 a.m. Central Time on Wednesday, October 22, 2025, to review third quarter financial results. The live audio webcast link and corresponding presentation slides will be available on the Company’s Investor Relations website at oldnational.com and will be archived there for 12 months. To listen to the live conference call, dial U.S. (800) 715-9871 or International (646) 307-1963, access code 9394540. The telephone replay will be available approximately one hour after completion of the call until midnight Eastern Time on November 5, 2025. To access the replay, dial U.S. (800) 770-2030 or International (609) 800-9909; Access code 9394540.
ABOUT OLD NATIONAL
Old National Bancorp (NASDAQ: ONB) is the holding company of Old National Bank. As the sixth largest commercial bank headquartered in the Midwest, Old National proudly serves clients primarily in the Midwest and Southeast. With approximately $71 billion of assets and $38 billion of assets under management, Old National ranks among the top 25 banking companies headquartered in the United States. Tracing our roots to 1834, Old National focuses on building long-term, highly valued partnerships with clients while also strengthening and supporting the communities we serve. In addition to providing extensive services in consumer and commercial banking, Old National offers comprehensive wealth management and capital markets services. For more information and financial data, please visit Investor Relations at oldnational.com. In 2025, Points of Light named Old National one of "The Civic 50" - an honor reserved for the 50 most community-minded companies in the United States.
USE OF 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 useful because they assist investors in assessing the Company's operating performance. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables at the end of this release.
The Company presents EPS, the efficiency ratio, return on average common equity, return on average tangible common equity, and net income applicable to common shares, all adjusted for certain notable items. These items include merger-related charges associated with completed and pending acquisitions, CECL Day 1 non-PCD provision expense, a pension plan gain, debt securities gains/losses, separation expense, distribution of excess pension assets expense, and FDIC special assessment expense. Management believes excluding these items from EPS, the efficiency ratio, return on average common equity, and return on average tangible common equity may be useful in assessing the Company's underlying operational performance since these items do not pertain to its core business operations and their exclusion may facilitate better comparability between periods. Management believes that excluding merger-related charges from these metrics may be useful to the Company, as well as analysts and investors, since these expenses can vary significantly based on the size, type, and structure of each acquisition. Additionally, management believes excluding these items from these metrics may enhance comparability for peer comparison purposes.
Income tax expense, provision for credit losses, and the certain notable items listed above are excluded from the calculation of pre-provision net revenues, adjusted due to the fluctuation in income before income tax and the level of provision for credit losses required. Management believes adjusted pre-provision net revenues may be useful in assessing the Company's underlying operating performance and their exclusion may facilitate better comparability between periods and for peer comparison purposes.
The Company presents adjusted noninterest expense, which excludes merger-related charges associated with completed and pending acquisitions, separation expense, distribution of excess pension assets expense, and FDIC special assessment expense, as well as adjusted noninterest income, which excludes a pension plan gain and debt securities gains/losses. Management believes that excluding these items from noninterest expense and noninterest income may be useful in assessing the Company’s underlying operational performance as these items either do not pertain to its core business operations or their exclusion may facilitate better comparability between periods and for peer comparison purposes.
The tax-equivalent adjustment to net interest income and net interest margin recognizes the income tax savings when comparing taxable and tax-exempt assets. Interest income and yields on tax-exempt securities and loans are presented using the current federal income tax rate of 21%. Management believes that it is standard practice in the banking industry to present net interest income and net interest margin on a fully tax-equivalent basis and that it may enhance comparability for peer comparison purposes.
In management's view, tangible common equity measures are capital adequacy metrics that may be meaningful to the Company, as well as analysts and investors, in assessing the Company's use of equity and in facilitating comparisons with peers. These non-GAAP measures are valuable indicators of a financial institution's capital strength since they eliminate intangible assets from stockholders' equity and retain the effect of accumulated other comprehensive loss in stockholders' equity.
Although intended to enhance investors' understanding of the Company's business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP. In addition, these non-GAAP financial measures may differ from those used by other financial institutions to assess their business and performance. See the following reconciliations in the "Non-GAAP Reconciliations" section for details on the calculation of these measures to the extent presented herein.
FORWARD-LOOKING STATEMENTS
Forward-looking statements notice
This earnings release contains 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 Act of 1934 and Rule 3b-6 promulgated thereunder, notwithstanding that such statements are not specifically identified as such. In addition, certain statements may be contained in our future filings with the Securities and Exchange Commission ("SEC"), in press releases, and in oral and written statements made by us that are not statements of historical fact and constitute forward‐looking statements within the meaning of the Act. These statements include, but are not limited to, descriptions of Old National’s financial condition, results of operations, asset and credit quality trends, profitability and business plans or opportunities. Forward-looking statements can be identified by the use of words such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "guidance," "intend," "may," "outlook," "plan," "potential," "predict," "should," "would," and "will," and other words of similar meaning. These forward-looking statements express management’s current expectations or forecasts of future events and, by their nature, are subject to risks and uncertainties. There are a number of factors that could cause actual results or outcomes to differ materially from those in such statements, including, but not limited to: competition; government legislation, regulations and policies, including trade and tariff policies; the ability of Old National to execute its business plan; unanticipated changes in our liquidity position, including but not limited to changes in our access to sources of liquidity and capital to address our liquidity needs; changes in economic conditions and economic and business uncertainty which could materially impact credit quality trends and the ability to generate loans and gather deposits; inflation and governmental responses to inflation, including increasing interest rates; market, economic, operational, liquidity, credit, and interest rate risks associated with our business; our ability to successfully manage our credit risk and the sufficiency of our allowance for credit losses; the expected cost savings, synergies and other financial benefits from the merger (the “Merger”) between Old National and
Bremer not being realized within the expected time frames and costs or difficulties relating to integration matters being greater than expected; potential adverse reactions or changes to business or employee relationships, including those resulting from the Merger; the impact of purchase accounting with respect to the Merger, or any change in the assumptions used regarding the assets acquired and liabilities assumed to determine their fair value and credit marks; the potential impact of future business combinations on our performance and financial condition, including our ability to successfully integrate the businesses, the success of revenue-generating and cost reduction initiatives and the diversion of management’s attention from ongoing business operations and opportunities; failure or circumvention of our internal controls; operational risks or risk management failures by us or critical third parties, including without limitation with respect to data processing, information systems, cybersecurity, technological changes, vendor issues, business interruption, and fraud risks; significant changes in accounting, tax or regulatory practices or requirements; new legal obligations or liabilities; disruptive technologies in payment systems and other services traditionally provided by banks; failure or disruption of our information systems; computer hacking and other cybersecurity threats; the effects of climate change on Old National and its customers, borrowers, or service providers; the impacts of pandemics, epidemics and other infectious disease outbreaks; other matters discussed in this earnings release; and other factors identified in our Annual Report on Form 10-K for the year ended December 31, 2024 and other filings with the SEC. These forward-looking statements are based on assumptions and estimates, which although believed to be reasonable, may turn out to be incorrect. Old National does not undertake an obligation to update these forward-looking statements to reflect events or conditions after the date of this earnings release. You are advised to consult further disclosures we may make on related subjects in our filings with the SEC.
| Three Months Ended | Nine Months Ended |
|---|
| September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | September 30, |
|---|
| 2025 | 2025 | 2025 | 2024 | 2024 | 2025 | 2024 |
|---|
| Financial Highlights (unaudited) |
| ($ and shares in thousands, except per share data) |
| Income Statement | | | | | | | |
| Net interest income | $574,609 | | $514,790 | | $387,643 | | $394,180 | | $391,724 | | $1,477,042 | | $1,136,603 | |
| FTE adjustment | 7,975 | | 7,063 | | 5,360 | | 5,777 | | 6,144 | | 20,398 | | 18,737 | |
| Net interest income - tax equivalent basis | 582,584 | | 521,853 | | 393,003 | | 399,957 | | 397,868 | | 1,497,440 | | 1,155,340 | |
| Provision for credit losses | 26,738 | | 106,835 | | 31,403 | | 27,017 | | 28,497 | | 164,976 | | 83,602 | |
| Noninterest income | 130,461 | | 132,517 | | 93,794 | | 95,766 | | 94,138 | | 356,772 | | 258,931 | |
| Noninterest expense | 445,734 | | 384,766 | | 268,471 | | 276,824 | | 272,283 | | 1,098,971 | | 817,599 | |
| Net income available to common shareholders | $178,533 | | $121,375 | | $140,625 | | $149,839 | | $139,768 | | $440,533 | | $373,214 | |
| Per Common Share Data | | | | | | | |
| Weighted average diluted shares | 390,496 | | 361,436 | | 321,016 | | 318,803 | | 317,331 | | 357,278 | | 308,605 | |
| EPS, diluted | $0.46 | | $0.34 | | $0.44 | | $0.47 | | $0.44 | | $1.23 | | $1.21 | |
| Cash dividends | 0.14 | | 0.14 | | 0.14 | | 0.14 | | 0.14 | | 0.42 | | 0.42 | |
| Dividend payout ratio | 30% | | 41% | | 32% | | 30% | | 32% | | 34% | | 35% | |
| Book value | $20.64 | | $20.12 | | $19.71 | | $19.11 | | $19.20 | | $20.64 | | $19.20 | |
| Stock price | 21.95 | | 21.34 | | 21.19 | | 21.71 | | 18.66 | | 21.95 | | 18.66 | |
| Tangible book value | 13.15 | | 12.60 | | 12.54 | | 11.91 | | 11.97 | | 13.15 | | 11.97 | |
| Performance Ratios | | | | | | | |
| ROAA | 1.03% | | 0.77% | | 1.08% | | 1.14% | | 1.08% | | 0.95% | | 0.99% | |
| ROAE | 9.0% | | 6.7% | | 9.1% | | 9.8% | | 9.4% | | 8.3% | | 8.8% | |
| ROATCE | 15.9% | | 12.0% | | 15.0% | | 16.4% | | 16.0% | | 14.3% | | 15.0% | |
| NIM (FTE) | 3.64% | | 3.53% | | 3.27% | | 3.30% | | 3.32% | | 3.50% | | 3.31% | |
| Efficiency ratio | 58.8% | | 55.8% | | 53.7% | | 54.4% | | 53.8% | | 56.4% | | 56.4% | |
| NCOs to average loans | 0.25% | | 0.24% | | 0.24% | | 0.21% | | 0.19% | | 0.24% | | 0.16% | |
| ACL on loans to EOP loans | 1.19% | | 1.18% | | 1.10% | | 1.08% | | 1.05% | | 1.19% | | 1.05% | |
| ACL to EOP loans | 1.26% | | 1.24% | | 1.16% | | 1.14% | | 1.12% | | 1.26% | | 1.12% | |
| NPLs to EOP loans | 1.23% | | 1.24% | | 1.29% | | 1.23% | | 1.22% | | 1.23% | | 1.22% | |
| Balance Sheet (EOP) | | | | | | | |
| Total loans | | $47,967,915 | | $47,902,819 | | $36,413,944 | | $36,285,887 | | $36,400,643 | | $47,967,915 | | $36,400,643 |
| Total assets | | 71,210,162 | | 70,979,805 | | 53,877,944 | | 53,552,272 | | 53,602,293 | | 71,210,162 | | 53,602,293 |
| Total deposits | | 55,006,184 | | 54,357,683 | | 41,034,572 | | 40,823,560 | | 40,845,746 | | 55,006,184 | | 40,845,746 |
| Total borrowed funds | | 6,766,381 | | 7,346,098 | | 5,447,054 | | 5,411,537 | | 5,449,096 | | 6,766,381 | | 5,449,096 |
| Total shareholders' equity | | 8,309,271 | | 8,126,387 | | 6,534,654 | | 6,340,350 | | 6,367,298 | | 8,309,271 | | 6,367,298 |
| Capital Ratios | | | | | | | |
| Risk-based capital ratios (EOP): | | | | | | | |
| Tier 1 common equity | 11.02% | | 10.74% | | 11.62% | | 11.38% | | 11.00% | | 11.02% | | 11.00% | |
| Tier 1 capital | 11.49% | | 11.20% | | 12.23% | | 11.98% | | 11.60% | | 11.49% | | 11.60% | |
| Total capital | 12.78% | | 12.59% | | 13.68% | | 13.37% | | 12.94% | | 12.78% | | 12.94% | |
| Leverage ratio (average assets) | 8.72% | | 9.26% | | 9.44% | | 9.21% | | 9.05% | | 8.72% | | 9.05% | |
| Equity to assets (averages) | 11.48% | | 11.38% | | 12.01% | | 11.78% | | 11.60% | | 11.59% | | 11.41% | |
| TCE to TA | 7.53% | | 7.26% | | 7.76% | | 7.41% | | 7.44% | | 7.53% | | 7.44% | |
| Nonfinancial Data | | | | | | | |
| Full-time equivalent employees | | 5,243 | | 5,313 | | 4,028 | | 4,066 | | 4,105 | | 5,243 | | 4,105 |
| Banking centers | | 351 | | 351 | | 280 | | 280 | | 280 | | 351 | | 280 |
| Calculated using the federal statutory tax rate in effect of 21% for all periods. | | | | |
| Cash dividends per common share divided by net income per common share (basic). | | | | |
| Represents a non-GAAP financial measure. Refer to the "Non-GAAP Measures" table for reconciliations to GAAP financial measures. | | |
| Includes the allowance for credit losses on loans and unfunded loan commitments. | | | | |
| September 30, 2025 capital ratios are preliminary. | | |
| FTE - Fully taxable equivalent basis ROAA - Return on average assets ROAE - Return on average equity ROATCE - Return on average tangible common equity NCOs - Net Charge-offs ACL - Allowance for Credit Losses EOP - End of period actual balances NPLs - Non-performing Loans TCE - Tangible common equity TA - Tangible assets | | |
| Three Months Ended | Nine Months Ended |
|---|
| September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | September 30, |
|---|
| 2025 | 2025 | 2025 | 2024 | 2024 | 2025 | 2024 |
|---|
| Income Statement (unaudited) |
| ($ and shares in thousands, except per share data) |
| Interest income | $917,192 | | $824,961 | | $630,399 | | $662,082 | | $679,925 | | $2,372,552 | | $1,939,569 | |
| Less: interest expense | 342,583 | | 310,171 | | 242,756 | | 267,902 | | 288,201 | | 895,510 | | 802,966 | |
| Net interest income | 574,609 | | 514,790 | | 387,643 | | 394,180 | | 391,724 | | 1,477,042 | | 1,136,603 | |
| Provision for credit losses | 26,738 | | 106,835 | | 31,403 | | 27,017 | | 28,497 | | 164,976 | | 83,602 | |
| Net interest income after provision for credit losses | 547,871 | | 407,955 | | 356,240 | | 367,163 | | 363,227 | | 1,312,066 | | 1,053,001 | |
| Wealth and investment services fees | 39,684 | | 35,817 | | 29,648 | | 30,012 | | 29,117 | | 105,149 | | 86,779 | |
| Service charges on deposit accounts | 27,856 | | 23,878 | | 21,156 | | 20,577 | | 20,350 | | 72,890 | | 57,598 | |
| Debit card and ATM fees | 13,197 | | 12,922 | | 9,991 | | 10,991 | | 11,362 | | 36,110 | | 32,409 | |
| Mortgage banking revenue | 10,442 | | 10,032 | | 6,879 | | 7,026 | | 7,669 | | 27,353 | | 19,211 | |
| Capital markets income | 12,629 | | 7,114 | | 4,506 | | 5,244 | | 7,426 | | 24,249 | | 15,055 | |
| Company-owned life insurance | 7,565 | | 6,625 | | 5,381 | | 6,499 | | 5,315 | | 19,571 | | 14,488 | |
| Other income | 19,081 | | 36,170 | | 16,309 | | 15,539 | | 12,975 | | 71,560 | | 33,481 | |
| Debt securities gains (losses), net | 7 | | (41) | | (76) | | (122) | | (76) | | (110) | | (90) | |
| Total noninterest income | 130,461 | | 132,517 | | 93,794 | | 95,766 | | 94,138 | | 356,772 | | 258,931 | |
| Salaries and employee benefits | 211,345 | | 202,112 | | 148,305 | | 146,605 | | 147,494 | | 561,762 | | 456,490 | |
| Occupancy | 34,442 | | 30,432 | | 29,053 | | 29,733 | | 27,130 | | 93,927 | | 80,696 | |
| Equipment | 12,703 | | 12,566 | | 8,901 | | 9,325 | | 9,888 | | 34,170 | | 27,263 | |
| Marketing | 15,093 | | 13,759 | | 11,940 | | 12,653 | | 11,036 | | 40,792 | | 32,954 | |
| Technology | 36,122 | | 31,452 | | 22,020 | | 21,429 | | 23,343 | | 89,594 | | 67,368 | |
| Communication | 7,742 | | 5,014 | | 4,134 | | 4,176 | | 4,681 | | 16,890 | | 13,161 | |
| Professional fees | 13,598 | | 21,931 | | 7,919 | | 11,055 | | 7,278 | | 43,448 | | 24,236 | |
| FDIC assessment | 14,095 | | 13,409 | | 9,700 | | 11,970 | | 11,722 | | 37,204 | | 32,711 | |
| Amortization of intangibles | 26,184 | | 19,630 | | 6,830 | | 7,237 | | 7,411 | | 52,644 | | 20,291 | |
| Amortization of tax credit investments | 7,057 | | 5,815 | | 3,424 | | 4,556 | | 3,277 | | 16,296 | | 8,773 | |
| Other expense | 67,353 | | 28,646 | | 16,245 | | 18,085 | | 19,023 | | 112,244 | | 53,656 | |
| Total noninterest expense | 445,734 | | 384,766 | | 268,471 | | 276,824 | | 272,283 | | 1,098,971 | | 817,599 | |
| Income before income taxes | 232,598 | | 155,706 | | 181,563 | | 186,105 | | 185,082 | | 569,867 | | 494,333 | |
| Income tax expense | 50,031 | | 30,298 | | 36,904 | | 32,232 | | 41,280 | | 117,233 | | 109,018 | |
| Net income | $182,567 | | $125,408 | | $144,659 | | $153,873 | | $143,802 | | $452,634 | | $385,315 | |
| Preferred dividends | (4,034) | | (4,033) | | (4,034) | | (4,034) | | (4,034) | | (12,101) | | (12,101) | |
| Net income applicable to common shares | $178,533 | | $121,375 | | $140,625 | | $149,839 | | $139,768 | | $440,533 | | $373,214 | |
| EPS, diluted | $0.46 | | $0.34 | | $0.44 | | $0.47 | | $0.44 | | $1.23 | | $1.21 | |
| Weighted Average Common Shares Outstanding | | | | | | | |
| Basic | | 389,038 | | 360,155 | | 315,925 | | 315,673 | | 315,622 | | 355,307 | | 307,426 |
| Diluted | | 390,496 | | 361,436 | | 321,016 | | 318,803 | | 317,331 | | 357,278 | | 308,605 |
| Common shares outstanding (EOP) | | 390,768 | | 391,818 | | 319,236 | | 318,980 | | 318,955 | | 390,768 | | 318,955 |
| September 30, | June 30, | March 31, | December 31, | September 30, |
|---|
| 2025 | 2025 | 2025 | 2024 | 2024 |
|---|
| End of Period Balance Sheet (unaudited) |
| ($ in thousands) |
| Assets | | | | | |
| Cash and due from banks | $491,910 | | $637,556 | | $486,061 | | $394,450 | | $498,120 | |
| Money market and other interest-earning investments | 1,190,707 | | 1,171,015 | | 753,719 | | 833,518 | | 693,450 | |
| Investments: | | | | | |
| Treasury and government-sponsored agencies | 2,402,375 | | 2,445,733 | | 2,364,170 | | 2,289,903 | | 2,335,716 | |
| Mortgage-backed securities | 10,117,015 | | 9,632,206 | | 6,458,023 | | 6,175,103 | | 6,085,826 | |
| States and political subdivisions | 1,579,802 | | 1,590,272 | | 1,589,555 | | 1,637,379 | | 1,665,128 | |
| Other securities | 849,911 | | 852,687 | | 755,348 | | 781,656 | | 783,079 | |
| Total investments | 14,949,103 | | 14,520,898 | | 11,167,096 | | 10,884,041 | | 10,869,749 | |
| Loans held-for-sale, at fair value | 80,341 | | 77,618 | | 40,424 | | 34,483 | | 62,376 | |
| Loans: | | | | | |
| Commercial | 14,506,375 | | 14,662,916 | | 10,650,615 | | 10,288,560 | | 10,408,095 | |
| Commercial and agriculture real estate | 22,083,734 | | 21,879,785 | | 16,135,327 | | 16,307,486 | | 16,356,216 | |
| Residential real estate | 8,190,127 | | 8,212,242 | | 6,771,694 | | 6,797,586 | | 6,757,896 | |
| Consumer | 3,187,679 | | 3,147,876 | | 2,856,308 | | 2,892,255 | | 2,878,436 | |
| Total loans | 47,967,915 | | 47,902,819 | | 36,413,944 | | 36,285,887 | | 36,400,643 | |
| Allowance for credit losses on loans | (572,178) | | (565,109) | | (401,932) | | (392,522) | | (380,840) | |
| Premises and equipment, net | 691,950 | | 682,539 | | 584,664 | | 588,970 | | 599,528 | |
| Goodwill and other intangible assets | 2,926,960 | | 2,944,372 | | 2,289,268 | | 2,296,098 | | 2,305,084 | |
| Company-owned life insurance | 1,044,780 | | 1,046,693 | | 859,211 | | 859,851 | | 863,723 | |
| Accrued interest receivable and other assets | 2,438,674 | | 2,561,404 | | 1,685,489 | | 1,767,496 | | 1,690,460 | |
| Total assets | $71,210,162 | | $70,979,805 | | $53,877,944 | | $53,552,272 | | $53,602,293 | |
| Liabilities and Equity | | | | | |
| Noninterest-bearing demand deposits | $12,691,658 | | $12,652,556 | | $9,186,314 | | $9,399,019 | | $9,429,285 | |
| Interest-bearing: | | | | | |
| Checking and NOW accounts | 9,669,551 | | 9,194,738 | | 7,736,014 | | 7,538,987 | | 7,314,245 | |
| Savings accounts | 4,958,555 | | 5,058,819 | | 4,715,329 | | 4,753,279 | | 4,781,447 | |
| Money market accounts | 16,739,884 | | 16,564,125 | | 11,638,653 | | 11,807,228 | | 11,601,461 | |
| Other time deposits | 7,767,698 | | 7,613,377 | | 6,212,898 | | 5,819,970 | | 6,010,070 | |
| Total core deposits | 51,827,346 | | 51,083,615 | | 39,489,208 | | 39,318,483 | | 39,136,508 | |
| Brokered deposits | 3,178,838 | | 3,274,068 | | 1,545,364 | | 1,505,077 | | 1,709,238 | |
| Total deposits | 55,006,184 | | 54,357,683 | | 41,034,572 | | 40,823,560 | | 40,845,746 | |
| Federal funds purchased and interbank borrowings | 1 | | 340,246 | | 170 | | 385 | | 135,263 | |
| Securities sold under agreements to repurchase | 277,594 | | 297,637 | | 290,256 | | 268,975 | | 244,626 | |
| Federal Home Loan Bank advances | 5,663,361 | | 5,835,918 | | 4,514,354 | | 4,452,559 | | 4,471,153 | |
| Other borrowings | 825,425 | | 872,297 | | 642,274 | | 689,618 | | 598,054 | |
| Total borrowed funds | 6,766,381 | | 7,346,098 | | 5,447,054 | | 5,411,537 | | 5,449,096 | |
| Accrued expenses and other liabilities | 1,128,326 | | 1,149,637 | | 861,664 | | 976,825 | | 940,153 | |
| Total liabilities | 62,900,891 | | 62,853,418 | | 47,343,290 | | 47,211,922 | | 47,234,995 | |
| Preferred stock, common stock, surplus, and retained earnings | 8,833,662 | | 8,725,995 | | 7,183,163 | | 7,086,393 | | 6,971,054 | |
| Accumulated other comprehensive income (loss), net of tax | (524,391) | | (599,608) | | (648,509) | | (746,043) | | (603,756) | |
| Total shareholders' equity | 8,309,271 | | 8,126,387 | | 6,534,654 | | 6,340,350 | | 6,367,298 | |
| Total liabilities and shareholders' equity | $71,210,162 | | $70,979,805 | | $53,877,944 | | $53,552,272 | | $53,602,293 | |
| Three Months Ended | Three Months Ended | Three Months Ended |
|---|
| September 30, 2025 | June 30, 2025 | September 30, 2024 |
|---|
| Average | Income/ | Yield/ | Average | Income/ | Yield/ | Average | Income/ | Yield/ |
|---|
| Average Balance Sheet and Interest Rates (unaudited) |
| ($ in thousands) |
| Earning Assets: | Balance | Expense | Rate | Balance | Expense | Rate | Balance | Expense | Rate |
| Money market and other interest-earning investments | $1,159,564 | $12,207 | 4.18% | $1,424,700 | $14,791 | 4.16% | $904,176 | $11,696 | 5.15% |
| Investments: | | | | | | | | | |
| Treasury and government-sponsored agencies | 2,391,564 | 20,721 | 3.47% | 2,396,691 | 20,820 | 3.47% | 2,255,629 | 21,851 | 3.87% |
| Mortgage-backed securities | 9,854,107 | 105,596 | 4.29% | 8,567,318 | 87,734 | 4.10% | 5,977,058 | 48,425 | 3.24% |
| States and political subdivisions | 1,577,384 | 13,109 | 3.32% | 1,596,899 | 13,402 | 3.36% | 1,668,454 | 14,042 | 3.37% |
| Other securities | 874,728 | 16,265 | 7.44% | 970,581 | 15,770 | 6.50% | 785,107 | 12,547 | 6.39% |
| Total investments | 14,697,783 | 155,691 | 4.24% | 13,531,489 | 137,726 | 4.07% | 10,686,248 | 96,865 | 3.63% |
| Loans: | | | | | | | | | |
| Commercial | 14,722,785 | 249,569 | 6.78% | 13,240,876 | 219,446 | 6.63% | 10,373,340 | 183,878 | 7.09% |
| Commercial and agriculture real estate | 21,999,016 | 356,014 | 6.47% | 20,022,403 | 316,422 | 6.32% | 16,216,842 | 274,832 | 6.78% |
| Residential real estate loans | 8,287,155 | 95,129 | 4.59% | 7,792,440 | 88,852 | 4.56% | 6,833,597 | 67,084 | 3.93% |
| Consumer | 3,166,508 | 56,557 | 7.09% | 3,049,341 | 54,787 | 7.21% | 2,891,260 | 51,714 | 7.12% |
| Total loans | 48,175,464 | 757,269 | 6.28% | 44,105,060 | 679,507 | 6.16% | 36,315,039 | 577,508 | 6.36% |
| Total earning assets | $64,032,811 | $925,167 | 5.78% | $59,061,249 | $832,024 | 5.64% | $47,905,463 | $686,069 | 5.73% |
| Less: Allowance for credit losses on loans | (566,102) | | | (404,871) | | | (366,667) | | |
| Non-earning Assets: | | | | | | | | | |
| Cash and due from banks | $492,415 | | | $426,513 | | | $413,583 | | |
| Other assets | 7,177,663 | | | 6,403,239 | | | 5,394,032 | | |
| Total assets | $71,136,787 | | | $65,486,130 | | | $53,346,411 | | |
| Interest-Bearing Liabilities: | | | | | | | | | |
| Checking and NOW accounts | $9,382,625 | $36,221 | 1.53% | $8,594,591 | $29,291 | 1.37% | $7,551,264 | $29,344 | 1.55% |
| Savings accounts | 5,009,293 | 3,866 | 0.31% | 4,968,232 | 3,777 | 0.30% | 4,860,161 | 5,184 | 0.42% |
| Money market accounts | 16,674,801 | 121,886 | 2.90% | 15,055,735 | 110,933 | 2.96% | 11,064,433 | 106,148 | 3.82% |
| Other time deposits | 7,723,441 | 73,247 | 3.76% | 7,092,124 | 67,204 | 3.80% | 5,928,241 | 64,435 | 4.32% |
| Total interest-bearing core deposits | 38,790,160 | 235,220 | 2.41% | 35,710,682 | 211,205 | 2.37% | 29,404,099 | 205,111 | 2.78% |
| Brokered deposits | 3,371,269 | 37,381 | 4.40% | 2,530,726 | 28,883 | 4.58% | 1,829,218 | 24,616 | 5.35% |
| Total interest-bearing deposits | 42,161,429 | 272,601 | 2.57% | 38,241,408 | 240,088 | 2.52% | 31,233,317 | 229,727 | 2.93% |
| Federal funds purchased and interbank borrowings | 157,192 | 1,816 | 4.58% | 88,603 | 953 | 4.31% | 14,549 | 292 | 7.98% |
| Securities sold under agreements to repurchase | 289,323 | 731 | 1.00% | 295,948 | 636 | 0.86% | 239,524 | 612 | 1.02% |
| Federal Home Loan Bank advances | 5,552,780 | 57,143 | 4.08% | 6,037,462 | 59,042 | 3.92% | 4,572,046 | 47,719 | 4.15% |
| Other borrowings | 871,996 | 10,292 | 4.68% | 828,214 | 9,452 | 4.58% | 754,544 | 9,851 | 5.19% |
| Total borrowed funds | 6,871,291 | 69,982 | 4.04% | 7,250,227 | 70,083 | 3.88% | 5,580,663 | 58,474 | 4.17% |
| Total interest-bearing liabilities | $49,032,720 | $342,583 | 2.77% | $45,491,635 | $310,171 | 2.73% | $36,813,980 | $288,201 | 3.11% |
| Noninterest-Bearing Liabilities and Shareholders' Equity | | | | | | | | | |
| Demand deposits | $12,731,654 | | | $11,568,854 | | | $9,371,698 | | |
| Other liabilities | 1,203,838 | | | 973,525 | | | 970,662 | | |
| Shareholders' equity | 8,168,575 | | | 7,452,116 | | | 6,190,071 | | |
| Total liabilities and shareholders' equity | $71,136,787 | | | $65,486,130 | | | $53,346,411 | | |
| Net interest rate spread | | | 3.01% | | | 2.91% | | | 2.62% |
| Net interest margin (GAAP) | | | 3.59% | | | 3.49% | | | 3.27% |
| Net interest margin (FTE) | | | 3.64% | | | 3.53% | | | 3.32% |
| FTE adjustment | | $7,975 | | | $7,063 | | | $6,144 | |
| Interest income is reflected on a FTE basis. | |
| Includes loans held-for-sale. | |
| Represents a non-GAAP financial measure. Refer to the "Non-GAAP Measures" table for reconciliations to GAAP financial measures. | |
| Nine Months Ended | Nine Months Ended |
|---|
| September 30, 2025 | September 30, 2024 |
|---|
| Average | Income/ | Yield/ | Average | Income/ | Yield/ |
|---|
| Average Balance Sheet and Interest Rates (unaudited) |
| ($ in thousands) |
| Earning Assets: | Balance | Expense | Rate | Balance | Expense | Rate |
| Money market and other interest-earning investments | $1,126,460 | $35,813 | 4.25% | $825,743 | $32,992 | 5.34% |
| Investments: | | | | | | |
| Treasury and government-sponsored agencies | 2,369,307 | 61,560 | 3.46% | 2,275,607 | 66,648 | 3.91% |
| Mortgage-backed securities | 8,249,480 | 247,853 | 4.01% | 5,721,725 | 135,217 | 3.15% |
| States and political subdivisions | 1,594,912 | 39,753 | 3.32% | 1,678,504 | 42,308 | 3.36% |
| Other securities | 872,430 | 42,547 | 6.50% | 781,385 | 37,303 | 6.37% |
| Total investments | $13,086,129 | $391,713 | 3.99% | $10,457,221 | $281,476 | 3.59% |
| Loans: | | | | | | |
| Commercial | 12,803,059 | 634,610 | 6.61% | 10,087,322 | 534,566 | 7.07% |
| Commercial and agriculture real estate | 19,432,867 | 918,371 | 6.30% | 15,488,010 | 765,325 | 6.59% |
| Residential real estate loans | 7,636,955 | 251,629 | 4.39% | 6,826,809 | 197,770 | 3.86% |
| Consumer | 3,030,102 | 160,814 | 7.10% | 2,815,837 | 146,177 | 6.93% |
| Total loans | 42,902,983 | 1,965,424 | 6.11% | 35,217,978 | 1,643,838 | 6.22% |
| Total earning assets | $57,115,572 | $2,392,950 | 5.59% | $46,500,942 | $1,958,306 | 5.62% |
| Less: Allowance for credit losses on loans | (457,192) | | | (337,168) | | |
| Non-earning Assets: | | | | | | |
| Cash and due from banks | $430,891 | | | $402,213 | | |
| Other assets | 6,331,698 | | | 5,232,807 | | |
| Total assets | $63,420,969 | | | $51,798,794 | | |
| Interest-Bearing Liabilities: | | | | | | |
| Checking and NOW accounts | $8,507,970 | $89,362 | 1.40% | $7,627,029 | $88,994 | 1.56% |
| Savings accounts | 4,891,083 | 11,251 | 0.31% | 4,976,361 | 15,455 | 0.41% |
| Money market accounts | 14,483,414 | 321,200 | 2.97% | 10,571,821 | 302,921 | 3.83% |
| Other time deposits | 6,943,552 | 196,936 | 3.79% | 5,327,361 | 168,453 | 4.22% |
| Total interest-bearing core deposits | 34,826,019 | 618,749 | 2.38% | 28,502,572 | 575,823 | 2.70% |
| Brokered deposits | 2,489,600 | 84,435 | 4.53% | 1,375,231 | 55,149 | 5.36% |
| Total interest-bearing deposits | 37,315,619 | 703,184 | 2.52% | 29,877,803 | 630,972 | 2.82% |
| Federal funds purchased and interbank borrowings | 131,341 | 4,394 | 4.47% | 77,262 | 3,239 | 5.60% |
| Securities sold under agreements to repurchase | 286,137 | 1,918 | 0.90% | 261,818 | 2,168 | 1.11% |
| Federal Home Loan Bank advances | 5,355,597 | 158,081 | 3.95% | 4,477,851 | 133,529 | 3.98% |
| Other borrowings | 792,708 | 27,933 | 4.71% | 823,746 | 33,058 | 5.36% |
| Total borrowed funds | 6,565,783 | 192,326 | 3.92% | 5,640,677 | 171,994 | 4.07% |
| Total interest-bearing liabilities | 43,881,402 | 895,510 | 2.73% | 35,518,480 | 802,966 | 3.02% |
| Noninterest-Bearing Liabilities and Shareholders' Equity | | | | | | |
| Demand deposits | $11,145,709 | | | $9,396,081 | | |
| Other liabilities | 1,041,715 | | | 971,687 | | |
| Shareholders' equity | 7,352,143 | | | 5,912,546 | | |
| Total liabilities and shareholders' equity | $63,420,969 | | | $51,798,794 | | |
| Net interest rate spread | | | 2.86% | | | 2.60% |
| Net interest margin (GAAP) | | | 3.45% | | | 3.26% |
| Net interest margin (FTE) | | | 3.50% | | | 3.31% |
| FTE adjustment | | $20,398 | | | $18,737 | |
| Interest income is reflected on a FTE. |
| Includes loans held-for-sale. | | | | | | |
| Represents a non-GAAP financial measure. Refer to the "Non-GAAP Measures" table for reconciliations to GAAP financial measures. | | |
| Three Months Ended | Nine Months Ended |
|---|
| September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | September 30, |
|---|
| 2025 | 2025 | 2025 | 2024 | 2024 | 2025 | 2024 |
|---|
| Asset Quality (EOP) (unaudited) |
| ($ in thousands) |
| Allowance for credit losses: | | | | | | | |
| Beginning allowance for credit losses on loans | $565,109 | | $401,932 | | $392,522 | | $380,840 | | $366,335 | | $392,522 | | $307,610 | |
| Allowance established for acquired PCD loans | 13,104 | | 90,442 | | - | | - | | 2,803 | | 103,546 | | 26,725 | |
| Provision for credit losses on loans | 24,003 | | 99,263 | | 31,026 | | 30,417 | | 29,176 | | 154,292 | | 89,774 | |
| Gross charge-offs | (35,402) | | (29,954) | | (24,540) | | (21,278) | | (18,965) | | (89,896) | | (50,026) | |
| Gross recoveries | 5,364 | | 3,426 | | 2,924 | | 2,543 | | 1,491 | | 11,714 | | 6,757 | |
| NCOs | (30,038) | | (26,528) | | (21,616) | | (18,735) | | (17,474) | | (78,182) | | (43,269) | |
| Ending allowance for credit losses on loans | $572,178 | | $565,109 | | $401,932 | | $392,522 | | $380,840 | | $572,178 | | $380,840 | |
| Beginning allowance for credit losses on unfunded commitments | $29,603 | | $22,031 | | $21,654 | | $25,054 | | $25,733 | | $21,654 | | $31,226 | |
| Provision (release) for credit losses on unfunded commitments | 2,735 | | 7,572 | | 377 | | (3,400) | | (679) | | 10,684 | | (6,172) | |
| Ending allowance for credit losses on unfunded commitments | $32,338 | | $29,603 | | $22,031 | | $21,654 | | $25,054 | | $32,338 | | $25,054 | |
| Allowance for credit losses | $604,516 | | $594,712 | | $423,963 | | $414,176 | | $405,894 | | $604,516 | | $405,894 | |
| Provision for credit losses on loans | $24,003 | | $99,263 | | $31,026 | | $30,417 | | $29,176 | | $154,292 | | $89,774 | |
| Provision (release) for credit losses on unfunded commitments | 2,735 | | 7,572 | | 377 | | (3,400) | | (679) | | 10,684 | | (6,172) | |
| Provision for credit losses | $26,738 | | $106,835 | | $31,403 | | $27,017 | | $28,497 | | $164,976 | | $83,602 | |
| NCOs / average loans | 0.25% | | 0.24% | | 0.24% | | 0.21% | | 0.19% | | 0.24% | | 0.16% | |
| Average loans | $48,153,186 | | $44,075,472 | | $36,284,059 | | $36,410,414 | | $36,299,544 | | $42,881,049 | | $35,202,727 | |
| EOP loans | 47,967,915 | | 47,902,819 | | 36,413,944 | | 36,285,887 | | 36,400,643 | | 47,967,915 | | 36,400,643 | |
| ACL on loans / EOP loans | 1.19% | | 1.18% | | 1.10% | | 1.08% | | 1.05% | | 1.19% | | 1.05% | |
| ACL / EOP loans | 1.26% | | 1.24% | | 1.16% | | 1.14% | | 1.12% | | 1.26% | | 1.12% | |
| Underperforming Assets: | | | | | | | |
| Loans 90 days and over (still accruing) | $1,525 | | $16,893 | | $6,757 | | $4,060 | | $1,177 | | $1,525 | | $1,177 | |
| Nonaccrual loans | 590,820 | | 594,709 | | 469,211 | | 447,979 | | 443,597 | | 590,820 | | 443,597 | |
| Foreclosed assets | 6,325 | | 7,986 | | 6,301 | | 4,294 | | 4,077 | | 6,325 | | 4,077 | |
| Total underperforming assets | $598,670 | | $619,588 | | $482,269 | | $456,333 | | $448,851 | | $598,670 | | $448,851 | |
| Classified and Criticized Assets: | | | | | | | |
| Nonaccrual loans | $590,820 | | $594,709 | | $469,211 | | $447,979 | | $443,597 | | $590,820 | | $443,597 | |
| Substandard loans (still accruing) | 1,881,294 | | 1,969,260 | | 1,479,630 | | 1,073,413 | | 1,074,243 | | 1,881,294 | | 1,074,243 | |
| Loans 90 days and over (still accruing) | 1,525 | | 16,893 | | 6,757 | | 4,060 | | 1,177 | | 1,525 | | 1,177 | |
| Total classified loans - "problem loans" | 2,473,639 | | 2,580,862 | | 1,955,598 | | 1,525,452 | | 1,519,017 | | 2,473,639 | | 1,519,017 | |
| Other classified assets | 35,373 | | 43,495 | | 53,239 | | 58,954 | | 59,485 | | 35,373 | | 59,485 | |
| Special Mention | 893,109 | | 1,008,716 | | 828,314 | | 908,630 | | 837,543 | | 893,109 | | 837,543 | |
| Total classified and criticized assets | $3,402,121 | | $3,633,073 | | $2,837,151 | | $2,493,036 | | $2,416,045 | | $3,402,121 | | $2,416,045 | |
| Loans 30-89 days past due (still accruing) | $83,030 | | $128,771 | | $72,517 | | $93,141 | | $91,750 | | $83,030 | | $91,750 | |
| Nonaccrual loans / EOP loans | 1.23% | | 1.24% | | 1.29% | | 1.23% | | 1.22% | | 1.23% | | 1.22% | |
| ACL / nonaccrual loans | 102% | | 100% | | 90% | | 92% | | 92% | | 102% | | 92% | |
| Under-performing assets/EOP loans | 1.25% | | 1.29% | | 1.32% | | 1.26% | | 1.23% | | 1.25% | | 1.23% | |
| Under-performing assets/EOP assets | 0.84% | | 0.87% | | 0.90% | | 0.85% | | 0.84% | | 0.84% | | 0.84% | |
| 30+ day delinquencies/EOP loans | 0.18% | | 0.30% | | 0.22% | | 0.27% | | 0.26% | | 0.18% | | 0.26% | |
| Excludes loans held-for-sale. | | | | | |
| Three Months Ended | | Nine Months Ended |
|---|
| September 30, | June 30, | March 31, | December 31, | September 30, | | September 30, | September 30, |
|---|
| 2025 | 2025 | 2025 | 2024 | 2024 | | 2025 | 2024 |
|---|
| Non-GAAP Measures (unaudited) |
| ($ and shares in thousands, except per share data) |
| Earnings Per Share: | | | | | | | | |
| Net income applicable to common shares | $178,533 | | $121,375 | | $140,625 | | $149,839 | | $139,768 | | | $440,533 | | $373,214 | |
| Adjustments: | | | | | | | | |
| Merger-related charges | 69,274 | | 41,206 | | 5,856 | | 8,117 | | 6,860 | | | 116,336 | | 29,208 | |
| Tax effect | (16,494) | | (11,337) | | (1,089) | | (2,058) | | (1,528) | | | (28,921) | | (6,651) | |
| Merger-related charges, net | 52,780 | | 29,869 | | 4,767 | | 6,059 | | 5,332 | | | 87,415 | | 22,557 | |
| CECL Day 1 non-PCD provision expense | - | | 75,604 | | - | | - | | - | | | 75,604 | | 15,312 | |
| Tax effect | - | | (20,802) | | - | | - | | - | | | (20,802) | | (3,476) | |
| CECL Day 1 non-PCD provision expense, net | - | | 54,802 | | - | | - | | - | | | 54,802 | | 11,836 | |
| Pension plan gain | - | | (21,001) | | - | | - | | - | | | (21,001) | | - | |
| Tax effect | - | | 5,778 | | - | | - | | - | | | 5,778 | | - | |
| Pension plan gain, net | - | | (15,223) | | - | | - | | - | | | (15,223) | | - | |
| Debt securities (gains) losses | (7) | | 41 | | 76 | | 122 | | 76 | | | 110 | | 90 | |
| Tax effect | 2 | | (11) | | (14) | | (31) | | (17) | | | (24) | | (20) | |
| Debt securities (gains) losses, net | (5) | | 30 | | 62 | | 91 | | 59 | | | 86 | | 70 | |
| Separation expense | - | | - | | - | | - | | 2,646 | | | - | | 2,646 | |
| Tax effect | - | | - | | - | | - | | (589) | | | - | | (589) | |
| Separation expense, net | - | | - | | - | | - | | 2,057 | | | - | | 2,057 | |
| Distribution of excess pension assets | - | | - | | - | | - | | - | | - | - | | 13,318 | |
| Tax effect | - | | - | | - | | - | | - | | - | - | | (3,250) | |
| Distribution excess pension assets, net | - | | - | | - | | - | | - | | | - | | 10,068 | |
| FDIC special assessment | - | | - | | - | | - | | - | | | - | | 2,994 | |
| Tax effect | - | | - | | - | | - | | - | | | - | | (731) | |
| FDIC special assessment, net | - | | - | | - | | - | | - | | | - | | 2,263 | |
| Total adjustments, net | 52,775 | | 69,478 | | 4,829 | | 6,150 | | 7,448 | | | 127,080 | | 48,851 | |
| Net income applicable to common shares, adjusted | $231,308 | | $190,853 | | $145,454 | | $155,989 | | $147,216 | | | $567,613 | | $422,065 | |
| Weighted average diluted common shares outstanding | 390,496 | | 361,436 | | 321,016 | | 318,803 | | 317,331 | | | 357,278 | | 308,605 | |
| EPS, diluted | $0.46 | | $0.34 | | $0.44 | | $0.47 | | $0.44 | | | $1.23 | | $1.21 | |
| Adjusted EPS, diluted | $0.59 | | $0.53 | | $0.45 | | $0.49 | | $0.46 | | | $1.59 | | $1.37 | |
| NIM: | | | | | | | | |
| Net interest income | $574,609 | | $514,790 | | $387,643 | | $394,180 | | $391,724 | | | $1,477,042 | | $1,136,603 | |
| Add: FTE adjustment | 7,975 | | 7,063 | | 5,360 | | 5,777 | | 6,144 | | | 20,398 | | 18,737 | |
| Net interest income (FTE) | $582,584 | | $521,853 | | $393,003 | | $399,957 | | $397,868 | | | $1,497,440 | | $1,155,340 | |
| Average earning assets | $64,032,811 | | $59,061,249 | | $48,077,320 | | $48,411,803 | | $47,905,463 | | | $57,115,572 | | $46,500,942 | |
| NIM (GAAP) | 3.59% | | 3.49% | | 3.23% | | 3.26% | | 3.27% | | | 3.45% | | 3.26% | |
| NIM (FTE) | 3.64% | | 3.53% | | 3.27% | | 3.30% | | 3.32% | | | 3.50% | | 3.31% | |
| Refer to last page of Non-GAAP reconciliations for footnotes. | | | | | | |
| Three Months Ended | Nine Months Ended |
|---|
| September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | September 30, |
|---|
| 2025 | 2025 | 2025 | 2024 | 2024 | 2025 | 2024 |
|---|
| Non-GAAP Measures (unaudited) |
| ($ in thousands) |
| PPNR: | | | | | | | |
| Net interest income (FTE) | $582,584 | | $521,853 | | $393,003 | | $399,957 | | $397,868 | | $1,497,440 | | $1,155,340 | |
| Add: Noninterest income | 130,461 | | 132,517 | | 93,794 | | 95,766 | | 94,138 | | 356,772 | | 258,931 | |
| Total revenue (FTE) | 713,045 | | 654,370 | | 486,797 | | 495,723 | | 492,006 | | 1,854,212 | | 1,414,271 | |
| Less: Noninterest expense | (445,734) | | (384,766) | | (268,471) | | (276,824) | | (272,283) | | (1,098,971) | | (817,599) | |
| PPNR | $267,311 | | $269,604 | | $218,326 | | $218,899 | | $219,723 | | $755,241 | | $596,672 | |
| Adjustments: | | | | | | | |
| Pension plan termination gain | $ - | | $(21,001) | | $ - | | $ - | | $ - | | $(21,001) | | $ - | |
| Debt securities (gains) losses | $(7) | | $41 | | $76 | | $122 | | $76 | | $110 | | $90 | |
| Noninterest income adjustments | (7) | | (20,960) | | 76 | | 122 | | 76 | | (20,891) | | 90 | |
| Adjusted noninterest income | 130,454 | | 111,557 | | 93,870 | | 95,888 | | 94,214 | | 335,881 | | 259,021 | |
| Adjusted revenue | $713,038 | | $633,410 | | $486,873 | | $495,845 | | $492,082 | | $1,833,321 | | $1,414,361 | |
| Adjustments: | | | | | | | |
| Merger-related charges | $69,274 | | $41,206 | | $5,856 | | $8,117 | | $6,860 | | $116,336 | | $29,208 | |
| Separation expense | - | | - | | - | | - | | 2,646 | | - | | 2,646 | |
| Distribution of excess pension assets | - | | - | | - | | - | | - | | - | | 13,318 | |
| FDIC Special Assessment | - | | - | | - | | - | | - | | - | | 2,994 | |
| Noninterest expense adjustments | 69,274 | | 41,206 | | 5,856 | | 8,117 | | 9,506 | | 116,336 | | 48,166 | |
| Adjusted total noninterest expense | (376,460) | | (343,560) | | (262,615) | | (268,707) | | (262,777) | | (982,635) | | (769,433) | |
| Adjusted PPNR | $336,578 | | $289,850 | | $224,258 | | $227,138 | | $229,305 | | $850,686 | | $644,928 | |
| Efficiency Ratio: | | | | | | | |
| Noninterest expense | $445,734 | | $384,766 | | $268,471 | | $276,824 | | $272,283 | | $1,098,971 | | $817,599 | |
| Less: Amortization of intangibles | (26,184) | | (19,630) | | (6,830) | | (7,237) | | (7,411) | | (52,644) | | (20,291) | |
| Noninterest expense, excl. amortization of intangibles | 419,550 | | 365,136 | | 261,641 | | 269,587 | | 264,872 | | 1,046,327 | | 797,308 | |
| Less: Amortization of tax credit investments | (7,057) | | (5,815) | | (3,424) | | (4,556) | | (3,277) | | (16,296) | | (8,773) | |
| Less: Noninterest expense adjustments | (69,274) | | (41,206) | | (5,856) | | (8,117) | | (9,506) | | (116,336) | | (48,166) | |
| Adjusted noninterest expense, excluding amortization | $343,219 | | $318,115 | | $252,361 | | $256,914 | | $252,089 | | $913,695 | | $740,369 | |
| Total revenue (FTE) | $713,045 | | $654,370 | | $486,797 | | $495,723 | | $492,006 | | $1,854,212 | | $1,414,271 | |
| Less: Debt securities (gains) losses | (7) | | 41 | | 76 | | 122 | | 76 | | 110 | | 90 | |
| Less: Pension plan gain | - | | (21,001) | | - | | - | | - | | (21,001) | | - | |
| Total adjusted revenue | $713,038 | | $633,410 | | $486,873 | | $495,845 | | $492,082 | | $1,833,321 | | $1,414,361 | |
| Efficiency Ratio | 58.8% | | 55.8% | | 53.7% | | 54.4% | | 53.8% | | 56.4% | | 56.4% | |
| Adjusted Efficiency Ratio | 48.1% | | 50.2% | | 51.8% | | 51.8% | | 51.2% | | 49.8% | | 52.3% | |
| Refer to last page of Non-GAAP reconciliations for footnotes. | | | | | |
| Three Months Ended | Nine Months Ended |
|---|
| September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | September 30, |
|---|
| 2025 | 2025 | 2025 | 2024 | 2024 | 2025 | 2024 |
|---|
| Non-GAAP Measures (unaudited) |
| ($ in thousands) |
| ROAE and ROATCE: | | | | | | | |
| Net income applicable to common shares | $178,533 | | $121,375 | | $140,625 | | $149,839 | | $139,768 | | $440,533 | | $373,214 | |
| Amortization of intangibles | 26,184 | | 19,630 | | 6,830 | | 7,237 | | 7,411 | | 52,644 | | 20,291 | |
| Tax effect | (6,546) | | (4,908) | | (1,708) | | (1,809) | | (1,853) | | (13,161) | | (5,073) | |
| Amortization of intangibles, net | 19,638 | | 14,722 | | 5,122 | | 5,428 | | 5,558 | | 39,483 | | 15,218 | |
| Net income applicable to common shares, excluding intangibles amortization | 198,171 | | 136,097 | | 145,747 | | 155,267 | | 145,326 | | 480,016 | | 388,432 | |
| Total adjustments, net (see pg.12) | 52,775 | | 69,478 | | 4,829 | | 6,150 | | 7,448 | | 127,080 | | 48,851 | |
| Adjusted net income applicable to common shares, excluding intangibles amortization | $250,946 | | $205,575 | | $150,576 | | $161,417 | | $152,774 | | $607,096 | | $437,283 | |
| Average shareholders' equity | $8,168,575 | | $7,452,116 | | $6,416,485 | | $6,338,953 | | $6,190,071 | | $7,352,143 | | $5,912,546 | |
| Less: Average preferred equity | (243,719) | | (243,719) | | (243,719) | | (243,719) | | (243,719) | | (243,719) | | (243,719) | |
| Average shareholders' common equity | $7,924,856 | | $7,208,397 | | $6,172,766 | | $6,095,234 | | $5,946,352 | | $7,108,424 | | $5,668,827 | |
| Average goodwill and other intangible assets | (2,931,319) | | (2,670,710) | | (2,292,526) | | (2,301,177) | | (2,304,597) | | (2,633,858) | | (2,216,437) | |
| Average tangible shareholder's common equity | $4,993,537 | | $4,537,687 | | $3,880,240 | | $3,794,057 | | $3,641,755 | | $4,474,566 | | $3,452,390 | |
| ROAE | 9.0% | | | 6.7% | | 9.1% | | 9.8% | | 9.4% | 8.3% | | 8.8% | |
| ROAE, adjusted | 11.7% | | | 10.6% | | 9.4% | | 10.2% | | 9.9% | 10.6% | | 9.9% | |
| ROATCE | 15.9% | | | 12.0% | | 15.0% | | 16.4% | | 16.0% | 14.3% | | 15.0% | |
| ROATCE, adjusted | 20.1% | | | 18.1% | | 15.5% | | 17.0% | | 16.8% | 18.1% | | 16.9% | |
| Refer to last page of Non-GAAP reconciliations for footnotes. | | | | | |
| As of |
|---|
| September 30, | June 30, | March 31, | December 31, | September 30, |
|---|
| 2025 | 2025 | 2025 | 2024 | 2024 |
|---|
| Non-GAAP Measures (unaudited) |
| ($ in thousands) |
| Tangible Common Equity: | | | | | |
| Shareholders' equity | $8,309,271 | | $8,126,387 | | $6,534,654 | | $6,340,350 | | $6,367,298 | |
| Less: Preferred equity | (243,719) | | (243,719) | | (243,719) | | (243,719) | | (243,719) | |
| Shareholders' common equity | $8,065,552 | | $7,882,668 | | $6,290,935 | | $6,096,631 | | $6,123,579 | |
| Less: Goodwill and other intangible assets | (2,926,960) | | (2,944,372) | | (2,289,268) | | (2,296,098) | | (2,305,084) | |
| Tangible shareholders' common equity | $5,138,592 | | $4,938,296 | | $4,001,667 | | $3,800,533 | | $3,818,495 | |
| Total assets | $71,210,162 | | $70,979,805 | | $53,877,944 | | $53,552,272 | | $53,602,293 | |
| Less: Goodwill and other intangible assets | (2,926,960) | | (2,944,372) | | (2,289,268) | | (2,296,098) | | (2,305,084) | |
| Tangible assets | $68,283,202 | | $68,035,433 | | $51,588,676 | | $51,256,174 | | $51,297,209 | |
| Risk-weighted assets | $52,515,468 | | $52,517,871 | | $40,266,670 | | $40,314,805 | | $40,584,608 | |
| Tangible common equity to tangible assets | 7.53% | | 7.26% | | 7.76% | | 7.41% | | 7.44% | |
| Tangible common equity to risk-weighted assets | 9.78% | | 9.40% | | 9.94% | | 9.43% | | 9.41% | |
| Tangible Common Book Value: | | | | | |
| Common shares outstanding | 390,768 | | 391,818 | | 319,236 | | 318,980 | | 318,955 | |
| Tangible common book value | $13.15 | | $12.60 | | $12.54 | | $11.91 | | $11.97 | |
| Tax-effect calculations use management's estimate of the full year FTE tax rates (federal + state). |
| Calculated using the federal statutory tax rate in effect of 21% for all periods. |
| September 30, 2025 figures are preliminary. |
Contacts
Media: Rick Jillson · (812) 465-7267 · Rick.Jillson@oldnational.com
Investors: Lynell Durchholz · (812) 464-1366 · Lynell.Durchholz@oldnational.com