Q2 2025 Old National Bancorp Earnings Call Transcript
Key Points
- Old National Bancorp (ONB) reported impressive second-quarter earnings, meeting or exceeding all previous guidance.
- The appointment of Tim Burke as the new President and COO is expected to bring experience and optimism to the company.
- The partnership with Bremer Bank closed ahead of schedule, contributing positively to the balance sheet and capital position.
- Net charge-offs fell within the expected range, and there was a 9% reduction in legacy criticized and classified assets.
- The CET1 ratio was better than expected at 10.74%, and tangible book value increased by 14% year over year.
- Increased competition in the commercial real estate market is causing ONB to be more cautious about loan growth estimates.
- The uncertain geopolitical environment and active portfolio management may lead to loan growth being at the lower end of the expected range.
- The deregulatory environment remains uncertain, with potential changes in regulatory thresholds still unclear.
- The integration of Bremer Bank may present challenges, with a focus on conversion and execution in the coming months.
- Despite strong earnings, the decision to hold CRE loans has not led to an increase in net interest income outlook for the second half of 2025.
Welcome to the Old National Bancorp second-quarter 2025 earnings conference call. This call is being recorded and has been made accessible to the public in accordance with the SEC's Regulation FD. Corresponding presentation slides can be found on the Investor Relations page at oldnational.com and will be archived there for 12 months.
Management would like to remind everyone that certain statements on today's call may be forward-looking in nature and are subject to certain risks, uncertainties, and other factors that could cause actual results or outcomes to differ from those discussed. The company refers you to its forward-looking statement legend in the earnings release and presentation slides. The company's risk factors are fully disclosed and discussed within its SEC filings.
In addition, certain slides contain non-GAAP measures, which management believes provide more appropriate comparisons. These non-GAAP measures are intended to assist investors' understanding of performance trends. Reconciliations for these numbers are contained within the appendix of the presentation. I'd now
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