Q4 2025 Old National Bancorp Earnings Call Transcript
Key Points
- Old National Bancorp (ONB) reported strong fourth-quarter earnings, setting new records for adjusted earnings per share, net income, and efficiency ratio.
- The company achieved a peer-leading adjusted return on average common equity of nearly 20% and an adjusted ROA of 1.37%.
- Successful completion of the systems conversion and integration related to the Bremer Bank partnership, showcasing effective integration capabilities.
- Tangible book value per share grew by 15% despite merger-related charges and share repurchases.
- Strong liquidity and capital position with CET1 over 11% and a loan-to-deposit ratio of 89%.
- The company faced merger-related expenses and Bremer pension plan termination charges impacting GAAP earnings.
- Core deposits excluding brokered deposits decreased by about 3% annualized, driven by seasonally lower public funds balances.
- The cost of total deposits decreased by 17 basis points, indicating potential pressure on deposit pricing.
- The company anticipates two additional rate cuts in 2026, which could impact net interest income and margin.
- There is ongoing competition in deposit pricing, particularly in certain markets, which could affect profitability.
Welcome to the Old National Bancorp fourth quarter and full year 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 those numbers are contained within the appendix of the presentation
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
