Old National Bancorp (NASDAQ:ONB) posted stronger-than-expected third-quarter results on Wednesday, supported by robust revenue growth and improving margins.
Adjusted earnings came in at $0.59 per share, ahead of analyst expectations of $0.56. Revenue reached $705.07 million, topping the $696.71 million consensus estimate, thanks to higher net interest income and core deposit expansion.
“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.”
Net interest income on a fully taxable equivalent basis rose to $582.6 million, while net interest margin widened by 11 basis points to 3.64%. Total deposits climbed to $55.0 billion, growing at a 4.8% annualized rate, with core deposits rising 5.8%. Period-end total loans increased to $48.0 billion, up 0.6% annualized, or 3.1% excluding loans acquired from Bremer.
Credit quality remained healthy, with net charge-offs at $30 million, equivalent to 0.25% of average loans. Provisions for credit losses dropped to $26.7 million from $106.8 million in the prior quarter.
The bank reported a return on average tangible common equity of 15.9%, or 20.1% on an adjusted basis, while its adjusted efficiency ratio improved to 48.1% from 50.2%. Its Tier 1 common equity to risk-weighted assets ratio rose 28 basis points to 11.02%, reinforcing its solid capital position heading into the final months of the year.