Old National Bancorp (NASDAQ:ONB) reported fourth-quarter results on Wednesday that beat earnings expectations, even as revenue came in below market forecasts.
The Indiana-based lender posted adjusted earnings per share of $0.62, ahead of the $0.59 consensus estimate. Revenue totaled $690.59 million, missing analysts’ expectations of $706.14 million. Shares slipped modestly following the release, edging down 0.12%.
Net income attributable to common shareholders reached $212.6 million for the quarter, while adjusted net income amounted to $241 million. The bank said results were supported by growth in interest-earning assets and lower funding costs, which helped offset the revenue shortfall.
Net interest income on a fully taxable equivalent basis rose to $588.8 million, with net interest margin improving by one basis point to 3.65%. Total loans at period end increased to $48.8 billion, up $768.8 million, or 6.4% on an annualized basis, driven in part by a $477.5 million rise in commercial and industrial lending.
“Old National’s strong fourth quarter earnings punctuate an exceptional year that set new organizational records for adjusted earnings per share, net income, and efficiency ratio,” said Chairman and CEO Jim Ryan. “Our 2025 results were driven by a focus on fundamentals – core deposit growth to support loan expansion, positive operating leverage, disciplined credit management, and healthy liquidity and capital ratios.”
Credit quality continued to improve, with nonaccrual loans declining to 1.07% of total loans from 1.23% in the prior quarter. Capital levels also strengthened, with preliminary Tier 1 common equity to risk-weighted assets rising by six basis points to 11.08%.
Total deposits stood at $55.1 billion at quarter end, reflecting 0.6% annualized growth, although core deposits declined at a 3.2% annualized pace. The bank’s adjusted efficiency ratio improved to 46.0%, down from 48.1% in the previous quarter.
Profitability remained solid, with return on average tangible common equity reaching 17.8% and adjusted ROATCE at 19.9%, underscoring strong performance despite the revenue miss.