Old National Bancorp (NASDAQ: ONB) has reported its fourth-quarter and full-year 2025 results, highlighting a net income applicable to common shares of $212.6 million for the fourth quarter and $653.1 million for the full year. Additionally, the company achieved diluted earnings per share (EPS) of $0.55 for the fourth quarter and $1.79 for the full year. These figures were adjusted to $241.0 million and $808.6 million for net income applicable to common shares, and $0.62 and $2.21 for diluted EPS, respectively.
Net interest income on a fully taxable equivalent basis increased to $588.8 million, while the net interest margin on a fully taxable equivalent basis rose 1 basis point to 3.65%. Notably, the company's pre-provision net revenue (PPNR) was $312.3 million for the fourth quarter, with adjusted PPNR reaching $349.6 million, reflecting a 4% increase.
In terms of deposits and funding, Old National Bancorp saw period-end total deposits of $55.1 billion, up 0.6% annually, with core deposits experiencing a 3.2% annualized decrease. Moreover, the period-end total loans were $48.8 billion, marking a 6.4% annualized increase.
The company's credit quality remained strong, with a provision for credit losses amounting to $32.7 million and net charge-offs of $32.1 million, representing 27 basis points (bps) of average loans. Excluding purchased credit deteriorated (PCD) loans, net charge-offs to average loans were 16 bps. Additionally, nonaccrual loans stood at 1.07% of total loans, while the allowance for credit losses was reported at $605.2 million, or 1.24% of total loans.
Old National Bancorp's noninterest income for the fourth quarter was $109.7 million, and noninterest expense stood at $386.3 million. Adjusted noninterest expense amounted to $364.8 million, leading to an efficiency ratio of 51.6% and an adjusted efficiency ratio of 46.0%.
Furthermore, the company reported an effective tax rate of 20.2%, down from 21.5% in the previous period. Capital ratios remained robust, with preliminary total risk-based capital up 7 basis points to 12.85% and preliminary regulatory tier 1 capital up 4 basis points to 11.53%.
In light of these results, CEO Jim Ryan emphasized the company's focus on fundamentals, which drove Old National Bancorp to achieve new organizational records for adjusted earnings per share, net income, and efficiency ratio in 2025. Today the company's shares have moved -0.13% to a price of $23.26. If you want to know more, read the company's complete 8-K report here.
