EVANSVILLE, Ind., April 23, 2024 (GLOBE NEWSWIRE) --

Old National Bancorp (NASDAQ:ONB) reports 1Q24 net income applicable to common shares of $116.3 million, diluted EPS of $0.40; $130.8 million and $0.45 on an adjusted¹ basis, respectively.

CEO COMMENTARY:

"Old National's positive quarterly results were highlighted by continued growth in our granular, peer-leading deposit franchise, disciplined loan growth, a year-over-year tangible book value increase, and stable credit quality," said Chairman and CEO Jim Ryan. "We accomplished these strong results while driving toward a successful close (on April 1) of our partnership with Nashville-based CapStar Bank."

FIRST QUARTER HIGHLIGHTS²:

Net Income	Net income applicable to common shares of $116.3 million; adjusted net income applicable to common shares¹ of $130.8 million
Net Income	Earnings per diluted common share ("EPS") of $0.40; adjusted EPS¹ of $0.45

Net Interest Income/NIM	Net interest income on a fully taxable equivalent basis¹ of $362.7 million
Net Interest Income/NIM	Net interest margin on a fully taxable equivalent basis¹ ("NIM") of 3.28%, down 11 basis points ("bps")

Operating Performance	Pre-provision net revenue¹ ("PPNR") of $177.9 million; adjusted PPNR¹ of $197.2 million
	Noninterest expense of $262.3 million; adjusted noninterest expense¹ of $243.1 million
	Efficiency ratio¹ of 58.3%; adjusted efficiency ratio¹of 53.4%

Deposits and Funding	Period-end total deposits of $37.7 billion, up 5.0% annualized; core deposits up 3.2% annualized
Deposits and Funding	Granular low-cost deposit franchise; total deposit costs of 201 bps and a cycle to date (2Q22-1Q24) total deposit beta of 38% (interest-bearing deposit beta of 50%)

Loans and Credit Quality	End-of-period total loans³ of $33.6 billion, up 7.5% annualized
	Provision for credit losses⁴ ("provision") of $18.9 million
	Net charge-offs of $11.8 million, or 14 bps of average loans; 7 bps excluding purchased credit deteriorated ("PCD") loans that had an allowance at acquisition
	30+ day delinquencies of 0.16% and non-performing loans of 0.98% of total loans

Return Profile & Capital	Return on average tangible common equity¹ of 14.9%; adjusted return on average tangible common equity¹ of 16.7%

Notable Items	$13.3 million pre-tax distribution of excess legacy First Midwest pension plan assets⁵
	$3.0 million pre-tax FDIC special assessment⁶
	$2.9 million of pre-tax merger-related charges

_{¹Non-GAAP financial measure that management believes is useful in evaluating the financial results of the Company – refer to the Non-GAAP reconciliations contained in this release ²Comparisons are on a linked-quarter basis, unless otherwise noted ³Includes loans held-for-sale ⁴Includes the provision for unfunded commitments ⁵Includes non-cash expense associated with the distribution of excess pension assets with the resolution of the legacy First Midwest Bancorp, Inc. plan ⁶Represents the Company's estimate of its FDIC special assessment using the FDIC's updated estimate of losses to its Deposit Insurance Fund}

RESULTS OF OPERATIONS²

Old National Bancorp ("Old National") reported first quarter 2024 net income applicable to common shares of $116.3 million, or $0.40 per diluted common share.

Included in first quarter results was a $13.3 million non-cash, pre-tax expense associated with the distribution of excess pension assets with the resolution of the legacy First Midwest plan, as well as pre-tax charges of $3.0 million for the FDIC special assessment and $2.9 million of merger-related charges. Excluding these transactions and realized debt securities losses from the current quarter, adjusted net income¹ was $130.8 million, or $0.45 per diluted common share.

DEPOSITS AND FUNDING

Growth in deposits including normal seasonal patterns in business checking and public funds.

Period-end total deposits were $37.7 billion, up $464.2 million, or 5.0% annualized; core deposits increased 3.2% annualized; includes normal seasonal patterns in business checking and public funds.
On average, total deposits for the first quarter were $37.1 billion, a decrease of 1.2%.
Granular low-cost deposit franchise; total deposit costs of 201 bps and a cycle to date total deposit beta of 38% (interest-bearing deposit beta of 50%).
A loan to deposit ratio of 89%, combined with existing funding sources, provides strong liquidity.

LOANS

Broad-based disciplined commercial loan growth.

Period-end total loans³ were $33.6 billion, up 7.5% annualized.
Total commercial loan production in the first quarter was $1.1 billion; period-end commercial pipeline totaled $2.7 billion.
Average total loans in the first quarter were $33.2 billion, an increase of $480.3 million.

CREDIT QUALITY

Strong credit quality continues to be a hallmark of Old National.

Provision⁴ expense was $18.9 million, compared to $11.6 million, reflecting net charge-offs and loan growth, as well as economic factors.
Net charge-offs were $11.8 million, or 14 bps of average loans compared to net charge-offs of 12 bps of average loans.
- Excluding PCD loans that had an allowance for credit losses established at acquisition, net charge-offs to average loans were 7 bps.
30+ day delinquencies as a percentage of loans were 0.16%, compared to 0.22%.
Non-performing loans as a percentage of total loans were 0.98% compared to 0.83%.
Loans acquired from previous acquisitions were recorded at fair value at the acquisition date. The remaining discount on these acquired loans was $75.0 million.
The allowance for credit losses, including the allowance for credit losses on unfunded commitments, stood at $346.0 million, or 1.03% of total loans, compared to $338.8 million, or 1.03% of total loans.

NET INTEREST INCOME AND MARGIN

Lower net interest income and margin compression reflective of the rate environment.

Net interest income on a fully taxable equivalent basis¹ decreased to $362.7 million compared to $370.5 million, driven by higher funding costs and fewer days in the quarter, partly offset by loan growth.
Net interest margin on a fully taxable equivalent basis¹ decreased 11 bps to 3.28%.
Accretion income on loans and borrowings was $5.1 million, or 5 bps of net interest margin¹, compared to $6.2 million, or 6 bps of net interest margin¹.
Cost of total deposits was 2.01%, increasing 16 bps and the cost of total interest-bearing deposits increased 15 bps to 2.68%.

NONINTEREST INCOME

Increased mortgage fees, wealth fees, and other income, offset by lower capital markets income.

Total noninterest income was $77.5 million.
Excluding realized debt securities gains/losses for both periods and gain on sale of Visa Class B restricted shares for the fourth quarter of 2023, adjusted noninterest income was down 2.2% due to lower capital markets income, partially offset by an increase in mortgage fees, wealth fees, and other income.

NONINTEREST EXPENSE

Disciplined expense management.

Noninterest expense was $262.3 million and included a $13.3 million non-cash expense associated with the distribution of excess pension assets with the resolution of the legacy First Midwest plan, as well as $3.0 million of FDIC special assessment charges and $2.9 million of merger-related charges.
Excluding these items, adjusted noninterest expense was $243.1 million, compared to $255.2 million; lower due to elevated performance-driven incentive accruals and higher amortization of tax credit investments for the fourth quarter of 2023, as well as lower professional fees and other expense for the first quarter of 2024, partially offset by payroll tax due to timing.
The efficiency ratio¹ was 58.3%, while the adjusted efficiency ratio¹ was 53.4% compared to 59.0% and 53.8%, respectively.

INCOME TAXES

Income tax expense was $32.5 million, resulting in an effective tax rate of 21.3% compared to 21.5%. On an adjusted fully taxable equivalent ("FTE") basis, the effective tax rate was 24.4% compared to 24.2%.
Income tax expense included $3.3 million of tax credit benefit.

CAPITAL

Capital ratios remain strong.

All regulatory capital ratios grew in the quarter with preliminary total risk-based capital up 10 bps to 12.74% and preliminary regulatory Tier 1 capital up 5 bps to 11.40%, driven by retained earnings, partly offset by strong loan growth.
Tangible common equity to tangible assets was 6.86% compared to 6.85%.

CAPSTAR TRANSACTION

On April 1, 2024, Old National completed its acquisition of CapStar Financial Holdings, Inc. ("CapStar"), and its wholly-owned subsidiary, CapStar Bank. This partnership strengthens Old National's Nashville, Tennessee presence and adds several new high-growth markets. At closing, CapStar had approximately $3.0 billion of total assets, $2.3 billion of total loans, and $2.6 billion of deposits. Old National expects system conversions related to the transaction to be completed in the third quarter of 2024.

CONFERENCE CALL AND WEBCAST

Old National will host a conference call and live webcast at 9:00 a.m. Central Time on Tuesday, April 23, 2024, to review first quarter financial results. The live audio webcast link and corresponding presentation slides will be available on the Company's Investor Relations website at oldnational.com and will be archived there for 12 months. To listen to the live conference call, dial U.S. (800) 715-9871 or International (646) 307-1963, access code 3992332. A replay of the call will also be available from approximately noon Central Time on April 23, 2024 through May 7, 2024. To access the replay, dial U.S. (800) 770-2030 or International (647) 362-9199; Access code 3992332.

ABOUT OLD NATIONAL

Old National Bancorp (NASDAQ:ONB) is the holding company of Old National Bank, which is the sixth largest commercial bank headquartered in the Midwest. With approximately $53 billion of assets and $29 billion of assets under management (including CapStar Financial Holdings, Inc. on a pro forma basis as of December 31, 2023), Old National ranks among the top 30 banking companies headquartered in the U.S. Tracing our roots to 1834, Old National Bank has focused on community banking by building long-term, highly valued partnerships with clients and in the communities it serves. In addition to providing extensive services in retail and commercial banking, Old National offers comprehensive wealth management, investment, and capital market services. For more information and financial data, please visit Investor Relations at oldnational.com.

USE OF NON-GAAP FINANCIAL MEASURES

The Company's accounting and reporting policies conform to U.S. generally accepted accounting principles ("GAAP") and general practices within the banking industry. As a supplement to GAAP, the Company provides non-GAAP performance results, which the Company believes are useful because they assist investors in assessing the Company's operating performance. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables at the end of this release.

The Company presents EPS, the efficiency ratio, return on average common equity, return on average tangible common equity, and net income applicable to common shares, all adjusted for certain notable items. These items include gain on sale of Visa Class B restricted shares, distribution of excess pension assets expense, FDIC special assessment expense, contract termination charges, merger-related charges associated with completed and pending acquisitions, debt securities gains/losses, expenses related to the tragic April 10, 2023 event at our downtown Louisville location ("Louisville expenses"), and property optimization charges. Management believes excluding these items from EPS, the efficiency ratio, return on average common equity, and return on average tangible common equity may be useful in assessing the Company's underlying operational performance since these items do not pertain to its core business operations and their exclusion may facilitate better comparability between periods. Management believes that excluding merger-related charges from these metrics may be useful to the Company, as well as analysts and investors, since these expenses can vary significantly based on the size, type, and structure of each acquisition. Additionally, management believes excluding these items from these metrics may enhance comparability for peer comparison purposes.

Income tax expense, provision for credit losses, and the certain notable items listed above are excluded from the calculation of pre-provision net revenues, adjusted due to the fluctuation in income before income tax and the level of provision for credit losses required. Management believes pre-provision net revenues, adjusted may be useful in assessing the Company's underlying operating performance and their exclusion may facilitate better comparability between periods and for peer comparison purposes.

The Company presents adjusted noninterest expense, which excludes distribution of excess pension assets expense, FDIC special assessment expense, contract termination charges, merger-related charges, property optimization charges, Louisville expenses, as well as adjusted noninterest income, which excludes the gain on sale of Visa Class B restricted shares and debt securities gains/losses. Management believes that excluding these items from noninterest expense and noninterest income may be useful in assessing the Company's underlying operational performance as these items either do not pertain to its core business operations or their exclusion may facilitate better comparability between periods and for peer comparison purposes.

The tax-equivalent adjustment to net interest income and net interest margin recognizes the income tax savings when comparing taxable and tax-exempt assets. Interest income and yields on tax-exempt securities and loans are presented using the current federal income tax rate of 21%. Management believes that it is standard practice in the banking industry to present net interest income and net interest margin on a fully tax-equivalent basis and that it may enhance comparability for peer comparison purposes.

In management's view, tangible common equity measures are capital adequacy metrics that may be meaningful to the Company, as well as analysts and investors, in assessing the Company's use of equity and in facilitating comparisons with peers. These non-GAAP measures are valuable indicators of a financial institution's capital strength since they eliminate intangible assets from stockholders' equity and retain the effect of accumulated other comprehensive loss in stockholders' equity.

Although intended to enhance investors' understanding of the Company's business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP. In addition, these non-GAAP financial measures may differ from those used by other financial institutions to assess their business and performance. See the previously provided tables and the following reconciliations in the "Non-GAAP Reconciliations" section for details on the calculation of these measures to the extent presented herein.

FORWARD-LOOKING STATEMENTS

This communication contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"), notwithstanding that such statements are not specifically identified as such. In addition, certain statements may be contained in our future filings with the Securities and Exchange Commission ("SEC"), in press releases, and in oral and written statements made by us that are not statements of historical fact and constitute forward‐looking statements within the meaning of the Act. These statements include, but are not limited to, descriptions of Old National's financial condition, results of operations, asset and credit quality trends, profitability and business plans or opportunities. Forward-looking statements can be identified by the use of words such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "outlook," "plan," "potential," "predict," "should," "would," and "will," and other words of similar meaning. These forward-looking statements express management's current expectations or forecasts of future events and, by their nature, are subject to risks and uncertainties. There are a number of factors that could cause actual results or outcomes to differ materially from those in such statements, including, but not limited to: competition; government legislation, regulations and policies; the ability of Old National to execute its business plan; unanticipated changes in our liquidity position, including but not limited to changes in our access to sources of liquidity and capital to address our liquidity needs; changes in economic conditions and economic and business uncertainty which could materially impact credit quality trends and the ability to generate loans and gather deposits; inflation and governmental responses to inflation, including increasing interest rates; market, economic, operational, liquidity, credit, and interest rate risks associated with our business; our ability to successfully manage our credit risk and the sufficiency of our allowance for credit losses; the expected cost savings, synergies and other financial benefits from the merger (the "Merger") between Old National and CapStar Financial Holdings, Inc. not being realized within the expected time frames and costs or difficulties relating to integration matters being greater than expected; potential adverse reactions or changes to business or employee relationships, including those resulting from the completion of the Merger; the potential impact of future business combinations on our performance and financial condition, including our ability to successfully integrate the businesses and the success of revenue-generating and cost reduction initiatives; failure or circumvention of our internal controls; operational risks or risk management failures by us or critical third parties, including without limitation with respect to data processing, information systems, cybersecurity, technological changes, vendor issues, business interruption, and fraud risks; significant changes in accounting, tax or regulatory practices or requirements; new legal obligations or liabilities; disruptive technologies in payment systems and other services traditionally provided by banks; failure or disruption of our information systems; computer hacking and other cybersecurity threats; the effects of climate change on Old National and its customers, borrowers, or service providers; political and economic uncertainty and instability; the impacts of pandemics, epidemics and other infectious disease outbreaks; other matters discussed in this communication; and other factors identified in our Annual Report on Form 10-K for the year ended December 31, 2023 and other filings with the SEC. These forward-looking statements are made only as of the date of this communication and are not guarantees of future results, performance or outcomes, and Old National does not undertake an obligation to update these forward-looking statements to reflect events or conditions after the date of this communication.

CONTACTS:
Media: Kathy Schoettlin		Investors: Lynell Durchholz
(812) 465-7269		(812) 464-1366
Kathy.Schoettlin@oldnational.com		Lynell.Durchholz@oldnational.com


Financial Highlights (unaudited)
($ and shares in thousands, except per share data)

	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
		2024			2023			2023			2023			2023
Income Statement
Net interest income	$	356,458		$	364,408		$	375,086		$	382,171		$	381,488
FTE adjustment^1,3		6,253			6,100			5,837			5,825			5,666
Net interest income - tax equivalent basis³		362,711			370,508			380,923			387,996			387,154
Provision for credit losses		18,891			11,595			19,068			14,787			13,437
Noninterest income		77,522			100,094			80,938			81,629			70,681
Noninterest expense		262,317			284,235			244,776			246,584			250,711
Net income available to common shareholders	$	116,250		$	128,446		$	143,842		$	151,003		$	142,566
Per Common Share Data
Weighted average diluted shares		292,207			292,029			291,717			291,266			292,756
EPS, diluted	$	0.40		$	0.44		$	0.49		$	0.52		$	0.49
Cash dividends		0.14			0.14			0.14			0.14			0.14
Dividend payout ratio²		35	%		32	%		29	%		27	%		29	%
Book value	$	18.24		$	18.18		$	17.07		$	17.25		$	17.24
Stock price		17.41			16.89			14.54			13.94			14.42
Tangible book value³		11.10			11.00			9.87			10.03			9.98
Performance Ratios
ROAA		0.98	%		1.09	%		1.22	%		1.29	%		1.25	%
ROAE		8.7	%		10.2	%		11.4	%		12.0	%		11.6	%
ROATCE³		14.9	%		18.1	%		20.2	%		21.4	%		21.0	%
NIM (FTE)		3.28	%		3.39	%		3.49	%		3.60	%		3.69	%
Efficiency ratio³		58.3	%		59.0	%		51.7	%		51.2	%		52.8	%
NCOs to average loans		0.14	%		0.12	%		0.24	%		0.13	%		0.21	%
ACL on loans to EOP loans		0.95	%		0.93	%		0.93	%		0.93	%		0.94	%
ACL⁴ to EOP loans		1.03	%		1.03	%		1.03	%		1.04	%		1.05	%
NPLs to EOP loans		0.98	%		0.83	%		0.80	%		0.91	%		0.74	%
Balance Sheet (EOP)
Total loans	$	33,623,319		$	32,991,927		$	32,577,834		$	32,432,473		$	31,822,374
Total assets		49,534,918			49,089,836			49,059,448			48,496,755			47,842,644
Total deposits		37,699,418			37,235,180			37,252,676			36,231,315			34,917,792
Total borrowed funds		5,331,161			5,331,147			5,556,010			6,034,008			6,740,454
Total shareholders' equity		5,595,408			5,562,900			5,239,537			5,292,095			5,277,426
Capital Ratios
Risk-based capital ratios (EOP):
Tier 1 common equity		10.76	%		10.70	%		10.41	%		10.14	%		9.98	%
Tier 1 capital		11.40	%		11.35	%		11.06	%		10.79	%		10.64	%
Total capital		12.74	%		12.64	%		12.32	%		12.14	%		11.96	%
Leverage ratio (average assets)		8.96	%		8.83	%		8.70	%		8.59	%		8.53	%
Equity to assets (averages)³		11.32	%		10.81	%		10.88	%		10.96	%		11.00	%
TCE to TA³		6.86	%		6.85	%		6.15	%		6.33	%		6.37	%
Nonfinancial Data
Full-time equivalent employees		3,955			3,940			3,981			4,021			4,023
Banking centers		258			258			257			256			256
¹ Calculated using the federal statutory tax rate in effect of 21% for all periods.
² Cash dividends per common share divided by net income per common share (basic).
³Represents a non-GAAP financial measure. Refer the "Non-GAAP Measures" table for reconciliations to GAAP financial measures. March 31, 2024 capital ratios are preliminary.
⁴ Includes the allowance for credit losses on loans and unfunded loan commitments.

FTE - Fully taxable equivalent basis ROAA - Return on average assets ROAE - Return on average equity ROATCE - Return on average tangible common equity
NCOs - Net Charge-offs ALL - Allowance for loan losses ACL - Allowance for Credit Losses EOP - End of period actual balances NPLs - Non-performing Loans TCE - Tangible common equity TA - Tangible assets


Income Statement (unaudited)
($ and shares in thousands, except per share data)
	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
		2024			2023			2023			2023			2023
Interest income	$	595,981		$	589,751		$	576,519		$	544,902		$	495,649
Less: interest expense		239,523			225,343			201,433			162,731			114,161
Net interest income		356,458			364,408			375,086			382,171			381,488
Provision for credit losses		18,891			11,595			19,068			14,787			13,437
Net interest income after provision for credit losses		337,567			352,813			356,018			367,384			368,051
Wealth and investment services fees		28,304			27,656			26,687			26,521			26,920
Service charges on deposit accounts		17,898			18,667			18,524			17,751			17,003
Debit card and ATM fees		10,054			10,700			10,818			10,653			9,982
Mortgage banking revenue		4,478			3,691			5,063			4,165			3,400
Capital markets income		2,900			5,416			5,891			6,173			6,939
Company-owned life insurance		3,434			3,773			3,740			4,698			3,186
Gain on sale of Visa Class B restricted shares		—			21,635			—			—			—
Other income		10,470			9,381			10,456			11,651			8,467
Debt securities gains (losses), net		(16	)		(825	)		(241	)		17			(5,216	)
Total noninterest income		77,522			100,094			80,938			81,629			70,681
Salaries and employee benefits		149,803			141,649			131,541			135,810			137,364
Occupancy		27,019			26,514			25,795			26,085			28,282
Equipment		8,671			8,769			8,284			7,721			7,389
Marketing		10,634			10,813			9,448			9,833			9,417
Technology		20,023			20,493			20,592			20,056			19,202
Communication		4,000			4,212			4,075			4,232			4,461
Professional fees		6,406			8,250			5,956			6,397			6,732
FDIC assessment		11,313			27,702			9,000			9,624			10,404
Amortization of intangibles		5,455			5,869			6,040			6,060			6,186
Amortization of tax credit investments		2,749			7,200			2,644			2,762			2,761
Other expense		16,244			22,764			21,401			18,004			18,513
Total noninterest expense		262,317			284,235			244,776			246,584			250,711
Income before income taxes		152,772			168,672			192,180			202,429			188,021
Income tax expense		32,488			36,192			44,304			47,393			41,421
Net income	$	120,284		$	132,480		$	147,876		$	155,036		$	146,600
Preferred dividends		(4,034	)		(4,034	)		(4,034	)		(4,033	)		(4,034	)
Net income applicable to common shares	$	116,250		$	128,446		$	143,842		$	151,003		$	142,566

EPS, diluted	$	0.40		$	0.44		$	0.49		$	0.52		$	0.49
Weighted Average Common Shares Outstanding
Basic		290,980			290,701			290,648			290,559			291,088
Diluted		292,207			292,029			291,717			291,266			292,756
Common shares outstanding (EOP)		293,330			292,655			292,586			292,597			291,922


End of Period Balance Sheet (unaudited)
($ in thousands)
	March 31,			December 31,			September 30,			June 30,			March 31,
		2024			2023			2023			2023			2023
Assets
Cash and due from banks	$	350,990		$	430,866		$	381,343		$	473,023		$	386,879
Money market and other interest-earning investments		588,509			744,192			1,282,087			724,863			727,056
Investments:
Treasury and government-sponsored agencies		2,243,754			2,453,950			2,515,249			2,309,285			2,236,412
Mortgage-backed securities		5,566,881			5,245,691			4,906,290			5,168,458			5,395,680
States and political subdivisions		1,672,061			1,693,819			1,705,200			1,760,725			1,785,073
Other securities		760,847			779,048			751,404			802,323			826,575
Total investments		10,243,543			10,172,508			9,878,143			10,040,791			10,243,740
Loans held-for-sale, at fair value		19,418			32,006			122,033			114,369			10,584
Loans:
Commercial		9,648,269			9,512,230			9,333,448			9,698,241			9,751,875
Commercial and agriculture real estate		14,653,958			14,140,629			13,916,221			13,450,209			12,908,380
Residential real estate		6,661,379			6,699,443			6,696,288			6,684,480			6,568,666
Consumer		2,659,713			2,639,625			2,631,877			2,599,543			2,593,453
Total loans		33,623,319			32,991,927			32,577,834			32,432,473			31,822,374
Allowance for credit losses on loans		(319,713	)		(307,610	)		(303,982	)		(300,555	)		(298,711	)
Premises and equipment, net		564,007			565,396			565,607			564,299			566,758
Goodwill and other intangible assets		2,095,511			2,100,966			2,106,835			2,112,875			2,118,935
Company-owned life insurance		767,423			767,902			774,517			771,753			770,471
Accrued interest receivable and other assets		1,601,911			1,591,683			1,675,031			1,562,864			1,494,558
Total assets	$	49,534,918		$	49,089,836		$	49,059,448		$	48,496,755		$	47,842,644

Liabilities and Equity
Noninterest-bearing demand deposits	$	9,257,709		$	9,664,247		$	10,091,352		$	10,532,838		$	10,995,083
Interest-bearing:
Checking and NOW accounts		7,236,667			7,331,487			7,495,417			7,654,202			7,903,520
Savings accounts		5,020,095			5,099,186			5,296,985			5,578,323			6,030,255
Money market accounts		10,234,113			9,561,116			8,793,218			7,200,288			5,867,239
Other time deposits		4,760,659			4,565,137			4,398,182			4,012,813			3,361,979
Total core deposits		36,509,243			36,221,173			36,075,154			34,978,464			34,158,076
Brokered deposits		1,190,175			1,014,007			1,177,522			1,252,851			759,716
Total deposits		37,699,418			37,235,180			37,252,676			36,231,315			34,917,792

Federal funds purchased and interbank borrowings		50,416			390			918			136,060			618,955
Securities sold under agreements to repurchase		274,493			285,206			279,061			311,447			393,018
Federal Home Loan Bank advances		4,193,039			4,280,681			4,412,576			4,771,183			4,981,612
Other borrowings		813,213			764,870			863,455			815,318			746,869
Total borrowed funds		5,331,161			5,331,147			5,556,010			6,034,008			6,740,454
Accrued expenses and other liabilities		908,931			960,609			1,011,225			939,337			906,972
Total liabilities		43,939,510			43,526,936			43,819,911			43,204,660			42,565,218
Preferred stock, common stock, surplus, and retained earnings		6,375,036			6,301,709			6,208,352			6,100,728			5,985,784
Accumulated other comprehensive income (loss), net of tax		(779,628	)		(738,809	)		(968,815	)		(808,633	)		(708,358	)
Total shareholders' equity		5,595,408			5,562,900			5,239,537			5,292,095			5,277,426
Total liabilities and shareholders' equity	$	49,534,918		$	49,089,836		$	49,059,448		$	48,496,755		$	47,842,644


Average Balance Sheet and Interest Rates (unaudited)
($ in thousands)

	Three Months Ended							Three Months Ended							Three Months Ended
	March 31, 2024							December 31, 2023							March 31, 2023
	Average			Income¹/		Yield/		Average			Income¹/		Yield/		Average			Income¹/		Yield/
Earning Assets:	Balance			Expense		Rate		Balance			Expense		Rate		Balance			Expense		Rate
Money market and other interest-earning investments	$	757,244		$	9,985	5.30	%	$	1,094,196		$	14,425	5.23	%	$	497,953		$	3,098	2.52	%
Investments:
Treasury and government-sponsored agencies		2,362,477			23,266	3.94	%		2,490,793			25,848	4.15	%		2,197,426			16,531	3.01	%
Mortgage-backed securities		5,357,085			38,888	2.90	%		4,913,151			34,209	2.79	%		5,429,200			35,090	2.59	%
States and political subdivisions		1,680,175			13,976	3.33	%		1,686,119			14,541	3.45	%		1,808,316			14,690	3.25	%
Other securities		770,438			12,173	6.32	%		749,697			10,440	5.57	%		738,139			8,604	4.66	%
Total investments		10,170,175			88,303	3.47	%		9,839,760			85,038	3.46	%		10,173,081			74,915	2.95	%
Loans:²
Commercial		9,540,385			167,263	7.01	%		9,351,344			163,921	7.01	%		9,457,089			147,620	6.24	%
Commercial and agriculture real estate		14,368,370			230,086	6.41	%		14,074,908			226,716	6.44	%		12,654,366			179,475	5.67	%
Residential real estate loans		6,693,814			63,003	3.76	%		6,706,425			62,054	3.70	%		6,523,074			58,099	3.56	%
Consumer		2,645,091			43,594	6.63	%		2,634,650			43,697	6.58	%		2,636,350			38,108	5.86	%
Total loans		33,247,660			503,946	6.07	%		32,767,327			496,388	6.06	%		31,270,879			423,302	5.42	%

Total earning assets	$	44,175,079		$	602,234	5.46	%	$	43,701,283		$	595,851	5.45	%	$	41,941,913		$	501,315	4.79	%

Less: Allowance for credit losses on loans		(313,470	)						(304,195	)						(304,393	)

Non-earning Assets:
Cash and due from banks	$	362,676						$	415,266						$	437,872
Other assets		4,961,595							5,027,892							4,907,115

Total assets	$	49,185,880						$	48,840,246						$	46,982,507

Interest-Bearing Liabilities:
Checking and NOW accounts	$	7,141,201		$	25,252	1.42	%	$	7,280,268		$	25,015	1.36	%	$	7,988,579		$	19,359	0.98	%
Savings accounts		5,025,400			5,017	0.40	%		5,184,712			5,196	0.40	%		6,183,409			2,230	0.15	%
Money market accounts		9,917,572			94,213	3.82	%		9,244,117			85,717	3.68	%		5,641,288			20,010	1.44	%
Other time deposits		4,689,136			47,432	4.07	%		4,516,432			44,397	3.90	%		3,057,870			15,289	2.03	%
Total interest-bearing core deposits		26,773,309			171,914	2.58	%		26,225,529			160,325	2.43	%		22,871,146			56,888	1.01	%
Brokered deposits		1,047,140			13,525	5.19	%		1,012,647			13,040	5.11	%		500,530			5,705	4.62	%
Total interest-bearing deposits		27,820,449			185,439	2.68	%		27,238,176			173,365	2.53	%		23,371,676			62,593	1.09	%

Federal funds purchased and interbank borrowings		69,090			961	5.59	%		620			8	5.12	%		419,291			4,839	4.68	%
Securities sold under agreements to repurchase		296,236			917	1.25	%		277,927			910	1.30	%		412,819			779	0.77	%
Federal Home Loan Bank advances		4,386,492			41,167	3.77	%		4,182,877			38,394	3.64	%		4,273,343			37,996	3.61	%
Other borrowings		825,846			11,039	5.38	%		869,644			12,666	5.78	%		781,221			7,954	4.13	%
Total borrowed funds		5,577,664			54,084	3.90	%		5,331,068			51,978	3.87	%		5,886,674			51,568	3.55	%

Total interest-bearing liabilities	$	33,398,113		$	239,523	2.88	%	$	32,569,244		$	225,343	2.74	%	$	29,258,350		$	114,161	1.58	%

Noninterest-Bearing Liabilities and Shareholders' Equity
Demand deposits	$	9,258,136						$	9,949,616						$	11,526,267
Other liabilities		964,089							1,039,899							1,031,702
Shareholders' equity		5,565,542							5,281,487							5,166,188

Total liabilities and shareholders' equity	$	49,185,880						$	48,840,246						$	46,982,507

Net interest rate spread						2.58	%						2.71	%						3.21	%

Net interest margin (GAAP)						3.23	%						3.34	%						3.64	%

Net interest margin (FTE)³						3.28	%						3.39	%						3.69	%

FTE adjustment				$	6,253						$	6,100						$	5,666

¹ Interest income is reflected on a FTE basis.
² Includes loans held-for-sale.
³Represents a non-GAAP financial measure. Refer the "Non-GAAP Measures" table for reconciliations to GAAP financial measures.


Asset Quality (EOP) (unaudited)
($ in thousands)

	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
		2024			2023			2023			2023			2023
Allowance for credit losses:
Beginning allowance for credit losses on loans	$	307,610		$	303,982		$	300,555		$	298,711		$	303,671
Provision for credit losses on loans		23,853			13,329			23,115			11,936			11,469
Gross charge-offs		(14,020	)		(13,202	)		(22,750	)		(14,331	)		(18,180	)
Gross recoveries		2,270			3,501			3,062			4,239			1,751
NCOs		(11,750	)		(9,701	)		(19,688	)		(10,092	)		(16,429	)
Ending allowance for credit losses on loans	$	319,713		$	307,610		$	303,982		$	300,555		$	298,711
Beginning allowance for credit losses on unfunded commitments	$	31,226		$	32,960		$	37,007		$	34,156		$	32,188
Provision (release) for credit losses on unfunded commitments		(4,962	)		(1,734	)		(4,047	)		2,851			1,968
Ending allowance for credit losses on unfunded commitments	$	26,264		$	31,226		$	32,960		$	37,007		$	34,156
Allowance for credit losses	$	345,977		$	338,836		$	336,942		$	337,562		$	332,867
Provision for credit losses on loans	$	23,853		$	13,329		$	23,115		$	11,936		$	11,469
Provision (release) for credit losses on unfunded commitments		(4,962	)		(1,734	)		(4,047	)		2,851			1,968
Provision for credit losses	$	18,891		$	11,595		$	19,068		$	14,787		$	13,437
NCOs / average loans¹		0.14	%		0.12	%		0.24	%		0.13	%		0.21	%
Average loans¹	$	33,242,739		$	32,752,406		$	32,639,812		$	32,251,242		$	31,267,836
EOP loans¹		33,623,319			32,991,927			32,577,834			32,432,473			31,822,374
ACL on loans / EOP loans¹		0.95	%		0.93	%		0.93	%		0.93	%		0.94	%
ACL / EOP loans¹		1.03	%		1.03	%		1.03	%		1.04	%		1.05	%
Underperforming Assets:
Loans 90 days and over (still accruing)	$	2,172		$	961		$	1,192		$	303		$	1,231
Nonaccrual loans		328,645			274,821			261,346			295,509			234,337
Foreclosed assets		9,344			9,434			9,761			9,824			10,817
Total underperforming assets	$	340,161		$	285,216		$	272,299		$	305,636		$	246,385
Classified and Criticized Assets:
Nonaccrual loans	$	328,645		$	274,821		$	261,346		$	295,509		$	234,337
Substandard loans (still accruing)		626,157			599,358			563,427			524,709			570,229
Loans 90 days and over (still accruing)		2,172			961			1,192			303			1,231
Total classified loans - "problem loans"		956,974			875,140			825,965			820,521			805,797
Other classified assets		54,392			48,930			48,998			40,942			26,441
Criticized loans - "special mention loans"		827,419			843,920			775,526			614,547			593,307
Total classified and criticized assets	$	1,838,785		$	1,767,990		$	1,650,489		$	1,476,010		$	1,425,545
Loans 30-89 days past due (still accruing)	$	53,112		$	71,868		$	56,772		$	39,748		$	42,071
Nonaccrual loans / EOP loans¹		0.98	%		0.83	%		0.80	%		0.91	%		0.74	%
ACL / nonaccrual loans		105	%		123	%		129	%		114	%		142	%
Under-performing assets/EOP loans¹		1.01	%		0.86	%		0.84	%		0.94	%		0.77	%
Under-performing assets/EOP assets		0.69	%		0.58	%		0.56	%		0.63	%		0.51	%
30+ day delinquencies/EOP loans¹		0.16	%		0.22	%		0.18	%		0.12	%		0.14	%

¹ Excludes loans held-for-sale.


Non-GAAP Measures (unaudited)
($ and shares in thousands, except per share data)

	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
		2024			2023			2023			2023			2023
Earnings Per Share:
Net income applicable to common shares	$	116,250		$	128,446		$	143,842		$	151,003		$	142,566
Adjustments:
Distribution of excess pension assets		13,318			—			—			—			—
Tax effect¹		(3,250	)		—			—			—			—
Distribution excess pension assets, net		10,068			—			—			—			—
FDIC special assessment		2,994			19,052			—			—			—
Tax effect¹		(731	)		(4,628	)		—			—			—
FDIC special assessment, net		2,263			14,424			—			—			—
Merger-related charges		2,908			5,529			6,257			2,372			14,558
Tax effect¹		(710	)		(1,343	)		(1,042	)		(277	)		(3,172	)
Merger-related charges, net		2,198			4,186			5,215			2,095			11,386
Debt securities (gains) losses		16			825			241			(17	)		5,216
Tax effect¹		(4	)		(200	)		(40	)		2			(1,137	)
Debt securities (gains) losses, net		12			625			201			(15	)		4,079
Gain on sale of Visa Class B restricted shares		—			(21,635	)		—			—			—
Tax effect¹		—			5,255			—			—			—
Gain on sale of Visa Class B restricted shares, net		—			(16,380	)		—			—			—
Contract termination charge		—			4,413			—			—			—
Tax effect¹		—			(1,072	)		—			—			—
Contract termination charge, net		—			3,341			—			—			—
Louisville expenses		—			—			—			3,361			—
Tax effect¹		—			—			—			(392	)		—
Louisville expenses, net		—			—			—			2,969			—
Property optimization charges		—			—			—			242			1,317
Tax effect¹		—			—			—			(28	)		(287	)
Property optimization charges, net		—			—			—			214			1,030
Total adjustments, net		14,541			6,196			5,416			5,263			16,495
Net income applicable to common shares, adjusted	$	130,791		$	134,642		$	149,258		$	156,266		$	159,061
Weighted average diluted common shares outstanding		292,207			292,029			291,717			291,266			292,756
EPS, diluted	$	0.40		$	0.44		$	0.49		$	0.52		$	0.49
Adjusted EPS, diluted	$	0.45		$	0.46		$	0.51		$	0.54		$	0.54
NIM:
Net interest income	$	356,458		$	364,408		$	375,086		$	382,171		$	381,488
Add: FTE adjustment²		6,253			6,100			5,837			5,825			5,666
Net interest income (FTE)	$	362,711		$	370,508		$	380,923		$	387,996		$	387,154
Average earning assets	$	44,175,079		$	43,701,283		$	43,617,456		$	43,097,198		$	41,941,913
NIM (GAAP)		3.23	%		3.34	%		3.44	%		3.55	%		3.64	%
NIM (FTE)		3.28	%		3.39	%		3.49	%		3.60	%		3.69	%

Refer to last page of Non-GAAP reconciliations for footnotes.


Non-GAAP Measures (unaudited)
($ in thousands)

	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
		2024			2023			2023			2023			2023
PPNR:
Net interest income (FTE)²	$	362,711		$	370,508		$	380,923		$	387,996		$	387,154
Add: Noninterest income		77,522			100,094			80,938			81,629			70,681
Total revenue (FTE)		440,233			470,602			461,861			469,625			457,835
Less: Noninterest expense		(262,317	)		(284,235	)		(244,776	)		(246,584	)		(250,711	)
PPNR	$	177,916		$	186,367		$	217,085		$	223,041		$	207,124
Adjustments:
Gain on sale of Visa Class B restricted shares	$	—		$	(21,635	)	$	—		$	—		$	—
Debt securities (gains) losses		16			825			241			(17	)		5,216
Noninterest income adjustments		16			(20,810	)		241			(17	)		5,216
Adjusted noninterest income		77,538			79,284			81,179			81,612			75,897
Adjusted revenue	$	440,249		$	449,792		$	462,102		$	469,608		$	463,051
Adjustments:
Distribution of excess pension assets	$	13,318		$	—		$	—		$	—		$	—
FDIC Special Assessment		2,994			19,052			—			—			—
Merger-related charges		2,908			5,529			6,257			2,372			14,558
Contract termination charges		—			4,413			—			—			—
Louisville expenses		—			—			—			3,361			—
Property optimization charges		—			—			—			242			1,317
Noninterest expense adjustments		19,220			28,994			6,257			5,975			15,875
Adjusted total noninterest expense		(243,097	)		(255,241	)		(238,519	)		(240,609	)		(234,836	)
Adjusted PPNR	$	197,152		$	194,551		$	223,583		$	228,999		$	228,215
Efficiency Ratio:
Noninterest expense	$	262,317		$	284,235		$	244,776		$	246,584		$	250,711
Less: Amortization of intangibles		(5,455	)		(5,869	)		(6,040	)		(6,060	)		(6,186	)
Noninterest expense, excl. amortization of intangibles		256,862			278,366			238,736			240,524			244,525
Less: Amortization of tax credit investments		(2,749	)		(7,200	)		(2,644	)		(2,762	)		(2,761	)
Less: Noninterest expense adjustments		(19,220	)		(28,994	)		(6,257	)		(5,975	)		(15,875	)
Adjusted noninterest expense, excluding amortization	$	234,893		$	242,172		$	229,835		$	231,787		$	225,889
Total revenue (FTE)²	$	440,233		$	470,602		$	461,861		$	469,625		$	457,835
Less: Debt securities (gains) losses		16			825			241			(17	)		5,216
Total revenue excl. debt securities (gains) losses		440,249			471,427			462,102			469,608			463,051
Less: Gain on sale of Visa Class B restricted shares		—			(21,635	)		—			—			—
Total adjusted revenue	$	440,249		$	449,792		$	462,102		$	469,608		$	463,051
Efficiency Ratio		58.3	%		59.0	%		51.7	%		51.2	%		52.8	%
Adjusted Efficiency Ratio		53.4	%		53.8	%		49.7	%		49.4	%		48.8	%

Refer to last page of Non-GAAP reconciliations for footnotes.


Non-GAAP Measures (unaudited)
($ in thousands)

	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
		2024			2023			2023			2023			2023
ROAE and ROATCE:
Net income applicable to common shares	$	116,250		$	128,446		$	143,842		$	151,003		$	142,566
Amortization of intangibles		5,455			5,869			6,040			6,060			6,186
Tax effect¹		(1,364	)		(1,467	)		(1,510	)		(1,515	)		(1,547	)
Amortization of intangibles, net		4,091			4,402			4,530			4,545			4,639
Net income applicable to common shares, excluding intangibles amortization		120,341			132,848			148,372			155,548			147,205
Total adjustments, net (see pg.12)		14,541			6,196			5,416			5,263			16,495
Adjusted net income applicable to common shares, excluding intangibles amortization	$	134,882		$	139,044		$	153,788		$	160,811		$	163,700
Average shareholders' equity	$	5,565,542		$	5,281,487		$	5,294,072		$	5,273,802		$	5,166,188
Less: Average preferred equity		(243,719	)		(243,719	)		(243,719	)		(243,719	)		(243,719	)
Average shareholders' common equity	$	5,321,823		$	5,037,768		$	5,050,353		$	5,030,083		$	4,922,469
Average goodwill and other intangible assets		(2,098,338	)		(2,103,935	)		(2,109,944	)		(2,115,894	)		(2,122,157	)
Average tangible shareholder's common equity	$	3,223,485		$	2,933,833		$	2,940,409		$	2,914,189		$	2,800,312
ROAE		8.7	%		10.2	%		11.4	%		12.0	%		11.6	%
ROAE, adjusted		9.8	%		10.7	%		11.8	%		12.4	%		12.9	%
ROATCE		14.9	%		18.1	%		20.2	%		21.4	%		21.0	%
ROATCE, adjusted		16.7	%		19.0	%		20.9	%		22.1	%		23.4	%

Refer to last page of Non-GAAP reconciliations for footnotes.


Non-GAAP Measures (unaudited)
($ in thousands)

	As of
	March 31,			December 31,			September 30,			June 30,			March 31,
		2024			2023			2023			2023			2023
Tangible Common Equity:
Shareholders' equity	$	5,595,408		$	5,562,900		$	5,239,537		$	5,292,095		$	5,277,426
Less: Preferred equity		(243,719	)		(243,719	)		(243,719	)		(243,719	)		(243,719	)
Shareholders' common equity	$	5,351,689		$	5,319,181		$	4,995,818		$	5,048,376		$	5,033,707
Less: Goodwill and other intangible assets		(2,095,511	)		(2,100,966	)		(2,106,835	)		(2,112,875	)		(2,118,935	)
Tangible shareholders' common equity	$	3,256,178		$	3,218,215		$	2,888,983		$	2,935,501		$	2,914,772

Total assets	$	49,534,918		$	49,089,836		$	49,059,448		$	48,496,755		$	47,842,644
Less: Goodwill and other intangible assets		(2,095,511	)		(2,100,966	)		(2,106,835	)		(2,112,875	)		(2,118,935	)
Tangible assets	$	47,439,407		$	46,988,870		$	46,952,613		$	46,383,880		$	45,723,709

Risk-weighted assets³	$	37,845,139		$	37,407,347		$	37,501,646		$	37,414,177		$	36,801,707

Tangible common equity to tangible assets		6.86	%		6.85	%		6.15	%		6.33	%		6.37	%
Tangible common equity to risk-weighted assets³		8.60	%		8.60	%		7.70	%		7.85	%		7.92	%
Tangible Common Book Value:
Common shares outstanding		293,330			292,655			292,586			292,597			291,922
Tangible common book value	$	11.10		$	11.00		$	9.87		$	10.03		$	9.98

¹Tax-effect calculations use management's estimate of the full year FTE tax rates (federal + state).
²Calculated using the federal statutory tax rate in effect of 21% for all periods.
³March 31, 2024 figures are preliminary.

Old National Bancorp Reports First Quarter 2024 Results