Old National Bancorp Sets Financial Records with Strong 2025 Performance
Evansville, Wednesday, 21 January 2026.
Old National Bancorp achieved record adjusted earnings in 2025, punctuated by a striking 25% surge in commercial loan production during the fourth quarter.
Record-Breaking Earnings
Headquartered in Evansville, Indiana, the bank reported net income applicable to common shares of $212.6 million for the fourth quarter, resulting in diluted earnings per share (EPS) of $0.55 [1]. When excluding significant one-time items, the adjusted net income for the quarter rose to $241.0 million, or $0.62 per share [1]. For the full year of 2025, the company secured a record adjusted net income of $808.6 million, with adjusted EPS reaching $2.21 [1]. CEO Jim Ryan characterized the fourth quarter as the punctuation mark on an “exceptional year” that established new organizational records for net income and efficiency ratios [1].
Operational Fundamentals
The bank’s 2025 performance was fueled by a strict adherence to fundamentals, particularly core deposit growth and disciplined credit management [1]. This strategic focus is evident in the balance sheet; period-end total loans grew to $48.8 billion, reflecting an annualized increase of 6.4% [1]. While total deposits saw a slight annualized rise of 0.6% to reach $55.1 billion, the bank navigated a challenging environment where core deposits decreased by 3.2% annualized [1]. Despite these pressures, Old National successfully expanded its Net Interest Margin (NIM) by 1 basis point to 3.65% [1].
Impact of Strategic Charges
The divergence between the reported GAAP figures and the adjusted results is largely attributed to specific strategic costs incurred during the quarter. The bank absorbed $24.5 million in pre-tax merger-related charges, as well as a $15.9 million pre-tax loss resulting from the termination of the Bremer pension plan [1]. Furthermore, the company’s efficiency ratio—a key measure of overhead—stood at 51.6%, though the adjusted efficiency ratio was notably leaner at 46.0% [1]. Income tax expenses also played a role in the quarter’s financials, with the effective tax rate dropping to 20.2% due to $10.5 million in tax credit benefits [1].
Market Reaction and Valuation
Investors have been watching the stock closely leading up to this release. As of the close on January 20, 2026, Old National Bancorp (NASDAQ: ONB) shares were trading at $22.90 [7]. The stock has shown resilience over the last year, currently trading 36.067% above its 52-week low of $16.83 [7]. However, analyst sentiment remains measured; prior to the earnings release, market observers noted that while acquisitions have driven growth, fair valuation and credit metrics might limit immediate upside potential [5].