Old National Bancorp's Strategic Gains: Strong Earnings, Deposit Growth, and M&A Success

Strong Financial Performance and Deposit Growth:
- Old National Bancorp reported GAAP earnings per common share of $1.68 for the full year and adjusted earnings per common share of $1.86.
- The company experienced an 8% CAGR in both loans and deposits since 2022, with total deposits growing by approximately 10% in 2024.
- The growth was driven by a focus on low-cost core deposits and disciplined loan growth, while maintaining strong credit quality and expense management.

Strategic Mergers and Acquisitions:
- Old National completed the acquisition of CapStar Bank and announced a partnership with Bremer Bank, aiming to expand its presence in the upper Midwest.
- These strategic moves are expected to enhance the company's footprint and provide opportunities for growth in high-growth markets.
- The integration and cost savings are projected to be realized by 2026, supporting the company's offensive growth strategy.

Credit Quality and Reserve Management:
- The company maintained normalized net charge-off levels at 17 basis points, with a total net charge-off ratio of 21 basis points.
- The allowance for credit losses to total loans stood at 114 basis points, with a qualitative reserve incorporating a 100% weighting on the Moody's S-2 scenario.
- The proactive approach to credit monitoring and conservative reserve management has led to above-peer levels of NPLs, contributing to stable credit quality.

Deposit Strategy and Cost Management:
- Old National's total deposit cost finished the year at 1.93%`, driven by a 93% down beta on exception price deposits.
- The fourth quarter total deposit beta was 28%`, aligning with expectations and indicating a proactive response to Fed actions.
- Effective deposit management allowed the company to grow deposits while maintaining low total cost of funding, supporting asset generation and growth.