John Astrom

John Astrom asked for details on the expected Bremer-related efficiencies in Q4 and Q1, and whether Old National Bancorp has broader efficiency objectives or if the current efficiency ratio is considered the right range. He also sought a big-picture description of the current credit environment, asking if it's stable, mixed, or getting tougher. Lastly, he inquired about the timing of the share repurchase late in Q3, specifically if it was driven by increased confidence in capital or the Bremer integration.

Answer

CFO John Moran explained that significant cost saves from Bremer will be more evident in Q1 next year, with full realization expected to be just over $115 million on an annualized basis. CEO Jim Ryan stated that the efficiency ratio has room to improve, and while they plan for growth and investments, continuous efficiency is part of their DNA. President and COO Tim Burke described the credit environment as very stable, with confidence in the guidance and portfolio trends. John Moran added that it's stable to improving, citing the decline in classified and criticized assets. Jim Ryan attributed the late Q3 repurchase to increased confidence from the capital trajectory and the sale of the Bremer insurance agency, allowing them to return capital sooner than planned.

John Astrom asked for a reminder on the expected Bremer-related efficiencies for Q4 and Q1 2026, and if the current efficiency ratio is the target or if there are broader objectives. He also asked for a big-picture description of the current credit environment (stable, mixed, tougher). Finally, he inquired about the timing of the share repurchases late in Q3, asking if it was due to increased confidence in capital or the Bremer integration.

Answer

CFO John Moran stated that some cost saves would be seen in Q4, but Q1 2026 would be a cleaner quarter with full realization of over $115 million annualized cost saves. CEO Jim Ryan added that the efficiency ratio has room to improve, and efficiency is an ongoing cultural effort. President and COO Tim Burke described the credit outlook as 'very stable,' with improving delinquencies. John Moran reiterated 'stable to improving' credit. Jim Ryan attributed the late Q3 repurchases to increased confidence from capital trajectory and the successful sale of the Bremer insurance agency, allowing for earlier capital return than planned.