John Rob's questions to Old National Bancorp (ONB) leadership • Q1 2025
Question
John Rob, on behalf of Jared Shaw, inquired about the Net Interest Income (NII) outlook following the Bremer acquisition, specifically asking if better day-one capital implies less accretion. He also questioned if the 40% deposit beta guidance includes Bremer and sought a normalized run-rate for other fee income.
Answer
Executive James Ryan clarified that the 2025 guidance still uses original M&A assumptions, including a $2.4 billion loan sale. He noted that higher day-one capital will likely reduce the size of this sale, offsetting lower purchase accounting accretion. He also confirmed the 40% deposit beta guidance is for core Old National only, with more room for cost reductions. For other fee income, he advised backing out one-time gains of approximately $8 million from Q4 and $5 million from Q1 to establish a clean run-rate.