Old National Bancorp (ONB) saw its shares surge 5.02% in pre-market trading on Tuesday after the regional bank reported better-than-expected fourth quarter 2024 earnings and painted an optimistic picture for the year ahead.

For the quarter ended December 31, 2024, Old National reported adjusted earnings per share of $0.49, beating the consensus estimate of $0.46. Net income applicable to common shares rose 16.7% year-over-year to $149.8 million. Key highlights from the results include:

• Net interest income (FTE) increased 8% to $400 million, driven by higher accretion and lower funding costs.
• Loan growth of 10% for the full year, with average loans up 1.2% in Q4.
• Strong deposit franchise with core deposits up 1.9% and total deposits flat at $40.8 billion.
• Net charge-offs remained low at 0.21% of average loans, reflecting robust credit quality.
• Adjusted efficiency ratio improved to 51.8% from 53.8% a year ago.

In addition to the solid Q4 performance, investors cheered Old National's upbeat outlook. The company expects continued loan growth, margin expansion from rising rates, and further improvement in profitability metrics in 2025.

Old National also announced the retirement of President and Chief Operating Officer Mark G. Sander and a transition in its Lead Independent Director role, signaling an orderly leadership transition.

Overall, the strong Q4 results, coupled with Old National's positive outlook and fortified balance sheet, suggest the regional lender is well-positioned to deliver shareholder value in the coming year.