OLD NATIONAL BANCORP /IN/

RESULTS OF OPERATIONS

The following table sets forth certain income statement information of Old National:

(1)Represents a non-GAAP financial measure. Refer to “Non-GAAP Financial Measures” section for reconciliations to GAAP financial measures.

Net Interest Income

Net interest income is the most significant component of our earnings, comprising 81% of revenues for the nine months ended September 30, 2025. Net interest income and net interest margin are influenced by many factors, primarily the volume and mix of earning assets, funding sources, and interest rate fluctuations. Other factors include the level of accretion income on purchased loans, prepayment risk on mortgage and investment-related assets, and the composition and maturity of interest-earning assets and interest-bearing liabilities.

During the third quarter of 2025, the Federal Reserve decreased interest rates, resulting in rates that were also reduced compared to those in effect as of September 30, 2024. The Federal Reserve’s Federal Funds Rate is currently in a target range of 4.00% to 4.25%, with the Effective Federal Funds Rate of 4.09% at September 30, 2025 compared to 4.83% at September 30, 2024. Management actively takes balance sheet restructuring, derivative, and deposit pricing actions to help mitigate interest rate risk. See the section of this Item 7 titled “Market Risk” for additional information regarding this risk.

Loans typically generate more interest income than investment securities with similar maturities. Funding from client deposits generally costs less than wholesale funding sources. Factors such as general economic activity, Federal Reserve monetary policy, and price volatility of competing alternative investments can also exert significant influence on our ability to optimize our mix of assets and funding, net interest income, and net interest margin.

Net interest income is the excess of interest received from interest-earning assets over interest paid on interest-bearing liabilities. For analytical purposes, net interest income is presented in the table that follows, adjusted to a taxable equivalent basis to reflect what our tax-exempt assets would need to yield in order to achieve the same after-tax yield as a taxable asset. We used the current federal statutory tax rate in effect of 21% for all periods. This analysis portrays the income tax benefits related to tax-exempt assets and helps to facilitate a comparison between taxable and tax-exempt assets. Management believes that it is a standard practice in the banking industry to present net interest margin and net interest income on a fully taxable equivalent basis and that it may enhance comparability for peer comparison purposes for both management and investors.

The following tables present the average balance sheet for each major asset and liability category, its related interest income and yield, or its expense and rate.

(1)Interest income is reflected on a fully taxable equivalent basis.

(2)Includes loans held-for-sale.

(1)Interest income is reflected on a fully taxable equivalent basis.

(2)Includes loans held-for-sale.

The following table presents the dollar amount of changes in taxable equivalent net interest income attributable to changes in the average balances of assets and liabilities and the yields earned or rates paid.

(1)The variance not solely due to rate or volume is allocated equally between the rate and volume variances.

(2)Interest income on investment securities includes taxable equivalent adjustments of $2.6 million and $7.9 million during the three and nine months ended September 30, 2025, respectively, and $2.8 million and $8.4 million during the three and nine months ended September 30, 2024, respectively; using the federal statutory rate in effect of 21%.

(3)Interest income on loans includes taxable equivalent adjustments of $5.4 million and $12.5 million during the three and nine months ended September 30, 2025, respectively, and $3.4 million and $10.4 million during the three and nine months ended September 30, 2024, respectively; using the federal statutory rate in effect of 21%.

The increase in net interest income for the three and nine months ended September 30, 2025 compared to the same periods in 2024 was driven by the acquisition of Bremer as well as strong loan growth, and lower costs of average interest-bearing liabilities, partially offset by higher balances of average interest-bearing liabilities.

The increase in net interest margin on a fully taxable equivalent basis for the three and nine months ended September 30, 2025 compared to the same periods in 2024 was primarily due to the impact of Bremer, loan growth, and lower costs of average interest-bearing liabilities, partially offset by higher balances of average interest-bearing liabilities. The yield on interest earning assets increased 5 basis points and the cost of interest-bearing liabilities decreased 34 basis points in the three months ended September 30, 2025 compared to the same quarter a year ago. The yield on interest earning assets decreased 3 basis points and the cost of interest-bearing liabilities decreased 29 basis points in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.

Average earning assets increased $16.1 billion, and $10.6 billion for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024 primarily due to Bremer loans and securities acquired as well as strong loan growth.

Average loans, including loans held-for-sale, increased $11.9 billion and $7.7 billion for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024 primarily due to Bremer loans acquired as well as strong commercial and commercial real estate loan growth. Bremer loans totaled $11.2 billion at the close of the acquisition.

Average noninterest-bearing deposits increased $3.4 billion while average interest-bearing deposits increased $10.9 billion for the three months ended September 30, 2025 when compared to the same period in 2024 reflecting Bremer deposits assumed and organic growth. Average noninterest-bearing deposits increased $1.7 billion while average interest-bearing deposits increased $7.4 billion for the nine months ended September 30, 2025 when compared to the same period in 2024 reflecting Bremer deposits assumed and organic growth. Bremer deposits assumed totaled $12.9 billion at the close of the acquisition.

Provision for Credit Losses

The following table details the components of the provision for credit losses:

Total provision for credit losses on loans increased in the nine months ended September 30, 2025 compared to the same period in 2024 primarily due to credit migration, higher net charge-offs, and macroeconomic factors. In addition, the provision for credit losses on loans in the nine months ended September 30, 2025 included $75.6 million to establish an allowance for credit losses on non-PCD Bremer loans and unfunded loan commitments acquired. The provision for credit losses on loans in the nine months ended September 30, 2024 included $15.3 million to establish an allowance for credit losses on non-PCD CapStar loans acquired. Continued loan growth in future periods, a decline in our current level of recoveries, or an increase in charge-offs could result in an increase in provision expense. Additionally, provision expense may be volatile due to changes in CECL model assumptions of credit quality, macroeconomic factors and conditions, and loan composition, which drive the allowance for credit losses balance.

Noninterest Income

We generate revenues in the form of noninterest income through client fees, sales commissions, and gains and losses from our core banking franchise and other related businesses, such as wealth management, investment consulting, and investment products. The following table details the components in noninterest income:

Noninterest income increased $36.3 million for the three months ended September 30, 2025 compared to the same period in 2024 driven by the acquisition of Bremer and organic growth of fee-based businesses.

Noninterest income for the nine months ended September 30, 2025 included a $21.0 million gain in other income associated with the freezing of benefits of the Bremer pension plan. Excluding this gain, noninterest income increased to $335.8 million for the nine months ended September 30, 2025 compared to the same period in 2024 driven by the acquisition of Bremer, the CapStar acquisition in April 2024, organic growth of fee-based businesses, and higher other income.

Mortgage banking revenue increased $2.8 million and $8.1 million for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024 primarily due to higher mortgage originations and increased loan sales.

Capital markets income increased $5.2 million and $9.2 million for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024 primarily due to higher levels of commercial real estate client interest rate swap fees.

Other income increased $6.1 million and $38.1 million for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024 primarily due to additional other income associated with the acquisition of Bremer. In addition, other income for the nine months ended September 30, 2025 compared to the same period in 2024 was impacted by the $21.0 million pre-tax gain associated with the freezing of benefits of the Bremer pension plan, the CapStar acquisition, and $4.2 million of net gains on sales of commercial loans.

Noninterest Expense

The following table details the components in noninterest expense:

Noninterest expense included $69.3 million and $6.9 million of merger-related expenses for the three months ended September 30, 2025 and 2024, respectively. In addition, the three months ended September 30, 2024 included $2.6 million of separation expense associated with a mutual separation agreement with a former executive. Excluding these expenses, noninterest expense increased to $376.5 million for the three months ended September 30, 2025, compared to $262.8 million for the three months ended September 30, 2024. This increase was driven primarily by operating costs and additional amortization of intangibles related to the acquisition of Bremer, as well as higher salary and employee benefits reflective of merit and performance-driven incentive accruals.

Noninterest expense included $116.3 million and $29.2 million of merger-related expenses for the nine months ended September 30, 2025 and 2024, respectively. In addition, the nine months ended September 30, 2024 included a $13.3 million non-cash, pre-tax expense associated with the distribution of excess pension assets with the resolution of the legacy First Midwest plan, $3.0 million for the FDIC special assessment, and $2.6 million of separation expense. Excluding these expenses, noninterest expense increased to $982.6 million for the nine months ended September 30, 2025, compared to $769.4 million for the nine months ended September 30, 2024. This increase was driven by operating costs and additional amortization of intangibles related to the acquisitions of

Bremer and CapStar, as well as higher salary and employee benefits reflective of merit and performance-driven incentive accruals.

Amortization of tax credit investments increased $3.8 million and $7.5 million for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024. The recognition of tax credit amortization expense is contingent upon the successful completion of the rehabilitation of a historic building or completion of a solar project within the reporting period. Many factors including weather, labor availability, building regulations, inspections, and other unexpected construction delays related to a rehabilitation project can cause a project to exceed its estimated completion date. See Note 9 to the consolidated financial statements for additional information on our tax credit investments.

Provision for Income Taxes

We record a provision for income taxes currently payable and for income taxes payable or benefits to be received in the future, which arise due to timing differences in the recognition of certain items for financial statement and income tax purposes. The major difference between the effective tax rate applied to our financial statement income and the federal statutory tax rate is caused by a tax benefit from our tax credit investments and interest on tax-exempt securities and loans. The effective tax rate was 21.5% and 20.6% for the three and nine months ended September 30, 2025, respectively, compared to 22.3% and 22.1% for the three and nine months ended September 30, 2024, respectively, reflecting an increase in tax credits. See Note 14 to the consolidated financial statements for additional information. In accordance with ASC 740-270, Accounting for Interim Reporting, the provision for income taxes was recorded at September 30, 2025 based on the current estimate of the effective annual rate.