Old National Bancorp (NASDAQ:ONB) reports 1Q26 net income applicable to common shares of $229.6 million, diluted EPS of $0.59; $237.7 million and $0.61 on an adjusted1 basis, respectively.
CEO COMMENTARY:
"Old National's first-quarter results reflect disciplined execution and a strong start to the year," said Chairman and CEO Jim Ryan. "We delivered strong loan growth, controlled expenses, and maintained strong credit, capital, and liquidity levels, while also taking decisive action on capital returns. Momentum across our businesses continues to build, and nothing we're seeing changes our confidence in our full-year expectations."
FIRST QUARTER HIGHLIGHTS2:
Net Income
Net income applicable to common shares of $229.6 million; adjusted net income applicable to common shares1of $237.7 million
Earnings per diluted common share ("EPS") of $0.59; adjusted EPS1of $0.61
Net Interest Income/NIM
Net interest income on a fully taxable equivalent basis1of $580.4 million
Net interest margin on a fully taxable equivalent basis1("NIM") of 3.55%, down 10 basis points ("bps")
Operating Performance
Pre-provision net revenue1("PPNR") of $338.1 million; adjusted PPNR1of $348.7 million
Noninterest expense of $364.7 million; adjusted noninterest expense1of $354.0 million
Efficiency ratio1of 48.3%; adjusted efficiency ratio1of 45.7%
Deposits and Funding
Period-end total deposits of $55.7 billion, up 4.2% annualized
Granular low-cost deposit franchise; total deposit costs of 172 bps, down 8 bps; interest-bearing deposit costs of 224 bps, down 14 bps
Loans and Credit Quality
End-of-period total loans3of $49.8 billion, up $970.9 million or 8.0% annualized
Provision for credit losses4("provision") of $34.9 million
Net charge-offs of $32.0 million, or 26 bps of average loans; 19 bps excluding purchased credit deteriorated ("PCD") loans that had an allowance at acquisition
30+ day delinquencies of 0.24% and nonaccrual loans of 1.03% of total loans
Return Profile & Capital
Return on average tangible common equity1("ROATCE") of 18.4%; adjusted ROATCE1of 19.0%
Preliminary regulatory Tier 1 common equity to risk-weighted assets of 11.11%, up 3 bps
Repurchased 3.9 million shares of common stock during the quarter
Notable Items
$7.3 million of pre-tax merger-related charges
$3.4 million of pre-tax expense related to the distribution of excess pension plan assets5
1 Non-GAAP financial measure that management believes is useful in evaluating the financial results of the Company, refer to the Non-GAAP reconciliations contained in this release 2 Comparisons are on a linked-quarter basis, unless otherwise noted 3 Includes loans held-for-sale 4 Includes the provision for unfunded commitments 5 Includes non-cash expense associated with the distribution of excess pension assets with theresolution of the legacy First Midwest Bancorp, Inc. plan 6 Includes a loss associated with the termination of the Bremer pension plan 7 Represents the Company's estimate of its FDIC special assessment using the FDIC's updated estimate of losses to its Deposit Insurance Fund
RESULTS OF OPERATIONS2Old National Bancorp reported first quarter 2026 net income applicable to common shares of $229.6 million, or $0.59 per diluted common share.
Included in first quarter results were pre-tax charges of $7.3 million for merger-related expenses, a $3.4 million non-cash, pre-tax expense associated with the distribution of excess pension assets with the resolution of the legacy First Midwest Bancorp, Inc. plan. Excluding these items and realized debt securities gains from the current quarter, adjusted net income1 was $237.7 million, or $0.61 per diluted common share.
DEPOSITS AND FUNDINGIncreases in retail and commercial deposits more than offset seasonal outflows of public funds.
Period-end total deposits were $55.7 billion, up 4.2% annualized.
On average, total deposits for the first quarter were $55.1 billion, consistent with the fourth quarter of 2025.
Granular low-cost deposit franchise; total deposit costs of 172 bps, down 8 bps.
A loan to deposit ratio of 89%, combined with existing funding sources, provides strong liquidity.
LOANSLoan growth driven by strong high quality commercial loan production.
Period-end total loans3 were $49.8 billion, up $970.9 million or 8.0% annualized, including commercial and industrial loan growth of $633.8 million.
Total commercial loan production in the first quarter was $3.3 billion, down 5%; record period-end commercial pipeline totaled $5.5 billion, up 14%.
Average total loans in the first quarter were $49.2 billion, up 7.9% annualized.
CREDIT QUALITYCredit quality continues to be a hallmark of Old National.
Provision4 expense was $34.9 million compared to $32.7 million.
Net charge-offs were $32.0 million, or 26 bps of average loans, compared to 27 bps.
Excluding PCD loans that had an allowance for credit losses established at acquisition, net charge-offs to average loans were 19 bps compared to 16 bps.
30+ day delinquencies as a percentage of loans were 0.24% compared to 0.22%.
Nonaccrual loans as a percentage of total loans were 1.03% compared to 1.07%.
The allowance for credit losses, including the allowance for credit losses on unfunded loan commitments, stood at $608.1 million, or 1.22% of total loans, compared to $605.2 million, or 1.24% of total loans.
NET INTEREST INCOME AND MARGINLower net interest income and margin compression reflective of the rate environment.
Net interest income on a fully taxable equivalent basis1 decreased to $580.4 million compared to $588.8 million, driven by lower asset yields, partly offset by high quality loan growth and lower funding costs.
Net interest margin on a fully taxable equivalent basis1 decreased 10 bps to 3.55%.
Cost of total deposits was 1.72%, decreasing 8 bps and the cost of total interest-bearing deposits decreased 14 bps to 2.24%.
NONINTEREST INCOMEStrong wealth fees more than offset by seasonally lower bank fees as well as lower capital markets and mortgage fees which were elevated in the prior quarter.
Total noninterest income was $122.3 million compared to $109.7 million, or $125.6 million excluding a $15.9 million pre-tax loss associated with the termination of the Bremer pension plan in the fourth quarter of 2025.
Excluding the pension plan loss6 in the fourth quarter of 2025 and realized debt securities gains, noninterest income was down 2.6% driven by seasonally lower bank fees as well as lower capital markets and mortgage fees, which were elevated in the prior quarter, partly offset by strong wealth management fees.
NONINTEREST EXPENSE100% realization of Bremer cost savings along with disciplined expense management drives record adjusted efficiency ratio.
Noninterest expense was $364.7 million and included $7.3 million of merger-related charges as well as a $3.4 million non-cash expense associated with the distribution of excess pension assets with the resolution of the legacy First Midwest Bancorp, Inc. plan.
Excluding the above noted items, adjusted noninterest expense1 decreased to $354.0 million, compared to $364.8 million excluding merger-related charges and a $3.0 million pre-tax reduction of previously accrued FDIC special assessment7 in the fourth quarter of 2025, driven by disciplined expense management and lower other expense which was elevated in the prior quarter.
The efficiency ratio1 was 48.3%, while the adjusted efficiency ratio1 was 45.7% compared to 51.6% and 46.0%, respectively.
INCOME TAXES
Income tax expense was $61.6 million, resulting in an effective tax rate of 20.9% compared to 20.2%. On an adjusted fully taxable equivalent ("FTE") basis1, the effective tax rate was 22.9% compared to 22.7%.
Income tax expense included $8.7 million of tax credit benefit compared to $10.5 million.
CAPITALCapital ratios remain strong.
Preliminary total risk-based capital up 86 bps to 13.71% and preliminary regulatory Tier 1 capital up 3 bps to 11.56%, as strong retained earnings drive capital, partly offset by growth in loans and share repurchases. In addition, total risk-based capital was impacted by the issuance of $450.0 million of subordinated notes during the quarter.
Tangible common equity to tangible assets was 7.67% compared to 7.72%.
The Company repurchased 3.9 million shares of common stock during the quarter.
CONFERENCE CALL AND WEBCASTOld National will host a conference call and live webcast at 9:00 a.m. Central Time on Wednesday, April 22, 2026, to review first quarter financial results. The live audio webcast link and corresponding presentation slides will be available on the Company's Investor Relations website at oldnational.com and will be archived there for 12 months. To listen to the live conference call, dial U.S. (800) 715-9871 or International (646) 307-1963, access code 9394540. The telephone replay will be available approximately one hour after completion of the call until midnight Eastern Time on May 6, 2026. To access the replay, dial U.S. (800) 770-2030 or International (609) 800-9909; Access code 9394540.
ABOUT OLD NATIONALOld National Bancorp (NASDAQ:ONB) is the holding company of Old National Bank. As the sixth largest commercial bank headquartered in the Midwest, Old National proudly serves clients primarily in the Midwest and Southeast. With approximately $73 billion of assets and $39 billion of assets under management, Old National ranks among the top 25 banking companies headquartered in the United States. Tracing our roots to 1834, Old National focuses on building long-term, highly valued partnerships with clients while also strengthening and supporting the communities we serve. In addition to providing extensive services in consumer and commercial banking, Old National offers comprehensive wealth management and capital markets services. For more information and financial data, please visit Investor Relations at oldnational.com. In 2025, Points of Light named Old National one of "The Civic 50" - an honor reserved for the 50 most community-minded companies in the United States.
USE OF NON-GAAP FINANCIAL MEASURESThe Company's accounting and reporting policies conform to U.S. generally accepted accounting principles ("GAAP") and general practices within the banking industry. As a supplement to GAAP, the Company provides non-GAAP performance results, which the Company believes are useful because they assist investors in assessing the Company's operating performance. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables at the end of this release.
The Company presents EPS, the efficiency ratio, return on average common equity, return on average tangible common equity, and net income applicable to common shares, all adjusted for certain notable items. These items include merger-related charges associated with completed and pending acquisitions, distribution of excess pension assets expense, a pension plan gain/loss, FDIC special assessment expense, debt securities gains/losses, and CECL Day 1 non-PCD provision expense. Management believes excluding these items from EPS, the efficiency ratio, return on average common equity, and return on average tangible common equity may be useful in assessing the Company's underlying operational performance since these items do not pertain to its core business operations and their exclusion may facilitate better comparability between periods. Management believes that excluding merger-related charges from these metrics may be useful to the Company, as well as analysts and investors, since these expenses can vary significantly based on the size, type, and structure of each acquisition. Additionally, management believes excluding these items from these metrics may enhance comparability for peer comparison purposes.
Income tax expense, provision for credit losses, and the certain notable items listed above are excluded from the calculation of pre-provision net revenues, adjusted due to the fluctuation in income before income tax and the level of provision for credit losses required. Management believes adjusted pre-provision net revenues may be useful in assessing the Company's underlying operating performance and their exclusion may facilitate better comparability between periods and for peer comparison purposes.
The Company presents adjusted noninterest expense, which excludes merger-related charges associated with completed and pending acquisitions, distribution of excess pension assets expense, and FDIC special assessment expense, as well as adjusted noninterest income, which excludes a pension plan gain/loss and debt securities gains/losses. Management believes that excluding these items from noninterest expense and noninterest income may be useful in assessing the Company's underlying operational performance as these items either do not pertain to its core business operations or their exclusion may facilitate better comparability between periods and for peer comparison purposes.
The tax-equivalent adjustment to net interest income and net interest margin recognizes the income tax savings when comparing taxable and tax-exempt assets. Interest income and yields on tax-exempt securities and loans are presented using the current federal income tax rate of 21%. Management believes that it is standard practice in the banking industry to present net interest income and net interest margin on a fully tax-equivalent basis and that it may enhance comparability for peer comparison purposes.
In management's view, tangible common equity measures are capital adequacy metrics that may be meaningful to the Company, as well as analysts and investors, in assessing the Company's use of equity and in facilitating comparisons with peers. These non-GAAP measures are valuable indicators of a financial institution's capital strength since they eliminate intangible assets from stockholders' equity and retain the effect of accumulated other comprehensive loss in stockholders' equity.
Although intended to enhance investors' understanding of the Company's business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP. In addition, these non-GAAP financial measures may differ from those used by other financial institutions to assess their business and performance. See the following reconciliations in the "Non-GAAP Reconciliations" section for details on the calculation of these measures to the extent presented herein.
FORWARD-LOOKING STATEMENTS This earnings release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"), Section 27A of the Securities Act of 1933 and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934 and Rule 3b-6 promulgated thereunder, notwithstanding that such statements are not specifically identified as such. In addition, certain statements may be contained in our future filings with the Securities and Exchange Commission ("SEC"), in press releases, and in oral and written statements made by us that are not statements of historical fact and constitute forward‐looking statements within the meaning of the Act. These statements include, but are not limited to, descriptions of Old National's financial condition, results of operations, asset and credit quality trends, profitability and business plans or opportunities. Forward-looking statements can be identified by the use of words such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "guidance," "intend," "may," "outlook," "plan," "potential," "predict," "should," "would," and "will," and other words of similar meaning. These forward-looking statements express management's current expectations or forecasts of future events and, by their nature, are subject to risks and uncertainties. There are a number of factors that could cause actual results or outcomes to differ materially from those in such statements, including, but not limited to: competition; government legislation, regulations and policies, including trade and tariff policies; the ability of Old National to execute its business plan; unanticipated changes in our liquidity position, including but not limited to changes in our access to sources of liquidity and capital to address our liquidity needs; changes in economic conditions and economic and business uncertainty which could materially impact credit quality trends and the ability to generate loans and gather deposits; inflation and governmental responses to inflation, including increasing interest rates; market, economic, operational, liquidity, credit, and interest rate risks associated with our business; our ability to successfully manage our credit risk and the sufficiency of our allowance for credit losses; the impact of purchase accounting with respect to the merger between Old National and Bremer (the "Merger"), or any change in the assumptions used regarding the assets acquired and liabilities assumed to determine their fair value and credit marks; the potential impact of future business combinations on our performance and financial condition, including our ability to successfully integrate the businesses, the success of revenue-generating and cost reduction initiatives and the diversion of management's attention from ongoing business operations and opportunities; failure or circumvention of our internal controls; operational risks or risk management failures by us or critical third parties, including without limitation with respect to data processing, information systems, cybersecurity, technological changes, vendor issues, business interruption, and fraud risks; significant changes in accounting, tax or regulatory practices or requirements; new legal obligations or liabilities; disruptive technologies in payment systems and other services traditionally provided by banks; failure or disruption of our information systems; computer hacking and other cybersecurity threats; the effects of climate change on Old National and its customers, borrowers, or service providers; the impacts of pandemics, epidemics and other infectious disease outbreaks; other matters discussed in this earnings release; and other factors identified in our Annual Report on Form 10-K for the year ended December 31, 2025 and other filings with the SEC. These forward-looking statements are based on assumptions and estimates, which although believed to be reasonable, may turn out to be incorrect. Old National does not undertake an obligation to update these forward-looking statements to reflect events or conditions after the date of this earnings release. You are advised to consult further disclosures we may make on related subjects in our filings with the SEC.
CONTACTS:
Media: Rick Jillson
Investors: Lynell Durchholz
(812) 465-7267
(812) 464-1366
[email protected]
[email protected]
Financial Highlights (unaudited)
($ and shares in thousands, except per share data)
Three Months Ended
March 31,
December 31,
September 30,
June 30,
March 31,
2026
2025
2025
2025
2025
Income Statement
Net interest income
$
572,573
$
580,832
$
574,609
$
514,790
$
387,643
FTE adjustment1,3
7,849
8,013
7,975
7,063
5,360
Net interest income - tax equivalent basis3
580,422
588,845
582,584
521,853
393,003
Provision for credit losses
34,946
32,745
26,738
106,835
31,403
Noninterest income
122,346
109,759
130,461
132,517
93,794
Noninterest expense
364,704
386,320
445,734
384,766
268,471
Net income applicable to common shareholders
229,638
212,589
178,533
121,375
140,625
Per Common Share Data
Weighted average diluted shares
388,054
389,550
390,496
361,436
321,016
EPS, diluted
$
0.59
$
0.55
$
0.46
$
0.34
$
0.44
Cash dividends
0.145
0.140
0.140
0.140
0.140
Dividend payout ratio2
25
%
25
%
30
%
41
%
32
%
Book value
$
21.40
$
21.17
$
20.64
$
20.12
$
19.71
Stock price
22.10
22.31
21.95
21.34
21.19
Tangible book value3
13.93
13.71
13.15
12.60
12.54
Performance Ratios
ROAA
1.29
%
1.21
%
1.03
%
0.77
%
1.08
%
ROAE
11.1
%
10.4
%
9.0
%
6.7
%
9.1
%
ROATCE3
18.4
%
17.8
%
15.9
%
12.0
%
15.0
%
NIM (FTE)3
3.55
%
3.65
%
3.64
%
3.53
%
3.27
%
Efficiency ratio3
48.3
%
51.6
%
58.8
%
55.8
%
53.7
%
NCOs to average loans
0.26
%
0.27
%
0.25
%
0.24
%
0.24
%
ACL on loans to EOP loans
1.15
%
1.17
%
1.19
%
1.18
%
1.10
%
ACL4to EOP loans
1.22
%
1.24
%
1.26
%
1.24
%
1.16
%
NPLs to EOP loans
1.03
%
1.07
%
1.23
%
1.24
%
1.29
%
Balance Sheet (EOP)
Total loans
$
49,731,844
$
48,764,162
$
47,967,915
$
47,902,819
$
36,413,944
Total assets
73,002,651
72,151,967
71,210,162
70,979,805
53,877,944
Total deposits
55,672,472
55,088,195
55,006,184
54,357,683
41,034,572
Total borrowed funds
7,823,198
7,451,367
6,766,381
7,346,098
5,447,054
Total shareholders' equity
8,510,653
8,494,788
8,309,271
8,126,387
6,534,654
Capital Ratios3
Risk-based capital ratios (EOP):
Tier 1 common equity
11.11
%
11.08
%
11.02
%
10.74
%
11.62
%
Tier 1 capital
11.56
%
11.53
%
11.49
%
11.20
%
12.23
%
Total capital
13.71
%
12.85
%
12.78
%
12.59
%
13.68
%
Leverage ratio (average assets)
8.93
%
8.90
%
8.72
%
9.26
%
9.44
%
Equity to assets (averages)
11.79
%
11.73
%
11.48
%
11.38
%
12.01
%
TCE to TA
7.67
%
7.72
%
7.53
%
7.26
%
7.76
%
Nonfinancial Data
Full-time equivalent employees
4,948
4,971
5,243
5,313
4,028
Banking centers
346
346
351
351
280
1Calculated using the federal statutory tax rate in effect of 21% for all periods.
2Cash dividends per common share divided by net income per common share (basic).
3Represents a non-GAAP financial measure. Refer to the "Non-GAAP Measures" table for reconciliations to GAAP financial measures.
4Includes the allowance for credit losses on loans and unfunded loan commitments.
March 31, 2026 capital ratios are preliminary.
FTE - Fully taxable equivalent basis ROAA - Return on average assets ROAE - Return on average equity ROATCE - Return on average tangible common equity NCOs - Net Charge-offs ACL - Allowance for Credit Losses EOP - End of period actual balances NPLs - Non-performing Loans TCE - Tangible common equity TA - Tangible assets
Income Statement (unaudited)
($ and shares in thousands, except per share data)
Three Months Ended
March 31,
December 31,
September 30,
June 30,
March 31,
2026
2025
2025
2025
2025
Interest income
$
877,391
$
897,301
$
917,192
$
824,961
$
630,399
Less: interest expense
304,818
316,469
342,583
310,171
242,756
Net interest income
572,573
580,832
574,609
514,790
387,643
Provision for credit losses
34,946
32,745
26,738
106,835
31,403
Net interest income after provision for credit losses
537,627
548,087
547,871
407,955
356,240
Wealth and investment services fees
39,715
39,012
39,684
35,817
29,648
Service charges on deposit accounts
26,937
27,516
27,856
23,878
21,156
Debit card and ATM fees
12,038
13,178
13,197
12,922
9,991
Mortgage banking revenue
9,554
11,053
10,442
10,032
6,879
Capital markets income
11,016
13,080
12,629
7,114
4,506
Company-owned life insurance
7,561
7,099
7,565
6,625
5,381
Other income
15,450
(1,252
)
19,081
36,170
16,309
Debt securities gains (losses), net
75
73
7
(41
)
(76
)
Total noninterest income
122,346
109,759
130,461
132,517
93,794
Salaries and employee benefits
184,073
187,251
211,345
202,112
148,305
Occupancy
36,995
35,243
34,442
30,432
29,053
Equipment
12,075
14,184
12,703
12,566
8,901
Marketing
16,434
14,418
15,093
13,759
11,940
Technology
29,025
30,882
36,122
31,452
22,020
Communication
6,196
6,726
7,742
5,014
4,134
Professional fees
12,356
18,454
13,598
21,931
7,919
FDIC assessment
13,756
11,190
14,095
13,409
9,700
Amortization of intangibles
25,623
26,016
26,184
19,630
6,830
Amortization of tax credit investments
7,111
9,822
7,057
5,815
3,424
Other expense
21,060
32,134
67,353
28,646
16,245
Total noninterest expense
364,704
386,320
445,734
384,766
268,471
Income before income taxes
295,269
271,526
232,598
155,706
181,563
Income tax expense
61,597
54,903
50,031
30,298
36,904
Net income
$
233,672
$
216,623
$
182,567
$
125,408
$
144,659
Preferred dividends
(4,034
)
(4,034
)
(4,034
)
(4,033
)
(4,034
)
Net income applicable to common shares
$
229,638
$
212,589
$
178,533
$
121,375
$
140,625
EPS, diluted
$
0.59
$
0.55
$
0.46
$
0.34
$
0.44
Weighted Average Common Shares Outstanding
Basic
385,849
387,862
389,038
360,155
315,925
Diluted
388,054
389,550
390,496
361,436
321,016
Common shares outstanding (EOP)
386,315
389,662
390,768
391,818
319,236
End of Period Balance Sheet (unaudited)
($ in thousands)
March 31,
December 31,
September 30,
June 30,
March 31,
2026
2025
2025
2025
2025
Assets
Cash and due from banks
$
537,322
$
591,645
$
491,910
$
637,556
$
486,061
Money market and other interest-earning investments
1,216,826
1,234,532
1,190,707
1,171,015
753,719
Investments:
Treasury and government-sponsored agencies
2,371,903
2,427,371
2,402,375
2,445,733
2,364,170
Mortgage-backed securities
10,295,623
10,078,358
10,117,015
9,632,206
6,458,023
States and political subdivisions
1,454,444
1,570,888
1,579,802
1,590,272
1,589,555
Other securities
814,990
825,761
849,911
852,687
755,348
Total investments
14,936,960
14,902,378
14,949,103
14,520,898
11,167,096
Loans held-for-sale, at fair value
56,128
52,911
80,341
77,618
40,424
Loans:
Commercial
15,617,656
14,983,861
14,506,375
14,662,916
