ONB

Old National Bancorp (ONB) has pulled investor attention toward its 2026 outlook after record third quarter net income, fresh guidance for EPS growth above 15%, and continued share repurchases alongside solid credit indicators. Old National Bancorp's latest earnings and 2026 EPS guidance have landed against a mixed tape, with a 1-day share price return of 2.32% lifting the stock to US$25.16, while the 90-day share price return has declined 5.02% and the 1-year total shareholder return is 25.00%. Scan how Old National Bancorp's earnings story compares with other banks showing resilient balance sheets and disciplined capital returns in our hand picked list of solid balance sheet and fundamentals (26 results) After a strong quarter, fresh 2026 EPS guidance above 15% and an 11% annualized lift in deposits, Old National Bancorp has already been rewarded. The question now is whether the bigger upside sits ahead or is largely in the rear view. Analysts tracking Old National Bancorp see a fair value of about $29.30 against the recent close at $25.16, which points to a sizeable valuation gap that rests heavily on how earnings and capital returns progress over the next few years. Repricing of roughly US$8b of fixed rate loans and securities over the next 12 months at yields that are about 60 basis points higher on loans and about 100 basis points higher on securities than the existing book provides a clear path for Old National Bancorp to improve net interest income and net interest margin. See why 14 investors see Old National Bancorp as 14% undervalued. Result: Fair Value of $29.30 (UNDERVALUED) Still, Old National Bancorp faces pressure if commercial loan competition squeezes its roughly 3.5% net interest margin, or if higher credit costs absorb more capital. Find out about the key risks to this Old National Bancorp narrative. Mixed signals or early opportunity? If you want to move past the headline and evaluate both sides of Old National Bancorp for yourself, start with the 5 key rewards and 1 important warning sign. If Old National Bancorp has sharpened your focus, do not stop here. Broaden your watchlist with targeted ideas that match your risk, income, and quality preferences. - Target potential value opportunities before they are crowded by checking the 30 high quality undervalued stocks. - Strengthen your income stream with companies that prioritize cash returns to shareholders using the 6 dividend fortresses. - Reduce portfolio stress by concentrating on financially robust businesses through the 30 resilient stocks with low risk scores. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ONB. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Old National Bancorp stock moved 2.3% higher to US$25.16 after the Q3 2026 earnings hit the tape, a polite uptick for what was a punchy quarter. The headline was clean. Basic earnings per share came in at about US$0.66, helping push trailing earnings to roughly US$2.45 a share and keeping return metrics in solid territory for a regional bank. Short term traders see a green day. Longer term investors are staring at something bigger, a lender reporting a 35.4% net margin and trading at about 10x earnings while discounted cash flow estimates sit materially above the current quote. Like Old National Bancorp's 35.4% net margin and roughly 10x P/E but want a broader set of regional lenders with sturdy balance sheets and solid fundamentals on your radar as well? Build a comparison shortlist from our list of solid balance sheet and fundamentals stocks (26 results). - Revenue (Q3 2026 vs. Q3 2025): US$671.0m vs. US$671.3m (broadly flat period on period) - Net Income (Excl. Extra Items, Q3 2026 vs. Q3 2025): US$250.0m vs. US$178.5m (up about 40%) - Basic EPS (Q3 2026 vs. Q3 2025): US$0.66 vs. US$0.46 (higher year on year) - Net Profit Margin (Trailing Twelve Months, Q3 2026 vs. Q3 2025): 35.4% vs. 28.0% (improved profitability on a trailing basis) Skip the 10,000 words. Ask Charlie what drove Old National's record efficiency this quarter. The bullish script says Old National Bancorp can turn record pipelines into quality, recurring business rather than one off wins. "The main thing that has to go right is that Old National Bancorp continues to convert its commercial and wealth pipelines into profitable loan and fee growth while holding credit metrics and efficiency near recent levels." Q3 shows progress. C&I loans grew 12% year on year, total loans rose 7%, and fee lines outside mortgages held up. Credit ratios improved, with lower criticized and nonaccrual balances, and the adjusted efficiency ratio hit a record 44.9%. That is a direct milestone for this thesis. Bears worry Old National Bancorp is running capital returns too hot, leaving little room if credit or growth needs shift. "Although Old National Bancorp reports strong capital levels and ongoing dividends and buybacks, the bank is already returning around 60 to 65% of earnings to shareholders, so any need to retain more capital to support organic growth or absorb higher credit costs would likely reduce repurchase and dividend activity and could soften earnings per share growth and investor demand for the stock." Recent actions keep that concern alive. CET1 sits just above 11% and the bank repurchased US$100m in Q3 and US$327m over twelve months, with US$177m still authorized. Credit remains orderly and earnings healthy, so the payout has not bitten yet, but flexibility is clearly being used. One Narrative disagrees with today's price. → See where this Narrative says Old National Bancorp should trade. Old National Bancorp just showed how a strong quarter can still leave questions about long term positioning. The real opportunity could sit in stocks where fundamentals and price remain out of line. - Company 1 - 38% below our estimate - use rising large-merchant transaction volumes to move payments onto higher margin local rails. - Company 2 - 36% below our estimate - shift an active app user base toward secured, higher yielding loans to refine credit mix. - Company 3 - 23% below our estimate - add manufacturing capacity focused on AI-driven data center optics and higher value photonics programs. Those are three of them. See the full list of 30 companies trading below our fair value estimates → This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ONB. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

This article first appeared on GuruFocus. - EPS: GAAP and adjusted diluted EPS both $0.66, a record; full-year 2026 EPS growth expected to exceed 15%. - Net Income: Record quarterly net income; combined dividend and buyback payout ratio of 62% of net income to common. - Revenue / NII: Net interest income grew 4% annualized from 2Q; full-year NII expected at lower end of guidance range, with 4Q NII dollars growing from 3Q. - Net Interest Margin: Total margin down modestly in the quarter; ~2 bps positive impact expected on a static balance sheet; spot margin slightly above 3Q levels. - Fee Income: Adjusted noninterest income of $128 million; core banking, wealth and capital markets fees performing well, mortgage fees soft. - Expenses: Adjusted noninterest expense of $355 million, down from prior quarter; full-year expenses expected near lower end of range. - Efficiency Ratio: Record low 44.9% adjusted efficiency ratio. - Profitability: Return on assets of 1.37%; return on tangible common equity of 19.6%. - Loans: Total loans up 3% annualized linked quarter and 7% annualized year over year; C&I up 12% and CRE up 3% year over year; loan pipeline of $4.4 billion, up 6% year over year; full-year loan growth guidance of 6%8%, trending to lower end. - Deposits: Period-end total deposits up 11% annualized, driven by ~$1 billion organic business account increases and seasonal public funds strength; non-interest-bearing deposits up $182 million, 22% of total; total and interest-bearing deposit costs each up 8 bps linked quarter; spot rate on total deposits 187 bps. - Loan-to-Deposit Ratio: Declined to 89%. - Credit Quality: Net charge-offs of 27 bps (24 bps excluding PCD); criticized and classified loans down 9% quarter over quarter and 16% year over year; non-accruals stable at 92 bps of loans (down from 123 bps a year ago); allowance for credit losses 120 bps of total loans, down 1 bp. - Capital: CET1 above 11%; tangible book value per share up 5% year over year (13% annualized excluding AOCI impact); $100 million (3.9 million shares) repurchased in the quarter, $327 million (13.4 million shares) over the past year; $177 million remaining under buyback authorization. - Investment Portfolio: New money yields ~6% versus back book yields of 4.2%; $1.8 billion in expected cash flow over the next 12 months. - Talent / Store Locations: Added 26 relationship managers across commercial and wealth, including four commercial hires in Ohio (two Cleveland, two Columbus). - Warning! GuruFocus has detected 9 Warning Signs with ONB. - Is ONB fairly valued? Test your thesis with our free DCF calculator. Release Date: October 21, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. - Old National Bancorp (NASDAQ:ONB) reported record third-quarter EPS of $0.66 and record net income, adjusted diluted EPS, and adjusted efficiency ratio. - Old National Bancorp (NASDAQ:ONB) achieved strong deposit growth of 11% annualized, with $1 billion in organic increases in business accounts and seasonal strength in public funds. - Old National Bancorp (NASDAQ:ONB) maintained strong credit quality with non-PCD charge-offs of 24 basis points, and criticized and classified loans declined 9% this quarter and 16% year-over-year. - Old National Bancorp (NASDAQ:ONB) delivered a record low adjusted efficiency ratio of 44.9%, demonstrating disciplined expense management while continuing to invest in technology and talent. - Old National Bancorp (NASDAQ:ONB) added 26 relationship managers, including 19 net new commercial bankers, to support organic growth and expand client-facing capacity. - Old National Bancorp (NASDAQ:ONB) experienced a modest decline in net interest margin due to increased funding costs, with total deposit costs rising 8 basis points linked quarter. - Old National Bancorp (NASDAQ:ONB) reported softness in mortgage fees due to the rapidly changing rate environment, and expects continued softness in the fourth quarter. - Old National Bancorp (NASDAQ:ONB) expects full-year net interest income to come in at the lower end of the stated range, reflecting a softer revenue environment. - Old National Bancorp (NASDAQ:ONB) faces a competitive deposit environment, with new deposit growth coming on at higher costs, impacting margins. - Old National Bancorp (NASDAQ:ONB) anticipates loan growth for the fourth quarter to be mid-single-digit, bringing full-year growth to the lower end of the 6% to 8% range. Q: With the strong CET1 ratio above 11% and potential regulatory tailwinds, how should investors think about target capital levels and the future of share repurchases? A: CFO John Moran stated there is no formal target but expressed high comfort with the current capital position, noting it is "a ton of capital for the risk that we take." He indicated that if proposed Basel III changes go through as written, the bank could see a roughly 100 basis point increase in CET1, which may lead to reconsidering the size of the repurchase authorization in February. Q: Given the current environment and strong organic growth, what is Old National's appetite for M&A? A: CEO Jim Ryan stated that while the bank has a successful track record with M&A, "I don't think this is the time or place for us to thinking about more M&A." He cited the difficult market and focus on tangible value dilution, adding that the company does not need M&A to support its current returns or growth, preferring to invest in organic growth and talent. Q: Can you provide color on the margin dynamics for the fourth quarter, specifically regarding NII dollars and the net interest margin? A: CFO John Moran expects NII dollars to continue moving up, potentially reaching a "$6 in front" for the fourth quarter compared to the $5.92 level in Q3. He projects the margin will expand a couple of basis points from the Q3 average of 3.52% to approximately 3.54%, citing modest benefits from the forward curve. Q: What drove the increase in deposit costs this quarter, and was it related to back-book repricing or new growth? A: CFO John Moran explained that of the 8 basis point increase in deposit costs, 4 basis points were due to new growth coming on at higher rates. He noted that the growth is "a little bit more expensive" than anticipated due to a competitive environment, but clarified that the increase was more incremental than back-book repricing. Q: Regarding the 26 new relationship managers hired in the quarter, what is the expected earn-back period, and are these primarily C&I focused? A: CFO John Moran stated that for commercial talent, earn-backs tend to be very quick, "inside a year and a half." COO Timothy Burke added that 19 of the 26 hires were net new, primarily focused on C&I in metro markets, and the bank is disciplined in hiring top performers who can pay for themselves quickly through sticky core deposit business. Q: How are loan pipelines trending, and is the demand for C&I outpacing CRE? A: COO Timothy Burke reported that pipelines are up 6% year-over-year to $4.4 billion and demand remains strong despite rate uncertainty. He confirmed that C&I has more momentum than CRE, noting C&I is up 12% year-over-year, and he expects C&I to continue to outpace CRE growth in the coming quarters. Q: What is the outlook for expenses in the fourth quarter and full-year 2026? A: CFO John Moran guided that full-year expenses will likely fall at the low end of the $14.35 to $14.55 range. For the fourth quarter specifically, he expects a step-up from the Q3 adjusted run rate of $355 million, suggesting adding "10-ish" to that number due to robust hiring late in the third quarter and normal year-end factors. Q: Can you discuss the competitive environment for talent and the potential for attrition among commercial bankers? A: COO Timothy Burke acknowledged the market is "very aggressive right now for talent." However, he expects competition to wane slightly until bonuses are paid out in Q1. He affirmed the plan to continue growing the banker base on a net basis, stating the bank is proactive in retaining top talent and that their story resonates well with prospective hires. Q: What are the drivers behind the strong deposit growth, and did brokered deposits contribute to the 11% annualized increase? A: CFO John Moran clarified that brokered deposits were actually down in the quarter, emphasizing it was a "really strong organic quarter." He attributed the growth to $1 billion in organic increases, a win in a large public relationship, and normal seasonal strength in public funds which added roughly $450 million. Q: How should we think about the trajectory of fee income as we exit the year, particularly regarding mortgage? A: CFO John Moran stated he feels "great" about core banking, wealth, and capital markets fees, but noted mortgage is experiencing softness due to the rate environment. He does not expect mortgage to be a big grower next year but noted there is an easy expense offset due to variable comp. COO Timothy Burke added that the bank continues to invest in specialty banking and wealth management to drive non-interest income. Q: With the efficiency ratio at a record low of 44.9%, how do you balance maintaining this level with continued investment? A: CFO John Moran attributed the efficiency to long-term discipline in managing back and middle-office expenses and recycling dollars into revenue generation. CEO Jim Ryan added that the bank is striking a balance between investing in the future and driving positive operating leverage, noting they will not sacrifice the future for lack of investment. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Wed, Oct. 21, 2026 - Chairman and Chief Executive Officer - James C. Ryan - John Vincent Moran - Timothy Burke Jr. Operator: Welcome to the Old National Bancorp Third Quarter Earnings Conference Call. This call is being recorded and has been made accessible to the public in accordance with the SEC's Regulation FD. The audio webcast and corresponding presentation slides can be found on the Investor Relations page at oldnational.com. And will be archived there for 12 months. Management would like to remind everyone that certain statements on today's call may be forward looking in nature. And are subject to certain risks, uncertainties and other factors that could cause actual results or outcomes to differ from those discussed. The company refers you to its forward looking statement legend in the earnings release and presentation slides. The company's risk factors are fully disclosed and discussed within its SEC filings. In addition, certain slides contain non GAAP measures which management believes provide more appropriate comparisons. These non GAAP measures are intended to assist investors' understanding of performance trends. Reconciliations for these numbers are contained within the appendix of this presentation. I would now like to turn the call over to Old National's Chairman and CEO, James C. Ryan, for opening remarks. Mr. Ryan? James C. Ryan: Good morning. Earlier today, Old National reported another record quarter with third quarter EPS of $0.66 and new records in net income, adjusted diluted EPS, and adjusted efficiency ratio. These results reflect the strength of our franchise and disciplined execution of our strategy. Growing profitable relationships, funding that growth with core deposits, maintaining strong credit standards, and operating efficiently. Growth remained healthy and balanced with strong deposit growth and continued expansion of both C&I and CRE lending. Active portfolio management moderated reported loan growth during the quarter. Despite the increased competition, we were disciplined and pursued opportunities that met our pricing, relationship, and credit hurdles. These results reflect our consistent focus on full relationships, sensible pricing, strong underwriting, and core deposit funding. Revenue trends remain constructive with continued growth in net interest income and broadly stable fee income performance. As John Vincent Moran will discuss, we believe the current rate environment is modestly helpful to net interest margin going forward. Operating discipline remained a clear strength. We delivered record efficiency while reducing adjusted expenses from the prior quarter even as we continued to invest in technology, AI, process improvements, and talent. This balance supports strong current returns and durable shareholder value. Credit quality remains stable and consistent with our expectations. We continue to manage credit proactively, maintain rigorous underwriting standards, and stay close to our clients. Our diversified portfolio and straightforward banking model should serve us well. Our capital position remains strong, supported by continued significant capital generation and tangible book value growth. This strength gives us flexibility to support organic growth, invest in the business, and pursue additional capital returns with discipline. During the quarter, we added 26 relationship managers across commercial and wealth, expanding client facing capacity and supporting continued organic growth. Commercial hires included 4 proven performers in Ohio. 2 in Cleveland and 2 in Columbus, important expansion markets where we believe our brand and go to market strategy will resonate. We also added leaders in our fintechs, FX, food and beverage businesses broadening capabilities that support key strategic priorities. We are pleased with the caliber of talent we attracted and developed during the quarter. We will continue to invest selectively in high quality bankers, and specialized expertise where we see attractive opportunities to drive organic growth deepen client relationships, and expand fee income. In summary, this was another record quarter with disciplined growth exceptional efficiency, stable credit, and strong capital. We remain focused on the fundamentals that create durable shareholder value profitable organic growth, deeper client relationships, disciplined investment, and strong risk management. I want to thank our team members for their continued commitment to our clients, and 1 another. With that, I will turn the call over to John Vincent Moran to discuss the quarter's financial results in more detail. John Vincent Moran: As James C. Ryan mentioned, we delivered a strong quarter highlighted by record earnings and efficiency, very strong deposit growth, balanced loan growth, disciplined expense management, stable credit performance, and meaningful capital return to shareholders. Beginning on slide 5, we reported GAAP 3Q earnings per share of $0.66 Less than $1 million of merger related expenses were offset by a similarly sized valuation gain on the settlement of the legacy Bremer pension plan. Excluding these, our adjusted earnings per share were also $0.66. Results were driven by strong deposit and disciplined loan growth stable fee income, and well controlled expenses. Credit remained in a normalized with 24-basis-points of non PCD charge offs. Our profitability profile remained top decile as compared to our peers with return on assets of 1.37% and return on tangible common equity of 19.6%. Capital finished the quarter with CET1 over 11% and we grew tangible book value per share 5% year over year. But for the impact of higher rates on AOCI, tangible book value would have increased an even stronger 13% annualized from the prior quarter. We continued to return capital to shareholders through cash dividends and share repurchases in the third quarter, with a combined payout ratio of 62% of net income to common. On slide 6, you can see our quarterly balance sheet trends. Underscoring continued strength in our liquidity and capital positions. Driven by strong deposit growth, our loan to deposit ratio declined to 89% and the CET1 ratio remains above 11%. Again, we compounded tangible book value per share year over year despite the impact of merger charges and the increased pace of capital return. We repurchased $100 million or 3.9 million shares during the current quarter and $327 million or 13.4 million shares over the last year. As we have stated in the last several quarters, we continue to believe that the best investment we can make today is in ourselves. On slide 7, we show trends in earning assets. Total loans grew 3% annualized from last quarter and 7% annualized year-over-year. This growth was led by our commercial portfolio with C&I up 12% and CRE up 3% year-over-year. Production this quarter was balanced across our commercial book and remained predominantly floating rate. The next few quarters should be supported by a pipeline of $4.4 billion up 6% from a year ago. The investment portfolio declined due to rate driven market valuation with new purchases coming on at higher yields. We expect $1.8 billion in cash flow over the next 12 months. Today, new money yields are approximately 6%, which are well above back book yields of 4.2%. Loan growth ongoing repricing across both loans and securities and deposit pricing discipline supports continued growth in spread revenue into the fourth quarter. Moving to slide 8, we show trends in deposits. Period end total deposits increased 11% annualized primarily driven by $1 billion of organic increases in business accounts seasonal strength in public funds. Non-interest-bearing deposits grew $182 million and represent 22% of total deposits. Like our loan pipelines, deposit pipelines remain healthy. Both total deposit costs and interest bearing deposit costs increased 8 basis points linked quarter. We remained on offense with respect to client acquisition in a competitive deposit environment. The spot rate on total deposits was 187 basis points at September 30. Overall, our deposit strategy outperformed our expectations even after adjusting for normal seasonal strength in public funds. Slide 9 shows our quarterly income statement trends. As I mentioned earlier, adjusted earnings per share were a record $0.66 for the quarter and our profitability remains peer leading. Moving on to slide 10, we present details of our net interest income and margin. NII grew 4% annualized from 2Q levels. Total margin was down modestly in the quarter with rate volume and day count benefits offset by increased funding costs. We anticipate fourth quarter growth in NII dollars to be supported by continued earning asset generation disciplined deposit growth, fixed asset repricing, and the slightly higher mix of floating rate loans. We remain well positioned to the forward curve and based on current spot rates for loans, deposits and securities, and assuming a static balance sheet, we would expect a 2-basis-point positive impact to margin, all else equal. Slide 11 shows trends in adjusted noninterest income, which was $128 million for the quarter. Core banking, wealth, and capital markets fees continue to perform well while mortgage fees reflect some softness given the rapidly changing rate environment. Continuing to slide 12, adjusted noninterest expense was $355 million for the quarter. Run-rate expenses remain well controlled driving positive operating leverage. Both quarter over quarter and year over year while delivering a record-low 44.9% adjusted efficiency ratio. As James C. Ryan mentioned upfront, we continue to invest in top talent across our footprint in both commercial and wealth. Third quarter saw strong pull through from the talent, with many of these hires happening late in the quarter. I will discuss the anticipated expense impact on our outlook slide. On slide 13, we present our credit trends. Total net charge offs were 27 basis points or 24-basis-points excluding charge offs on PCD loans. Criticized and classified loans declined 9% this quarter and are down 16% from a year ago. Nonaccrual loans remained relatively stable linked quarter at 92 basis points of total loans, but are likewise down meaningfully from a 123 basis points last year. The third quarter allowance for credit losses to total loans including the reserve for unfunded commitments of 120 basis points. down 1 basis point from the prior quarter, primarily driven by charge offs on PCD loans and improved credit quality. On slide 14, you can see our strong capital position at the end of the quarter. Tangible book value per share was up 5% year-over-year. Overall, regulatory capital ratios were up modestly linked quarter with strong earnings absorbed by loan growth and continued share repurchases. As previously mentioned, we repurchased $100 million of common stock during the third quarter We have $177 million remaining under our program. Slide 15 includes our outlook for the full-year 2026. Our overall expectations remain unchanged from the guidance that we first provided in January of this year. We continue to expect positive operating leverage growth in tangible book value and EPS growth exceeding 15%. Expect to achieve these results even as we have navigated a markedly different operating environment over the course of the year, and our 2026 estimates prove to be durable. As you can see, we believe our year to date results and current pipeline continue to support full year loan growth of 6% to 8%. You will recall that we increased this range last quarter given the strong performance in the first half of the year. With 3Q results and a focus on striking the right balance between growth of full relationships that come with sensible pricing and credit discipline, we now expect mid single digit growth for the fourth quarter. Which would bring us to the lower end of the annual range. Our NII guidance is unchanged. Obviously, the exact path of NIM and NII in the fourth quarter will be dependent on balance sheet growth dynamics, the shape of the yield curve, production mix, and the deposit landscape. However, we believe our balance sheet is well positioned to the forward curve and as previously mentioned, our spot margin is up slightly from 3Q levels. That said, given the year to date results, mathematically, we expect full year NII to come in on the lower end of the stated range. With 4Q NII dollars expected to show continued growth from 3Q levels. Our fee income guidance, which had also been increased earlier in the year, remains unchanged. We expect our core fee businesses to continue to perform well with mortgage fees softness likely to continue in 4Q amid the rising rate environment and seasonal factors. Our outlook for expenses is likewise unchanged, and given year to date results is now expected to fall near the lower end of the annual range. Robust hiring at the end of the third quarter is expected to run rate into 4Q and next year. The outlook for credit and tax rates are also unchanged. Finally, we expect to fully utilize the remaining buyback plan opportunistically over the course of the current authorization which runs through the end of February 27. In aggregate, we continue to expect 15%-plus EPS growth positive operating leverage, peer leading profitability, normalized credit, and sustained growth in tangible book value per share. Importantly, the durability of that outlook has now been tested across 3 consecutive quarters of volatility in the operating environment. It has held, and it is expected to result in record EPS for 2026. To close, this was a strong quarter for Old National. Record earnings, record efficiency, very robust deposit growth, improving credit trends, and continued capital return. These are not onetime results. They are the direct output of the franchise we have built. A franchise with peer leading profitability, sustainable growth, a diversified and growing fee income platform, and a capital base that gives us the flexibility to invest in talent and technology while returning meaningful capital to shareholders. We are not just performing well today. We are investing to ensure Old National is a stronger company in 2027 and beyond. With those comments, I would like to open the call for your questions. Operator: We will now begin the question and answer session. Please limit yourself to 1 question and 1 follow-up. If you would like to ask a question, please press *1 to raise your hand. To withdraw your question, press *1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. If you would like to submit a question on the webcast, please press *1 as a reminder. Please stand by while we compile the Q&A roster. Your first question is from Daniel Tamayo with Raymond James. Your line is now open. Please go ahead. Daniel Tamayo: Thank you. Good morning, everyone. John Vincent Moran: Good morning, Daniel. Just starting. Yes. Good morning. Daniel Tamayo: Maybe just starting on the on the margin. John Vincent Moran. The guidance, I think you said up 2 basis points is your thoughts for the fourth quarter, if I am not mistaken. And then I think I saw on the slide deck that the spot rate was up 2 basis points at the end of the quarter. So implying kind of stable in the fourth quarter. Just trying to think through where the trend goes from here. I mean, you have been talking about that continuing to move up. Is that still the overall thought that the margin would be kind of moving higher from here? Is the fourth quarter just kind of some impact from rising deposit costs following the hike in September and anticipation for 1 in December. If you could just talk through the margin dynamics. John Vincent Moran: Yeah for sure. The 2 basis point spot that we that we talked about is what it would look like right here, right now today, not factoring in anything else for what might come later this year. Mostly based on you know, sort of Fed funds futures and forward curve, probably we are gonna get a little bit more help, and that. That will be that will be modestly I think, to the quarter. So I think in general for 4Q, we could expect to see NII dollars continue to move up. I think that will have, you know, as opposed to the $5.92 level that we were at in 3Q, probably has a 6 in front for 4Q, and then a margin that will expand a couple of basis points from here. From the 3Q average level. Daniel Tamayo: Correct? $3.52? John Vincent Moran: Yeah. Correct. The $3.52 today would be $3.54. If we get a little bit more help would be even better than that. And so I think the expectation of a, you know, modest improvement in margin is probably the right way to be thinking about 4Q. Daniel Tamayo: Got it. Okay. Thank you, John Vincent Moran. And then maybe just digging into the deposit pricing if I can for a second. Was this a little bit more. I mean, you know, the margin was down a bit in the quarter. Was the deposit pricing or the rise in deposit costs more than you guys expected? And then just looking in, zeroing in on the money market and checking account, it looked like you had a decent increase there. If you could just kind of give us a little color on what drove that, that would be helpful. John Vincent Moran: Yes. So 8 basis points in the quarter. 4 basis points of that was just the growth that we put on. And that growth is coming on a little bit more expensive than probably what we would have thought earlier this year, but, you know, we have been talking all year about it. it is a competitive environment for deposits We are staying on our front foot. We are very interested in continuing to grow deposits in line with our earning asset growth. The other factor in this quarter is a little bit usually 3Q seasonal strength in the public fund side of things, and those can be a touch pricier that had a couple of basis points impact on the quarter's deposit cost. But I think overall, we are we are in really good shape continuing to, you know, fight it out in a competitive environment and an interest in growing core client deposit. And I think. Look. You know, when you look year on year, C&I up 12%, those do not all show up on day 1 and Timothy Burke Jr. and team are really actively getting after it in terms of getting to Boston and the bank. Daniel Tamayo: So the increase in the money market and checking was not so much repricing as it was or maybe some repricing, but it was more incremental. Is that what you are saying? John Vincent Moran: Yeah. I think a lot more incremental. Backbook, we continue to work hard. Daniel Tamayo: Okay. Alright. Well, thanks for the color. I appreciate it, and I will step back. Operator: Your next question is from David Chiaverini with Jefferies. Your line is now open. Please go ahead. David Chiaverini: Hi, guys. Thanks for taking the questions. Timothy Burke Jr.: Good morning. David Chiaverini: So on the loan side, can you talk about the pipelines? It sounds like up nicely versus a year ago, 6%. I guess, to the extent you can talk about how much higher rates in this backdrop is impacting loan demand of your clients. Timothy Burke Jr.: Sure. Good morning, David. We talk to our clients every day, and we continue to be impressed with their ability to navigate the uncertainty in the rate environment, and we do not see a change in demand right now for commercial lending. We continue to be optimistic about the pipelines We see good growth in the pipelines and feel good about where they are at and where they are trending. David Chiaverini: And would you say. Looks like C&I has a bit more momentum than CRE. Is that the expectation for the next few quarters as well? Timothy Burke Jr.: Yes. I think that is a fair way of saying it. We have got really strong C and I results John Vincent Moran mentioned, we are up 12% year over year. Our pipelines in C&I continue to look good. We are investing in talent and capabilities there that I think have us well positioned in the market. David Chiaverini: And I think when you think about the interest rate environment going forward, you will see that impact 19 commercial relationship managers that you brought on, are they, focused more on C and I than CRE, or do they kind of offer kind of both products? Timothy Burke Jr.: Yeah. The majority of those bankers that we hired are going to be primarily focused on C&I bankers. We have a great CRE team that we continue to increase and improve. But for the most part, the majority of those 19 bankers are going to be C and I focused in our metro markets. David Chiaverini: Very helpful. Thank you. Thank you. Operator: Your next question is from Brendan Nosal from Hovde Group. Your line is now open. Please go ahead. Brendan Nosal: Good morning, everybody. Thanks for taking the questions. John Vincent Moran: Morning. Brendan Nosal: Maybe to shift gears here to, to Capital. Just kind of curious if this quarter's fair TCE position just following the AOCI drag blessings the enthusiasm, for how you think about share repurchase going forward? John Vincent Moran: No. Not at all, Brendan. I think we have plenty of both reg cap and GAAP cap. You know, we feel good about where we are, especially against risk that we take on the balance sheet. You know, I think no change to plans Continue to expect to execute the $177 million that is left on the on the repurchase authorization. You know, maybe a little bit more opportunistically over the balance of this, but we would expect to exhaust that. Brendan Nosal: Okay. Perfect. Maybe shifting gears to this quarter's commercial hires. I have not heard you folks talk about Ohio in a long time. But now you have got 4, you know, new people on the ground there. Maybe just talk about the opportunity that Old National has kind of in those markets and what you ultimately want to accomplish there? Timothy Burke Jr.: Oh, thank you. And, well, just personally speaking, I have spent 30 years in Northeast Ohio personally and professionally, so I feel like I have a good understanding of the market, the talent. And when you think about Cleveland and Columbus, they are very similar to our other large Midwestern cities. You know, strong C&I, middle market, manufacturing, the types of business banking clients that we think we are very well positioned to continue to grow. So their markets we know well, we know the talent that we hired. We think there is opportunities in those markets to expand, and we feel our story resonates very well there. So we are excited about the opportunity. Brendan Nosal: Okay. Great for taking my questions. Operator: Your next question is from Brandon Rud with Stephens Inc. Your line is now open. Please go ahead. Brandon Rud: Morning. Thanks for taking my questions. I guess if I could start, Timothy Burke Jr. mentioned new loan originations are focused more on the floating rate side of things. I am just kind of curious what that blended new origination yield is compared to the roll off rate of about 5.1% on page 10. John Vincent Moran: Yeah. We are. Compared to the back book, fixed repricing. So fixed to fixed is gonna be well north of 100 basis points, but fixed into what we have been putting on is kind of 100 basis points against the back book. We have got, again, to remind you, 4.6 billion of fixed-rate coming out of loan portfolio. And then on the securities side, you did not ask about securities, but I will I will give it to you anyway. 1.8 billion there, and that is, you know, 180 basis points or better in terms of in terms of what we are putting on there. In terms of yields themselves, up 5 basis points linked quarter. that is closer to 10 basis points on a spot on a spot basis. And again, I think if we get the forward curve and fed moving the way that the market expects it to, we would see a lift starting in November on that book just to, you know, the flow the float mix on the balance sheet has shifted a little bit over the last year. And so we will get a little bit of a helper there. Brandon Rud: Gotcha. Okay. Thank you. And I think you mentioned the increase in deposit costs is more related to new growth rather than back book repricing. I guess, when you. And then. And I know your guy does not include additional rate hike, but when you think about this hiking cycle, kind of what are your initial expectations for interest bearing or total deposit betas as you work through these hikes? John Vincent Moran: Yes. I think, look, non-interest-bearing show pretty good growth this quarter, up $182 million. You know, we are we are pleased with that. Absolutely. I think the more C and I business that we are doing, the more shots on goal we have with companies for operating accounts, and we intend to grow that bucket. I think in terms of cash sorting, everybody that is gonna sort has sorted. We have been in a cash sorting environment for the last 3, you know, 3-plus years, at this point. So I would not expect too much to change on that. The other the other thing that is kind of interesting about us the median balance for our total deposits are $3.8 thousand. If you rip out the CDs, closer to $3 thousand. Like, there is just not a lot to do with sorting And so, you know, I think I think where we are in terms of mix is probably gonna be pretty stable. Brandon Rud: Got it. Okay. And I guess I was asking more about the betas on incremental rate hikes from here. John Vincent Moran: Right. Yes. Expectations there. I think there is nothing. Nothing that we see in our in our book today that changes our expectations. Like, we were 40% up. We were 40% down. We are, you know, I think based on what we see in our back book today, our expectation would be that we would you know, be about in line with what the historical average has been. The interesting thing out of that exception book though, is that our churn in the book and our retention there has been way better than what we thought. And so maybe there is a little bit more opportunity to kinda test and learn in that. But again, you know, we want to stay focused on growth of deposits. Brandon Rud: Got it. Okay. Thanks very much. Operator: Your next question is from Brian Foran with Truist. Your line is now open. Please go ahead. Brian Foran: Hey. I have got a bunch of investor inbound questions just on the deposit growth. So, hopefully, I can just hit through them real quick. I mean, obviously, the 11% annualized is a great result. But first, do you happen to have the brokered balance at the end of 3Q Did that contribute at all to the growth? John Vincent Moran: Brokered was actually down in the quarter. It was a really strong organic 0.25 for us. I would say 1 billion was kind of organic and then we had a win in the public side. It was a little bit of a larger deposit relationship. And then the normal seasonal strength in public funds added probably $450 million or so. To the quarter's balance. Brian Foran: Perfect. That was my second question. Then back to the question about the money market growth. I see on the website, there is a 3.85% promo. I am not sure when that started. Any chance you have got a breakdown of how much of the growth was from that promo offer? John Vincent Moran: That 1, we might have to follow-up with you. After. I am not sure that I have that number handy. Brian Foran: Got it. And then the last 1, just on the legacy Bremer footprint. I mean, I have never loved the FDIC market share reports. And very cognizant that things like rehousing commercial deposits can move things a lot. But some people pointed to this year, printed it, I believe, a 2.9% share for Old National. At least in the Minneapolis MSA. And last year, it was 3.5%. Can you kind of walk through how you think about how the Bremer footprint is doing Do you think there is been any share erosion? Or maybe is it things like moving some corporate relationships to the old national headquarters or something like that? John Vincent Moran: Yeah. Yeah. That is exactly what is going on. You know, that summary deposits report is I would describe that thing as directionally correct, but specifically wrong. And how you household municipal deposits, broker deposits, large corporate deposits, can sort of swing that around in any given year and yeah. So I think underneath the surface, the core Bremer franchise I would describe as very stable. We have seen a pickup in the pipelines from our legacy Bremer footprint that leads us to believe strongly that the results going forward will continue to be stable we will be able to build and grow those markets as well. Brian Foran: Got it. I am not sure you will answer that 1, but I will try. Some people have pointed to the margin in consensus region of 3.65% or so by second half next year. Any thoughts on what you think a normalized or achievable margin over time is? Or maybe I will just leave it like that and let you decide. John Vincent Moran: I think that the curve, should it play out, will be helpful for us. Modestly helpful. And so I think that we can we can see improvement in 4Q and then maybe sustained improvement into 2027. But we will we will come back in January and, and refresh you on that set of assumptions. Brian Foran: Thank you for taking my 7-part question. Operator: Your next question is from Nathan Race with Piper Sandler. Your line is now open. Please go ahead. Timothy Burke Jr.: Morning, Nathan. Nathan Race: Hi, guys. Good morning. Thanks for taking my questions. I was hoping just to walk through some of the takes from a loan growth perspective in the quarter. You know, I think you are coming off a record loan pipeline coming out of June. Yeah. I think James C. Ryan alluded to some portfolio optimization in the quarter. So just curious kind of what you saw in terms of kind of a payoff in production. I am sorry, from a payoff perspective in the quarter. And just any thoughts on why the pipeline heading to 4Q is down from a commercial perspective, 20% or so? Timothy Burke Jr.: Morning, Nathan. Thanks for the question. Yeah. We feel very good about where we landed the quarter. When you think about navigating the competitive landscape having strong pricing discipline, which allowed us, as John Vincent Moran mentioned, to increase loan pricing by 5 basis points and 10 basis points in our spot rates. Now that said, we delivered 3% loan growth for the quarter. We feel good about our ability to hit our increased loan growth range for year end. Speaking on payoffs, we had a couple of payoffs on the CRE side. I think when you have projects and you see rates going up, you know, there is gonna be some payoffs and pay downs there. We had a couple of those that happened right near quarter end. But like I said, we feel good about the pipelines, our conversion rates, and our ability to continue to grow loans at a clip that, you know, we have provided guidance on. So feel good about where we are at and good about where we are going. Nathan Race: Okay. that is helpful. And, John, I appreciate you speaking to kind of the lower end of the end guide for the quarter, but maybe just looking to expenses as maybe an offset relative to maybe more conservative thoughts from a top line perspective there. But, you know, is it fair that maybe expenses come in kind of the low end of the expense guide for the year? Obviously, really good cost controls in the quarter, but just curious on kind of how you see the expense run rate trend into 4Q? John Vincent Moran: Yeah. Think you have got it, Nathan. Correctly there. I think, you know, when you look at that range, $1.435 billion to $1.455 billion on the year, our expectation would be it would be at the low end of that range. I think we do tick up as compared to 3Q. And again, a lot of the hiring that we did was kinda back-end loaded in this quarter. So 4Q will run higher than 3Q. But absolutely, we think for the year, we are gonna end up at the low end of that of that prior annual guide. Timothy Burke Jr.: And Nathan, 1 thing I would share back on the loan growth. Our line utilization for the quarter was slightly down. So we think there is some embedded you know, demand that we will see that pick up as, you know, c and I companies are looking to build inventory and other items. So we think that is also. Could be a tailwind for us going forward. Nathan Race: Okay. Great. And then just going back to some of the commercial hires in the quarter, lastly, it seems like good momentum there. Just curious to what extent, if any, you are having some attrition with some of your commercial bankers maybe seeing some competitors pay up more for talent these days, or do you kind of expect kind of kind of continued net growth in kind of your commercial banker producer headcount as we get into next year? Or are you seeing kind of increased competition for kinda some of the high quality producers these days? Timothy Burke Jr.: Yeah. I mean, the market is. The market's very aggressive right now for talent. You know, from a timing perspective as we are sitting here in October, you know, I would expect that to wane. But, you know, year end in Q1 until bonuses are paid out. But it is very competitive, and we feel we are doing a very good job of being proactive. To keep our top bankers and know, continue to give them a platform to succeed. As far as adding new bankers on a net basis, yes, that. That will continue be the plan to invest in top talent. And continue to grow our banker base. You know, we see an opportunity that. For our story to resonate in the market very well. The conversations we are having you know, are the talent that we are talking to, I think, are excited about the We will continue to have those conversations and look to grow that bankers up as we move forward. Nathan Race: Okay. Great. I appreciate all the color. Thanks, guys. Operator: Your next question is from Janet Lee with TD Cowen. Your line is now open. Please go ahead. Janet Lee: Good morning. Good morning. Given the seasonality of public deposits in the third quarter, it seems like it may come down in the fourth quarter. What is the implication on the deposit cost? Because if I on the slides, it says spot rate of 1.87%, which is a bit of an increase versus the average. But if the deposit growth on the public side moderates a bit, like, is could that help on the magnitude of the deposit increase in the fourth quarter being a little bit less than the third quarter? And spot rate Could it be below the spot rate of 1.87%? Or is that too optimistic? John Vincent Moran: I would say that is probably optimistic. I do think those. The, you know, muni flowing out could help deposit costs by a couple of basis points, call it call it 2 basis points, 3 basis points, something like that. And that is again kind of normal seasonal flows. Those are still sitting there at the early part of this quarter, but they flow out. Janet Lee: Got it. And the 40% beta you mentioned, that is on the interest bearing deposits? John Vincent Moran: No. Total. Total. Janet Lee: Got it. I heard your message around your intent to use up use up all of the remaining buyback authorization. On a go forward, is there a good target payout ratio that you keep in mind you did 62% on a combined basis. Is that a good level? On a go forward? John Vincent Moran: We have not really targeted a combined payout ratio I. But I think, look, the fact is we are putting up returns on tangible common equity in the high teens. Those are sort of pure leading sort of profitability. So we stack capital up very, very quickly. And we would continue our plan certainly would be to continue to return that capital to shareholders So, you know, I think that is been running 60-ish percent, plus or minus, the last couple of quarters. And, you know, we will we will rerack things and come up with a new authorization in February. Janet Lee: K. Got it. Thank you. Sure. Operator: Your next question is from Timur Braziler with UBS. Your line is now open. Please go ahead. Timur Braziler: Hi. Good morning, everyone. John Vincent Moran: Morning, Timur. Timur Braziler: On the on the CD side or on the on the time deposit side, I am just wondering some of the growth there if you are able to lock in duration and maybe capture some of the albeit, higher cost, lock that in for a little bit longer here if that customer appetite is maybe changing. And then maybe more broadly in terms of how you are thinking about deposits, I mean, what matters more? Just being in a hire for longer environment in terms of where deposit costs might go, or do you still ultimately think that thinking of a beta is the right way to think about ultimately where deposit costs can end up. John Vincent Moran: Yeah. Thanks. The absolutely. We put on some CDs this quarter. And I think that is gonna look really smart in a quarter or 2 or 3 or 4. I. You know, our thoughts in this quarter was that the funding curve was probably in front of the Fed. And leaning in was probably a good thing to do in 3Q, so we did. And I think we will get benefit from that. 1Q, 2Q of next year. I think in terms of higher or longer, on balance, it is it is modestly helpful, as we have as we have spelled out, and that is kind of a function of balance sheet mix and alco. So we have sort of pivoted ever so slightly asset sensitive here over the last couple of quarters. The impact on deposit costs, think higher for longer suggests that gonna stay competitive for longer. And, again, you know, we are we are we are. Our stated objective is grow deposits in line with earning assets. And so we will stay competitive Okay. Timur Braziler: And then maybe a follow-up on the expense question from before. So your unchanged guide, to your point, does Imply a step up in expenses in 4Q. But thinking kind of low point versus mid versus high, is there is there any kind of granularity or any of insight you can give on where within that range we can end up on expenses in the fourth quarter and what could take it away from kind of the lower end of the range into something more middle or upper end. John Vincent Moran: Yeah. I think middle or upper end is very unlikely. I mean, if I were gonna. If you were gonna force me to kinda pick a number, I would say take the $355 million in the 3Q. And add to it for 4Q just on the hiring and then normal kind of year end factors. And that would probably be as good a place as any to kinda to kinda land. Timur Braziler: Great. You. Operator: Your next question is from Jon Arfstrom with RBC Capital Markets. Your line is now open. Please go ahead. Jon Arfstrom: Hey, good morning. John Vincent Moran: Good morning, John Vincent Moran. Jon Arfstrom: Question for you guys on the competitive environment and lending in the pipelines. How competitive is it out there And then on the pipeline numbers, would you describe the pipeline right now as full or healthy? Or do you do you think. Does your gut tell you that pipeline goes higher or lower? Over time? depending on what you are seeing? Timothy Burke Jr.: Sure. You know, thanks, John Vincent Moran. Yeah. I would say it is certainly competitive out there. Know, and I do not think that is going to change anytime soon. I feel pipelines are solid. I never feel they are full. They can always get better. But I think what we are hearing from our clients is that demand is going to continue. And you know, I think as I said earlier, I think they are navigating. Our clients are navigating uncertainty better than ever. You know, I think people are used now to a high degree of uncertainty, and people are continuing to invest through that. As we continue to add new bankers, you know, those bankers, it takes up a quarter or 2 to ramp up pipelines. Very pleased with the pipelines we already have. In fact, we have a couple signed term sheets already from new hires that we just made this quarter. So I feel very good about the pipelines where they are where they are at today, but I feel like there is upside going forward to continue to grow those pipelines as we continue to add bankers and grow and build capabilities on corporate banking and specialty banking side. James C. Ryan: Yep. John, I would just add Timothy Burke Jr. and the and the leadership team done a really good job making sure that the pipeline is really clean and you know, to the extent that we do not believe there is a full relationship available to us or it is gonna be harder to come by. You know, we are cleaning those out of the pipeline. We are not looking those opportunities to the extent We do not think it is gonna meet our pricing hurdles, and there is just too much competition. Cleaning those out of our pipeline. So I feel really good about the work that Timothy Burke Jr. and the entire commercial leadership team have done to have a really even better pipeline, you know, going into the to the year end that is, high quality more so than even the past. Jon Arfstrom: Yep. Okay. Okay. Good. And then, of course, Jim, since you have the mic, the 1 question that has not been asked What are your thoughts on M and A from here I know that people talk about Bremer, but I am looking at a 19 and a half percent ROTCE and 15% EPS growth. Seems like it is worked You know, what kind of an appetite do you have and any interest at all? James C. Ryan: Yes. Thanks, John Vincent Moran. We appreciate that. We do believe it is worked, and, we have a lot of empirical evidence suggest that we have created real shareholder value. Over the multiple deals we have done in the organization. You know us in good as anybody or better than most and you can see that. But having said that, I think there is a time and place, and I do not think this is the time or place for us to thinking about more m and a. Obviously, the market's a little bit difficult too with rising rates, and everybody's really focused in on, you know, day 1 tangible value dilution. And quite frankly, you know, we do not need it to support know, the kinds of returns we are putting up. We do not need it for the growth we are putting up. I think growing our organically, and going out and being very active in the hiring and talent front think, has allowed us to stay really front footed. that is where we are gonna spend our time and effort. And there may be a time where m and a might make sense, but I do not see it in the foreseeable future here. I think it is just sticking to our knitting and doing the things we know really well. And, honestly, as we talked about, the investment ourselves, you know, the returns that John Vincent Moran did will put back through the buyback program. Are really strong. And that makes a lot of sense. And I think investors obviously are supportive of that. But I also just think taking the time to invest back in ourselves and continuing to build the foundation to be a larger organization. Will put us in a really good position and that makes sense in a couple years to think about, and A again, but it is not something we spend any time on today. Jon Arfstrom: Yep. Okay. Alright. Thank you. Thank you. Operator: Your next question is from Chris McGratty with KBW. Your line is now open. Please go ahead. James C. Ryan: Hey, Chris. Chris McGratty: John, for you on the deposits, listening to the call, it reminds me of kinda what you did during the last cycle where you kinda got the bad news out of the way with the deposit repricing and everyone caught up. Obviously, every cycle is different. Is there an element of that repeating itself? John Vincent Moran: I would. I you know, I. I do not know that I would say that there is an element of that repeating itself. I think you know, look, the quarter the quarter was a great growth quarter for deposits. Half of that deposit cost increase was on that growth. And, you know, it is it is a competitive environment out there. Right? You know, maybe to the extent that we are seeing deposit costs increase, I do not think we are we are wildly out of line. With what I have seen from other reporters. And, and I think if people are interested in growing deposits, they are gonna be paying Right? Chris McGratty: So Okay. Worth a shot. Thanks. And then for kinda putting the pieces together, is operating leverage based on the crosscurrents right now, is that something that is in the cards you know, over the. Beyond the quarter? Into next year? James C. Ryan: it is it is. As you know, and again, you know us for a long time. Right? it is a philosophical approach to every budget that we cut. We are trying to drive positive operating leverage. And I think we have got. Look. You know, obviously, this quarter's results a little bit softer on top line. We have got some pressure in the mortgage business. We have got some pressure on NII. But I think when you look at the forward curve, we have got we have got more tailwinds than headwinds there. And so that should set up a better revenue environment, and we are working hard on expenses. Yeah. As you know, Chris, I mean, this is a real focus of ours. We have been really disciplined you know, between John, Timothy, and I. We have regular arm wrestling matches over much we can afford to invest. Versus how much we need to, you know, let drop to the bottom line. I think we are striking the right balance between investing in the future you know, which means investing in growth and also, you know, driving positive operating leverage. We have all. We have said, you know, we cannot beholden to this you know, really low operating efficiency level forever. Like, we are gonna have to continue to invest in ourselves. Obviously, to the extent that, you know, John's pointed out, if. To the extent that we get benefits from rates, and that allows us a little bit more flexibility. But we are striking the right tension. Deliver the right strong shareholder returns, but also delivering a really way. But I never wanna sacrifice our future for lack of investment. And, you know, especially when we did. We have such awesome opportunity to continue to tell our story, and there is actually nobody better at telling our story to relationship managers, but Timothy Burke Jr. has been So, we need to take advantage of that while we can, and, continue to grow the business and make the right long term decisions. Chris McGratty: Okay. Great. Thank you. Operator: Your next question is from Jared David Shaw with Barclays. Your line is now open. Please go ahead. Jared Shaw: Hey, thanks. Good morning. I guess, you know, maybe just on the capital side, you continue to see really strong CET1 capital with the growth even with the buyback, how should we think about a target capital ratio, especially sort of given the potential tailwinds coming out of out the regulatory side as we go forward? John Vincent Moran: No target. Has been set, but we are super comfortable with where we are. Right? And north of 11% CET1 feels like a ton of capital for the risk that we take on the balance sheet. If those changes in Basel III become you know, go in as written I think we get, you know, probably a rough top of 100 basis points of additional CET1, and that may allow us to reconsider the size of the repurchase authorization when get to in February. Jared Shaw: Okay. And then on the fee income side, know, any new initiatives or how should we think about sort of the trajectory of the income growth as we exit the year? John Vincent Moran: Feel great about where we are in the in the core banking fees, wealth management, and capital markets. Mortgage, obviously, a little bit of softness. Just given the rate environment, and then we have got normal seasonality in 4Q. Jo not think mortgage is gonna be a big grower for us next year. The good news there is that there is a there is an obvious and easy expense offset because everybody that works in mortgages variable comp in terms of production. And if it if it is soft enough, we have got some other levers that we can pull in terms of the fixed cost piece of that business. Timothy, I know if you wanted to add some color on some of the initiatives that we have got in other parts of the bank. Timothy Burke Jr.: Yeah, we continue to invest in our noninterest income businesses. I think about specialty banking. I think about corporate banking. We have made investments. FX fintech, syndications, wealth management, really across the board, either in people and or the platform, and are continuing to do that. As we look at 2027. So I think you will you will continue to see investments in the businesses. And we feel good about where the pipelines are today and where we seem going short of, you the rate environment as it relates to mortgage. Jared Shaw: Thanks. Operator: Your next question is from Anthony Elian with JPMorgan. Your line is now open. Please go ahead. Anthony Elian: Morning. Morning, and thank you. On expense, you are pointing us to the lower end of the range. You called out earlier your efficiency ratio is a record-low 45%. How do you think about maintaining that efficiency ratio at that level while you keep investing in some of the areas you call out on slide 12, John Vincent Moran: We have for a really long time been good about driving expense out of the bank in the back and middle office. And just kinda how we move things around. And we take those dollars and recycle them into revenue generation, and, and some client facing technology. And so we have we have. This is the path that we have been on for heck, 10 years, may. Maybe more than that. And I think what you are seeing in the efficiency ratio is really the result of the scale that we tacked on with Bremer and realizing you know, those onetime saves. Or not 1 time saves. Those expected saves dropping to the to the bottom line of the run rate. Right. So I think that is what is allowed us to sort of drive efficiency ratio sub 50. We will continue to work at it real hard. We work at it every year. Anthony Elian: Thank you. And then your adjusted ROE has been around 20% for several quarters now. Does this feel like the right level where the company should be operating at? Or do you see upside from here given your earlier comments on the levers the company has to rising rates? Thank you. James C. Ryan: Would end. Like, hey. We feel really good about where we are at from a profitability perspective. And, you know, to the extent that we get a little help, you know, on the revenue side, there is possibility to be higher here, but, you know, I think we are leading most peer group with those kinds of numbers. We feel like this is a great spot to be in and run at. And, you know, we are obviously working every day to continue to improve our overall profitability. We will not let the. You know, we will not stop investing in our business to continue to have it grow. So that. that is just again, the tension we find ourselves in every single day is the ability to invest and maintain that high degree of operating efficiency. And have long term growth in our business. Anthony Elian: Thank you. Operator: Your next question is from Terry McEvoy with Wells Fargo. Your line is now open. Please go ahead. James C. Ryan: Good morning, Terry. Welcome back, Thanks. Terry McEvoy: Good morning, everybody. Morning. Thank you. If I think about 19 bankers or RMs they could eventually, in theory, support a multibillion dollar bank. And I think CapStar was. I have not had a chance to look, but call it $3 billion. So question is, how do you think about an earn back on new hires? Then just as a follow-up, were any of those new hires maybe upgrades where there is a cost savings, or some cost savings component to it? Thank you. John Vincent Moran: Terry, I can take the earn back question, and then Timothy Burke Jr. will Timothy Burke Jr. will clean this up. You know, for commercial talent, our earn backs tend to be very quick. And very quick, I mean, like, inside a year, year and a half. On the wealth side, when we hire new wealth people, that can be a little bit extended because it is harder for them to move relationships. But the right commercial talent, we have said for a long time, pays for itself very, very quickly. Timothy Burke Jr.: Yeah. On that 39 of those bankers were net new, 7 replacements. The total of 26 new, just to give you that breakdown. Yeah. You know, as far as expectations, you know, what I will tell you is we are very disciplined. Who we are hiring, and we are looking to hire bankers that we know are top performers in market that we know our story resonates very well. And I think if you have seen the expansion markets in our history and our track record of going into new markets, because we have that approach, we have been very successful. And I think we have been successful quickly, and I expect that to continue. You know, as we look at the pipelines that are already growing and building from the new bankers we have hired, we feel very good about them to be able to pay for themselves and then some. And when you think about the business they are bringing on, that core C and I business that are coming with primacy and good core operating noninterest bearing deposits, that is sticky business that provides recurring revenue that helps build that top line, and, we feel very good about the trajectory of that growth as well as the bankers that we have hired and their ability to pay for themselves very quickly. James C. Ryan: You know, I think we have done a really good job focusing on quality over quantity. And that quality, though, comes at a price. As Timothy Burke Jr. said, these are top performers in the marketplaces. I think the also interesting fact is many of those folks are gonna sit across from Timothy Burke Jr. and I and John Vincent Moran and others right here at headquarters. You know, we are we are very hands on in this process. Both from a recruiting perspective and telling our story perspective, but making sure these are gonna be really great fits for us from a cultural perspective. And I think that is helped us make sure that the people we hire stick around, last long, and are really productive right out of the gate. And I am not sure how other banks approach it, but we wanna make sure we get the best of the best that come workforce. Timothy Burke Jr.: And just building on that point, we. You know, the discipline we have. We are hiring back that for the most part, 1 of our leaders usually me or 1 of my directs, have worked, with them directly. So we know not just what they are producing. We know how they are producing it, and we know the types of clients that they are going after with primacy in mind. And sustainable recurring revenue from delivering the entire bank in a collaboration perspective as well. So we feel good about what they will do, not just in C and I, but driving our wealth business driving other areas, of the bank, based on client need. Terry McEvoy: that is great. Thank you very much. Operator: There are no further questions at this time. I would like to turn the call back to James C. Ryan for closing remarks. James C. Ryan: Well, thank you all for having so much interest. This may be a record, duration, for a long time. Everybody's high level of interest and detailed questions. Of course, we are gonna be around all day to take any follow-up questions. And, John, thank you for all your hard work. Make sure we had a successful call. Have a great day, everyone. Operator: Thank you so much, Jim Ryan. This concludes Old National's call. Once again, a replay along with the presentation slides will be available for 12 months on the Investor Relations page of Old National's website, oldnational.com. If anyone has any additional questions, please contact Lynell Durchholz at (812) 464-1.37 thousand. Thank you for your participation in today's conference call. Before you buy stock in Old National Bancorp, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Old National Bancorp wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $370,440!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,330,110!* Now, it's worth noting Stock Advisor's total average return is 924% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of October 21, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Old National (ONB) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

- Interested in Old National Bancorp? Here are five stocks we like better. - Record third-quarter results: Old National Bancorp reported GAAP and adjusted EPS of $0.66, with record net income and a 44.9% adjusted efficiency ratio. Deposits grew at an 11% annualized rate, led by $1 billion in organic business-account growth. - Growth and margins remain cautiously positive: Loans grew 3% annualized sequentially, with commercial and industrial lending up 12% year over year and a $4.4 billion commercial pipeline. Management expects fourth-quarter net interest income to exceed $600 million and net interest margin to improve modestly. - Guidance and capital returns maintained: Management kept its 2026 outlook unchanged, including more than 15% EPS growth and 6%–8% loan growth, while citing stable credit quality. The bank repurchased $100 million of shares during the quarter and plans to prioritize organic growth over near-term acquisitions. Old National Bancorp (NASDAQ:ONB) reported record third-quarter earnings, supported by deposit growth, commercial lending activity, expense controls and stable credit quality. The company posted GAAP and adjusted earnings per share of $0.66, while Chairman and CEO Jim Ryan said the quarter set records for net income, adjusted diluted EPS and adjusted efficiency. "These results reflect the strength of our franchise and disciplined execution of our strategy," Ryan said, citing the company's focus on profitable relationships, core-deposit funding, underwriting standards and operating efficiency. → Tesla's Roadster Reveal Hints at 2 Much Bigger Moves The bank reported return on assets of 1.37% and return on tangible common equity of 19.6%. Its adjusted efficiency ratio fell to a record-low 44.9%, while adjusted noninterest expense declined from the preceding quarter to $355 million. Period-end deposits increased at an 11% annualized rate during the quarter, driven primarily by $1 billion of organic growth in business accounts and seasonal public-fund inflows. Noninterest-bearing deposits rose $182 million and represented 22% of total deposits. The loan-to-deposit ratio declined to 89%. → Aurora Rejects Curaleaf's Higher Bid, But the Takeover Fight Isn't Over Chief Financial Officer John Moran said deposit costs increased 8 basis points from the second quarter, with about half of that increase tied to newly acquired balances that carried somewhat higher costs. Seasonal public-fund deposits also contributed to the increase. "We are staying on our front foot," Moran said of the competitive market for deposits. "We are very interested in continuing to grow deposits in line with our earning-asset growth." → Could Quantinuum's Breakthrough Make Its Sell-Off a Bargain? Total loans grew at a 3% annualized rate from the prior quarter and 7% annualized year over year. Commercial and industrial lending increased 12% year over year, while commercial real estate lending rose 3%. Management said active portfolio management and a focus on pricing, credit and relationship hurdles moderated reported loan growth during the quarter. President and COO Tim Burke said C&I lending is expected to continue outpacing commercial real estate growth. He said the company's commercial loan pipeline totaled $4.4 billion, up 6% from a year earlier, and that demand remained resilient despite uncertainty surrounding interest rates. Management also said line utilization declined slightly in the quarter, which Burke said could represent embedded future demand as commercial borrowers finance inventory and other needs. Net interest income grew 4% annualized from second-quarter levels. Net interest margin declined modestly during the quarter as higher funding costs offset benefits from rates, loan volume and day count. Moran said the bank expects fourth-quarter net interest income to rise from the $592 million reported in the third quarter, potentially reaching a figure beginning with $600 million. He also projected that net interest margin could increase by a couple of basis points from the third-quarter average of 3.52%. "The expectation of a modest improvement in margin is probably the right way to be thinking about 4Q," Moran said. Management said new loan production remained predominantly floating rate. Fixed-rate loans are repricing at yields more than 100 basis points above the maturing portfolio, according to Moran. The company also expects $1.8 billion of investment portfolio cash flow over the next 12 months, with new securities purchases yielding about 6%, compared with a 4.2% yield on the existing portfolio. Adjusted noninterest income was $128 million. Core banking, wealth-management and capital-markets fees remained steady, although mortgage fees softened amid the changing rate environment. The company expects mortgage-fee pressure and typical seasonal effects to continue into the fourth quarter. Credit quality remained stable. Net charge-offs totaled 27 basis points, or 24 basis points excluding purchased credit-deteriorated loans. Criticized and classified loans declined 9% from the prior quarter and 16% from a year earlier. Nonaccrual loans were stable sequentially at 92 basis points of total loans and down from 123 basis points a year earlier. The allowance for credit losses, including reserves for unfunded commitments, was 120 basis points of total loans, down one basis point from the second quarter. Old National ended the quarter with a common equity Tier 1 ratio above 11% and tangible book value per share up 5% year over year. The company repurchased $100 million, or 3.9 million shares, during the quarter and $327 million over the past year. It had $177 million remaining under its authorized buyback program. Moran said management expects to use the remaining authorization opportunistically through its February 2027 expiration. The company's combined dividends and share repurchases represented 62% of net income available to common shareholders during the quarter. The company maintained its full-year 2026 guidance, including expectations for more than 15% EPS growth, positive operating leverage, tangible book value growth and normalized credit performance. Management expects full-year loan growth of 6% to 8%, with fourth-quarter growth in the mid-single digits bringing results toward the lower end of that range. Expense guidance remains unchanged, though Moran said full-year expenses are expected near the lower end of the company's $1.435 billion to $1.455 billion range. Fourth-quarter expenses are expected to rise from the third quarter due to late-quarter hiring and normal year-end factors. During the quarter, Old National added 26 relationship managers across commercial banking and wealth management, including 19 net-new bankers. The company added commercial staff in Ohio, including Cleveland and Columbus, and expanded specialty capabilities in fintech, foreign exchange and food and beverage. Ryan said the company is prioritizing organic growth and talent investments rather than pursuing acquisitions in the near term. "I don't think this is the time or place for us to be thinking about more M&A," he said, adding that the company does not need acquisitions to support its current returns or growth targets. Old National Bancorp (NASDAQ: ONB) is a regional financial services company headquartered in Evansville, Indiana. Through its principal subsidiary, Old National Bank, the company provides banking and financial solutions to individuals, families, businesses and institutions. Its products and services include checking and savings accounts, commercial and consumer lending, residential mortgages, treasury and cash-management services, trust and investment management, wealth management, and other financial advisory services. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "What Old National Bancorp (ONB) Said on Its Q3 Earnings Call" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

Old National Bancorp (ONB) came out with quarterly earnings of $0.66 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.59 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this holding company for Old National Bank would post earnings of $0.62 per share when it actually produced earnings of $0.65, delivering a surprise of +4.84%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Old National Bancorp, which belongs to the Zacks Banks - Midwest industry, posted revenues of $720.4 million for the quarter ended September 2026, missing the Zacks Consensus Estimate by 2.11%. This compares to year-ago revenues of $713.04 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Old National Bancorp shares have added about 13.6% since the beginning of the year versus the S&P 500's gain of 12.7%. While Old National Bancorp has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Old National Bancorp was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.68 on $746.53 million in revenues for the coming quarter and $2.60 on $2.91 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Midwest is currently in the top 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Farmers National Banc (FMNB), is yet to report results for the quarter ended September 2026. This bank is expected to post quarterly earnings of $0.41 per share in its upcoming report, which represents a year-over-year change of -2.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Farmers National Banc's revenues are expected to be $70.63 million, up 48% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Old National Bancorp (ONB) : Free Stock Analysis Report Farmers National Banc Corp. (FMNB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

EVANSVILLE, Ind., Oct. 21, 2026 (GLOBE NEWSWIRE) -- Old National Bancorp (NASDAQ: ONB) reports 3Q26 net income applicable to common shares of $250.0 million, diluted EPS of $0.66; $249.7 million and $0.66 on an adjusted1 basis, respectively. CEO COMMENTARY: "With our strong 3rd quarter results, highlighted by record net income, a record efficiency ratio, and growth in both deposits and loans, Old National continues to demonstrate the strength and consistency of our operating model," said Chairman and CEO Jim Ryan. "Our disciplined focus on fundamentals continues to drive profitable growth, positive operating leverage, and meaningful value creation for our shareholders. As we look ahead, we remain very well positioned to build on this momentum and capitalize on opportunities across our growing franchise." THIRD QUARTER HIGHLIGHTS2: Net Income | Record net income applicable to common shares of $250.0 million; adjusted net income applicable to common shares1 of $249.7 millionEarnings per diluted common share ("EPS") of $0.66; record adjusted EPS1 of $0.66 Net Interest Income/NIM | Net interest income on a fully taxable equivalent basis1 of $592.0 millionNet interest margin on a fully taxable equivalent basis1 ("NIM") of 3.52%, down 2 basis points ("bps") Operating Performance | Pre-provision net revenue1 ("PPNR") of $365.0 million; adjusted PPNR1 of $364.8 millionNoninterest expense of $355.4 million; adjusted noninterest expense1 of $354.7 millionRecord efficiency ratio1 of 46.1%; record adjusted efficiency ratio1 of 44.9% Deposits and Funding | Period-end total deposits of $57.6 billion, up 10.6% annualizedGranular low-cost deposit franchise; total deposit costs of 179 bps, up 8 bps; interest-bearing deposit costs of 231 bps, up 8 bps Loans and Credit Quality | End-of-period total loans3 of $51.2 billion, up $362.3 million or 2.9% annualizedProvision for credit losses4 ("provision") of $33.6 millionNet charge-offs of $34.1 million, or 27 bps of average loans; 24 bps of average loans excluding purchased credit deteriorated ("PCD") loans that had an allowance at acquisition30+ day delinquencies of 0.25% and nonaccrual loans of 0.92% of total loans Return Profile & Capital | Return on average tangible common equity1 ("ROATCE") of 19.6%; adjusted ROATCE1 of 19.6%Preliminary regulatory Tier 1 common equity to risk-weighted assets of 11.11%, up 2 bpsRepurchased $100 million, or 3.9 million shares, of common stock during the quarter Notable Items | $0.9 million of pre-tax pension gain5$0.7 million of pre-tax merger-related charges | 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 a gain associated with the settlement of the Bremer pension plan RESULTS OF OPERATIONS2 Old National Bancorp reported record third quarter 2026 net income applicable to common shares of $250.0 million, or $0.66 per diluted common share. Included in third quarter results was a $0.9 million pre-tax gain associated with the settlement of the Bremer pension plan and pre-tax charges of $0.7 million for merger-related expenses. Excluding these items and realized debt securities gains from the current quarter net of tax, adjusted net income1 was $249.7 million, or $0.66 per diluted common share. DEPOSITS AND FUNDING Increases in business and public funds. - Period-end total deposits were $57.6 billion, up 10.6% annualized. - On average, total deposits for the third quarter were $56.9 billion, an increase of $1.3 billion. - Granular low-cost deposit franchise; total deposit costs of 179 bps, up 8 bps. - A loan to deposit ratio of 89%, combined with existing funding sources, provides strong liquidity. LOANS Loan growth driven by high quality commercial loan production. - Period-end total loans3 were $51.2 billion, up $362.3 million or 2.9% annualized, including commercial and industrial growth of $148.0 million, as well as commercial real estate growth of $157.3 million. - Period-end commercial pipeline totaled $4.4 billion, down 20% from record levels at the end of the second quarter and up 6% from a year ago. - Average total loans in the third quarter were $51.1 billion, up 7.8% annualized. CREDIT QUALITY Credit quality remains stable. - Provision4 expense was $33.6 million compared to $36.2 million. - Net charge-offs were $34.1 million, or 27 bps of average loans, compared to 26 bps. - Excluding PCD loans that had an allowance for credit losses established at acquisition, net charge-offs to average loans were 24 bps compared to 22 bps. - 30+ day delinquencies as a percentage of loans were 0.25% compared to 0.29%. - Nonaccrual loans as a percentage of total loans were 0.92% compared to 0.91%. - The allowance for credit losses, including the allowance for credit losses on unfunded loan commitments, stood at $611.5 million, or 1.20% of total loans, compared to $612.0 million, or 1.21% of total loans. NET INTEREST INCOME AND MARGIN Earning asset growth and favorable rate/volume mix more than offset higher deposit costs. - Net interest income on a fully taxable equivalent basis1 increased to $592.0 million compared to $586.5 million, driven by high quality loan and deposit growth, partly offset by core deposit pricing and funding mix. - Net interest margin on a fully taxable equivalent basis1 decreased 2 bps to 3.52%. - Cost of total deposits was 1.79%, increasing 8 bps and the cost of total interest-bearing deposits increased 8 bps to 2.31%. NONINTEREST INCOME Bank and wealth fees remained resilient as other income normalized from elevated second quarter levels. - Total noninterest income was $128.4 million compared to $153.6 million, or $127.5 million compared to $140.4 million excluding pre-tax gains associated with the settlement of the Bremer pension plan. - Excluding the pension plan gains5 and realized debt securities gains, noninterest income was down 9.1% driven by approximately $10 million of elevated other income in the second quarter of 2026 due to market value adjustments, higher company-owned life insurance income and an asset recovery. NONINTEREST EXPENSE Disciplined expense management drives record adjusted efficiency ratio. - Noninterest expense was $355.4 million and included $0.7 million of merger-related charges. - Excluding merger related charges, adjusted noninterest expense1 decreased to $354.7 million, compared to $360.1 million. - The efficiency ratio1 was a record at 46.1%, while the adjusted efficiency ratio1 was a record at 44.9% compared to 47.0% and 45.2%, respectively. INCOME TAXES - Income tax expense was $69.8 million, resulting in an effective tax rate of 21.6% compared to 21.8%. On an adjusted fully taxable equivalent ("FTE") basis1, the effective tax rate was 23.4% compared to 23.0%. - Income tax expense included $9.5 million of tax credit benefit compared to $9.9 million. CAPITAL CET1 held at 11.11% while funding earning asset growth and returning $155 million to shareholders. - Preliminary total risk-based capital down 6 bps to 13.59% and preliminary regulatory Tier 1 capital up 1 bps to 11.54%, as growth in loans and share repurchases is partly offset by strong retained earnings. - Tangible common equity to tangible assets was 7.28% compared to 7.68%, driven by the $391 million impact of rates on other comprehensive income. - The Company repurchased $100 million of common stock and paid $55 million of quarterly common stock cash dividends during the quarter resulting in a combined payout ratio of 62%. CONFERENCE CALL AND WEBCAST Old National will host a conference call and live webcast at 9:00 a.m. Central Time on Wednesday, October 21, 2026, to review third quarter financial results. To listen to the live conference call, dial U.S./International (833) 461-5787, meeting ID 244 307 806. The live audio webcast link and corresponding presentation slides will be available on the Company's Investor Relations website at oldnational.com and the webcast replay will be available approximately two hours after completion of the call until midnight ET on October 21, 2027. ABOUT OLD NATIONAL Old 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 $74 billion of assets and $41 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 2026, Points of Light named Old National one of "The Civic 50" for the third consecutive year – an honor recognizing the 50 most community-minded companies in the United States – and also named Old National the Financials Sector Leader among nominated banks and financial services organizations. USE OF NON-GAAP FINANCIAL MEASURES The 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, pre-provision net revenue and net income applicable to common shares, all adjusted for certain notable items. These items include a pension plan gain/loss, merger-related charges associated with completed and pending acquisitions, realized debt securities gains/losses, distribution of excess pension assets expense, FDIC special assessment expense, 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 realized 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 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: Scott Reinhard | Investors: Lynell Durchholz (612) 716-0304 | (812) 464-1366 [email protected] | [email protected] | | | | | | | | Financial Highlights (unaudited) ($ and shares in thousands, except per share data) | | | | | | | | | Three Months Ended | | Nine Months Ended | September 30, | June 30, | March 31, | December 31, | September 30, | | September 30, | September 30, | | 2026 | | | 2026 | | | 2026 | | | 2025 | | | 2025 | | | | 2026 | | | 2025 | Income Statement | | | | | | | | Net interest income | $ | 584,287 | | $ | 578,988 | | $ | 572,573 | | $ | 580,832 | | $ | 574,609 | | | $ | 1,735,848 | | $ | 1,477,042 | FTE adjustment1,3 | | 7,667 | | | 7,510 | | | 7,849 | | | 8,013 | | | 7,975 | | | | 23,026 | | | 20,398 | Net interest income - tax equivalent basis3 | | 591,954 | | | 586,498 | | | 580,422 | | | 588,845 | | | 582,584 | | | | 1,758,874 | | | 1,497,440 | Provision for credit losses | | 33,580 | | | 36,206 | | | 34,946 | | | 32,745 | | | 26,738 | | | | 104,732 | | | 164,976 | Noninterest income | | 128,446 | | | 153,564 | | | 122,346 | | | 109,759 | | | 130,461 | | | | 404,356 | | | 356,772 | Noninterest expense | | 355,380 | | | 372,161 | | | 364,704 | | | 386,320 | | | 445,734 | | | | 1,092,245 | | | 1,098,971 | Net income applicable to common shareholders | | 249,960 | | | 249,381 | | | 229,638 | | | 212,589 | | | 178,533 | | | $ | 728,979 | | | 440,533 | Per Common Share Data | | | | | | | | Weighted average diluted shares | | 380,900 | | | 383,273 | | | 388,054 | | | 389,550 | | | 390,496 | | | | 384,156 | | | 357,278 | EPS, diluted | $ | 0.66 | | $ | 0.65 | | $ | 0.59 | | $ | 0.55 | | $ | 0.46 | | | $ | 1.90 | | $ | 1.23 | Cash dividends | | 0.145 | | | 0.145 | | | 0.145 | | | 0.140 | | | 0.140 | | | | 0.44 | | | 0.42 | Dividend payout ratio2 | | 22 | % | | 22 | % | | 25 | % | | 25 | % | | 30 | % | | | 23 | % | | 34 | % Book value | $ | 21.26 | | $ | 21.80 | | $ | 21.40 | | $ | 21.17 | | $ | 20.64 | | | $ | 21.26 | | $ | 20.64 | Stock price | | 24.64 | | | 25.90 | | | 22.10 | | | 22.31 | | | 21.95 | | | | 24.64 | | | 21.95 | Tangible book value3 | | 13.77 | | | 14.32 | | | 13.93 | | | 13.71 | | | 13.15 | | | | 13.77 | | | 13.15 | Performance Ratios | | | | | | | | ROAA | | 1.37 | % | | 1.38 | % | | 1.29 | % | | 1.21 | % | | 1.03 | % | | | 1.35 | % | | 0.95 | % ROAE | | 12.0 | % | | 12.1 | % | | 11.1 | % | | 10.4 | % | | 9.0 | % | | | 11.7 | % | | 8.3 | % ROATCE3 | | 19.6 | % | | 19.8 | % | | 18.4 | % | | 17.8 | % | | 15.9 | % | | | 19.3 | % | | 14.3 | % NIM (FTE)3 | | 3.52 | % | | 3.54 | % | | 3.55 | % | | 3.65 | % | | 3.64 | % | | | 3.53 | % | | 3.50 | % Efficiency ratio3 | | 46.1 | % | | 47.0 | % | | 48.3 | % | | 51.6 | % | | 58.8 | % | | | 47.1 | % | | 56.4 | % NCOs to average loans | | 0.27 | % | | 0.26 | % | | 0.26 | % | | 0.27 | % | | 0.25 | % | | | 0.26 | % | | 0.24 | % ACL on loans to EOP loans | | 1.13 | % | | 1.14 | % | | 1.15 | % | | 1.17 | % | | 1.19 | % | | | 1.13 | % | | 1.19 | % ACL4to EOP loans | | 1.20 | % | | 1.21 | % | | 1.22 | % | | 1.24 | % | | 1.26 | % | | | 1.20 | % | | 1.26 | % Nonaccrual loans to EOP loans | | 0.92 | % | | 0.91 | % | | 1.03 | % | | 1.07 | % | | 1.23 | % | | | 0.92 | % | | 1.23 | % Balance Sheet (EOP) | | | | | | | | Total loans | $ | 51,148,063 | | $ | 50,772,584 | | $ | 49,731,844 | | $ | 48,764,162 | | $ | 47,967,915 | | | $ | 51,148,063 | | $ | 47,967,915 | Total assets | | 74,423,980 | | | 74,189,417 | | | 73,002,651 | | | 72,151,967 | | | 71,210,162 | | | | 74,423,980 | | | 71,210,162 | Total deposits | | 57,639,107 | | | 56,146,770 | | | 55,672,472 | | | 55,088,195 | | | 55,006,184 | | | | 57,639,107 | | | 55,006,184 | Total borrowed funds | | 7,134,231 | | | 8,423,983 | | | 7,823,198 | | | 7,451,367 | | | 6,766,381 | | | | 7,134,231 | | | 6,766,381 | Total shareholders' equity | | 8,295,211 | | | 8,583,843 | | | 8,510,653 | | | 8,494,788 | | | 8,309,271 | | | | 8,295,211 | | | 8,309,271 | Capital Ratios3 | | | | | | | | Risk-based capital ratios (EOP): | | | | | | | | Tier 1 common equity | | 11.11 | % | | 11.09 | % | | 11.11 | % | | 11.08 | % | | 11.02 | % | | | 11.11 | % | | 11.02 | % Tier 1 capital | | 11.54 | % | | 11.53 | % | | 11.56 | % | | 11.53 | % | | 11.49 | % | | | 11.54 | % | | 11.49 | % Total capital | | 13.59 | % | | 13.65 | % | | 13.71 | % | | 12.85 | % | | 12.78 | % | | | 13.59 | % | | 12.78 | % Leverage ratio (average assets) | | 8.98 | % | | 8.95 | % | | 8.93 | % | | 8.90 | % | | 8.72 | % | | | 8.98 | % | | 8.72 | % Equity to assets (averages) | | 11.52 | % | | 11.61 | % | | 11.79 | % | | 11.73 | % | | 11.48 | % | | | 11.64 | % | | 11.59 | % TCE to TA | | 7.28 | % | | 7.68 | % | | 7.67 | % | | 7.72 | % | | 7.53 | % | | | 7.28 | % | | 7.53 | % Nonfinancial Data | | | | | | | | Full-time equivalent employees | | 4,894 | | | 4,914 | | | 4,948 | | | 4,971 | | | 5,243 | | | | 4,894 | | | 5,243 | Banking centers | | 346 | | | 346 | | | 346 | | | 346 | | | 351 | | | | 346 | | | 351 | 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. | | | | | | | | | | | | | September 30, 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 TCE - Tangible common equity TA - Tangible assets | | | | | | | | | | | | | | Income Statement (unaudited) ($ and shares in thousands, except per share data) | Three Months Ended | | Nine Months Ended | September 30, | June 30, | March 31, | December 31, | September 30, | | September 30, | September 30, | | 2026 | | | 2026 | | | 2026 | | | 2025 | | | 2025 | | | | 2026 | | | 2025 | Interest income | $ | 916,830 | | $ | 894,391 | | $ | 877,391 | | $ | 897,301 | | $ | 917,192 | | | $ | 2,688,612 | | $ | 2,372,552 | Less: interest expense | | 332,543 | | | 315,403 | | | 304,818 | | | 316,469 | | | 342,583 | | | | 952,764 | | | 895,510 | Net interest income | | 584,287 | | | 578,988 | | | 572,573 | | | 580,832 | | | 574,609 | | | | 1,735,848 | | | 1,477,042 | Provision for credit losses | | 33,580 | | | 36,206 | | | 34,946 | | | 32,745 | | | 26,738 | | | | 104,732 | | | 164,976 | Net interest income after provision for credit losses | | 550,707 | | | 542,782 | | | 537,627 | | | 548,087 | | | 547,871 | | | | 1,631,116 | | | 1,312,066 | Wealth and investment services fees | | 42,244 | | | 42,098 | | | 39,715 | | | 39,012 | | | 39,684 | | | | 124,057 | | | 105,149 | Service charges on deposit accounts | | 29,187 | | | 28,009 | | | 26,937 | | | 27,516 | | | 27,856 | | | | 84,133 | | | 72,890 | Debit card and ATM fees | | 13,325 | | | 13,092 | | | 12,038 | | | 13,178 | | | 13,197 | | | | 38,455 | | | 36,110 | Mortgage banking revenue | | 8,966 | | | 11,163 | | | 9,554 | | | 11,053 | | | 10,442 | | | | 29,683 | | | 27,353 | Capital markets income | | 12,348 | | | 12,329 | | | 11,016 | | | 13,080 | | | 12,629 | | | | 35,693 | | | 24,249 | Company-owned life insurance | | 7,326 | | | 8,531 | | | 7,561 | | | 7,099 | | | 7,565 | | | | 23,418 | | | 19,571 | Other income | | 15,045 | | | 38,376 | | | 15,450 | | | (1,252 | ) | | 19,081 | | | | 68,871 | | | 71,560 | Debt securities gains (losses), net | | 5 | | | (34 | ) | | 75 | | | 73 | | | 7 | | | | 46 | | | (110 | ) Total noninterest income | | 128,446 | | | 153,564 | | | 122,346 | | | 109,759 | | | 130,461 | | | | 404,356 | | | 356,772 | Salaries and employee benefits | | 180,018 | | | 184,765 | | | 184,073 | | | 187,251 | | | 211,345 | | | | 548,856 | | | 561,762 | Occupancy | | 34,784 | | | 33,452 | | | 36,995 | | | 35,243 | | | 34,442 | | | | 105,231 | | | 93,927 | Equipment | | 11,326 | | | 11,077 | | | 12,075 | | | 14,184 | | | 12,703 | | | | 34,478 | | | 34,170 | Marketing | | 16,462 | | | 15,601 | | | 16,434 | | | 14,418 | | | 15,093 | | | | 48,497 | | | 40,792 | Technology | | 27,529 | | | 29,630 | | | 29,025 | | | 30,882 | | | 36,122 | | | | 86,184 | | | 89,594 | Communication | | 6,323 | | | 6,130 | | | 6,196 | | | 6,726 | | | 7,742 | | | | 18,649 | | | 16,890 | Professional fees | | 12,260 | | | 10,735 | | | 12,356 | | | 18,454 | | | 13,598 | | | | 35,351 | | | 43,448 | FDIC assessment | | 13,243 | | | 13,592 | | | 13,756 | | | 11,190 | | | 14,095 | | | | 40,591 | | | 37,204 | Amortization of intangibles | | 23,331 | | | 23,992 | | | 25,623 | | | 26,016 | | | 26,184 | | | | 72,946 | | | 52,644 | Amortization of tax credit investments | | 8,131 | | | 7,807 | | | 7,111 | | | 9,822 | | | 7,057 | | | | 23,049 | | | 16,296 | Other expense | | 21,973 | | | 35,380 | | | 21,060 | | | 32,134 | | | 67,353 | | | | 78,413 | | | 112,244 | Total noninterest expense | | 355,380 | | | 372,161 | | | 364,704 | | | 386,320 | | | 445,734 | | | | 1,092,245 | | | 1,098,971 | Income before income taxes | | 323,773 | | | 324,185 | | | 295,269 | | | 271,526 | | | 232,598 | | | | 943,227 | | | 569,867 | Income tax expense | | 69,779 | | | 70,771 | | | 61,597 | | | 54,903 | | | 50,031 | | | | 202,147 | | | 117,233 | Net income | $ | 253,994 | | $ | 253,414 | | $ | 233,672 | | $ | 216,623 | | $ | 182,567 | | | $ | 741,080 | | $ | 452,634 | Preferred dividends | | (4,034 | ) | | (4,033 | ) | | (4,034 | ) | | (4,034 | ) | | (4,034 | ) | | | (12,101 | ) | | (12,101 | ) Net income applicable to common shares | $ | 249,960 | | $ | 249,381 | | $ | 229,638 | | $ | 212,589 | | $ | 178,533 | | | $ | 728,979 | | $ | 440,533 | | | | | | | | | EPS, diluted | $ | 0.66 | | $ | 0.65 | | $ | 0.59 | | $ | 0.55 | | $ | 0.46 | | | $ | 1.90 | | $ | 1.23 | Weighted Average Common Shares Outstanding | | | | | | | | Basic | | 379,250 | | | 381,864 | | | 385,849 | | | 387,862 | | | 389,038 | | | | 382,297 | | | 355,307 | Diluted | | 380,900 | | | 383,273 | | | 388,054 | | | 389,550 | | | 390,496 | | | | 384,156 | | | 357,278 | (EOP) | | 378,639 | | | 382,537 | | | 386,315 | | | 389,662 | | | 390,768 | | | | 378,639 | | | 390,768 | | | | | | | | | | | | | | | | | End of Period Balance Sheet (unaudited) ($ in thousands) | September 30, | June 30, | March 31, | December 31, | September 30, | | 2026 | | | 2026 | | | 2026 | | | 2025 | | | 2025 | Assets | | | | | Cash and due from banks | $ | 507,214 | | $ | 588,654 | | $ | 537,322 | | $ | 591,645 | | $ | 491,910 | Money market and other interest-earning investments | | 1,171,814 | | | 1,179,526 | | | 1,216,826 | | | 1,234,532 | | | 1,190,707 | Investments: | | | | | Treasury and government-sponsored agencies | | 2,312,713 | | | 2,358,509 | | | 2,371,903 | | | 2,427,371 | | | 2,402,375 | Mortgage-backed securities | | 10,275,345 | | | 10,460,468 | | | 10,295,623 | | | 10,078,358 | | | 10,117,015 | States and political subdivisions | | 1,393,309 | | | 1,442,703 | | | 1,454,444 | | | 1,570,888 | | | 1,579,802 | Other securities | | 814,729 | | | 821,719 | | | 814,990 | | | 825,761 | | | 849,911 | Total investments | | 14,796,096 | | | 15,083,399 | | | 14,936,960 | | | 14,902,378 | | | 14,949,103 | Loans held-for-sale, at fair value | | 30,456 | | | 43,608 | | | 56,128 | | | 52,911 | | | 80,341 | Loans: | | | | | Commercial | | 16,260,724 | | | 16,112,685 | | | 15,617,656 | | | 14,983,861 | | | 14,506,375 | Commercial real estate | | 22,692,502 | | | 22,535,229 | | | 22,192,900 | | | 22,050,007 | | | 22,083,734 | Residential real estate | | 8,770,515 | | | 8,760,832 | | | 8,621,409 | | | 8,467,496 | | | 8,190,127 | Consumer | | 3,424,322 | | | 3,363,838 | | | 3,299,879 | | | 3,262,798 | | | 3,187,679 | Total loans | | 51,148,063 | | | 50,772,584 | | | 49,731,844 | | | 48,764,162 | | | 47,967,915 | Allowance for credit losses on loans | | (579,658 | ) | | (580,511 | ) | | (574,358 | ) | | (569,520 | ) | | (572,178 | ) Premises and equipment, net | | 674,192 | | | 682,065 | | | 690,400 | | | 690,824 | | | 691,950 | Goodwill and other intangible assets | | 2,839,096 | | | 2,862,427 | | | 2,886,419 | | | 2,907,986 | | | 2,926,960 | Company-owned life insurance | | 1,058,220 | | | 1,053,333 | | | 1,054,824 | | | 1,051,009 | | | 1,044,780 | Accrued interest receivable and other assets | | 2,778,487 | | | 2,504,332 | | | 2,466,286 | | | 2,526,040 | | | 2,438,674 | Total assets | $ | 74,423,980 | | $ | 74,189,417 | | $ | 73,002,651 | | $ | 72,151,967 | | $ | 71,210,162 | | | | | | Liabilities and Equity | | | | | Noninterest-bearing demand deposits | $ | 12,847,561 | | $ | 12,665,278 | | $ | 12,927,096 | | $ | 13,247,483 | | $ | 12,691,658 | Interest-bearing: | | | | | Checking and NOW accounts | | 11,177,144 | | | 11,129,286 | | | 10,969,731 | | | 10,740,919 | | | 11,162,121 | Savings accounts | | 4,812,222 | | | 4,924,639 | | | 4,985,949 | | | 4,909,138 | | | 4,958,555 | Money market accounts | | 17,949,816 | | | 16,936,441 | | | 16,871,237 | | | 16,529,631 | | | 17,032,446 | Time deposits | | 10,852,364 | | | 10,491,126 | | | 9,918,459 | | | 9,661,024 | | | 9,161,404 | Total deposits | | 57,639,107 | | | 56,146,770 | | | 55,672,472 | | | 55,088,195 | | | 55,006,184 | | | | | | Federal funds purchased and interbank borrowings | | 484 | | | 250,389 | | | 200,583 | | | 100,197 | | | 1 | Securities sold under agreements to repurchase | | 240,698 | | | 265,301 | | | 264,518 | | | 261,366 | | | 277,594 | Federal Home Loan Bank advances | | 5,484,611 | | | 6,520,296 | | | 6,026,801 | | | 6,237,375 | | | 5,663,361 | Other borrowings | | 1,408,438 | | | 1,387,997 | | | 1,331,296 | | | 852,429 | | | 825,425 | Total borrowed funds | | 7,134,231 | | | 8,423,983 | | | 7,823,198 | | | 7,451,367 | | | 6,766,381 | Accrued expenses and other liabilities | | 1,355,431 | | | 1,034,821 | | | 996,328 | | | 1,117,617 | | | 1,128,326 | Total liabilities | | 66,128,769 | | | 65,605,574 | | | 64,491,998 | | | 63,657,179 | | | 62,900,891 | Preferred stock, common stock, surplus, and retained earnings | | 9,244,597 | | | 9,141,984 | | | 9,053,907 | | | 8,973,459 | | | 8,833,662 | Accumulated other comprehensive income (loss), net of tax | | (949,386 | ) | | (558,141 | ) | | (543,254 | ) | | (478,671 | ) | | (524,391 | ) Total shareholders' equity | | 8,295,211 | | | 8,583,843 | | | 8,510,653 | | | 8,494,788 | | | 8,309,271 | Total liabilities and shareholders' equity | $ | 74,423,980 | | $ | 74,189,417 | | $ | 73,002,651 | | $ | 72,151,967 | | $ | 71,210,162 | | | | | | | | | | | | | Average Balance Sheet and Interest Rates (unaudited) ($ in thousands) | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Three Months Ended | | Three Months Ended | | September 30, 2026 | | June 30, 2026 | | September 30, 2025 | | Average | Income1/ | Yield/ | | Average | Income1/ | Yield/ | | Average | Income1/ | Yield/ Earning Assets: | | Balance | Expense | Rate | | Balance | Expense | Rate | | Balance | Expense | Rate Money market and other interest-earning investments | | $ | 1,170,557 | | $ | 10,979 | 3.72 | % | | $ | 1,212,043 | | $ | 11,121 | 3.68 | % | | $ | 1,159,564 | | $ | 12,207 | 4.18 | % Investments: | | | | | | | | | | | | Treasury and government-sponsored agencies | | | 2,358,480 | | | 19,370 | 3.29 | % | | | 2,349,871 | | | 18,993 | 3.23 | % | | | 2,391,564 | | | 20,721 | 3.47 | % Mortgage-backed securities | | | 10,479,035 | | | 114,368 | 4.37 | % | | | 10,428,343 | | | 111,157 | 4.26 | % | | | 9,854,107 | | | 105,596 | 4.29 | % States and political subdivisions | | | 1,417,175 | | | 11,844 | 3.34 | % | | | 1,450,389 | | | 12,017 | 3.31 | % | | | 1,577,384 | | | 13,109 | 3.32 | % Other securities | | | 824,408 | | | 12,488 | 6.06 | % | | | 828,774 | | | 12,395 | 5.98 | % | | | 874,728 | | | 16,265 | 7.44 | % Total investments | | | 15,079,098 | | | 158,070 | 4.19 | % | | | 15,057,377 | | | 154,562 | 4.11 | % | | | 14,697,783 | | | 155,691 | 4.24 | % Loans:2 | | | | | | | | | | | | Commercial | | | 16,207,022 | | | 248,740 | 6.14 | % | | | 15,792,290 | | | 238,663 | 6.05 | % | | | 14,722,785 | | | 249,569 | 6.78 | % Commercial real estate | | | 22,660,192 | | | 346,840 | 6.12 | % | | | 22,234,235 | | | 339,925 | 6.12 | % | | | 21,999,016 | | | 356,014 | 6.47 | % Residential real estate loans | | | 8,800,325 | | | 104,378 | 4.74 | % | | | 8,722,341 | | | 103,162 | 4.73 | % | | | 8,287,155 | | | 95,129 | 4.59 | % Consumer | | | 3,383,853 | | | 55,490 | 6.51 | % | | | 3,323,663 | | | 54,468 | 6.57 | % | | | 3,166,508 | | | 56,557 | 7.09 | % Total loans | | | 51,051,392 | | | 755,448 | 5.92 | % | | | 50,072,529 | | | 736,218 | 5.88 | % | | | 48,175,464 | | | 757,269 | 6.28 | % | | | | | | | | | | | | Total earning assets | | $ | 67,301,047 | | $ | 924,497 | 5.49 | % | | $ | 66,341,949 | | $ | 901,901 | 5.44 | % | | $ | 64,032,811 | | $ | 925,167 | 5.78 | % | | | | | | | | | | | | Less: Allowance for credit losses on loans | | | (592,670 | ) | | | | | (580,550 | ) | | | | | (566,102 | ) | | | | | | | | | | | | | | Non-earning Assets: | | | | | | | | | | | | Cash and due from banks | | $ | 526,400 | | | | | $ | 545,346 | | | | | $ | 492,415 | | | Other assets | | | 7,040,733 | | | | | | 6,991,436 | | | | | | 7,177,663 | | | | | | | | | | | | | | | Total assets | | $ | 74,275,510 | | | | | $ | 73,298,181 | | | | | $ | 71,136,787 | | | | | | | | | | | | | | | Interest-Bearing Liabilities: | | | | | | | | | | | | Checking and NOW accounts | | $ | 11,217,310 | | $ | 52,484 | 1.86 | % | | $ | 11,106,289 | | $ | 47,349 | 1.71 | % | | $ | 10,807,113 | | $ | 52,301 | 1.92 | % Savings accounts | | | 4,878,272 | | | 3,071 | 0.25 | % | | | 4,950,785 | | | 3,032 | 0.25 | % | | | 5,009,293 | | | 3,866 | 0.31 | % Money market accounts | | | 17,085,773 | | | 104,643 | 2.43 | % | | | 16,485,000 | | | 99,903 | 2.43 | % | | | 17,007,426 | | | 125,717 | 2.93 | % Time deposits | | | 10,831,986 | | | 96,449 | 3.53 | % | | | 10,145,661 | | | 87,220 | 3.45 | % | | | 9,337,597 | | | 90,717 | 3.85 | % Total interest-bearing deposits | | | 44,013,341 | | | 256,647 | 2.31 | % | | | 42,687,735 | | | 237,504 | 2.23 | % | | | 42,161,429 | | | 272,601 | 2.57 | % | | | | | | | | | | | | Federal funds purchased and interbank borrowings | | | 9,668 | | | 90 | 3.69 | % | | | 42,228 | | | 391 | 3.71 | % | | | 157,192 | | | 1,816 | 4.58 | % Securities sold under agreements to repurchase | | | 258,721 | | | 577 | 0.88 | % | | | 257,217 | | | 561 | 0.87 | % | | | 289,323 | | | 731 | 1.00 | % Federal Home Loan Bank advances | | | 6,068,074 | | | 59,292 | 3.88 | % | | | 6,561,147 | | | 61,744 | 3.77 | % | | | 5,552,780 | | | 57,143 | 4.08 | % Other borrowings | | | 1,449,183 | | | 15,937 | 4.36 | % | | | 1,360,976 | | | 15,203 | 4.48 | % | | | 871,996 | | | 10,292 | 4.68 | % Total borrowed funds | | | 7,785,646 | | | 75,896 | 3.87 | % | | | 8,221,568 | | | 77,899 | 3.80 | % | | | 6,871,291 | | | 69,982 | 4.04 | % | | | | | | | | | | | | Total interest-bearing liabilities | | $ | 51,798,987 | | $ | 332,543 | 2.55 | % | | $ | 50,909,303 | | $ | 315,403 | 2.48 | % | | $ | 49,032,720 | | $ | 342,583 | 2.77 | % | | | | | | | | | | | | Noninterest-Bearing Liabilities and Shareholders' Equity: | | | | | | | | | | | Demand deposits | | $ | 12,837,453 | | | | | $ | 12,860,401 | | | | | $ | 12,731,654 | | | Other liabilities | | | 1,083,626 | | | | | | 1,020,272 | | | | | | 1,203,838 | | | Shareholders' equity | | | 8,555,444 | | | | | | 8,508,205 | | | | | | 8,168,575 | | | | | | | | | | | | | | | Total liabilities and shareholders' equity | | $ | 74,275,510 | | | | | $ | 73,298,181 | | | | | $ | 71,136,787 | | | | | | | | | | | | | | | Net interest rate spread | | | | 2.94 | % | | | | 2.96 | % | | | | 3.01 | % | | | | | | | | | | | | Net interest margin (GAAP) | | | | 3.47 | % | | | | 3.49 | % | | | | 3.59 | % | | | | | | | | | | | | Net interest margin (FTE)3 | | | | 3.52 | % | | | | 3.54 | % | | | | 3.64 | % | | | | | | | | | | | | FTE adjustment | | | $ | 7,667 | | | | $ | 7,510 | | | | $ | 7,975 | | | | | | | | | | | | | 1Interest income is reflected on a FTE basis. | 2Includes loans held-for-sale. | 3Represents a non-GAAP financial measure. Refer to the "Non-GAAP Measures" table for reconciliations to GAAP financial measures. | | | | | | | | | | Average Balance Sheet and Interest Rates (unaudited) ($ in thousands) | | | | | | | | | | | | | | | | | | Nine Months Ended | | Nine Months Ended | | September 30, 2026 | | September 30, 2025 | | Average | Income1/ | Yield/ | | Average | Income1/ | Yield/ Earning Assets: | | Balance | Expense | Rate | | Balance | Expense | Rate Money market and other interest-earning investments | | $ | 1,199,047 | | $ | 33,044 | 3.68 | % | | $ | 1,126,460 | | $ | 35,813 | 4.25 | % Investments: | | | | | | | | Treasury and government-sponsored agencies | | | 2,375,485 | | | 57,484 | 3.23 | % | | | 2,369,307 | | | 61,560 | 3.46 | % Mortgage-backed securities | | | 10,392,449 | | | 332,990 | 4.27 | % | | | 8,249,480 | | | 247,853 | 4.01 | % States and political subdivisions | | | 1,463,885 | | | 36,402 | 3.32 | % | | | 1,594,912 | | | 39,753 | 3.32 | % Other securities | | | 830,985 | | | 38,260 | 6.14 | % | | | 872,430 | | | 42,547 | 6.50 | % Total investments | | $ | 15,062,804 | | $ | 465,136 | 4.12 | % | | $ | 13,086,129 | | $ | 391,713 | 3.99 | % Loans:2 | | | | | | | | Commercial | | | 15,771,532 | | | 720,843 | 6.09 | % | | | 12,803,059 | | | 634,610 | 6.61 | % Commercial real estate | | | 22,319,323 | | | 1,022,713 | 6.11 | % | | | 19,432,867 | | | 918,371 | 6.30 | % Residential real estate loans | | | 8,686,561 | | | 306,493 | 4.70 | % | | | 7,636,955 | | | 251,629 | 4.39 | % Consumer | | | 3,326,422 | | | 163,409 | 6.57 | % | | | 3,030,102 | | | 160,814 | 7.10 | % Total loans | | | 50,103,838 | | | 2,213,458 | 5.89 | % | | | 42,902,983 | | | 1,965,424 | 6.11 | % | | | | | | | | Total earning assets | | $ | 66,365,689 | | $ | 2,711,638 | 5.45 | % | | $ | 57,115,572 | | $ | 2,392,950 | 5.59 | % | | | | | | | | Less: Allowance for credit losses on loans | | | (582,180 | ) | | | | | (457,192 | ) | | | | | | | | | | Non-earning Assets: | | | | | | | | Cash and due from banks | | $ | 540,143 | | | | | $ | 430,891 | | | Other assets | | | 7,025,532 | | | | | | 6,331,698 | | | | | | | | | | | Total assets | | $ | 73,349,184 | | | | | $ | 63,420,969 | | | | | | | | | | | Interest-Bearing Liabilities: | | | | | | | | Checking and NOW accounts | | $ | 11,097,532 | | $ | 146,128 | 1.76 | % | | $ | 9,512,075 | | $ | 123,627 | 1.74 | % Savings accounts | | | 4,916,410 | | | 9,114 | 0.25 | % | | | 4,891,083 | | | 11,251 | 0.31 | % Money market accounts | | | 16,706,478 | | | 304,502 | 2.44 | % | | | 14,697,398 | | | 328,533 | 2.99 | % Time deposits | | | 10,246,260 | | | 267,738 | 3.49 | % | | | 8,215,063 | | | 239,773 | 3.90 | % Total interest-bearing deposits | | | 42,966,680 | | | 727,482 | 2.26 | % | | | 37,315,619 | | | 703,184 | 2.52 | % | | | | | | | | Federal funds purchased and interbank borrowings | | | 18,532 | | | 504 | 3.64 | % | | | 131,341 | | | 4,394 | 4.47 | % Securities sold under agreements to repurchase | | | 258,927 | | | 1,732 | 0.89 | % | | | 286,137 | | | 1,918 | 0.90 | % Federal Home Loan Bank advances | | | 6,310,172 | | | 179,088 | 3.79 | % | | | 5,355,597 | | | 158,081 | 3.95 | % Other borrowings | | | 1,328,586 | | | 43,958 | 4.42 | % | | | 792,708 | | | 27,933 | 4.71 | % Total borrowed funds | | | 7,916,217 | | | 225,282 | 3.80 | % | | | 6,565,783 | | | 192,326 | 3.92 | % | | | | | | | | Total interest-bearing liabilities | | | 50,882,897 | | | 952,764 | 2.50 | % | | | 43,881,402 | | | 895,510 | 2.73 | % | | | | | | | | Noninterest-Bearing Liabilities and Shareholders' Equity: | | | | | | | Demand deposits | | $ | 12,862,492 | | | | | $ | 11,145,709 | | | Other liabilities | | | 1,067,798 | | | | | | 1,041,715 | | | Shareholders' equity | | | 8,535,997 | | | | | | 7,352,143 | | | | | | | | | | | Total liabilities and shareholders' equity | | $ | 73,349,184 | | | | | $ | 63,420,969 | | | | | | | | | | | Net interest rate spread | | | | 2.95 | % | | | | 2.86 | % | | | | | | | | Net interest margin (GAAP) | | | | 3.49 | % | | | | 3.45 | % | | | | | | | | Net interest margin (FTE)3 | | | | 3.53 | % | | | | 3.50 | % | | | | | | | | FTE adjustment | | | $ | 23,026 | | | | $ | 20,398 | | | | | | | | | 1Interest income is reflected on a FTE. 2Includes loans held-for-sale. | | | | | | | | 3Represents a non-GAAP financial measure. Refer to the "Non-GAAP Measures" table for reconciliations to GAAP financial measures. | | | | | | | | | | | | Asset Quality (EOP) (unaudited) ($ in thousands) | | | | | | | | | Three Months Ended | | Nine Months Ended | September 30, | June 30, | March 31, | December 31, | September 30, | | September 30, | September 30, | | 2026 | | | 2026 | | | 2026 | | | 2025 | | | 2025 | | | | 2026 | | | 2025 | Allowance for credit losses: | | | | | | | | Beginning allowance for credit losses on loans | $ | 580,511 | | $ | 574,358 | | $ | 569,520 | | $ | 572,178 | | $ | 565,109 | | | $ | 569,520 | | $ | 392,522 | Allowance established for acquired PCD loans | | — | | | — | | | — | | | — | | | 13,104 | | | | — | | | 103,546 | Provision for credit losses on loans | | 33,237 | | | 38,400 | | | 36,854 | | | 29,450 | | | 24,003 | | | | 108,491 | | | 154,292 | Gross charge-offs | | (48,275 | ) | | (41,540 | ) | | (37,307 | ) | | (35,131 | ) | | (35,402 | ) | | | (127,122 | ) | | (89,896 | ) Gross recoveries | | 14,185 | | | 9,293 | | | 5,291 | | | 3,023 | | | 5,364 | | | | 28,769 | | | 11,714 | NCOs | | (34,090 | ) | | (32,247 | ) | | (32,016 | ) | | (32,108 | ) | | (30,038 | ) | | | (98,353 | ) | | (78,182 | ) Ending allowance for credit losses on loans | $ | 579,658 | | $ | 580,511 | | $ | 574,358 | | $ | 569,520 | | $ | 572,178 | | | $ | 579,658 | | $ | 572,178 | Beginning allowance for credit losses on unfunded commitments | $ | 31,531 | | $ | 33,725 | | $ | 35,633 | | $ | 32,338 | | $ | 29,603 | | | $ | 35,633 | | $ | 21,654 | Provision (release) for credit losses on unfunded commitments | | 343 | | | (2,194 | ) | | (1,908 | ) | | 3,295 | | | 2,735 | | | | (3,759 | ) | | 10,684 | Ending allowance for credit losses on unfunded commitments | $ | 31,874 | | $ | 31,531 | | $ | 33,725 | | $ | 35,633 | | $ | 32,338 | | | $ | 31,874 | | $ | 32,338 | Allowance for credit losses | $ | 611,532 | | $ | 612,042 | | $ | 608,083 | | $ | 605,153 | | $ | 604,516 | | | $ | 611,532 | | $ | 604,516 | Provision for credit losses on loans | $ | 33,237 | | $ | 38,400 | | $ | 36,854 | | $ | 29,450 | | $ | 24,003 | | | $ | 108,491 | | $ | 154,292 | Provision (release) for credit losses on unfunded commitments | | 343 | | | (2,194 | ) | | (1,908 | ) | | 3,295 | | | 2,735 | | | | (3,759 | ) | | 10,684 | Provision for credit losses | $ | 33,580 | | $ | 36,206 | | $ | 34,946 | | $ | 32,745 | | $ | 26,738 | | | $ | 104,732 | | $ | 164,976 | NCOs / average loans1 | | 0.27 | % | | 0.26 | % | | 0.26 | % | | 0.27 | % | | 0.25 | % | | | 0.26 | % | | 0.24 | % Average loans1 | $ | 51,040,909 | | $ | 50,062,552 | | $ | 49,157,096 | | $ | 48,199,086 | | $ | 48,153,186 | | | $ | 50,093,753 | | $ | 42,881,049 | EOP loans1 | | 51,148,063 | | | 50,772,584 | | | 49,731,844 | | | 48,764,162 | | | 47,967,915 | | | | 51,148,063 | | | 47,967,915 | ACL on loans / EOP loans1 | | 1.13 | % | | 1.14 | % | | 1.15 | % | | 1.17 | % | | 1.19 | % | | | 1.13 | % | | 1.19 | % ACL / EOP loans1 | | 1.20 | % | | 1.21 | % | | 1.22 | % | | 1.24 | % | | 1.26 | % | | | 1.20 | % | | 1.26 | % Underperforming Assets: | | | | | | | | Loans 90 days and over (still accruing) | $ | 4,079 | | $ | 6,832 | | $ | 4,407 | | $ | 2,691 | | $ | 1,525 | | | $ | 4,079 | | $ | 1,525 | Nonaccrual loans | | 470,196 | | | 461,702 | | | 511,959 | | | 521,245 | | | 590,820 | | | | 470,196 | | | 590,820 | Foreclosed assets | | 2,885 | | | 3,374 | | | 5,786 | | | 6,235 | | | 6,325 | | | | 2,885 | | | 6,325 | Total underperforming assets | $ | 477,160 | | $ | 471,908 | | $ | 522,152 | | $ | 530,171 | | $ | 598,670 | | | $ | 477,160 | | $ | 598,670 | Classified and Criticized Assets: | | | | | | | | Nonaccrual loans | $ | 470,196 | | $ | 461,702 | | $ | 511,959 | | $ | 521,245 | | $ | 590,820 | | | $ | 470,196 | | $ | 590,820 | Substandard loans (still accruing) | | 1,737,688 | | | 1,918,721 | | | 1,881,374 | | | 1,759,221 | | | 1,881,294 | | | | 1,737,688 | | | 1,881,294 | Loans 90 days and over (still accruing) | | 4,079 | | | 6,832 | | | 4,407 | | | 2,691 | | | 1,525 | | | | 4,079 | | | 1,525 | Total classified loans - "problem loans" | | 2,211,963 | | | 2,387,255 | | | 2,397,740 | | | 2,283,157 | | | 2,473,639 | | | | 2,211,963 | | | 2,473,639 | Other classified assets | | 6,861 | | | 7,960 | | | 20,620 | | | 20,616 | | | 35,373 | | | | 6,861 | | | 35,373 | Special Mention | | 608,806 | | | 705,154 | | | 804,028 | | | 805,901 | | | 893,109 | | | | 608,806 | | | 893,109 | Total classified and criticized assets | $ | 2,827,630 | | $ | 3,100,369 | | $ | 3,222,388 | | $ | 3,109,674 | | $ | 3,402,121 | | | $ | 2,827,630 | | $ | 3,402,121 | Loans 30-89 days past due (still accruing) | $ | 126,202 | | $ | 140,428 | | $ | 114,038 | | $ | 105,632 | | $ | 83,030 | | | $ | 126,202 | | $ | 83,030 | Nonaccrual loans / EOP loans1 | | 0.92 | % | | 0.91 | % | | 1.03 | % | | 1.07 | % | | 1.23 | % | | | 0.92 | % | | 1.23 | % ACL / nonaccrual loans | | 130 | % | | 133 | % | | 119 | % | | 116 | % | | 102 | % | | | 130 | % | | 102 | % Under-performing assets/EOP loans1 | | 0.93 | % | | 0.93 | % | | 1.05 | % | | 1.09 | % | | 1.25 | % | | | 0.93 | % | | 1.25 | % Under-performing assets/EOP assets | | 0.64 | % | | 0.64 | % | | 0.72 | % | | 0.73 | % | | 0.84 | % | | | 0.64 | % | | 0.84 | % 30+ day delinquencies/EOP loans1 | | 0.25 | % | | 0.29 | % | | 0.24 | % | | 0.22 | % | | 0.18 | % | | | 0.25 | % | | 0.18 | % | | | | | | | | 1Excludes loans held-for-sale. | | | | | | | | | | | | | | | | | | | | | | Non-GAAP Measures (unaudited) ($ and shares in thousands, except per share data) | | | | | | | | | Three Months Ended | | Nine Months Ended | September 30, | June 30, | March 31, | December 31, | September 30, | | September 30, | September 30, | | 2026 | | | 2026 | | | 2026 | | | 2025 | | | 2025 | | | | 2026 | | | 2025 | Earnings Per Share: | | | | | | | | Net income applicable to common shares | $ | 249,960 | | $ | 249,381 | | $ | 229,638 | | $ | 212,589 | | $ | 178,533 | | | $ | 728,979 | | $ | 440,533 | Adjustments: | | | | | | | | Pension plan loss (gain) | | (893 | ) | | (13,240 | ) | | — | | | 15,878 | | | — | | | | (14,133 | ) | | (21,001 | ) Tax effect1 | | 160 | | | 2,890 | | | — | | | (3,814 | ) | | — | | | | 3,050 | | | 5,778 | Pension plan loss (gain), net | | (733 | ) | | (10,350 | ) | | — | | | 12,064 | | | — | | | | (11,083 | ) | | (15,223 | ) Merger-related charges | | 689 | | | 12,109 | | | 7,323 | | | 24,547 | | | 69,274 | | | | 20,121 | | | 116,336 | Tax effect1 | | (199 | ) | | (792 | ) | | (1,810 | ) | | (5,896 | ) | | (16,494 | ) | | | (2,801 | ) | | (28,921 | ) Merger-related charges, net | | 490 | | | 11,317 | | | 5,513 | | | 18,651 | | | 52,780 | | | | 17,320 | | | 87,415 | Debt securities (gains) losses | | (5 | ) | | 34 | | | (75 | ) | | (73 | ) | | (7 | ) | | | (46 | ) | | 110 | Tax effect1 | | 1 | | | (7 | ) | | 19 | | | 18 | | | 2 | | | | 12 | | | (24 | ) Debt securities (gains) losses, net | | (4 | ) | | 27 | | | (56 | ) | | (55 | ) | | (5 | ) | | | (34 | ) | | 86 | Distribution of excess pension assets | | — | | | — | | | 3,394 | | | — | | | — | | | | 3,394 | | | — | Tax effect1 | | — | | | — | | | (839 | ) | | — | | | — | | | | (839 | ) | | — | Distribution of excess pension assets, net | | — | | | — | | | 2,555 | | | — | | | — | | | | 2,555 | | | — | FDIC special assessment | | — | | | — | | | — | | | (2,994 | ) | | — | | | | — | | | — | Tax effect1 | | — | | | — | | | — | | | 719 | | | — | | | | — | | | — | FDIC special assessment, net | | — | | | — | | | — | | | (2,275 | ) | | — | | | | — | | | — | CECL Day 1 non-PCD provision expense | | — | | | — | | | — | | | — | | | — | | | | — | | | 75,604 | Tax effect1 | | — | | | — | | | — | | | — | | | — | | | | — | | | (20,802 | ) CECL Day 1 non-PCD provision expense, net | | — | | | — | | | — | | | — | | | — | | | | — | | | 54,802 | Total adjustments, net | | (247 | ) | | 994 | | | 8,012 | | | 28,385 | | | 52,775 | | | | 8,758 | | | 127,080 | Net income applicable to common shares, adjusted | $ | 249,713 | | $ | 250,375 | | $ | 237,650 | | $ | 240,974 | | $ | 231,308 | | | $ | 737,737 | | $ | 567,613 | Weighted average diluted common shares outstanding | | 380,900 | | | 383,273 | | | 388,054 | | | 389,550 | | | 390,496 | | | | 384,156 | | | 357,278 | EPS, diluted | $ | 0.66 | | $ | 0.65 | | $ | 0.59 | | $ | 0.55 | | $ | 0.46 | | | $ | 1.90 | | $ | 1.23 | Adjusted EPS, diluted | $ | 0.66 | | $ | 0.65 | | $ | 0.61 | | $ | 0.62 | | $ | 0.59 | | | $ | 1.92 | | $ | 1.59 | NIM: | | | | | | | | Net interest income | $ | 584,287 | | $ | 578,988 | | $ | 572,573 | | $ | 580,832 | | $ | 574,609 | | | $ | 1,735,848 | | $ | 1,477,042 | Add: FTE adjustment2 | | 7,667 | | | 7,510 | | | 7,849 | | | 8,013 | | | 7,975 | | | | 23,026 | | | 20,398 | Net interest income (FTE) | $ | 591,954 | | $ | 586,498 | | $ | 580,422 | | $ | 588,845 | | $ | 582,584 | | | $ | 1,758,874 | | $ | 1,497,440 | Average earning assets | $ | 67,301,047 | | $ | 66,341,949 | | $ | 65,433,548 | | $ | 64,456,815 | | $ | 64,032,811 | | | $ | 66,365,689 | | $ | 57,115,572 | NIM (GAAP) | | 3.47 | % | | 3.49 | % | | 3.50 | % | | 3.60 | % | | 3.59 | % | | | 3.49 | % | | 3.45 | % NIM (FTE) | | 3.52 | % | | 3.54 | % | | 3.55 | % | | 3.65 | % | | 3.64 | % | | | 3.53 | % | | 3.50 | % | | | | | | | | Refer to last page of Non-GAAP reconciliations for footnotes. | | | | | | | | | | | | | | | | | | | | | | Non-GAAP Measures (unaudited) ($ in thousands) | | | | | | | | | Three Months Ended | | Nine Months Ended | September 30, | June 30, | March 31, | December 31, | September 30, | | September 30, | September 30, | | 2026 | | | 2026 | | | 2026 | | | 2025 | | | 2025 | | | | 2026 | | | 2025 | PPNR: | | | | | | | | Net interest income (FTE)2 | $ | 591,954 | | $ | 586,498 | | $ | 580,422 | | $ | 588,845 | | $ | 582,584 | | | $ | 1,758,874 | | $ | 1,497,440 | Add: Noninterest income | | 128,446 | | | 153,564 | | | 122,346 | | | 109,759 | | | 130,461 | | | | 404,356 | | | 356,772 | Total revenue (FTE) | | 720,400 | | | 740,062 | | | 702,768 | | | 698,604 | | | 713,045 | | | | 2,163,230 | | | 1,854,212 | Less: Noninterest expense | | (355,380 | ) | | (372,161 | ) | | (364,704 | ) | | (386,320 | ) | | (445,734 | ) | | | (1,092,245 | ) | | (1,098,971 | ) PPNR | $ | 365,020 | | $ | 367,901 | | $ | 338,064 | | $ | 312,284 | | $ | 267,311 | | | $ | 1,070,985 | | $ | 755,241 | Adjustments: | | | | | | | | Pension plan loss (gain) | $ | (893 | ) | $ | (13,240 | ) | $ | — | | $ | 15,878 | | $ | — | | | $ | (14,133 | ) | $ | (21,001 | ) Debt securities (gains) losses | | (5 | ) | | 34 | | | (75 | ) | | (73 | ) | | (7 | ) | | | (46 | ) | | 110 | Noninterest income adjustments | | (898 | ) | | (13,206 | ) | | (75 | ) | | 15,805 | | | (7 | ) | | | (14,179 | ) | | (20,891 | ) Adjusted noninterest income | | 127,548 | | | 140,358 | | | 122,271 | | | 125,564 | | | 130,454 | | | | 390,177 | | | 335,881 | Adjusted revenue | $ | 719,502 | | $ | 726,856 | | $ | 702,693 | | $ | 714,409 | | $ | 713,038 | | | $ | 2,149,051 | | $ | 1,833,321 | Adjustments: | | | | | | | | Merger-related charges | $ | 689 | | $ | 12,109 | | $ | 7,323 | | $ | 24,547 | | $ | 69,274 | | | $ | 20,121 | | $ | 116,336 | FDIC Special Assessment | | — | | | — | | | — | | | (2,994 | ) | | — | | | | — | | | — | Distribution of excess pension assets | | — | | | — | | | 3,394 | | | — | | | — | | | | 3,394 | | | — | Noninterest expense adjustments | | 689 | | | 12,109 | | | 10,717 | | | 21,553 | | | 69,274 | | | | 23,515 | | | 116,336 | Adjusted total noninterest expense | | (354,691 | ) | | (360,052 | ) | | (353,987 | ) | | (364,767 | ) | | (376,460 | ) | | | (1,068,730 | ) | | (982,635 | ) Adjusted PPNR | $ | 364,811 | | $ | 366,804 | | $ | 348,706 | | $ | 349,642 | | $ | 336,578 | | | $ | 1,080,321 | | $ | 850,686 | Efficiency Ratio: | | | | | | | | Noninterest expense | $ | 355,380 | | $ | 372,161 | | $ | 364,704 | | $ | 386,320 | | $ | 445,734 | | | $ | 1,092,245 | | $ | 1,098,971 | Less: Amortization of intangibles | | (23,331 | ) | | (23,992 | ) | | (25,623 | ) | | (26,016 | ) | | (26,184 | ) | | | (72,946 | ) | | (52,644 | ) Noninterest expense, excl. amortization of intangibles | | 332,049 | | | 348,169 | | | 339,081 | | | 360,304 | | | 419,550 | | | | 1,019,299 | | | 1,046,327 | Less: Amortization of tax credit investments | | (8,131 | ) | | (7,807 | ) | | (7,111 | ) | | (9,822 | ) | | (7,057 | ) | | | (23,049 | ) | | (16,296 | ) Less: Noninterest expense adjustments | | (689 | ) | | (12,109 | ) | | (10,717 | ) | | (21,553 | ) | | (69,274 | ) | | | (23,515 | ) | | (116,336 | ) Adjusted noninterest expense, excluding amortization | $ | 323,229 | | $ | 328,253 | | $ | 321,253 | | $ | 328,929 | | $ | 343,219 | | | $ | 972,735 | | $ | 913,695 | Total revenue (FTE)2 | $ | 720,400 | | $ | 740,062 | | $ | 702,768 | | $ | 698,604 | | $ | 713,045 | | | $ | 2,163,230 | | $ | 1,854,212 | Less: Debt securities (gains) losses | | (5 | ) | | 34 | | | (75 | ) | | (73 | ) | | (7 | ) | | | (46 | ) | | 110 | Less: Pension plan loss (gain) | | (893 | ) | | (13,240 | ) | | — | | | 15,878 | | | — | | | | (14,133 | ) | | (21,001 | ) Total adjusted revenue | $ | 719,502 | | $ | 726,856 | | $ | 702,693 | | $ | 714,409 | | $ | 713,038 | | | $ | 2,149,051 | | $ | 1,833,321 | Efficiency Ratio | | 46.1 | % | | 47.0 | % | | 48.3 | % | | 51.6 | % | | 58.8 | % | | | 47.1 | % | | 56.4 | % Adjusted Efficiency Ratio | | 44.9 | % | | 45.2 | % | | 45.7 | % | | 46.0 | % | | 48.1 | % | | | 45.3 | % | | 49.8 | % | | | | | | | | Refer to last page of Non-GAAP reconciliations for footnotes. | | | | | | | | | | | | | | | | | | | | Non-GAAP Measures (unaudited) ($ in thousands) | | | | | | | | | Three Months Ended | | Nine Months Ended | September 30, | June 30, | March 31, | December 31, | September 30, | | September 30, | September 30, | | 2026 | | | 2026 | | | 2026 | | | 2025 | | | 2025 | | | | 2026 | | | 2025 | ROAE and ROATCE: | | | | | | | | Net income applicable to common shares | $ | 249,960 | | $ | 249,381 | | $ | 229,638 | | $ | 212,589 | | $ | 178,533 | | | $ | 728,979 | | $ | 440,533 | Amortization of intangibles | | 23,331 | | | 23,992 | | | 25,623 | | | 26,016 | | | 26,184 | | | | 72,946 | | | 52,644 | Tax effect1 | | (5,833 | ) | | (5,998 | ) | | (6,406 | ) | | (6,504 | ) | | (6,546 | ) | | | (18,237 | ) | | (13,161 | ) Amortization of intangibles, net | | 17,498 | | | 17,994 | | | 19,217 | | | 19,512 | | | 19,638 | | | | 54,709 | | | 39,483 | Net income applicable to common shares, excluding intangibles amortization | | 267,458 | | | 267,375 | | | 248,855 | | | 232,101 | | | 198,171 | | | | 783,688 | | | 480,016 | Total adjustments, net (see pg.12) | | (247 | ) | | 994 | | | 8,012 | | | 28,385 | | | 52,775 | | | | 8,758 | | | 127,080 | Adjusted net income applicable to common shares, excluding intangibles amortization | $ | 267,211 | | $ | 268,369 | | $ | 256,867 | | $ | 260,486 | | $ | 250,946 | | | $ | 792,446 | | $ | 607,096 | Average shareholders' equity | $ | 8,555,444 | | $ | 8,508,205 | | $ | 8,544,220 | | $ | 8,391,067 | | $ | 8,168,575 | | | $ | 8,535,997 | | $ | 7,352,143 | Less: Average preferred equity | | (243,719 | ) | | (243,719 | ) | | (243,719 | ) | | (243,719 | ) | | (243,719 | ) | | | (243,719 | ) | | (243,719 | ) Average shareholders' common equity | $ | 8,311,725 | | $ | 8,264,486 | | $ | 8,300,501 | | $ | 8,147,348 | | $ | 7,924,856 | | | $ | 8,292,278 | | $ | 7,108,424 | Average goodwill and other intangible assets | | (2,850,422 | ) | | (2,873,898 | ) | | (2,894,824 | ) | | (2,919,924 | ) | | (2,931,319 | ) | | | (2,872,886 | ) | | (2,633,858 | ) Average tangible shareholder's common equity | $ | 5,461,303 | | $ | 5,390,588 | | $ | 5,405,677 | | $ | 5,227,424 | | $ | 4,993,537 | | | $ | 5,419,392 | | $ | 4,474,566 | ROAE | | 12.0 | % | | 12.1 | % | | 11.1 | % | | 10.4 | % | | 9.0 | % | | | 11.7 | % | | 8.3 | % ROAE, adjusted | | 12.0 | % | | 12.1 | % | | 11.5 | % | | 11.8 | % | | 11.7 | % | | | 11.9 | % | | 10.6 | % ROATCE | | 19.6 | % | | 19.8 | % | | 18.4 | % | | 17.8 | % | | 15.9 | % | | | 19.3 | % | | 14.3 | % ROATCE, adjusted | | 19.6 | % | | 19.9 | % | | 19.0 | % | | 19.9 | % | | 20.1 | % | | | 19.5 | % | | 18.1 | % | | | | | | | | Refer to last page of Non-GAAP reconciliations for footnotes. | | | | | | | | | | | | | | | | | Non-GAAP Measures (unaudited) ($ in thousands) | | | | | | As of | September 30, | June 30, | March 31, | December 31, | September 30, | | 2026 | | | 2026 | | | 2026 | | | 2025 | | | 2025 | Tangible Common Equity: | | | | | Shareholders' equity | $ | 8,295,211 | | $ | 8,583,843 | | $ | 8,510,653 | | $ | 8,494,788 | | $ | 8,309,271 | Less: Preferred equity | | (243,719 | ) | | (243,719 | ) | | (243,719 | ) | | (243,719 | ) | | (243,719 | ) Shareholders' common equity | $ | 8,051,492 | | $ | 8,340,124 | | $ | 8,266,934 | | $ | 8,251,069 | | $ | 8,065,552 | Less: Goodwill and other intangible assets | | (2,839,096 | ) | | (2,862,427 | ) | | (2,886,419 | ) | | (2,907,986 | ) | | (2,926,960 | ) Tangible shareholders' common equity | $ | 5,212,396 | | $ | 5,477,697 | | $ | 5,380,515 | | $ | 5,343,083 | | $ | 5,138,592 | | | | | | Total assets | $ | 74,423,980 | | $ | 74,189,417 | | $ | 73,002,651 | | $ | 72,151,967 | | $ | 71,210,162 | Less: Goodwill and other intangible assets | | (2,839,096 | ) | | (2,862,427 | ) | | (2,886,419 | ) | | (2,907,986 | ) | | (2,926,960 | ) Tangible assets | $ | 71,584,884 | | $ | 71,326,990 | | $ | 70,116,232 | | $ | 69,243,981 | | $ | 68,283,202 | | | | | | Risk-weighted assets3 | $ | 56,350,807 | | $ | 55,349,162 | | $ | 54,283,745 | | $ | 53,617,620 | | $ | 52,515,468 | | | | | | Tangible common equity to tangible assets | | 7.28 | % | | 7.68 | % | | 7.67 | % | | 7.72 | % | | 7.53 | % Tangible common equity to risk-weighted assets3 | | 9.25 | % | | 9.90 | % | | 9.91 | % | | 9.97 | % | | 9.78 | % Tangible Common Book Value: | | | | | Common shares outstanding | | 378,639 | | | 382,537 | | | 386,315 | | | 389,662 | | | 390,768 | Tangible common book value | $ | 13.77 | | $ | 14.32 | | $ | 13.93 | | $ | 13.71 | | $ | 13.15 | | | | | | 1Tax-effect calculations use management's estimate of the full year FTE tax rates (federal + state). 2Calculated using the federal statutory tax rate in effect of 21% for all periods. 3September 30, 2026 figures are preliminary.

For the quarter ended September 2026, Old National Bancorp (ONB) reported revenue of $720.4 million, up 1% over the same period last year. EPS came in at $0.66, compared to $0.59 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $735.94 million, representing a surprise of -2.11%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.66. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Old National Bancorp performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: - Net interest margin (FTE): 3.5% compared to the 3.6% average estimate based on five analysts. - Efficiency Ratio: 46.1% versus the four-analyst average estimate of 49.3%. - Net charge-offs to average loans: 0.3% versus the four-analyst average estimate of 0.3%. - Average Balance - Total earning assets: $67.3 billion versus the four-analyst average estimate of $67.36 billion. - Nonaccrual loans: $470.2 million versus the two-analyst average estimate of $447.31 million. - Total underperforming assets: $477.16 million versus the two-analyst average estimate of $455.31 million. - Net Interest Income (FTE): $591.95 million versus $607.72 million estimated by five analysts on average. - Total noninterest income: $128.45 million compared to the $128.22 million average estimate based on five analysts. - Debit card and ATM fees: $13.33 million compared to the $13.16 million average estimate based on four analysts. - Other income: $15.05 million versus the four-analyst average estimate of $16.56 million. - Mortgage banking revenue: $8.97 million compared to the $9.73 million average estimate based on four analysts. - Wealth and investment services fees: $42.24 million versus the four-analyst average estimate of $42.59 million. View all Key Company Metrics for Old National Bancorp here>>> Shares of Old National Bancorp have returned +1.2% over the past month versus the Zacks S&P 500 composite's +1% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Old National Bancorp (ONB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. - Achieved record net income and efficiency by focusing on full-relationship banking, sensible pricing, and core deposit funding despite a competitive landscape. - Performance was driven by strong C&I loan growth of 12% year-over-year and robust organic deposit increases of approximately $1 billion in business accounts. - Maintained top-decile profitability with a return on tangible common equity of 19.6%, supported by disciplined expense management and positive operating leverage. - Strategic talent acquisition added 26 relationship managers, primarily focused on C&I in expansion markets like Cleveland and Columbus to drive future organic growth. - Credit quality remains stable with non-PCD charge-offs at 24 basis points, reflecting proactive management and rigorous underwriting standards. - Active portfolio management moderated reported loan growth as the company prioritized opportunities meeting strict pricing and relationship hurdles over volume. - Efficiency reached a record low of 44.9% even as the company continued investing in technology, AI, and specialized expertise. - Management expects full-year EPS growth to exceed 15% and anticipates continued positive operating leverage through 2026. - Net interest income is projected to grow in the fourth quarter, supported by fixed asset repricing and a $1.8 billion expected cash flow from the investment portfolio. - Loan growth guidance for the full year is targeted at the lower end of the 6% to 8% range, reflecting a focus on relationship quality over aggressive expansion. - The company plans to fully utilize the remaining $177 million share repurchase authorization opportunistically through February 2027. - Guidance assumes a modestly helpful rate environment, with a static balance sheet expected to provide a 2-basis-point positive impact to margin. - A valuation gain on the settlement of the legacy Bremer pension plan effectively offset merger-related expenses during the quarter. - Tangible book value per share grew 5% year-over-year, though management noted it would have increased 13% annualized excluding the impact of higher rates on AOCI. - Mortgage fee income is expected to remain soft in the fourth quarter due to the rising rate environment and seasonal factors. - Public fund deposits contributed $450 million to growth but added approximately 2 basis points to total deposit costs due to their seasonal and pricier nature. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. - Management expects the margin to expand a couple of basis points in Q4 from the 3.52% average level, aided by the forward curve. - Deposit cost increases were driven 50% by new growth and approximately 25% by seasonal public fund strength rather than broad back-book repricing. - The move into Cleveland and Columbus targets middle-market manufacturing and C&I clients similar to existing successful Midwestern metro footprints. - Hiring focused on proven performers with existing local relationships to ensure quick 'earn-backs' on talent investments. - Management stated now is not the time for M&A due to rate volatility and a focus on internal execution. - The company believes current organic returns and share buybacks offer superior value compared to external acquisitions. - Commercial pipelines remain solid at $4.4 billion, with management actively 'cleaning out' deals that do not meet pricing or full-relationship hurdles. - C&I utilization was slightly down, which management views as potential embedded demand for future quarters.