ONB

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 adjusted EPS and net income by focusing on fundamental relationship banking and disciplined credit management. Commercial loan production reached $3.5 billion, driven by high-quality commercial and industrial (C&I) and commercial real estate (CRE) activity. Delivered a record adjusted efficiency ratio of 45.2%, marking the seventh consecutive quarter of positive year-over-year operating leverage. Fee income growth was broad-based across wealth management, capital markets, and mortgage, reflecting an intentional strategy to diversify the earnings engine. Credit quality improved with nonaccrual loans decreasing by $50 million or 10% from the prior quarter due to active portfolio management. Management emphasized that the company does not need to rely on acquisitions to meet its goals, focusing instead on organic growth and deepening client relationships. Tangible book value per share increased 14% year-over-year despite absorbing merger-related charges and increasing capital returns. Increased full-year loan growth guidance to 6% to 8% based on a record commercial pipeline of $5.6 billion. Expects net interest income (NII) and margin to improve in the second half of 2026, supported by fixed asset repricing and earning asset remixing. Base case guidance assumes no Federal Reserve rate actions for the remainder of the year and a stable 5-year Treasury yield. Anticipates core fee businesses will continue to perform well, though 'other income' is expected to normalize to Q1 levels following one-time adjustments. Plans to fully utilize the remaining $277 million buyback authorization through February 2027 while maintaining strong capital ratios. Absorbed $12.1 million in merger-related expenses and a $13.2 million valuation gain from the Bremer pension plan settlement. Identified a potential 100 basis point capital benefit if proposed Basel III capital rule changes are finalized, which would increase future capital flexibility. Maintained a 100% weighting on the Moody's S2 scenario for qualitative credit reserves to account for global economic uncertainty. Noted that Q2 net interest margin was negatively impacted by 2 basis points due to the full-quarter effect of a sub-debt issuance and lower SOFR rates. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expects margin expansion driven by fixed asset repricing, where new money yields are 100 bps higher for securities and 60 bps higher for loans. The SOFR headwind experienced in Q2 is expected to abate or potentially become a tailwind in the latter half of the year. Additional interest income is anticipated from having an extra day in both the third and fourth quarters. The company is successfully winning larger loan mandates in growth markets, though the average C&I loan remains granular at under $1 million. Management noted that larger C&I relationships are typically 'full relationships' that bring corresponding deposit growth, helping fund the expansion. Management views share repurchases as a 'double-digit risk-free rate of return' that is currently the best investment available to the bank. While capital ratios are rising, the company is balancing buybacks with the desire to grow tangible book value and maintain a buffer for organic growth. A potential dividend increase may be evaluated once Basel III rules are finalized and provide more capital clarity. Long-term fee growth is targeted at mid-to-high single digits, with wealth management and capital markets expected to see double-digit momentum. The bank is investing in treasury management and capital markets products to better serve larger clients in markets like Chicago and Minneapolis.

This article first appeared on GuruFocus. Adjusted EPS: Record $0.65, excluding merger-related expenses and valuation gains. Net Income: Record performance for the quarter. Efficiency Ratio: Record adjusted efficiency ratio at 45.2%. Return on Average Tangible Common Equity: Approximately 20% adjusted. Adjusted ROA: 1.39%. Loan Growth: End-of-period loans increased by $1 billion or 8% annualized. Commercial Production: $3.5 billion, with a record period-end commercial pipeline of $5.6 billion. Fee Income: Broad-based strength across all fee businesses. Nonaccruals: Decreased by $50 million or 10% from the prior quarter. Tangible Book Value Per Share: Increased 14% year over year. CET1 Ratio: 11.09%. Capital Return: $163 million returned to shareholders through dividends and buybacks. Loan-to-Deposit Ratio: Increased modestly to 91%. Deposit Growth: Total deposits increased 3.4% annualized. Noninterest Income: $140 million for the quarter, exceeding guidance. Noninterest Expense: $360 million for the quarter, with a record low 45% efficiency ratio. Net Charge-Offs: 26 basis points or 22 basis points excluding PCD loans. Allowance for Credit Losses: 121 basis points of total loans. Share Repurchases: $107 million or 4.4 million shares during the quarter. Full-Year Loan Growth Guidance: Increased to 6% to 8%. Warning! GuruFocus has detected 7 Warning Signs with ONB. Is ONB fairly valued? Test your thesis with our free DCF calculator. Release Date: July 22, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Old National Bancorp (NASDAQ:ONB) reported record second-quarter results for 2026, achieving record adjusted EPS, net income, and efficiency ratio. The company experienced strong loan growth, with end-of-period loans increasing by $1 billion or 8% annualized, driven by robust high-quality commercial production. Fee income showed broad-based strength across all fee businesses, contributing to a more balanced earnings engine less reliant on net interest income. Credit quality remained strong, with nonaccruals decreasing by $50 million or 10% from the prior quarter, and net charge-offs consistent with expectations. The capital position is robust, with a CET1 ratio of 11.09% and a 14% year-over-year increase in tangible book value per share, alongside significant capital returns to shareholders through dividends and buybacks. The competitive deposit environment remains challenging, although ONB has managed to maintain stable funding costs. The company's net interest margin (NIM) was impacted by the full quarter effect of sub debt issuance and lower SOFR rates, which could affect future margin expansion. Despite strong fee income, some components like other income are expected to normalize back to lower levels in the coming quarters. The loan-to-deposit ratio increased modestly to 91%, which may indicate a need for careful management of liquidity and funding costs. The company faces ongoing challenges in maintaining its credit quality amidst global economic uncertainties, as reflected in its qualitative reserves. Q: With strong organic loan growth and plans to use the full buyback authorization, do you plan to maintain your current capital levels? A: John Moran, CFO: Yes, we feel comfortable with our current capital levels. We have strong capital ratios to support organic growth and capital return to shareholders. This approach allows us to grow tangible book value per share effectively. Q: Can you explain the expected margin expansion in the second half of the year given the balance sheet growth? A: John Moran, CFO: We anticipate margin expansion due to several factors, including strong organic growth, fixed asset repricing opportunities, and potential tailwinds from SOFR rates. Additionally, we have earning asset remix opportunities and will benefit from an extra day in both the third and fourth quarters. Q: What is driving the strong growth in fee income, and should we expect this to continue? A: John Moran, CFO: Our core fee businesses, such as wealth management and investments, are performing well. We've invested in these areas, and we're seeing positive results. The mortgage business and capital markets are also contributing to growth, and we expect this trend to continue. Q: Are you seeing any changes in loan spreads, particularly in the middle market space? A: John Moran, CFO: Our loan spreads have remained consistent over the last few quarters. While there was some compression in investment-grade and floating-rate loans earlier, recent production has been more balanced and traditional for us. Q: How do you view the long-term structural margin of the bank given the current interest rate environment? A: John Moran, CFO: We believe the long-term structural margin for Old National in a normal interest rate environment is likely in the range of 3.65% to 3.7%. We see more opportunities than challenges in the back half of this year, supporting this outlook. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

EVANSVILLE, Ind., July 22, 2026 (GLOBE NEWSWIRE) -- CEO COMMENTARY: SECOND QUARTER HIGHLIGHTS2: 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 EXECUTIVE LEADERSHIP STRUCTURE UPDATEAs a top 25 U.S. bank that is keenly focused on driving organic growth while also positioning the organization for continued success, Old National is pleased to announce structural changes to its senior-most Executive Leadership Team. Establishment of an Operating GroupOld National’s Operating Group will comprise a subset of the company’s full Executive Leadership Team ("ELT"). Members will focus on enterprise strategy and alignment, emerging growth opportunities, and other critical enterprise-wide initiatives. Members of the Operating Group are: Jim Ryan, Chairman and CEO – Evansville, Ind. Tim Burke, President and COO – Evansville, Ind. Nick Chulos, Chief Legal Officer – Chicago, Ill. Carrie Ellspermann, Chief People Officer – Evansville, Ind. Scott Evernham, Chief Risk Officer – Evansville, Ind. John Moran, Chief Financial Officer – Evansville, Ind. Kathy Schoettlin, Chief Communications, Culture & Social Responsibility Officer – Evansville, Ind. Kendra Vanzo, Chief Administrative Officer – Evansville, Ind. The roles and responsibilities of Old National’s full ELT will not change. The bank’s ELT will continue to lead operational strategy, advance innovation, scale talent, and work to foster a collaborative, high-performing culture. Four additional leaders added to the ELTTo further strengthen Old National’s ability to connect its operational strategy to execution and growth, the company is adding four proven leaders to its ELT: Joe Chasteen, Chief Revenue Enablement Officer – Troy, Mich. Chris Doyle, Commercial Banking President – Cleveland, Ohio Annie Hills, Chief of Staff – Evansville, Ind. John Thurston, Corporate Banking President – Chicago, Ill. Biographies for these four executive leaders are included on page 6 of this release Rafael Sanchez named Chief Government and Corporate Affairs OfficerRafael Sanchez, formerly Old National’s Chief Impact Officer, is transitioning to the new role of Chief Government and Corporate Affairs Officer and retains the Indianapolis Market President role. This transition reflects the growing importance of public policy and stakeholder engagement within the financial industry. Mr. Sanchez will work out of Indianapolis and report directly to Old National Chief Risk Officer Scott Evernham. Biography for Rafael Sanchez is included on page 6 of this release RESULTS OF OPERATIONS2Old National Bancorp reported record second quarter 2026 net income applicable to common shares of $249.4 million, or $0.65 per diluted common share. Included in second quarter results was a $13.2 million pre-tax gain associated with the settlement of the Bremer pension plan and pre-tax charges of $12.1 million for merger-related expenses. Excluding these items and realized debt securities gains from the current quarter net of tax, record adjusted net income1 was $250.4 million, or $0.65 per diluted common share. DEPOSITS AND FUNDINGIncreases in public funds and business checking partly offset by normal seasonal outflows of retail deposits. Period-end total deposits were $56.1 billion, up 3.4% annualized. On average, total deposits for the second quarter were $55.5 billion, an increase of $479.1 million. Granular low-cost deposit franchise; total deposit costs of 171 bps, down 1 bp. A loan to deposit ratio of 91%, combined with existing funding sources, provides strong liquidity. LOANSLoan growth driven by strong high quality commercial loan production. Period-end total loans3 were $50.8 billion, up $1.0 billion or 8.3% annualized, including commercial and industrial growth of $495.0 million, as well as commercial real estate growth of $342.3 million. Total commercial loan production in the second quarter was $3.5 billion, up 7%; record period-end commercial pipeline totaled $5.6 billion, up 2%. Average total loans in the second quarter were $50.1 billion, up 7.4% annualized. CREDIT QUALITYCredit quality continues to be a hallmark of Old National. Provision4 expense was $36.2 million compared to $34.9 million. Net charge-offs were $32.2 million, or 26 bps of average loans, consistent with the prior quarter. 30+ day delinquencies as a percentage of loans were 0.29% compared to 0.24%. Nonaccrual loans as a percentage of total loans were 0.91% compared to 1.03%. The allowance for credit losses, including the allowance for credit losses on unfunded loan commitments, stood at $612.0 million, or 1.21% of total loans, compared to $608.1 million, or 1.22% of total loans. NET INTEREST INCOME AND MARGINHigher net interest income and stable margin reflective of balance sheet growth and the rate environment. Net interest income on a fully taxable equivalent basis1 increased to $586.5 million compared to $580.4 million, driven by high quality loan growth and stable core deposit pricing, partly offset by funding mix. Net interest margin on a fully taxable equivalent basis1 decreased 1 bp to 3.54%. Cost of total deposits was 1.71%, decreasing 1 bp and the cost of total interest-bearing deposits decreased 1 bp to 2.23%. NONINTEREST INCOMEHigher fee income across all line items with other income elevated. Total noninterest income was $153.6 million, or $140.4 million excluding a $13.2 million pre-tax gain associated with the settlement of the Bremer pension plan, compared to $122.3 million. Excluding the pension plan gain5 in the second quarter of 2026 and realized debt securities gains, noninterest income was up 14.8% driven by higher fee income across all line items with other income elevated by market value adjustments, as well as higher company-owned life insurance income and an asset recovery. NONINTEREST EXPENSEDisciplined expense management drives record adjusted efficiency ratio. Noninterest expense was $372.2 million and included $12.1 million of merger-related charges. Excluding merger related charges, adjusted noninterest expense1 increased to $360.1 million, compared to $354.0 million excluding merger-related charges and a $3.4 million non-cash expense associated with the distribution of excess pension assets in the first quarter of 2026. The efficiency ratio1 was a record at 47.0%, while the adjusted efficiency ratio1 was a record at 45.2% compared to 48.3% and 45.7%, respectively. INCOME TAXES Income tax expense was $70.8 million, resulting in an effective tax rate of 21.8% compared to 20.9%. On an adjusted fully taxable equivalent ("FTE") basis1, the effective tax rate was 23.0% compared to 22.9%. Income tax expense included $9.9 million of tax credit benefit compared to $8.7 million. CAPITALCapital ratios remain strong. Preliminary total risk-based capital down 6 bps to 13.65% and preliminary regulatory Tier 1 capital down 3 bps to 11.53%, as growth in loans and share repurchases is partly offset by strong retained earnings. Tangible common equity to tangible assets was 7.68% compared to 7.67%. The Company repurchased $107 million of common stock and paid $56 million of quarterly common stock cash dividends during the quarter resulting in a combined payout ratio of 65%. CONFERENCE CALL AND WEBCASTOld National will host a conference call and live webcast at 9:00 a.m. Central Time on Wednesday, July 22, 2026, to review second quarter financial results. To listen to the live conference call, dial U.S./International (833) 461-5787, meeting ID 181 433 839. 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 July 22, 2027. ABOUT OLD NATIONALOld National Bancorp (NASDAQ: ONB) is the holding company of Old National Bank. As the fifth 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 MEASURESThe Company's accounting and reporting policies conform to U.S. generally accepted accounting principles ("GAAP") and general practices within the banking industry. As a supplement to GAAP, the Company provides non-GAAP performance results, which the Company believes are useful because they assist investors in assessing the Company's operating performance. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables at the end of this release. The Company presents EPS, the efficiency ratio, return on average common equity, return on average tangible common equity, and net income applicable to common shares, all adjusted for certain notable items. These items include a pension plan gain/loss, merger-related charges associated with completed and pending acquisitions, 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 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. OLD NATIONAL EXECUTIVE LEADER BIOGRAPHIES Joe ChasteenChief Revenue Enablement OfficerJoe Chasteen is Chief Revenue Enablement Officer at Old National Bank, a strategic leadership role focused on advancing organic growth and revenue generation across the company. Joe brings nearly 30 years of business banking and enterprise leadership experience, having held senior roles with large financial institutions across the country. Joe has served as a member of the Consumer Bankers Association Business Banking Committee and is a graduate of the CBA Executive Banking School. He earned a bachelor’s degree in Marketing Management from Michigan State University and a master’s degree in Finance, with an emphasis in Economics, from Walsh College. Christopher DoyleCommercial Banking PresidentChristopher Doyle is President of Commercial Banking at Old National Bank. He brings more than 20 years of banking experience to the role. At Old National, Chris leads Commercial & Industrial Banking, Middle Market Banking, Commercial Real Estate, Agricultural Lending, SBA Lending, Asset-Based Lending, Family Office, Expansion Markets, and SBIC strategy. He is active in the Cleveland, Ohio community and serves on several nonprofit boards, including Urban Community School and Boys & Girls Clubs of Greater Cleveland. Chris earned a Bachelor of Business Administration in Finance from Saint Louis University. Annie Hills Chief of StaffAnnie Hills is Chief of Staff to the CEO at Old National Bank. In this role, she supports key strategic priorities, executive leadership initiatives, and alignment among the CEO, ELT and Board of Directors. She joined the company in 2020 as an attorney in the legal department. Annie earned her bachelor’s degrees in Political Science and Criminal Justice from Indiana University and her law degree from the Indiana University Robert H. McKinney School of Law. She is involved in workforce development and emerging talent initiatives, including the Orr Fellowship and Indiana’s Youth Apprenticeship Program, and serves on the Evansville Orr Fellowship Advisory Board. Rafael SanchezChief Government and Corporate Affairs Officer & Indianapolis Market PresidentRafael Sanchez is Chief Government and Corporate Affairs Officer & Indianapolis Market President for Old National Bank. He most recently served as Old National’s Chief Impact Officer where he led the organization and launch of Generations Community Bank. Rafael is an attorney and former President and CEO of Indianapolis Power & Light Company (IPL, now AES Indiana). A native of Puerto Rico, Rafael holds a bachelor’s degree in Social Sciences and Political Science from the University of Puerto Rico, and a law degree from the Indiana University Maurer School of Law. Through his commitment and passion for the Indianapolis community, Rafael has served on numerous boards and community initiatives. He currently serves as Board Chair for Community Health Network and serves on the boards of The Children’s Museum of Indianapolis, the Indy Economic Development Corporation, the Center for Justice & Exoneration Network, Young Presidents Organization (YPO Gold), and Generations Community Bank. In 2017, Rafael received the Sagamore of the Wabash award from Governor Eric Holcomb for his civic leadership in Indianapolis. John ThurstonCorporate Banking PresidentJohn Thurston is President of Corporate Banking at Old National Bank. He joined Old National in 2023, and most recently served as Corporate Banking Director before being appointed to lead the Corporate Bank, which serves Old National’s largest commercial banking clients and specialty banking clients. John has more than 30 years of banking experience spanning multiple geographies, lines of business, and industry verticals. A longtime Chicago resident, John is active in the community and serves on the boards of Christ the King Jesuit College Prep and Mercy Home for Boys & Girls. He earned a Bachelor of Business Administration and a Bachelor of Arts in Finance and Business Economics from the University of Notre Dame.

Old National Bancorp (ONB) came out with quarterly earnings of $0.65 per share, beating the Zacks Consensus Estimate of $0.62 per share. This compares to earnings of $0.53 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +4.84%. A quarter ago, it was expected that this holding company for Old National Bank would post earnings of $0.6 per share when it actually produced earnings of $0.61, delivering a surprise of +1.67%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Old National Bancorp, which belongs to the Zacks Banks - Midwest industry, posted revenues of $740.06 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.55%. This compares to year-ago revenues of $654.37 million. The company has topped consensus revenue estimates two times 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 17.3% since the beginning of the year versus the S&P 500's gain of 9.7%. 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 mixed. 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 #3 (Hold) for the stock. So, the shares are expected to perform in line with 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 $0.65 on $729.15 million in revenues for the coming quarter and $2.57 on $2.88 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 32% 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, First Financial Corp. (THFF), is yet to report results for the quarter ended June 2026. This holding company for First Financial Bank is expected to post quarterly earnings of $1.71 per share in its upcoming report, which represents a year-over-year change of +8.9%. The consensus EPS estimate for the quarter has been revised 0.5% higher over the last 30 days to the current level. First Financial Corp.'s revenues are expected to be $72.05 million, up 14.3% 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 First Financial Corporation Indiana (THFF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Old National Bancorp? Here are five stocks we like better. Old National Bancorp said it delivered a record second quarter, with record adjusted EPS, net income and efficiency ratio, while also posting an adjusted return on tangible common equity of about 20% and adjusted ROA of 1.39%. Loan growth and fee income were strong: loans rose $1 billion in the quarter and the commercial pipeline hit a record $5.6 billion, while adjusted non-interest income beat guidance at $140 million with broad-based gains across fee businesses. The bank kept expenses, credit, and capital in good shape, maintaining guidance for full-year loan growth of 6% to 8%, improving credit quality, and returning $163 million to shareholders through dividends and buybacks. Old National Bancorp (NASDAQ:ONB) reported what management described as a record second quarter for 2026, citing strong loan growth, fee income gains, expense control and continued capital returns to shareholders. Chairman and CEO Jim Ryan said the quarter reflected “an exceptional” performance for the company, including record adjusted earnings per share, record net income and a record efficiency ratio. He said Old National generated an adjusted return on average tangible common equity of about 20% and an adjusted return on assets of 1.39%. → Buyback Boom: These 3 Companies Are Betting Billions on Their Own Stocks “These results show what happens when we stay focused on the fundamentals,” Ryan said, pointing to high-quality relationship growth, disciplined credit and expense management, investments in talent and technology, and tangible book value growth. Old National said end-of-period loans increased by $1 billion, or 8% annualized, during the quarter. Ryan said the increase was driven by “robust, high-quality commercial production.” Commercial production reached $3.5 billion, while the company’s period-end commercial pipeline rose to a record $5.6 billion. → 3 Photonics Companies Making Quantum Tech Possible John, who reviewed the company’s financial results on the call, said total loans grew 8.3% annualized from the prior quarter, with balanced growth across commercial real estate and commercial and industrial portfolios. He said production was diversified across the commercial book and was predominantly floating rate. During the question-and-answer session, Tim said the company is beginning to see larger loan opportunities in its middle-market C&I business, particularly in growth markets. However, Ryan added that the average C&I loan in the bank remains below $1 million, underscoring that Old National still handles a large number of smaller commercial loans. → AI Data Centers Need Power, and These 2 Industrials Are Cashing In Management said loan growth expectations have improved, and the company now expects full-year loan growth of 6% to 8%, supported by year-to-date results and the current pipeline. Fee income was another area of strength. Ryan said the company saw broad-based gains across all fee businesses and described the diversification as intentional, saying Old National is seeking to build “a stronger, more balanced earnings engine” that is less dependent on net interest income. Adjusted non-interest income was $140 million for the quarter, exceeding management’s guidance. John said all fee businesses performed better than expected. He noted that the “other income” line was elevated by approximately $10 million due to market value adjustments, higher bank-owned life insurance income and an asset recovery. While those items were described as core, John said the line should run closer to first-quarter levels for the rest of the year. In response to an analyst question, John said wealth management has been “terrific,” investments have been good, mortgage performed solidly and capital markets remained strong. He said Old National is “reasonably bullish” on capital markets revenue because of the company’s commercial pipelines and production levels. Looking longer term, John said aggregate fee income growth is likely a mid- to high-single-digit growth item, with some businesses, including wealth and capital markets, having potential to grow at double-digit rates. Old National reported GAAP second-quarter earnings per share of $0.65. Excluding $12.1 million in merger-related expenses and a $13.2 million valuation gain tied to the settlement of the Bremer pension plan, adjusted earnings per share were also $0.65. Adjusted non-interest expense totaled $360 million. John said expenses remained well controlled and drove positive operating leverage both sequentially and year over year. Ryan said the company’s adjusted efficiency ratio was 45.2%, marking the seventh straight quarter of positive year-over-year operating leverage. Ryan said Old National is investing in technology, artificial intelligence and process improvements to make the company more scalable while maintaining expense discipline. Management left net interest income guidance unchanged, while noting it had been updated for the impact of a subordinated debt issuance. John said second-quarter net interest margin was affected by two basis points from the full-quarter impact of subordinated debt issued in late January and lower SOFR rates. Without those factors, he said the margin would have been up slightly. John said net interest income growth should be supported by strong asset generation, stable funding costs, fixed-asset repricing and earning-asset remix opportunities. He said new money yields on securities are running about 100 basis points above back-book yields, while fixed-to-fixed loan repricing offers about 60 basis points of opportunity. During the Q&A, John said management sees “more opportunities than challenges” in the second half of the year, citing higher average earning assets, repricing opportunities, the potential for SOFR to become a tailwind, remix opportunities and additional calendar days in both the third and fourth quarters. Old National said total deposits increased 3.4% annualized, led by commercial and public fund growth, partly offset by seasonal retail tax outflows. Non-interest-bearing deposits remained 23% of total deposits. John said total deposit costs decreased by one basis point during the quarter, even as the company continued to pursue new client acquisition in a competitive deposit environment. Credit quality improved in several areas. Ryan said non-accrual loans declined by $50 million, or 10%, from the prior quarter. John said non-accrual loans fell to 91 basis points of total loans, while criticized and classified loans decreased by $109 million during the quarter. Net charge-offs were 26 basis points, or 22 basis points excluding charge-offs on purchased credit deteriorated loans. John said the allowance for credit losses to total loans, including the reserve for unfunded commitments, was 121 basis points, down one basis point from the prior quarter, primarily due to charge-offs on PCD loans and improved credit quality. Old National’s capital position remained strong. The company’s CET1 ratio was 11.09%, and tangible book value per share increased 14% year over year. John said tangible book value per share grew 11% annualized from the prior quarter, even as the company absorbed Bremer-related charges, supported better-than-expected balance sheet growth and returned capital. The company returned $163 million to shareholders in the quarter through dividends and share repurchases. That included $107 million of common stock repurchases, representing 4.4 million shares. John said Old National has $277 million remaining under its buyback program and expects to use the remaining authorization opportunistically through the plan period ending in February 2027. Asked about capital levels, John said the company is comfortable with its position and has enough capital to support organic growth while continuing capital returns. Ryan said the company is balancing organic investment, tangible book value growth, strong capital ratios and shareholder returns. Ryan closed by saying Old National does not need to rely on acquisitions to meet its goals and remains focused on organic growth, client relationships, investments in people and platforms, risk management and long-term shareholder value. Old National Bancorp (NASDAQ: ONB) is the bank holding company for Old National Bank, a regional financial services firm headquartered in Evansville, Indiana. Through its network of community banking offices, the company provides a full range of commercial and consumer banking services. Its offerings include checking and savings accounts, personal and business loans, and deposit products designed to meet the needs of individuals, small businesses, and larger corporate customers. In addition to traditional banking, Old National Bancorp delivers specialty financial services such as treasury management, wealth management, mortgage loan production, and insurance solutions. 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 "Old National Bancorp Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.