Old National Bancorp (ONB) investor relations material

Executive summary

• First quarter 2026 earnings exceeded expectations, driven by robust loan growth, strong fee income, disciplined expense management, and peer-leading profitability.

• Maintained solid credit performance, healthy liquidity, and capital levels, with a focus on organic growth and capital return to shareholders through significant share repurchases and dividend increases.

• Commercial pipelines reached record levels, supported by investments in talent, technology, and AI initiatives to drive efficiency.

• No acquisitions are planned; focus remains on organic growth and shareholder returns.

• CEO highlighted continued business momentum and confidence in full-year expectations.

Financial highlights

• Net income applicable to common shares was $230 million, up 8% sequentially and 63% year-over-year; adjusted net income was $238 million and adjusted EPS was $0.61.

• Net interest income (FTE) was $580.4 million, down 2% sequentially but up 48% year-over-year; net interest margin (FTE) at 3.55%.

• Adjusted noninterest income was $122 million, up 30% year-over-year, with strong performance in mortgage and capital markets.

• Adjusted noninterest expense was $354 million, up 35% year-over-year, reflecting merger impacts and disciplined cost management.

• Efficiency ratio improved to 48.3%, with adjusted efficiency ratio at a record low 45.7%.

Outlook and guidance

• Full-year 2026 guidance unchanged; expect loan growth at the higher end of 4%-6% range and positive operating leverage with >15% EPS growth.

• NII guidance remains unchanged; expect stable to improving net interest income and margin.

• Fee income expected at the higher end of guidance; expense guidance unchanged despite lower 1Q expenses due to ongoing investments in talent.

• Net charge-off ratio expected at 0.25–0.30%; assumes no Fed rate cuts in 2026 and stable noninterest-bearing deposits.

• Management expressed confidence in achieving full-year expectations, citing strong business momentum and execution.