Old National Bancorp (ONB) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 results with net income of $249.4 million, adjusted net income of $250.4 million, and diluted EPS of $0.65, supported by strong organic loan and deposit growth, disciplined expense management, and robust credit quality.

• Adjusted return on average tangible common equity was approximately 19.9%, and adjusted ROA was 1.39%.

• Seventh consecutive quarter of positive year-over-year operating leverage and record efficiency ratio of 45.2% (47.0% GAAP).

• Included $13.2 million pre-tax pension gain and $12.1 million in pre-tax merger-related charges.

• Enhanced executive leadership structure with the formation of an Operating Group and expansion of the Executive Leadership Team.

Financial highlights

• GAAP and adjusted EPS for Q2 2026 were $0.65; net income applicable to common shares was $249 million, up 101% year-over-year.

• Net interest income (FTE) rose 12% year-over-year to $586.5 million; noninterest income reached $153.6 million, up 14.8% year-over-year on an adjusted basis.

• Efficiency ratio improved to a record 47.0% (45.2% adjusted); tangible book value per share increased 14% year-over-year to $14.32.

• CET1 capital ratio finished at 11.09%, with a loan-to-deposit ratio of 91%.

• Returned $163 million to shareholders via dividends and buybacks, with a combined payout ratio of 65%.

Outlook and guidance

• Increased full-year 2026 loan growth guidance to 6%-8% and raised non-interest income outlook; NII guidance unchanged at ~$2.4 billion.

• Noninterest expense expected at $1.435–$1.455 billion; net charge-off ratio forecasted at 0.25–0.30%.

• Expect 15%+ EPS growth for the full year, with positive operating leverage and peer-leading profitability.

• Plan to fully utilize remaining buyback authorization by February 2027.

• Management remains focused on organic growth, disciplined execution, and leveraging the enhanced leadership structure.