Old Natl Bancorp | 8-K: FY2026 Q2 Revenue: USD 732.55 M

Revenue: As of FY2026 Q2, the actual value is USD 732.55 M.

EPS: As of FY2026 Q2, the actual value is USD 0.65, beating the estimate of USD 0.6222.

EBIT: As of FY2026 Q2, the actual value is USD 324.19 M.

Net Income

Old National Bancorp reported record second quarter 2026 net income applicable to common shares of $249.4 million, with an adjusted net income of $250.4 million. For the six months ended June 30, 2026, net income applicable to common shares was $479.019 million, significantly up from $262.000 million for the same period in 2025.

Net Interest Income and Margin

Net interest income on a fully taxable equivalent (FTE) basis for the second quarter of 2026 increased to $586.5 million from $580.4 million in the prior quarter. The net interest margin (FTE) was 3.54%, marking a decrease of 1 basis point. For the six months ended June 30, 2026, net interest income (FTE) was $1,166.920 million, an increase from $914.856 million in the prior year period.

Operating Performance

Pre-provision net revenue (PPNR) for the second quarter was $367.9 million, with adjusted PPNR at $366.8 million. Noninterest expense totaled $372.2 million, which included $12.1 million in merger-related charges. Adjusted noninterest expense increased to $360.1 million. The efficiency ratio reached a record 47.0%, and the adjusted efficiency ratio was a record 45.2%.

Deposits and Funding

Period-end total deposits reached $56.1 billion, representing an annualized increase of 3.4%. Average total deposits for the second quarter were $55.5 billion, an increase of $479.1 million. Total deposit costs decreased by 1 basis point to 171 bps, while interest-bearing deposit costs also decreased by 1 basis point to 223 bps. The loan to deposit ratio stood at 91%.

Loans and Credit Quality

Period-end total loans were $50.8 billion, an increase of $1.0 billion or 8.3% annualized, driven by commercial and industrial growth of $495.0 million and commercial real estate growth of $342.3 million. Total commercial loan production in the second quarter was $3.5 billion, up 7%, and the period-end commercial pipeline was a record $5.6 billion, up 2%. Average total loans in the second quarter were $50.1 billion, up 7.4% annualized.

The provision for credit losses was $36.2 million, compared to $34.9 million in the prior quarter. Net charge-offs were $32.2 million, or 26 bps of average loans, consistent with the prior quarter. Excluding purchased credit deteriorated (PCD) loans, net charge-offs to average loans were 22 bps, compared to 19 bps in the prior quarter. 30+ day delinquencies were 0.29% of total loans, up from 0.24% in the prior quarter, while nonaccrual loans decreased to 0.91% of total loans from 1.03%. The allowance for credit losses, including unfunded commitments, was $612.0 million, or 1.21% of total loans, compared to $608.1 million or 1.22% of total loans in the prior quarter.

Return Profile & Capital

Return on average tangible common equity (ROATCE) was 19.8%, with an adjusted ROATCE of 19.9%. The preliminary regulatory Tier 1 common equity to risk-weighted assets was 11.09%, a decrease of 2 basis points. Old National Bancorp repurchased $107 million, or 4.4 million shares, of common stock and paid $56 million in quarterly common stock cash dividends, resulting in a combined payout ratio of 65%. Tangible common equity to tangible assets was 7.68%, slightly up from 7.67% in the prior quarter.

Notable Items

Second quarter results included a $13.2 million pre-tax pension gain and $12.1 million of pre-tax merger-related charges.

Outlook

Old National Bancorp is enhancing its leadership structure by forming an Operating Group and expanding its Executive Leadership Team to drive organic growth. These changes are expected to improve speed, strengthen accountability, and better connect strategy to execution for the company’s future growth and continued success.