Old National Bancorp Delivers Robust Q1 2026 Results: Strong Loan Growth, Capital Return, and Efficiency Outperformance

Key Highlights for Investors

• Net income applicable to common shares: \$229.6 million; Adjusted net income: \$237.7 million
• Diluted EPS: \$0.59; Adjusted EPS: \$0.61
• Strong loan growth: Total loans up \$970.9 million (8.0% annualized), with commercial and industrial loan growth of \$633.8 million
• Disciplined cost control: Adjusted efficiency ratio improved to 45.7% from 46.0% in Q4 2025
• Share repurchases: 3.9 million shares repurchased during the quarter
• Capital raise: \$450 million in subordinated debt issued to further strengthen capital ratios
• Credit quality remains strong: Nonaccrual loans at 1.03% of total loans, allowance for credit losses (ACL) at 1.22% of total loans
• Deposit growth with lower funding costs: Period-end deposits up 4.2% annualized; total deposit costs down 8 basis points to 1.72%
• Return on Average Tangible Common Equity (ROATCE): 18.4% (adjusted 19.0%)
• Regulatory Tier 1 capital improved: 11.56% (up 3 bps)
• Notable items: \$7.3 million in merger-related charges and \$3.4 million expense related to distribution of excess pension assets

Detailed Financial Overview

CEO Commentary

“Old National’s first-quarter results reflect disciplined execution and a strong start to the year. We delivered strong loan growth, controlled expenses, and maintained strong credit, capital, and liquidity levels, while also taking decisive action on capital returns. Momentum across our businesses continues to build, and nothing we’re seeing changes our confidence in our full-year expectations.” – Jim Ryan, Chairman & CEO

Net Interest Income and Margin

• Net interest income (fully taxable-equivalent basis): \$580.4 million, down from \$588.8 million in Q4 2025 due to margin compression but offset by high-quality loan growth and lower funding costs.
• Net interest margin (FTE): 3.55%, a decrease of 10 basis points from the prior quarter, reflecting the current rate environment.

Loan and Deposit Trends

• Total loans (end-of-period): \$49.8 billion, up \$970.9 million or 8.0% annualized, driven particularly by commercial and industrial lending.
• Average total loans: \$49.2 billion, up 7.9% annualized from Q4 2025.
• Commercial loan production: \$3.3 billion for the quarter, with a record period-end commercial pipeline of \$5.5 billion, up 14%.
• Total deposits (end-of-period): \$55.7 billion, up 4.2% annualized. Average deposits for the quarter were \$55.1 billion, essentially flat from Q4 2025.
• Granular, low-cost deposit franchise: Total deposit costs at 1.72% (down 8 bps), interest-bearing deposit costs at 2.24% (down 14 bps).
• Loan-to-deposit ratio: 89%, indicating strong liquidity.

Credit Quality

• Provision for credit losses: \$34.9 million, up slightly from \$32.7 million in Q4 2025.
• Net charge-offs: \$32.0 million, or 0.26% of average loans (0.19% excluding purchased credit deteriorated loans).
• Nonaccrual loans: 1.03% of total loans, down from 1.07% last quarter.
• 30+ day delinquencies: 0.24% of loans, up modestly from 0.22%.
• Allowance for credit losses (ACL): \$608.1 million, or 1.22% of total loans.

Noninterest Income and Expenses

• Noninterest income: \$122.3 million, up from \$109.7 million, driven by strong wealth management fees, offset by lower bank fees and capital markets activity compared to the prior quarter.
• Noninterest expense: \$364.7 million (includes \$7.3 million merger-related charges and \$3.4 million in pension distribution costs). Adjusted noninterest expense fell to \$354.0 million, reflecting full realization of merger cost savings and disciplined expense management.
• Adjusted efficiency ratio: 45.7%, a record improvement, versus 46.0% in Q4 2025.

Capital and Shareholder Returns

• Share repurchases (Q1): 3.9 million shares, signaling confidence and supporting share value.
• Subordinated debt issuance: \$450 million raised, bolstering risk-based capital ratios.
• Preliminary total risk-based capital ratio: 13.71%, up 86 bps from Q4 2025.
• Preliminary regulatory Tier 1 capital: 11.56%, up 3 bps.
• Tangible common equity to tangible assets: 7.67% (was 7.72% in Q4 2025).

Notable and Potentially Price-Sensitive Items

• Merger and integration: \$7.3 million in pre-tax merger-related charges, as Old National continues to realize cost savings from its Bremer and First Midwest Bancorp integrations.
• Pension plan resolution: \$3.4 million pre-tax non-cash expense related to distribution of excess pension assets, marking the resolution of legacy plans and clearing legacy obligations.
• Capital returns: Aggressive share repurchase program and new subordinated debt issue could be interpreted as management confidence in the business and capital strength, likely to be viewed positively by the market.

Guidance and Outlook

• Management reiterated its confidence in delivering on full-year 2026 expectations, citing building business momentum, strong credit and capital, and robust loan and deposit pipelines.
• Forward-looking statements highlight potential risks, including economic conditions, regulatory changes, integration of past and future mergers, and credit trends.

Conference Call Details

Old National will host a conference call and webcast for investors at 9:00 a.m. Central Time, April 22, 2026. Details and archived webcast will be available on the company’s investor relations website.

About Old National Bancorp

Old National Bancorp (NASDAQ: ONB) is the holding company for Old National Bank. With approximately \$73 billion in assets and a leading commercial banking franchise in the Midwest and Southeast, Old National ranks among the top 25 U.S. banking companies. In 2025, Points of Light named Old National one of “The Civic 50”—honoring America’s most community-minded companies.

Potential Share Price Movers

• Strong adjusted EPS and ROATCE, continued loan growth, and improved efficiency may drive positive investor sentiment.
• Continued share repurchases and robust capital position signal management’s confidence and commitment to shareholder returns.
• Successful realization of merger synergies and expense management may support further re-rating of the shares.
• Any significant deterioration in credit quality or unexpected costs related to integration could pose downside risks.

Disclaimer: This article is for informational purposes only. It does not constitute investment advice or an offer to buy or sell securities. Investors should perform their own research and consult with financial advisors before making investment decisions. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected.

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