Old National Bancorp

Old National reported GAAP 2Q EPS of $0.65; adjusted EPS was also $0.65 after excluding $12.1 million of merger-related expenses and a $13.2 million valuation gain tied to the Bremer pension settlement. Adjusted noninterest income was $140 million, adjusted noninterest expense was $360 million, and the adjusted efficiency ratio was 45.2% (called a record low/record efficiency ratio). Net charge-offs were 26 basis points, or 22 basis points excluding PCD loans, and nonaccrual loans decreased to 91 basis points of total loans. On capital, CET1 was 11.09%, tangible book value per share was up 11% annualized sequentially and 14% year over year, and the company returned $163 million to shareholders, including $107 million of share repurchases. For the full year 2026, management raised loan growth and noninterest income guidance; it now expects full-year loan growth of 6% to 8% and still expects 15% plus EPS growth, with expenses, credit, and tax guidance unchanged. Management said NII guidance is unchanged aside from the impact of sub debt issuance and that NIM/NII should improve in the back half of the year, with no Fed cuts assumed in the base case.

CEO Jim Ryan framed the quarter as exceptional and evidence that Old National’s organic growth strategy is working. He emphasized fundamentals: high-quality relationship growth, disciplined credit, expense control, investment in talent and technology, and building tangible book value over time. His tone was confident and measured, repeatedly stressing that the bank does not need acquisitions to hit its goals and that it is balancing growth, capital strength, and shareholder returns.

CFO John Moran focused on the mechanics behind the quarter: strong loan growth, fee strength, controlled expenses, and stable credit. He highlighted GAAP and adjusted EPS of $0.65, adjusted noninterest income of $140 million, adjusted noninterest expense of $360 million, a 45% efficiency ratio, CET1 above 11%, and tangible book value per share up 14% year over year. He also detailed the outlook, saying full-year loan growth is now expected at 6% to 8%, fee income guidance was increased, NII guidance was unchanged aside from sub debt effects, and the company plans to use the remaining buyback authorization opportunistically through February 2027.

Analysts focused on capital allocation, NII/NIM, deposit pricing, and whether larger commercial loans would pressure spreads or funding costs. Management said capital levels are comfortable, the plan is to support organic growth and return capital, and the full buyback authorization should be used over the current plan period. On margins, they said the back half of the year should benefit from strong loan growth, fixed-rate repricing, a potential tailwind from SOFR, and earning-asset remix; they also said deposit pricing remains competitive but manageable, with no material spread compression seen in recent production.