Old National Bancorp Stock Earnings Reports

Old National reported a stronger-than-expected 1Q26, beating internal and analyst estimates. Key investor takeaways: (1) Revenue and profitability — adjusted EPS of $0.61 (GAAP $0.59) driven by better-than-expected loan growth, strong fee income (mortgage and capital markets outperformance) and tightly controlled expenses; management delivered a record adjusted efficiency ratio (~46%), top-decile ROA/ROTE metrics vs. peers. (2) Loan and deposit momentum — total loans grew ~8% annualized (C&I up ~16.9% annualized) with a record pipeline of ~$5.5B (up ~14% from year-end); deposits increased ~4.2% annualized with disciplined deposit pricing and a spot deposit cost of ~170 bps at quarter end. (3) Capital and shareholder returns — CET1 >11%, tangible book value per share up (6% linked-quarter annualized, 11% YoY), $151M returned to shareholders in 1Q (including 3.9M shares repurchased), $383M remaining on the buyback authorization. Management reiterated the plan to continue buybacks through the authorization period while prioritizing organic growth. (4) Credit and liquidity — credit remains stable (net charge-offs low; allowance ~1.22% of loans including unfunded commitments); criticized/classified loans rose modestly as Bremer loans were migrated to ONB’s framework but overall asset quality described as solid. (5) Guidance and outlook — full-year 2026 guidance unchanged: loan growth 4–6% (management expects nearer the high end), NII/NIM expected to be stable to improving through 2026 (affected by seasonality, sub-debt issuance and composition of loan production), fee income trending to high end, expenses guided unchanged to allow continued investment in talent and technology, and management expects 15%+ EPS growth for the year. (6) Potential capital tailwind — management expects proposed capital rule changes could materially benefit CET1 (management estimated up to ~100 bps), providing additional optionality for capital returns and/or growth. (7) Strategic priorities — focus on organic growth (fueled by strengthened commercial leadership and a large talent pipeline), continued investments in technology and AI to improve efficiency, and no current need for acquisitions to meet objectives.