Old National Bancorp (ONB) Q1 2026 earnings summary

Executive summary

• First quarter 2026 delivered strong results, with net income applicable to common shares of $229.6 million and adjusted net income of $237.7 million, driven by robust loan and deposit growth, disciplined expense management, and solid credit and capital levels.

• Adjusted EPS was $0.61, reflecting record efficiency and peer-leading profitability, with continued focus on organic growth and capital returns through share repurchases and dividends.

• Commercial pipelines reached a record $5.5 billion, supported by investments in talent and technology, including AI initiatives to drive efficiency.

• No acquisitions are planned; focus remains on organic growth and shareholder returns, with the Bremer integration completed and cost saves realized.

• CEO highlighted continued business momentum and confidence in full-year expectations.

Financial highlights

• Net income applicable to common shares was $229.6 million ($0.59 per share); adjusted net income was $237.7 million ($0.61 per share), with net interest income (FTE) at $580.4 million and noninterest income at $122.3 million.

• Loan growth was 8% annualized from the last quarter, led by 16.9% annualized growth in C&I loans; total deposits increased 4.2% annualized.

• Adjusted noninterest expense was $354 million, reflecting disciplined cost management and merger impacts; efficiency ratio improved to 48.3%, with adjusted efficiency at 45.7%.

• Returned $151 million to shareholders in Q1 through dividends and share repurchases, including 3.9 million shares repurchased.

• Book value per share was $21.40; tangible common book value was $13.93, up 11% year-over-year.

Outlook and guidance

• Full-year 2026 guidance unchanged; expect loan growth at the higher end of the 4%-6% range, with net interest income guidance at ~$2,415 million and noninterest income $485–505 million.

• Fee income expected at the higher end of guidance; expense guidance unchanged despite lower Q1 expenses due to ongoing investments in talent.

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

• Management expressed confidence in achieving full-year expectations, citing strong business momentum and execution.

• Assumes no Fed rate cuts in 2026 and stable noninterest-bearing deposits.