8-K: Old National Bancorp Reports Record Q2 2026 Results

Old National Bancorp announced record second quarter 2026 net income of $249.4 million, or $0.65 per diluted share, and enhanced its executive leadership structure.

Summary

• Old National Bancorp reported record net income for the second quarter of 2026, reaching $249.4 million, or $0.65 per diluted common share.
• Adjusted net income was also a record at $250.4 million, or $0.65 per adjusted diluted common share.
• Net interest income on a fully taxable equivalent (FTE) basis was $586.5 million, with a net interest margin (NIM) of 3.54%, a slight decrease of 1 basis point.
• Pre-provision net revenue (PPNR) was $367.9 million, and adjusted PPNR was $366.8 million.
• The company achieved a record efficiency ratio of 47.0% and an adjusted efficiency ratio of 45.2%.
• Total deposits grew to $56.1 billion, up 3.4% annualized, with total deposit costs at 171 basis points.
• Total loans increased by $1.0 billion to $50.8 billion, an 8.3% annualized growth.
• The company announced an enhanced executive leadership structure, including the formation of an Operating Group and the addition of four new leaders to the Executive Leadership Team.

Sentiment

Score: 8

Explanation: StockSavvy.ai views this as a positive report due to record financial results and strategic leadership enhancements, indicating strong operational performance and forward-looking management.

Positives

• Record net income applicable to common shares of $249.4 million.
• Record adjusted net income applicable to common shares of $250.4 million.
• Record earnings per diluted common share (EPS) of $0.65.
• Record adjusted EPS of $0.65.
• Net interest income on a fully taxable equivalent basis of $586.5 million.
• Record efficiency ratio of 47.0% and adjusted efficiency ratio of 45.2%.
• Total deposits grew to $56.1 billion, up 3.4% annualized, with stable low-cost deposit franchise.
• Total loans increased by $1.0 billion to $50.8 billion, up 8.3% annualized, driven by strong commercial loan production.
• Return on average tangible common equity (ROATCE) of 19.8% and adjusted ROATCE of 19.9%.

Negatives

• Net interest margin (NIM) on a fully taxable equivalent basis decreased by 1 basis point to 3.54%.
• 30+ day delinquencies increased to 0.29% from 0.24%.
• Net charge-offs excluding purchased credit deteriorated (PCD) loans increased to 22 bps from 19 bps.
• Income tax expense increased to $70.8 million, resulting in an effective tax rate of 21.8% compared to 20.9% in the prior quarter.

Risks

• Potential impact of future business combinations on performance and financial condition, including integration challenges.
• Failure or circumvention of internal controls.
• Operational risks or risk management failures by the company or critical third parties.
• Cybersecurity threats and other information system disruptions.
• Changes in economic conditions and economic and business uncertainty impacting credit quality and generation of loans and deposits.
• Inflation and governmental responses to inflation, including increasing interest rates.
• Market, economic, operational, liquidity, credit, and interest rate risks associated with the business.
• The potential impact of pandemics, epidemics, and other infectious disease outbreaks.

Future Outlook

The company is enhancing its leadership structure to move with greater speed, strengthen accountability, and better connect strategy to execution, positioning itself for continued success and the next chapter of growth.

Management Comments

• "Our record second quarter results reflect another quarter of disciplined execution and demonstrate the strength of Old National's long-term growth strategy."
• "Over the past several years, we have built a stronger, more diversified franchise with greater scale, capabilities, and opportunities for growth."
• "As we continue that evolution, we're enhancing our leadership structure through the formation of an Operating Group and the expansion of our Executive Leadership Team."
• "These changes position us to move with greater speed, strengthen accountability, and better connect strategy to execution as we build the next chapter of Old National's success."

Industry Context

StockSavvy.ai notes that Old National Bancorp's reported record results and strategic leadership enhancements align with a broader trend among regional banks to optimize operations and strengthen governance in a competitive market.

Comparison to Industry Standards

• The reported efficiency ratio of 47.0% is strong and indicates efficient operations compared to many regional banks.
• Loan growth of 8.3% annualized is robust and suggests strong market penetration and client acquisition.
• Deposit growth of 3.4% annualized, with a focus on low-cost deposits, is a positive indicator of funding stability.
• ROATCE of 19.8% is a very strong performance metric, often exceeding industry averages for well-managed financial institutions.

Management Changes

Stakeholder Impact

• Shareholders: Potential for continued value creation driven by record earnings and strategic growth initiatives.
• Employees: Enhanced leadership structure may lead to clearer direction and improved operational efficiency.
• Customers: Continued focus on building long-term partnerships and providing comprehensive financial services.
• Communities: Ongoing commitment to strengthening and supporting communities, as recognized by 'The Civic 50' honor.

Next Steps

• Continue to execute on long-term growth strategy.
• Leverage enhanced leadership structure for speed and accountability.
• Focus on enterprise strategy and alignment through the new Operating Group.
• Advance innovation, scale talent, and foster a collaborative culture with the expanded Executive Leadership Team.

Key Dates

Recommendation

The company reported strong, record results and is implementing strategic leadership changes to drive future growth. However, the slight decrease in NIM and increase in delinquencies warrant a 'hold' rating to observe the impact of these changes and market conditions.

Keywords

Old National Bancorp, Q2 2026 Earnings, Net Income, EPS, Net Interest Margin, Efficiency Ratio, Loan Growth, Deposit Growth