Record quarterly profit tops Wall Street expectations
Old National Bancorp (NASDAQ:ONB) reported stronger-than-expected second-quarter 2026 results on Wednesday, driven by higher revenue, solid loan growth and record profitability.
The bank posted adjusted earnings per share of $0.65, ahead of the analyst consensus estimate of $0.63. Revenue on a fully taxable equivalent basis totaled $740.06 million, exceeding market expectations of $716.25 million.
Following the earnings release, shares of Old National rose 3.17% in premarket trading.
Net income attributable to common shareholders reached a record $249.4 million, equal to $0.65 per diluted share.
Loan growth supports higher revenue
Total revenue increased 13% year over year from $654.4 million in the second quarter of 2025.
Net interest income on a fully taxable equivalent basis rose to $586.5 million from $580.4 million in the previous quarter, benefiting from continued loan expansion and stable deposit pricing.
The bank’s net interest margin edged down by one basis point to 3.54%.
Noninterest income climbed to $153.6 million from $122.3 million in the first quarter, supported by stronger fee income and a $13.2 million pretax gain related to the settlement of the Bremer pension plan.
“Our record second quarter results reflect another quarter of disciplined execution and demonstrate the strength of Old National’s long-term growth strategy,” said Chairman and CEO Jim Ryan.
Balance sheet and credit quality remain strong
Period-end loans increased by $1.0 billion, or 8.3% on an annualised basis, to $50.8 billion, while commercial loan production totaled $3.5 billion during the quarter.
Total deposits grew at an annualised rate of 3.4% to reach $56.1 billion, and the overall cost of deposits declined by one basis point to 1.71%.
Credit quality remained healthy, with net charge-offs of $32.2 million, representing 26 basis points of average loans.
The provision for credit losses increased slightly to $36.2 million from $34.9 million in the previous quarter, while nonaccrual loans improved to 0.91% of total loans from 1.03%.
Shareholder returns continue
Old National continued returning capital to shareholders during the quarter by repurchasing $107 million of common stock and paying $56 million in dividends.
The combined payout ratio reached 65%, while the bank’s adjusted efficiency ratio improved to a record 45.2%, reflecting continued operating discipline.