The record earnings, EPS beat, strong loan growth, and improving credit quality are clear positives. The leadership restructuring signals a focus on scaling the franchise. Monitor the Q3 earnings call for any guidance updates and the trajectory of net interest margin, which compressed only 1bp QoQ. The aggressive capital return ($107M buyback + $56M dividends) is a strong signal of management confidence.
Price Chart
Executive Summary
Old National Bancorp reported record Q2 2026 results with GAAP diluted EPS of $0.65, beating consensus of $0.63 by 3.8%. Net interest income (FTE) rose to $586.5M from $580.4M in Q1, driven by strong loan growth (8.3% annualized) and stable deposit costs. The company also announced an enhanced executive leadership structure, including the formation of an Operating Group and four new ELT additions, signaling a focus on organic growth and operational alignment. Credit quality improved with nonaccrual loans falling to 0.91% of total loans from 1.03% in Q1, and the adjusted efficiency ratio hit a record 45.2%.
Key Financial Metrics
Key Facts
- Record Q2 2026 net income applicable to common shares of $249.4M, up from $229.6M in Q1 2026.
- GAAP diluted EPS of $0.65 beat consensus of $0.63 by 3.8%.
- Net interest income (FTE) increased to $586.5M from $580.4M in Q1, with NIM stable at 3.54%.
- Period-end loans grew 8.3% annualized to $50.8B, driven by commercial and industrial growth.
- Nonaccrual loans improved to 0.91% of total loans from 1.03% in Q1.
- Record adjusted efficiency ratio of 45.2%, down from 45.7% in Q1.
- Repurchased $107M of common stock (4.4M shares) and paid $56M in dividends during the quarter.
- Announced enhanced executive leadership structure, including formation of an Operating Group and four new ELT members.
Financial Impact
Record quarterly net income of $249.4M, EPS beat of 3.8% vs consensus, and $107M in share repurchases.
Risk Factors
- Net interest margin (FTE) continues to compress, down 1bp QoQ to 3.54%, reflecting the rate environment and funding mix.
- 30+ day delinquencies ticked up to 0.29% from 0.24% in Q1, though still low.
- Merger-related charges of $12.1M and a $13.2M pension gain created noise in reported results.
- Capital ratios edged down slightly (Tier 1 common equity to 11.09% from 11.11%) due to loan growth and share repurchases.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-049108 |
| Document: onb-20260722.htm | 0001628280-26-049108 |
| Document: 0001628280-26-049108-index-headers.html | 0001628280-26-049108 |
| Document: 0001628280-26-049108-index.html | 0001628280-26-049108 |
| Document: 0001628280-26-049108.txt | 0001628280-26-049108 |
| 8-K Data (Synthetic) | 0001628280-26-049108 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 5, 2026 8w ago | 8-K | $26.67 $25.98 | ▼ −2.59% | ▼ −3.19% | $24.96 (−6.41%) |
Jul 31, 2026 9w ago | Insider Cluster | $26.64 $25.85 | ▼ −2.97% | ▼ −5.95% | $24.96 (−6.31%) |
Jul 31, 2026 9w ago | Insider Cluster | $26.64 $25.85 | ▼ −2.97% | ▼ −5.95% | $24.96 (−6.31%) |
Jul 22, 2026 10w ago | 8-K | $26.39 $25.91 | ▼ −1.82% | ▼ −4.72% | $24.96 (−5.42%) |
Jul 7, 2026 12w ago | Press Release | $26.43 $26.85 | ▼ −1.59% | ▼ −0.26% | $24.96 (+5.56%) |
May 28, 2026 18w ago | Press Release | $24.00 $25.88 | ▲ +7.83% | ▲ +10.98% | $24.96 (+4.00%) |
May 13, 2026 20w ago | Press Release | $23.45 $25.14 | ▲ +7.22% | ▲ +8.08% | $24.96 (+6.45%) |
May 13, 2026 20w ago | Press Release | $23.45 $25.14 | ▲ +7.22% | ▲ +8.08% | $24.96 (+6.45%) |
Apr 22, 2026 23w ago | Press Release | $24.02 $23.15 | ▼ −3.62% | ▼ −6.79% | $24.96 (+3.91%) |
US Market Status
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