Old National Bancorp posts record Q3 net income of $250 million

EVANSVILLE, Ind., Oct. 21. Old National Bancorp posted record third-quarter 2026 earnings applicable to common shareholders of $250.0 million, equivalent to $0.66 per diluted share. Adjusted net income applicable to common shares was $249.7 million, with adjusted earnings per share also at $0.66.

Chairman and CEO Jim Ryan stated that the results reflect the strength and consistency of the company's operating model, driven by a disciplined focus on fundamentals. Ryan noted that this approach continues to drive profitable growth, positive operating leverage, and value creation for shareholders, positioning the company to capitalize on opportunities across its franchise.

Net interest income on a fully taxable equivalent basis increased to $592.0 million from $586.5 million in the prior quarter. This growth was driven by high-quality loan and deposit expansion, which offset higher deposit costs. The net interest margin on a fully taxable equivalent basis decreased by 2 basis points to 3.52%. Total deposit costs rose by 8 basis points to 179 basis points, while interest-bearing deposit costs increased by 8 basis points to 231 basis points.

Total deposits at period-end reached $57.6 billion, representing a 10.6% annualized increase. Average total deposits for the third quarter were $56.9 billion, an increase of $1.3 billion from the previous period. The loan-to-deposit ratio stood at 89%, providing strong liquidity combined with existing funding sources.

Total loans at period-end were $51.2 billion, up $362.3 million or 2.9% annualized. This growth included $148.0 million in commercial and industrial loans and $157.3 million in commercial real estate loans. Average total loans in the third quarter were $51.1 billion, up 7.8% annualized. The commercial pipeline totaled $4.4 billion, down 20% from record levels at the end of the second quarter but up 6% from a year ago.

Credit quality remained stable with a provision for credit losses of $33.6 million, compared to $36.2 million in the prior quarter. Net charge-offs were $34.1 million, or 27 basis points of average loans, compared to 26 basis points previously. Excluding purchased credit deteriorated loans, net charge-offs were 24 basis points of average loans, compared to 22 basis points. Thirty-plus day delinquencies fell to 0.25% of loans from 0.29%, while nonaccrual loans rose slightly to 0.92% of total loans from 0.91%. The allowance for credit losses stood at $611.5 million, or 1.20% of total loans.

Total noninterest income was $128.4 million, compared to $153.6 million in the prior quarter. Excluding pre-tax gains from the settlement of the Bremer pension plan, noninterest income was $127.5 million compared to $140.4 million previously. The decline was driven by approximately $10 million of elevated other income in the second quarter due to market value adjustments, higher company-owned life insurance income, and an asset recovery.

Noninterest expense was $355.4 million, including $0.7 million of merger-related charges. Adjusted noninterest expense decreased to $354.7 million from $360.1 million, resulting in a record adjusted efficiency ratio of 44.9%, compared to 45.2% previously.

Return on average tangible common equity was 19.6%. Preliminary regulatory Tier 1 common equity to risk-weighted assets rose by 2 basis points to 11.11%. Old National repurchased $100 million, or 3.9 million shares, of common stock and paid $55 million in quarterly dividends during the quarter, resulting in a combined payout ratio of 62%.