Old National Bancorp

What they do

Old National provides commercial and consumer banking, wealth management, and capital markets services through its wholly owned subsidiary Old National Bank. It operates 346 banking centers across the Midwest and Southeast, offering loans, deposits, treasury management, brokerage, and investment advisory services. The bank earns interest income on loans and fee income from loan originations and other services.

Revenue drivers

• Net interest income — Generated $578.988 million in Q2 2026, up from $514.790 million in Q2 2025, driven by loan growth and lower funding costs.
• Wealth management and capital markets — Includes brokerage, trust, investment advisory, and capital markets services; contributed to noninterest income alongside mortgage banking and other income.
• Mortgage banking — Higher mortgage banking revenue in 2025 contributed to noninterest income growth from $354.7 million to $466.5 million.

Recent performance

For Q2 2026, Old National reported record net income applicable to common shares of $249.4 million, or $0.65 diluted EPS. Adjusted net income was $250.4 million with an adjusted efficiency ratio of 45.2%. Period-end total deposits were $56.1 billion, up 3.4% annualized, and total loans reached $50.8 billion, up 8.3% annualized. Net charge-offs were 32.2 million, or 26 bps of average loans, with 30+ day delinquencies at 0.29% and nonaccrual loans at 0.91%.

Strategy

Management emphasizes disciplined loan growth, core deposit expansion, and positive operating leverage. In 2025, the company completed the Bremer acquisition, expanding its footprint and scale. In July 2026, it announced an enhanced leadership structure, creating an Operating Group and expanding the Executive Leadership Team to improve speed and accountability. The company also repurchased $107 million of common stock in Q2 2026 and continues to focus on credit discipline and capital strength.

Risks

• Economic downturn — Adverse economic conditions could increase loan defaults and credit losses, negatively impacting revenues and profits.
• Interest rate risk — Changes in interest rates, including inflation and governmental responses, could affect net interest income and loan demand.
• Integration risk — Future business combinations, including the recent Bremer and CapStar acquisitions, may fail to achieve expected synergies or divert management attention.
• Cybersecurity and operational risk — Failures in information technology systems, cybersecurity attacks, or third-party vendor issues could disrupt operations and cause financial losses.

Outlook

Management did not provide explicit forward guidance in the excerpts. However, they expressed confidence in the company's long-term growth strategy, citing a stronger, more diversified franchise. The company aims to continue organic growth while maintaining disciplined expense management and credit quality. The leadership structure changes are intended to better connect strategy to execution.