Transcript: Old National Q2 2026 Earnings Conference Call

Old National (NASDAQ: ONB ) reported second-quarter financial results on Wednesday.

The transcript from the company's second-quarter earnings call has been provided below.

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Access the full call at Summary Old National Bancorp reported record second-quarter results for 2026, with record adjusted EPS, net income, and efficiency ratio.

The company achieved approximately 20% adjusted return on average tangible common equity and an adjusted ROA of 1.39%.

End-of-period loans increased by $1 billion, or 8% annualized, driven by robust high-quality commercial production, with a commercial pipeline hitting a record $5.6 billion.

Fee income saw broad-based strength, contributing to a more balanced earnings engine less reliant on net interest income.

The company maintained strong operational discipline, achieving a record adjusted efficiency ratio of 45.2%, marking the seventh straight quarter of positive year-over-year operating leverage.

Credit quality remained strong, with a 10% decrease in nonaccruals and stable net charge-offs.

The tangible book value per share increased 14% year-over-year, and the CET1 ratio stood at 11.09%, with $163 million returned to shareholders through dividends and buybacks.

Old National Bancorp raised its loan growth and noninterest income guidance for the full year 2026, expecting loan growth of 6% to 8%.

The company plans to continue share repurchases and maintain a strong capital position, with a focus on organic growth and deepening client relationships.

Management expressed confidence in achieving 15%-plus growth in earnings per share for the full year, supported by strong loan growth, controlled expenses, and stable credit performance.

Full Transcript OPERATOR Jim Ryan for opening remarks.

Mr.

Ryan, good morning.

Jim Ryan, Chairman & CEO Earlier today, Old National reported record second quarter results for 2026.

In short, this was an exceptional quarter for Old National.

We achieved record adjusted EPS along with record net income and a record efficiency ratio.

We also generated approximately a 20% adjusted return on average tangible common equity, an adjusted ROA of 1.39% and continue to produce strong profitable growth across our company.

These results show what happens when we stay focused on the fundamentals: growing high-quality relationships, maintaining disciplined credit and expense management, investing in talent and technology, and building tangible book value over time.

The strength of our franchise was clear throughout the quarter.

End-of-period loans increased by $1 billion, or 8% annualized, driven by robust, high-quality commercial production.

Commercial production reached $3.5 billion and our period-end commercial pipeline hit a new record of $5.6 billion.

We remain actively focused on winning new business where we can develop full relationships, meet our return expectations, and maintain the strong credit profile that has long been a hallmark of Old National.

Fee income was another bright spot.

We experienced broad-based strength across all fee businesses.

This diversification is intentional.

As we grow, we are building a stronger, more balanced earnings engine that is less reliant on net interest income.

We also continue to demonstrate strong operational discipline.

We delivered record GAAP and adjusted efficiency ratios, with the adjusted ratio at 45.2%, marking our seventh straight quarter of positive year-over-year operating leverage.

We are investing in technology, AI, and process improvements to make Old National more scalable while remaining disciplined with expenses.

That balance is key.

We are investing for growth while maintaining operational efficiency.

Credit quality remains a key strength.