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. This transcript is brought to you APIs. For real-time access to our entire catalog, please visit for a consultation.

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. 39%. 6 billion. Fee income saw broad-based strength, contributing to a more balanced earnings engine less reliant on net interest income.

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. 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.

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.

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. 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.

Nonaccruals decreased by $50 million, or 10%, from the prior quarter and net charge-offs were consistent with our expectations. We stay diligent and proactive in managing credit. Our loan portfolio is well diversified, our underwriting standards remain rigorous, and we believe our straightforward community banking model positions us well through economic cycles. Our capital position continues to be strong.

Tangible book value per share increased 14% year over year. 09% and we returned 163 million of capital to shareholders through dividends and buybacks. We will continue to approach capital allocation carefully, supporting organic growth, investing in the business, maintaining strong capital levels, and returning capital to shareholders. In summary, this was a record-breaking quarter and another clear example of Old National successfully executing its organic growth strategy.

We delivered strong loan growth, broad-based fee income, record efficiency, solid credit metrics, and returned significant capital back to our shareholders. We do not need to rely on acquisitions to meet our goals. Our focus stays the same: growing organically, deepening client relationships, investing in our people and platform, managing risk carefully, and creating long-term value for our shareholders. With that, I'll turn the call over to John to discuss this quarter's financial results in more detail.

John Thanks. As Jim mentioned and as summarized on slide 4, we delivered a record quarter driven by strong organic loan growth, disciplined expense management, stable credit performance and increased capital return. 2 million valuation gain on the settlement of the Bremer pension plan. 65.

Results were driven by better-than-expected loan growth and strong fee income along with well-controlled expenses. Credit remains stable with 22 basis points of non-PCD charge-offs. Our profitability profile, as measu