Old National Bancorp Posts Record-Breaking Second Quarter Results
Old National Bancorp recently reported its second quarter 2026 earnings, which saw the company achieve record-breaking results across several key metrics. Chairman and CEO Jim Ryan highlighted the exceptional nature of this quarter, citing record adjusted EPS, net income, and efficiency ratio.
In a call to investors, Ryan emphasized that these outcomes demonstrate what happens when the company stays focused on fundamentals such as growing high-quality relationships, maintaining disciplined credit and expense management, investing in talent and technology, and building tangible book value over time. He underscored the strength of Old National's franchise by mentioning the increase in end-of-period loans by $1 billion or 8% annualized, driven by robust commercial production.
The company's commercial business was a significant highlight, with production reaching $3.5 billion and a new record for period-end commercial pipeline of $5.6 billion being set. Fee income also showed broad-based strength across all fee businesses. This diversification is intentional as the company grows and aims to build a stronger, more balanced earnings engine that is less reliant on net interest income.
Operational discipline was another area where Old National excelled, delivering record GAAP and adjusted efficiency ratios. The adjusted ratio of 45.2% marked their seventh straight quarter of positive year-over-year operating leverage. This balance between investing in technology and process improvements to make the company more scalable while maintaining operational efficiency is crucial. Credit quality remained a key strength with non-accruals decreasing by $50 million, or 10%, from the prior quarter.
The loan portfolio is well-diversified, and underwriting standards remain rigorous. Old National's straightforward community banking model positions it well through economic cycles. The company's capital position remains strong with tangible book value per share increasing 14% year-over-year. A CET1 ratio of 11.09% was also reported, along with returning $163 million of capital to shareholders through dividends and buybacks.
In a clear demonstration of successfully executing its organic growth strategy, Old National delivered strong loan growth, broad-based fee income, record efficiency, solid credit metrics, and returned significant capital back to its shareholders. The company does not need to rely on acquisitions to meet its goals. Its focus remains the same: growing organically, deepening client relationships, investing in people and platform, managing risk carefully, and creating long-term value for its shareholders.
