Old National Bank reports Q1 earnings of $0.61 per share, targets 15%+ growth in 2026

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• 🔥 Quick Facts
• Strong Earnings Beat Signals Bremer Integration Success
• Explosive Commercial Lending Growth Drives 2026 Momentum
• Net Interest Income and Margin Dynamics in Q1 2026
• Full-Year Guidance Reflects Confidence in EPS Trajectory
• Regional Banking Landscape: Competitive Advantages for Old National
• What to Watch: Key Catalysts for Sustained Growth in 2026
  • Sources

Old National Bancorp reported Q1 2026 adjusted earnings per share of $0.61, exceeding analyst expectations and demonstrating strong operational execution. The Midwest-based regional bank targets 15%+ EPS growth for full-year 2026, signaling confidence in its profitability trajectory and commercial lending momentum as it integrates the Bremer Bank acquisition.

Strong Earnings Beat Signals Bremer Integration Success

Old National Bancorp delivered adjusted diluted EPS of $0.61 in Q1 2026, surpassing analyst consensus of $0.60. The GAAP EPS reached $0.59, showing the quality of operational earnings beyond merger-related charges. Net income applicable to common shares totaled $229.6 million, with adjusted net income of $237.7 million. This performance underscores the successful consolidation of the Bremer Bank acquisition, which closed in late 2024 and significantly expanded Old National’s Midwest footprint and commercial lending capabilities.

The earnings beat reflects disciplined cost management and strong core banking operations. Adjusted return on average assets (ROAA) reached 1.33%, and adjusted return on average tangible common equity (ROATCE) hit 19.0%, both indicating efficient capital deployment. These metrics place Old National in the upper quartile of regional bank performance, a key aspiration for management’s stated strategic objective.

Explosive Commercial Lending Growth Drives 2026 Momentum

Perhaps the most impressive metric in the earnings is commercial & industrial (C&I) loan growth at 16.9% annualized. Total loans expanded by $970.9 million, or 8.0% annualized, bringing the loan portfolio to approximately $49.7 billion. Deposits also grew, reaching $55.7 billion, with 4.2% annualized deposit growth and notably declining deposit costs, a rare favorable dynamic in the current competitive banking environment.

The bank reports a record commercial pipeline of $5.5 billion, which provides visibility into sustained lending momentum through 2026. This pipeline size exceeds prior quarters and suggests management can sustain mid-to-high single-digit loan growth even as the broader economy moderates. The concentration in C&I lending is strategically important—this segment typically generates higher rates and is less sensitive to residential property cycles compared to growth-focused financial platforms navigating market transitions.

Net Interest Income and Margin Dynamics in Q1 2026

Old National reported net interest income (NII) of $572.6 million on a standard basis, and $580.4 million on a fully taxable equivalent (FTE) basis. This represents 47.7% year-over-year growth, primarily driven by the Bremer acquisition and expansion of the loan portfolio. The net interest margin (NIM) stood at 3.55% on an FTE basis, a critical metric reflecting the spread between lending rates and deposit costs.

While analysts initially estimated $587.6 million NII, missing by 2.6%, the miss was modest and attributable to faster-than-expected deposit repricing. More significantly, the 4.2% deposit cost decline and growing loan yields position the bank favorably for 2026 guidance, which targets approximately $2,415 million in fully taxable equivalent NII. This guidance implies strong quarterly average growth, particularly if loan origination rates hold firm.

Metric	Q1 2026	Year-Over-Year Change
Adjusted EPS	$0.61	Double-digit growth
Net Interest Income (FTE)	$580.4M	+47.7%
Net Interest Margin	3.55%	Stable to improving
Loan Growth (Annualized)	8.0%	+16.9% C&I segment
Total Loans	$49.7B	+$970.9M quarterly
Total Deposits	$55.7B	+4.2% annualized
Commercial Pipeline	$5.5B	Record level

“Old National Bancorp delivered first quarter 2026 earnings that exceeded our internal expectations and analyst estimates. We feel really good about where we are operationally.”

— James Ryan, Chairman and Chief Executive Officer, Old National Bancorp, Q1 2026 Earnings Call

Full-Year Guidance Reflects Confidence in EPS Trajectory

Old National maintained its full-year 2026 outlook while reaffirming 15%+ EPS growth guidance. The bank projects net interest income around $2,415 million on a fully taxable equivalent basis, noninterest income of $485–$505 million, and noninterest expense guidance that reflects continued operational leverage from Bremer integration. This guidance implies full-year 2026 EPS of approximately $2.63–$2.70, consistent with prior analyst consensus expectations updated after the beat.

The 15%+ EPS growth target is meaningful given the bank’s already strong 2025 performance and the law of large numbers effect. It suggests management expects sustained commercial lending demand, stable deposit dynamics, and continued cost discipline. Historical context: Old National’s 2025 EPS benefited from a full-year contribution of Bremer operations, so 2026 growth must come from organic expansion and operational efficiency gains rather than acquisition accretion alone—a more challenging but more sustainable trajectory.

Regional Banking Landscape: Competitive Advantages for Old National

Old National competes in a challenging regional banking environment where scale, deposit stability, and commercial lending expertise matter. The Bremer acquisition positioned the bank as a top-tier Midwest company with approximately $60 billion in assets post-integration. The 4.2% deposit growth while managing deposit costs lower is increasingly rare; most regional banks face higher deposit betas and funding pressures. This suggests Old National has successfully retained Bremer customer relationships and built deposit franchises in key markets.

The 16.9% C&I loan growth indicates strong market share gains in the commercial segment, where relationship banking and local decision-making are competitive advantages. As noted in recent broader financial services consolidation trends, regional banks that achieve critical mass and maintain high operational efficiency can thrive. Old National’s ROATCE of 19.0% is compelling—it exceeds many peers and the cost of equity for most investors.

What to Watch: Key Catalysts for Sustained Growth in 2026

Old National‘s ability to deliver the 15%+ EPS growth guidance depends on several factors. First, loan origination rates—if commercial lending rates remain stable or rise, the pipeline should convert into high-margin assets. Second, deposit retention and cost management as the banking system re-normalizes. Third, credit quality—the bank must avoid loan losses rising materially from current levels. Finally, operational integration execution—continued cost saves from Bremer consolidation will be essential.

Investor focus will likely remain on quarterly net interest margin trends, as NIM stability indicates the bank’s ability to maintain spreads despite potential Federal Reserve rate changes. Q1 2026 NIM of 3.55% provides a solid baseline; management guidance implies minimal compression through 2026, which would support the 15%+ EPS growth target. The $5.5 billion commercial pipeline is also worth monitoring quarterly—a declining pipeline would signal demand softness, while sustained or growing pipelines would validate management’s confidence.

Sources

• Old National Bancorp Investor Relations – Official Q1 2026 earnings release, April 22, 2026
• Yahoo Finance – Q1 2026 earnings call transcript and highlights
• StockTitan SEC Filings – 8-K filing and detailed Q1 2026 performance metrics
• Seeking Alpha – Q1 2026 earnings analysis and analyst perspectives
• RTTNews – Q1 2026 earnings summary and year-over-year comparisons