Old National Bancorp reported first-quarter 2026 net income applicable to common shares of $229.6 million, or $0.59 per diluted share, up from the prior quarter’s adjusted result of $237.7 million, or $0.61 per share.
Net interest income on a fully taxable equivalent basis fell to $580.4 million from $588.8 million, while net interest margin narrowed 10 basis points to 3.55%.
Noninterest income rose to $122.3 million from $109.7 million. Excluding a $15.9 million pension-related loss in the prior quarter, noninterest income declined 2.6%, with the company citing lower bank fees, capital markets fees and mortgage fees, partly offset by stronger wealth management fees.
Noninterest expense came in at $364.7 million, including $7.3 million of merger-related charges and $3.4 million of pension-related expense. Adjusted noninterest expense fell to $354.0 million from $364.8 million, helping drive an adjusted efficiency ratio of 45.7%, down from 46.0%. The reported efficiency ratio improved to 48.3% from 51.6%.
Pre-provision net revenue was $338.1 million, or $348.7 million adjusted, compared with $336.4 million in the prior quarter on a reported basis and $350.1 million adjusted.
Period-end total deposits increased to $55.7 billion, up 4.2% annualized, while average deposits were $55.1 billion, flat with the fourth quarter. Deposit costs fell 8 basis points to 172 basis points, and interest-bearing deposit costs dropped 14 basis points to 224 basis points.
Period-end total loans rose to $49.8 billion, up $970.9 million, or 8.0% annualized. Commercial and industrial loans increased $633.8 million. Average total loans were $49.2 billion, up 7.9% annualized. Commercial loan production reached $3.3 billion, down 5%, while the commercial pipeline hit a record $5.5 billion, up 14%.
Credit metrics were mixed but remained contained. Provision for credit losses was $34.9 million, up from $32.7 million. Net charge-offs were $32.0 million, equal to 26 basis points of average loans, versus 27 basis points in the prior quarter. Excluding PCD loans, net charge-offs were 19 basis points, compared with 16 basis points. 30-plus day delinquencies edged up to 0.24% from 0.22%, while nonaccrual loans improved to 1.03% from 1.07%. The allowance for credit losses rose to $608.1 million from $605.2 million.
Return on average tangible common equity was 18.4%, with adjusted ROATCE at 19.0%. Preliminary tier 1 common equity to risk-weighted assets was 11.11%, up 3 basis points. Preliminary total risk-based capital rose 86 basis points to 13.71%, and preliminary regulatory tier 1 capital increased 3 basis points to 11.56%.
The company repurchased 3.9 million shares during the quarter. Following these announcements, the company's shares moved -0.18%, and are now trading at a price of $21.73. If you want to know more, read the company's complete 8-K report here.
