Oct 21, 2026 earnings call — Record quarter driven by deposits and loans
Old National reported record third quarter EPS of $0.66 on strong deposit growth and balanced loan growth.
Revenue $0.7B (est $0.7B) · EPS $0.66 (est $0.66)
Key quotes
"Period end total deposits increased 11% annualized primarily driven by $1 billion of organic increases in business accounts seasonal strength in public funds."
"Total loans grew 3% annualized from last quarter and 7% annualized year-over-year. This growth was led by our commercial portfolio with C&I up 12% and CRE up 3% year-over-year."
"Operating discipline remained a clear strength. We delivered record efficiency while reducing adjusted expenses from the prior quarter even as we continued to invest in technology, AI, process improvements, and talent."
Analyst Q&A 13
margin direction for 4Q
Q (Daniel Tamayo · Raymond James): Analyst asked where margins are headed next and whether 4Q is stable given deposit cost increases after hikes.
A: Management said the spot margin today is up 2 basis points and that if markets move as current forward curves expect, they would see modest additional help. They expect NII dollars to increase in 4Q and margin to expand a couple of basis points versus 3Q.
"I think in general for 4Q, we could expect to see NII dollars continue to move up." — John Vincent Moran Vincent Moran
loan pipelines and rate impact
Q (David Chiaverini · Jefferies): Analyst asked about loan pipelines versus a year ago and how higher rates affect loan demand.
A: Management said they speak to clients daily and see no change in demand; pipelines are growing and they are optimistic. They noted C&I has more momentum and most of the 19 new commercial hires will focus on C&I.
"We continue to be optimistic about the pipelines We see good growth in the pipelines and feel good about where they are at and where they are trending." — Timothy Burke Jr. Burke Jr.
Ohio market expansion
Q (Brendan Nosal · Hovde Group): Analyst asked why Old National is hiring in Ohio and what they want to achieve there.
A: Management said they know Cleveland and Columbus well and see similar dynamics to other Midwestern cities. They expect to win middle-market C&I and manufacturing clients and think their story resonates in those markets.
"When you think about Cleveland and Columbus, they are very similar to our other large Midwestern cities." — Timothy Burke Jr. Burke Jr.
new loan yields vs legacy
Q (Brandon Rud · Stephens): Analyst asked how blended new origination yields compare to the back book roll-off and about deposit betas for further hikes.
A: Management said new fixed-to-fixed originations are well north of 100 basis points above the back book and fixed into current new production is about 100 basis points against the back book; securities yields are adding about 180 basis points on new purchases. They said their expectation for incremental deposit betas would be about in line with historical averages and noted strong retention in the exception book.
"fixed to fixed is gonna be well north of 100 basis points, but fixed into what we have been putting on is kind of 100 basis points against the back book." — John Vincent Moran Vincent Moran
sources of deposit growth
Q (Brian Foran · Truist): Analyst asked if brokered deposits contributed to growth, how much was from a promo, and whether Bremer footprint lost share.
A: Management said brokered deposits were down and most growth was organic, with roughly $1 billion organic plus about $450 million from seasonal public funds. They described the FDIC summary report as directionally correct but specifically wrong and said the core Bremer franchise is stable with pipelines improving.
"I would describe that thing as directionally correct, but specifically wrong." — John Vincent Moran Vincent Moran
loan payoffs, pipelines, expenses
Q (Piper Sandler): Analyst asked about payoffs that affected quarter, why pipeline to 4Q is down, and whether expenses will be at low end of guide.
A: Management said they had a few CRE payoffs and delivered 3% loan growth in the quarter, and they remain confident in pipelines and conversion. They expect full-year expenses to be at the low end of the prior guide, though 4Q will run higher than 3Q due to back-end hiring.
"our expectation would be it would be at the low end of that range." — John Vincent Moran Vincent Moran
public deposit seasonality and payout
Q (Janet Lee · TD Cowen): Analyst asked if public deposit seasonality will ease deposit cost pressure and whether there is a target payout ratio.
A: Management said seasonal muni outflows could help deposit costs by a couple of basis points in 4Q but thought being below the spot rate was optimistic. They have not set a specific combined payout target but have been returning about 60% and will revisit authorization in February.
"I think, look, the fact is we are putting up returns on tangible common equity in the high teens." — John Vincent Moran Vincent Moran
time deposits and deposit strategy
Q (Timur Braziler · UBS): Analyst asked whether recent CD growth locked duration and whether thinking in terms of beta is still right.
A: Management said they put on some CDs in the quarter because they thought the funding curve was ahead of the Fed and that will look smart in future quarters. They said higher-for-longer rates mean staying competitive and their objective is to grow deposits in line with earning assets.
"Our thoughts in this quarter was that the funding curve was probably in front of the Fed." — John Vincent Moran Vincent Moran
pipeline health and M&A appetite
Q (Jon Arfstrom · RBC): Analyst asked how competitive lending is, whether the pipeline is full or healthy, and about appetite for M&A.
A: Management said the lending market is certainly competitive but pipelines are solid with upside as they add bankers; they also clean lower-quality opportunities from the pipeline to preserve pricing. On M&A, they said they are not focused on deals now and prefer organic growth and talent acquisition instead.
"I feel pipelines are solid. I never feel they are full. They can always get better." — Timothy Burke Jr. Burke Jr.
operating leverage and efficiency
Q (Chris McGratty · KBW): Analyst asked if positive operating leverage is achievable given current crosscurrents.
A: Management said they pursue positive operating leverage as a philosophical approach and are balancing investing in growth with driving expense efficiency. They believe the forward rate curve should help revenue and they are striking the right balance between investment and margin improvement.
"I think we are striking the right balance between investing in the future you know, which means investing in growth and also, you know, driving positive operating leverage." — James C. Ryan (CEO·CHAIR)
capital ratio and fee income initiatives
Q (Jared Shaw · Barclays): Analyst asked about a target capital ratio given strong CET1 and about fee income initiatives and trajectory.
A: Management said no target has been set but being north of 11% CET1 is comfortable; potential Basel changes could add about 100 basis points of CET1 and might affect repurchase size in February. They said core banking fees, wealth, and capital markets are strong while mortgage is soft and they continue to invest in fee businesses like FX, fintech, syndications, and wealth.
"north of 11% CET1 feels like a ton of capital for the risk that we take on the balance sheet." — John Vincent Moran Vincent Moran
efficiency and adjusted ROE
Q (JPMorgan): Analyst asked how they maintain a low efficiency ratio while investing and whether current ROE feels like the right operating level.
A: Management said they have long worked to cut back and middle office costs and recycle those dollars into client-facing revenue and technology, which helped drive efficiency lower. They feel good about current profitability and think there may be upside with rate tailwinds while still continuing to invest in growth.
"We feel really good about where we are at from a profitability perspective." — James C. Ryan (CEO·CHAIR)
earn back and new hires
Q (Terry McEvoy · Wells Fargo): Analyst asked how quickly new hires earn back their cost and whether hires included replacements with cost savings.
A: Management said commercial talent earns back quickly, often inside a year to a year and a half; Timothy provided a breakdown showing most hires were net new and emphasized disciplined hiring of top performers who are expected to pay for themselves quickly and drive sticky operating deposits.
"for commercial talent, our earn backs tend to be very quick." — John Vincent Moran Vincent Moran