ONB Filings — Old National Bancorp /in/ - FilingSpy
ONB
Old National Bancorp /in/
A regional bank tracing its roots to 1834, when it opened as the Branch Bank at Evansville of the State Bank of Indiana, before Evansville was even a city. Today Old National serves consumers and businesses across the Midwest and Southeast with lending, deposit accounts, wealth management, and treasury services. Its name evolved through charter renewals that took it from Evansville National Bank to "Old State National," and its first cashier doubled as teller and janitor in a one-room office on the Ohio River.
Bremer deal doubles net income as credit costs normalize and loan growth accelerates.
The Bremer acquisition is no longer a drag on reported earnings. rose 44.3% to $694.9 million and climbed 61.5% to $233.7 million, as the prior year's $75.6 million initial credit provision on acquired loans did not repeat and organic loan growth reached 8% annualized. The merger is now contributing to earnings rather than masking them.
Key takeaways
rose 61.5% to $233.7 million, or $0.59 per diluted share, as the fell 66.1% from the prior-year quarter, when a $75.6 million initial on acquired Bremer loans was recorded.
increased 12.5% to $579 million, driven by the Bremer portfolio and strong commercial loan growth, partially offset by lower loan yields.
Total loans grew 4.1% from year-end 2025 to $50.8 billion, led by commercial loans, while organic loan growth reached 8% annualized from the prior quarter.
Section summaries
Management's Discussion and Analysis
Q2 2026 net income rose 105% YoY to $249M, driven by Bremer acquisition benefits, strong loan growth, and lower credit costs.
⌄
increased 12.5% to $579M, driven by the Bremer acquisition and strong commercial loan growth, partially offset by lower loan yields.
Noninterest income rose 15.9% to $154 million, reflecting a $13 million pension settlement gain and broad-based fee income increases in capital markets and wealth management.
Credit quality improved, with declining to 0.91% of total loans from 1.03% in the prior quarter, and the on loans covered 126% of nonaccrual loans.
Noninterest expense declined 3.3% to $372 million as merger-related charges fell; excluding those charges, expenses rose due to Bremer operating costs and higher intangible .
What changed
Bremer merger charge runoff: Merger-related charges, which reached $69.3 million in Q3 2025, declined sharply this quarter, allowing noninterest expense to fall 3.3% and reported earnings to reflect the underlying performance of the combined franchise.
Credit provision normalization: The $75.6 million initial on acquired Bremer loans that weighed on Q2 2025 did not repeat, causing the to fall 66.1% and revealing the earnings power of the enlarged balance sheet.
Net charge-off trajectory: remained stable at 0.26% of average loans, consistent with the prior quarter, suggesting the uptick to 0.25% seen in Q3 2025 has leveled off rather than accelerated.
Criticized and classified asset migration: After the $344.1 million increase in Q1 2025, declined to 0.91% of total loans from 1.03% in Q1 2026, indicating that credit deterioration in the combined portfolio is stabilizing rather than worsening.
Organic loan growth post-Bremer: The 8% annualized loan growth from the prior quarter, driven by commercial loan production, confirms that underlying demand in the combined franchise remains strong even without an acquisition .
What to watch
trajectory: Whether the margin can hold its improved level as the Federal Reserve continues to ease will determine if growth can be maintained without relying solely on further balance sheet expansion.
Expense synergy realization: With merger charges declining, whether management quantifies progress toward its Bremer cost synergy targets and the improves will be the primary test of deal execution.
Commercial real estate credit performance: With the CRE portfolio remaining a significant portion of the $50.8 billion loan book, any new deterioration in office or retail properties would test the adequacy of the .
Organic loan growth sustainability: Whether the 8% annualized loan growth this quarter can be sustained will signal the strength of underlying commercial demand in the combined franchise.
fell 66.1% to $36M, as the prior-year period included a $76M charge to establish an allowance for acquired Bremer loans.
Noninterest income grew 15.9% to $154M, reflecting a $13M pension settlement gain and broad-based fee income increases, notably in capital markets and wealth management.
Noninterest expense declined 3.3% to $372M; excluding merger-related charges, expenses rose due to Bremer operating costs and higher intangible .
Total loans grew 4.1% from year-end 2025 to $50.8B, led by commercial loans, while total deposits increased 1.9% to $56.1B through .
Credit quality improved with declining to 0.91% of total loans, and the on loans covered 126% of nonaccrual loans.
There have been no material changes from the risk factors disclosed in the section entitled “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
⌄
There have been no material changes from the risk factors disclosed in the section entitled “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.