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Old National’s adjusted earnings per share of $0.66 matched the consensus for the quarter ended September 30, 2026. Revenue on the consensus basis was $720.4 million, below the $735.9 million estimate.
On the broader revenue measure, Old National reported $1.0 billion, down −0.23% from a year earlier. Diluted earnings per share rose to $0.66 from $0.46. The company said year-over-year net interest income benefited from loan growth and core deposit pricing, partly offset by deposit growth and the funding mix.
The filing shows average loans increased from a year earlier, reflecting commercial and commercial real estate lending growth. It also shows that net interest margin declined, primarily because of deposit growth and lower loan yields. Operating margin rose to 31.0% from 22.2%, while free cash flow increased to $373.2 million from $334.8 million.
Old National reported a $33.6 million provision for credit losses, down from $36.2 million in the preceding quarter. Its filing said loan net charge-offs were $34.1 million, compared with $30.0 million a year earlier.
| Q3 FY2026 | Q3 FY2025 | Change | |
|---|---|---|---|
| Revenue | $1.0 billion | $1.0 billion | −0.23% |
| Diluted EPS | $0.66 | $0.46 | 43.5% |
| Gross margin | 68.2% | 67.3% | 0.9 percentage points |
| Operating margin | 31.0% | 22.2% | 8.8 percentage points |
| Free cash flow | $373.2 million | $334.8 million | 11.5% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $0.66 | $0.66 | In line |
| Revenue | $720.4 million | $735.9 million | Missed by 2.11% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
On lending demand, Timothy Burke Jr. said Old National had not seen a change in commercial customers’ appetite for borrowing and that its loan pipelines were growing. Asked about loan growth and payoffs, he said commercial real estate payoffs near quarter-end moderated balances, but the bank expected to meet its increased year-end loan-growth range. He also said slightly lower line utilization could leave room for demand as commercial customers build inventory.
Chairman and CEO James C. Ryan said the bank was removing potential loans from its pipeline when it did not expect a full customer relationship or the opportunity to meet its pricing requirements. He said competition had increased, but Old National continued to pursue business that met its pricing, relationship and credit standards.
John Vincent Moran said deposit growth accounted for half of the quarter’s increase in deposit costs, with seasonal public funds also contributing. Asked about competition for deposits, he said Old National wanted to grow them alongside earning assets. He described the rate environment as competitive and said the bank had become slightly asset-sensitive as its balance-sheet mix changed.
For the fourth quarter, Moran said he expected net interest income to keep rising and a “modest improvement in margin.” He also said fourth-quarter expenses would rise from the third quarter, partly because hiring came late in the period.
Ryan said Old National added 26 relationship managers across commercial and wealth, including 4 commercial hires in Ohio, while continuing to invest in technology, AI and process improvements. Asked about capital plans, Moran said the bank expected to use the $177 million remaining under its repurchase authorization, potentially more opportunistically. On expenses, he said savings from back- and middle-office operations were being redirected toward revenue generation and client-facing technology.
Guidance
Burke said Old National expected to meet its increased year-end loan-growth range. Moran said he expected full-year expenses at the low end of the previous $1.435 billion to $1.455 billion range, with fourth-quarter expenses above the third quarter. He also said full-year net interest income was expected at the lower end of its stated range.
| Metric | For | Guide | Previous guide | Change |
|---|---|---|---|---|
| Operating expenses, non-GAAP | Q4 FY2026 | Old National expects Q4 FY2026 expenses to rise from Q3. | — | — |
| Operating expenses, non-GAAP | FY2026 | $1.4 billion–$1.5 billion | — | New |
| Revenue, Mortgage | FY2027 | Old National does not expect mortgage income to be a major growth driver in FY2027. | — | — |
| Revenue, Mortgage Fee Income | Q4 FY2026 | Old National expects mortgage fee income to remain soft in Q4 FY2026. | — | — |
| Net margin, Net Interest | FY2027 | Old National sees the possibility of sustained net interest margin improvement in FY2027. | — | — |
| Net margin, Net Interest | Q4 FY2026 | Old National expects modest net interest margin improvement in Q4 FY2026. | — | — |
| Revenue, Net Interest Income | Q4 FY2026 | Old National expects net interest income to grow in Q4 FY2026. | — | — |
| Revenue, Net Interest Income | FY2026 | Old National expects FY2026 net interest income near the lower end of its previously stated range. | — | — |
| EPS growth | FY2026 | $0.15 | — | New |