Midwestern regional bank Old National Bancorp (NASDAQ: ONB) reported Q2 CY2026 results beating Wall Street’s revenue expectations, with sales up 16.8% year on year to $740.1 million. Its non-GAAP profit of $0.65 per share was 3.8% above analysts’ consensus estimates.
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Old National Bank (ONB) Q2 CY2026 Highlights:
- Net Interest Income: $579 million vs analyst estimates of $592.5 million (12.5% year-on-year growth, 2.3% miss)
- Net Interest Margin: 3.5% vs analyst estimates of 3.6% (4.8 basis point miss)
- Revenue: $740.1 million vs analyst estimates of $718.4 million (16.8% year-on-year growth, 3% beat)
- Efficiency Ratio: 47% vs analyst estimates of 46.8% (16.7 basis point miss)
- Adjusted EPS: $0.65 vs analyst estimates of $0.63 (3.8% beat)
- Tangible Book Value per Share: $14.32 vs analyst estimates of $14.35 (13.3% year-on-year growth, in line)
- Market Capitalization: $10.11 billion
"Our record second quarter results reflect another quarter of disciplined execution and demonstrate the strength of Old National's long-term growth strategy," said Chairman and CEO Jim Ryan.
Company Overview
Tracing its roots back to 1834 when Andrew Jackson was president, Old National Bancorp (NASDAQ: ONB) is a bank holding company that provides commercial and consumer loans, deposit services, wealth management, and treasury solutions primarily throughout the Midwest region.
Sales Growth
From lending activities to service fees, most banks build their revenue model around two income sources. Interest rate spreads between loans and deposits create the first stream, with the second coming from charges on everything from basic bank accounts to complex investment banking transactions. Over the last five years, Old National Bank grew its revenue at an incredible 27.8% compounded annual growth rate. Its growth beat the average banking company and shows its offerings resonate with customers.
Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Old National Bank’s annualized revenue growth of 25.1% over the last two years is below its five-year trend, but we still think the results suggest healthy demand. 
Note: Quarters not shown were determined to be outliers because they were impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Old National Bank reported year-on-year revenue growth of 16.8%, and its $740.1 million of revenue exceeded Wall Street’s estimates by 3%.
Net interest income made up 79.7% of the company’s total revenue during the last five years, meaning lending operations are Old National Bank’s largest source of revenue.
Markets consistently prioritize net interest income growth over fee-based revenue, recognizing its superior quality and recurring nature compared to the more unpredictable non-interest income streams.
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Tangible Book Value Per Share (TBVPS)
Banks profit by intermediating between depositors and borrowers, making them fundamentally balance sheet-driven enterprises. Market participants emphasize balance sheet quality and sustained book value growth when evaluating these institutions.
When analyzing banks, tangible book value per share (TBVPS) takes precedence over many other metrics. This measure isolates genuine per-share value by removing intangible assets of debatable liquidation worth. Traditional metrics like EPS are helpful but face distortion from M&A activity and loan loss accounting rules.
Old National Bank’s TBVPS grew at a mediocre 4.4% annual clip over the last five years. However, TBVPS growth has accelerated recently, growing by 13.6% annually over the last two years from $11.09 to $14.32 per share.
Over the next 12 months, Consensus estimates call for Old National Bank’s TBVPS to grow by 13.4% to $16.23, decent growth rate.
Key Takeaways from Old National Bank’s Q2 Results
We enjoyed seeing Old National Bank beat analysts’ revenue expectations this quarter. On the other hand, its net interest income missed and its EPS slightly exceeded Wall Street’s estimates. Overall, this was a mixed quarter with some positives. The stock traded up 1.9% to $26.67 immediately following the results.
Is Old National Bank an attractive investment opportunity at the current price? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).
