Midwestern regional bank Old National Bancorp (NASDAQ: ONB) fell short of the market’s revenue expectations in Q3 2026 as sales only rose 1% year on year to $720.4 million. Its non-GAAP profit of $0.66 per share was in line with analysts’ consensus estimates.
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Old National Bank (ONB) Q3 2026 Highlights:
- Net Interest Income: $584.3 million vs analyst estimates of $605.1 million (1.7% year-on-year growth, 3.4% miss)
- Net Interest Margin: 3.5% vs analyst estimates of 3.6% (5.9 basis point miss)
- Revenue: $720.4 million vs analyst estimates of $735.3 million (1% year-on-year growth, 2% miss)
- Efficiency Ratio: 46.1% vs analyst estimates of 45.4% (70 basis point miss)
- Adjusted EPS: $0.66 vs analyst estimates of $0.66 (in line)
- Tangible Book Value per Share: $13.77 vs analyst estimates of $14.73 (4.4% year-on-year growth, 6.5% miss)
- Market Capitalization: $9.69 billion
"With our strong 3rd quarter results, highlighted by record net income, a record efficiency ratio, and growth in both deposits and loans, Old National continues to demonstrate the strength and consistency of our operating model," said Chairman and CEO Jim Ryan. "Our disciplined focus on fundamentals continues to drive profitable growth, positive operating leverage, and meaningful value creation for our shareholders. As we look ahead, we remain very well positioned to build on this momentum and capitalize on opportunities across our growing franchise."
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
In general, banks make money from two primary sources. The first is net interest income, which is interest earned on loans, mortgages, and investments in securities minus interest paid out on deposits. The second source is non-interest income, which can come from bank account, credit card, wealth management, investment banking, and trading fees. Luckily, Old National Bank’s revenue grew at an incredible 27.7% compounded annual growth rate over the last five years. Its growth beat the average banking company and shows its offerings resonate with customers, a helpful starting point for our analysis.
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 24% 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’s revenue grew by 1% year on year to $720.4 million, falling short of Wall Street’s estimates.
Net interest income made up 80.2% of the company’s total revenue during the last five years, meaning Old National Bank barely relies on non-interest income to drive its overall growth.
Net interest income commands greater market attention due to its reliability and consistency, whereas non-interest income is often seen as lower-quality revenue that lacks the same dependable characteristics.
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Tangible Book Value Per Share (TBVPS)
Banks are balance sheet-driven businesses because they generate earnings primarily through borrowing and lending. They’re also valued based on their balance sheet strength and ability to compound book value (another name for shareholders’ equity) over time.
Because of this, tangible book value per share (TBVPS) emerges as the critical performance benchmark. By excluding intangible assets with uncertain liquidation values, this metric captures real, liquid net worth per share. Other (and more commonly known) per-share metrics like EPS can sometimes be murky due to M&A or accounting rules allowing for loan losses to be spread out.
Old National Bank’s TBVPS grew at a tepid 3.1% annual clip over the last five years. However, TBVPS growth has accelerated recently, growing by 7.1% annually over the last two years from $12.01 to $13.77 per share.
Over the next 12 months, Consensus estimates call for Old National Bank’s TBVPS to grow by 21.1% to $16.67, top-notch growth rate.
Key Takeaways from Old National Bank’s Q3 Results
We struggled to find many positives in these results. Its tangible book value per share missed and its net interest income fell short of Wall Street’s estimates. Overall, this quarter could have been better. The stock traded down 1.7% to $24.91 immediately after reporting.
Old National Bank may have had a tough quarter, but does that actually create an opportunity to invest right now? 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).
