Old National Bancorp Q1 FY2026 earnings call

Priorities include driving organic growth and returning capital to shareholders. Investing in talent, recently strengthening commercial leadership team. Accelerating efficiency and scalability through technology and AI investments, achieving record adjusted efficiency ratio in top decile of industry. Operating in a higher for longer rate environment, balance sheet neutral to short end of curve, granular low-cost deposit base helps contain funding costs

Loan growth: Total loans grew 8% annualized, led by 16.9% annualized growth in CNI. Deposits: Total deposits increased 4.2% annualized. Earnings: GAAP 1Q earnings per share of 59 cents; adjusted earnings per share were 61 cents. Capital: CET 1 over 11%, tangible book value per share grew 6% annualized and 11% year over year

Full year loan growth expected to be 4% to 6%, may trend to higher end. NII guidance unchanged. Fee income expected to trend toward higher end of full-year guide. Expense guidance unchanged despite better-than-expected first quarter outcome

Risks include higher for longer rate outlook and continued industry uncertainty. Impact of sub-debt issuance and seasonal factors on net interest income. Regulatory changes, especially proposed capital rule changes, could impact capital position and operations

Q: Walk through major drivers of NII momentum going forward?

A: More cooperative yield curve, $5.5 billion pipeline up 14% year over year, balanced business mix of TRE vs CNI.

Q: On expenses and hiring, how does it relate to guidance?

A: Expense guidance unchanged due to robust talent pipeline.

Q: On loan growth and capital rules, impact?

A: Loan growth driven by go-to-market strategies, proposed capital rules could provide capital optionality for future growth