Old National Puts Its Loan Spot Yield At 6.0%, With $4.6 Billion Of Fixed-Rate Loans To Reprice
The bank's investor deck also keeps its 2026 outlook unchanged, including net interest income of about $2,400 million, plus or minus 2%.
Old National Bancorp, the Evansville, Indiana, bank holding company, put its total loan portfolio spot yield at 6.0% on October 1, up from a third-quarter average loan yield of 5.92%. The figure comes from an investor presentation filed Wednesday.
Repricing and the rate position
The deck says about $4.6 billion of fixed-rate loans, carrying a weighted average rate of 5.1%, and about $1.8 billion of fixed-rate securities at 4.2% reprice over the 12 months after September 30.
The bank describes itself as positioned for rising rates: 63% of loans are variable or floating rate, and 94% of those reprice within three months. Current spot rates favor net interest margin by about 2 basis points, the deck says, and $3.4 billion of net balance sheet hedges protect against downside rate risk.
The third-quarter margin was 3.52%, against 3.54% in the second quarter and 3.64% a year earlier.
Outlook left alone
Management left its full-year 2026 guidance unchanged from the prior quarter. That includes net interest income of about $2,400 million, plus or minus 2%, and noninterest expense of about $1,435 million to $1,455 million.
The bank still expects positive operating leverage and earnings-per-share growth above 15%. It assumes no Federal Reserve rate action in the fourth quarter.
The third quarter itself brought record net income of $254 million and earnings of $0.66 per share. The efficiency ratio, which measures costs against revenue, hit a record 46.1%, or 44.9% on an adjusted basis.
Real estate exposure
As of September 30, the multifamily book was $6.8 billion, with no material rent-controlled exposure. The office portfolio was $2.3 billion, and 10% of the non-owner-occupied office loans sit in central business districts.
Old National, which had 346 banking centers and $74 billion in assets, also reported a $612 million allowance for credit losses, or 1.20% of total loans.
The bank's next test is fourth-quarter results, which will show whether the above-15% earnings-per-share growth guidance holds.
Sources
- 8-K Filing — OLD NATIONAL BANCORP /IN/ (ONB) — SEC EDGAR
- Exhibit onbinvestmentthesis3q26.htm — OLD NATIONAL BANCORP /IN/ 8-K exhibit — SEC EDGAR
