Old National Bancorp (ONB) Balance Sheet

The balance sheet has grown steadily from $49.5B in 2024Q1 to $74.2B in 2026Q2, reflecting the First Midwest merger and organic expansion. Investment securities dominate the asset mix, increasing from $43.2B to $65.3B over the period, suggesting a strategy of deploying excess liquidity into higher-yielding securities rather than aggressive loan growth. This asset growth appears funded by a corresponding rise in liabilities, with total liabilities up from $43.9B to $65.6B, indicating a reliance on deposit and wholesale funding to support the expansion.

While specific deposit composition data is not provided, the bank's operational model, as described in company intelligence, emphasizes a granular deposit base from rural Indiana markets, which typically carries lower interest costs and higher stability. The absence of a loan-to-deposit ratio in the data limits direct analysis, but the stable cash and bank balances around $1.8B suggest adequate liquidity. Investors should monitor deposit betas in a falling rate environment, as the bank's rural deposit base may reprice slower than urban competitors, potentially supporting margins.

The provision volatility, including a $106.8M spike in 2025Q2, suggests management is building reserves proactively, possibly in response to Chicago CRE concentration risks. However, the low net charge-offs (implied by the data) indicate that actual credit deterioration has not yet materialized. The increase in provisions without corresponding charge-offs may indicate a cautious stance on future losses, particularly in the commercial real estate portfolio, which warrants close monitoring.

The equity-to-assets ratio has remained stable at 0.12, indicating a consistent capital position despite rapid asset growth. Equity has grown organically through retained earnings, supported by strong profitability, as evidenced by ROE improving from 2.2% in 2024Q1 to 3.0% in 2026Q2. This capital build provides a buffer for potential credit losses and supports future capital deployment, though the lack of detailed CET1 data limits a full assessment of regulatory capital adequacy.

The bank holds a significant portion of assets in investment securities, which can be sold or pledged for liquidity if needed. Cash balances have been stable, suggesting no immediate liquidity stress. The reliance on securities rather than wholesale funding appears to be a deliberate strategy to manage interest rate risk, though it also exposes the bank to mark-to-market volatility in AOCI, which could impact capital if rates rise sharply.