Regional Banks' Steady Quarter: Old National's Record $250M, First Merchants' CEO Handoff
No drama in the quarterlies, but the corporate actions underneath are loud: an acquisition closing, a merger pending, and a corner-office succession.
- Old National Bancorp reported record Q3 net income of $250 million ($0.66 per share) with a record efficiency ratio of 46.1%, deposits of $57.6 billion, and a $100 million share repurchase, the company says. Self-reported m:…0845
- BancFirst reported Q3 net income of $67.3 million ($1.97 per share) with net interest income of $136.0 million and a 3.85% net interest margin, and confirmed its Spirit Bank acquisition closes in October 2026, the company says. Self-reported m:…0927
- TriCo Bancshares reported Q3 net income of $38.0 million ($1.18 per share), a $0.36 dividend, and $3.8 million in merger expenses as it prepares for its merger with First Hawaiian Bank, the company says. Self-reported m:…8926
- First Merchants reported Q3 net income of $67.8 million ($1.09 per share) and announced President Mike Stewart will succeed retiring CEO Mark Hardwick at year-end 2026, alongside a $100 million subordinated debt issuance, the company says. Self-reported m:…1824
Old National's record
Old National Bancorp reported record third quarter net income applicable to common shares of $250.0 million, or $0.66 per diluted share. The quarter carried a record efficiency ratio of 46.1%, which is the number that should make peers uncomfortable: it means the bank is converting revenue into earnings better than it ever has. Net interest income on a fully taxable equivalent basis was $592.0 million. m:…0845
Balance-sheet growth was real but disciplined. Period-end deposits were $57.6 billion, up 10.6% annualized, and loans were $51.2 billion, up 2.9% annualized. The bank repurchased $100 million of common stock, or 3.9 million shares, during the quarter. Credit held up: the provision for credit losses was $33.6 million and net charge-offs were $34.1 million, or 27 basis points of average loans, against a preliminary Tier 1 common equity ratio of 11.11%. Reasoning: a record quarter built on deposit gathering and efficiency rather than on credit risk is the version of regional banking that investors say they want. m:…0845
BancFirst and TriCo
BancFirst Corporation reported net income of $67.3 million, or $1.97 per diluted share, for the third quarter of 2026, driven by growth in earning assets and net interest income. Net interest income for the three months ended September 30, 2026 was $136.0 million, with a net interest margin of 3.85% on $15.0 billion of total assets. Noninterest expense grew to $98.2 million, which the company says was primarily attributable to a $4.1 million increase in salaries and employee benefits. m:…0927
The corporate action is the point of the BancFirst filing: the previously announced acquisition of Tulsa-based Spirit Bank is on schedule to close in October. TriCo Bancshares, meanwhile, reported net income of $38.0 million and diluted EPS of $1.18, declared a $0.36 quarterly dividend payable November 27, 2026, and incurred $3.8 million in merger-related expenses as it prepares for its merger with First Hawaiian Bank. Loan balances grew $99.1 million, or 5.4% annualized, from the trailing quarter, and the efficiency ratio was 56.96%. Two banks, two pending combinations, both printing steady quarters while the lawyers finish. m:…0927 m:…8926
First Merchants' handoff
First Merchants Corporation reported net income available to common stockholders of $67.8 million, or $1.09 per diluted share. The net interest margin on a fully taxable equivalent basis was 3.44%, up 6 basis points from the prior quarter. Deposit growth was 4.2% annualized on a linked-quarter basis and loan growth was 1.8% annualized. Nonperforming assets were 57 basis points of total assets, and the provision for credit losses was $3.3 million. m:…1824
The headline underneath the numbers: President Mike Stewart will succeed Mark Hardwick as chief executive upon Hardwick's retirement at year-end 2026. The filing also discloses a $100 million subordinated debt issuance completed in late September 2026, and a Common Equity Tier 1 ratio of 11.22%. A CEO succession announced alongside a subordinated-debt raise and an 11.22% CET1 ratio reads as a planned transition, not a forced one. The unresolved item the filing leaves open, the specific compensation terms for the incoming CEO, is the detail bankers will want to see next. m:…1824
The pattern across all four filings is worth stating plainly. Old National paired a record efficiency ratio with deposit growth above 10% annualized; BancFirst paired margin stability with an acquisition about to close; TriCo absorbed $3.8 million of merger expense while growing loans; First Merchants changed CEOs without changing its capital story. Reasoning: regional consolidation is continuing, and it is being financed by operating earnings rather than by stretching credit. That is a healthier way to merge. m:…0845 m:…0927 m:…8926 m:…1824
What is still unresolved
- Final regulatory approvals for the BancFirst-Spirit Bank acquisition.
- Regulatory approval status for the TriCo-First Hawaiian Bank merger.
- Compensation terms for incoming First Merchants CEO Mike Stewart.
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