tiprankstipranks
Trending News
More News >
Old National Bancorp Capital (ONB)
NASDAQ:ONB

Old National Bancorp Capital (ONB) AI Stock Analysis

Compare
186 Followers

Top Page

ON

Old National Bancorp Capital

(NASDAQ:ONB)

Rating:75Outperform
Price Target:
$23.50
▲(3.25%Upside)
Old National Bancorp Capital presents a strong financial performance with stable growth prospects and efficient cost management. The recent merger with Bremer Financial and successful fundraising efforts enhance its market position and operational scale. Technical indicators suggest a balanced outlook, while valuation metrics favor potential undervaluation and income opportunities. The earnings call reflects confidence in strategic initiatives despite macroeconomic challenges. Overall, the stock is well-positioned for potential growth in the regional banking sector.

Old National Bancorp Capital (ONB) vs. SPDR S&P 500 ETF (SPY)

Old National Bancorp Capital Business Overview & Revenue Model

Company DescriptionOld National Bancorp operates as the bank holding company for Old National Bank that provides various financial services to individual and commercial customers in the United States. It accepts deposit accounts, including noninterest-bearing demand, interest-bearing checking, negotiable order of withdrawal, savings and money market, and time deposits; and offers loans, such as home equity lines of credit, residential real estate loans, consumer loans, commercial loans, commercial real estate loans, letters of credit, and lease financing. The company also provides debit and automated teller machine cards, telephone access, online banking, and other electronic and mobile banking services; cash management, private banking, brokerage, trust, investment advisory, and other traditional banking services; wealth management, investment, and foreign currency services; and treasury management, merchant, health savings, and capital markets services, as well as community development lending and equity investment solutions. As of December 31, 2021, it operated a total of 162 banking centers located primarily in the states of Indiana, Kentucky, Michigan, Minnesota, and Wisconsin. Old National Bancorp was founded in 1834 and is headquartered in Evansville, Indiana.
How the Company Makes MoneyOld National Bancorp Capital generates revenue through a diversified model encompassing various financial services. Key revenue streams include interest income from loans and credit products offered to consumers and businesses, and non-interest income derived from fees and service charges on deposit accounts, wealth management services, and other banking operations. The company also earns income through its investment portfolio and treasury operations. Significant partnerships and community engagement initiatives help ONB expand its market reach and customer base, contributing to its earnings.

Old National Bancorp Capital Earnings Call Summary

Earnings Call Date:Apr 22, 2025
(Q1-2025)
|
% Change Since: 19.35%|
Next Earnings Date:Jul 22, 2025
Earnings Call Sentiment Neutral
Old National Bancorp delivered strong financial results with better-than-expected earnings, robust deposit and loan growth, and a successful Bremer Bank partnership. However, challenges include economic uncertainties impacting loan forecasts and competitive pressures in the CRE market. Overall, the sentiment is balanced with confidence in strategic initiatives but caution due to external factors.
Q1-2025 Updates
Positive Updates
Better-than-Expected Earnings
Old National Bancorp reported earnings per share of $0.44, with adjusted earnings per share at $0.45, driven by strong loan and deposit growth.
Strong Deposit and Loan Growth
Total deposit growth was up 2.1% annualized, and core deposits excluding brokered deposits increased by 1.7% annualized. End-of-period total loans increased 1.5% annualized from last quarter.
Successful Bremer Bank Partnership
Old National received regulatory approvals for the Bremer Bank partnership, with legal close anticipated on May 1. This partnership enhances their footprint and provides a boost for balance sheet and earnings growth.
Improved Tangible Book Value
Tangible book value per share increased by 5% compared to the previous quarter and by 13% year-over-year.
Strong Capital Position
CET1 ratio increased to 11.62%, up 86 basis points from a year ago, providing significant flexibility for future growth.
Negative Updates
Uncertain Macroeconomic Environment
Global trade and economic uncertainty were incorporated into the allowance for credit loss, reflecting a cautious outlook.
Potential Challenges in Loan Growth
Despite strong pipelines, there is increased uncertainty around loan growth forecasts due to macroeconomic conditions.
Competitive Market Impacting CRE
Commercial Real Estate (CRE) market is increasingly competitive, affecting pull-through rates despite strong pipelines.
Company Guidance
During the Old National Bancorp First Quarter 2025 Earnings Conference Call, the company provided guidance indicating a positive outlook for the year, despite the challenging economic environment. The company's adjusted earnings per share for the first quarter were $0.45, with net interest income and margin performance in line with expectations. Old National reported a tangible book value per share increase of 5% from the previous quarter and 13% year-over-year, with a strong CET1 ratio of 11.62%. Deposit growth was strong, with total deposits up 2.1% annualized and core deposits ex-brokered up 1.7% annualized. The company maintained a loan-to-deposit ratio of 89% and reported a cumulative total deposit beta of 37%. Moving forward, the company expects continued growth in net interest income and margin, supported by repricing dynamics and the Bremer Bank partnership. The guidance for the second quarter and full year 2025 includes expected full-year loan growth of 4% to 6%, with the Bremer partnership anticipated to close on May 1, providing additional scale and earnings growth.

Old National Bancorp Capital Financial Statement Overview

Summary
Old National Bancorp shows strong revenue growth and operational efficiency with a zero-debt position, reflecting financial robustness. However, declining net profit margins and substantial investing cash outflows indicate areas needing attention.
Income Statement
75
Positive
Old National Bancorp has shown strong revenue growth, with a significant increase in total revenue from the previous year. The gross profit margin remained stable at 100% due to the nature of the banking industry. However, the net profit margin has slightly declined, pointing towards increased expenses or lower profitability. The EBIT margin is impressive at 96.9%, indicating efficient operational control.
Balance Sheet
70
Positive
The company maintains a solid equity base with a healthy equity ratio of 11.8%, reflecting financial stability. The debt-to-equity ratio is zero, emphasizing a debt-free position, which is a strong positive indicator. Return on equity is reasonable at 8.5%, but there is room for improvement.
Cash Flow
68
Positive
Operating cash flow has improved, and free cash flow shows positive growth. The operating cash flow to net income ratio is 1.15, indicating strong cash earnings. However, the large investing cash outflows could indicate potential risks if not managed well.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.01B2.96B2.54B1.85B853.03M902.58M
Gross Profit1.81B1.77B1.78B1.58B840.24M792.49M
EBITDA776.11M746.07M816.56M607.03M377.47M298.56M
Net Income563.56M539.19M581.99M428.29M277.54M226.41M
Balance Sheet
Total Assets53.88B53.55B49.09B46.76B24.45B22.96B
Cash, Cash Equivalents and Short-Term Investments8.99B8.69B7.89B7.50B8.20B6.56B
Total Debt5.45B5.41B5.33B5.59B2.65B2.76B
Total Liabilities47.34B47.21B43.53B41.63B21.44B19.99B
Stockholders Equity6.53B6.34B5.56B5.13B3.01B2.97B
Cash Flow
Free Cash Flow598.67M592.01M477.97M776.52M281.69M188.95M
Operating Cash Flow626.26M622.28M516.34M814.42M330.38M219.82M
Investing Cash Flow-876.38M-1.37B-1.82B-1.69B-1.43B-2.14B
Financing Cash Flow550.40M802.59M1.75B777.48M1.33B2.24B

Old National Bancorp Capital Technical Analysis

Technical Analysis Sentiment
Positive
Last Price22.76
Price Trends
50DMA
21.14
Positive
100DMA
21.17
Positive
200DMA
20.96
Positive
Market Momentum
MACD
0.33
Negative
RSI
69.10
Neutral
STOCH
92.49
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ONB, the sentiment is Positive. The current price of 22.76 is above the 20-day moving average (MA) of 21.20, above the 50-day MA of 21.14, and above the 200-day MA of 20.96, indicating a bullish trend. The MACD of 0.33 indicates Negative momentum. The RSI at 69.10 is Neutral, neither overbought nor oversold. The STOCH value of 92.49 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ONB.

Old National Bancorp Capital Risk Analysis

Old National Bancorp Capital disclosed 42 risk factors in its most recent earnings report. Old National Bancorp Capital reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Old National Bancorp Capital Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$6.62B11.8110.17%2.21%6.58%26.56%
76
Outperform
$8.19B10.8113.06%3.10%4.84%28.90%
ONONB
75
Outperform
$8.42B13.249.29%2.46%13.68%-6.57%
PBPB
74
Outperform
$7.04B14.116.83%3.14%9.02%20.88%
74
Outperform
$7.83B11.8012.54%2.45%9.33%43.64%
SNSNV
73
Outperform
$7.66B15.4610.63%2.83%-1.56%22.50%
67
Neutral
¥718.51B10.847.44%3.36%7.82%15.26%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ONB
Old National Bancorp Capital
22.76
6.52
40.15%
BOKF
Bok Financial
102.96
16.92
19.67%
BPOP
Popular
114.30
30.70
36.72%
PB
Prosperity Bancshares
73.86
16.50
28.77%
SNV
Synovus
55.10
17.04
44.77%
ZION
Zions Bancorporation National Association
55.50
14.28
34.64%

Old National Bancorp Capital Corporate Events

Private Placements and Financing
Old National Bancorp Completes Share Settlement, Raises $443M
Positive
May 28, 2025

Old National Bancorp entered into an underwriting agreement and forward sale agreements on November 25, 2024, involving the sale of 19,047,619 shares of common stock, with Citigroup Global Markets Inc. acting as the representative for the underwriters. The company also granted an option to purchase an additional 2,857,143 shares, which was exercised in full on the same day. On May 23, 2025, Old National Bancorp settled these agreements by delivering a total of 21,904,762 shares, resulting in net proceeds of approximately $443.2 million.

The most recent analyst rating on (ONB) stock is a Buy with a $63.00 price target. To see the full list of analyst forecasts on Old National Bancorp Capital stock, see the ONB Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Old National Bancorp Capital’s 2025 Shareholder Meeting Outcomes
Neutral
May 19, 2025

On May 14, 2025, Old National Bancorp Capital held its 2025 Annual Meeting of Shareholders, where shareholders voted on three key matters. All nominees for the Board of Directors were elected for a one-year term, the advisory proposal on executive compensation was approved, and Deloitte & Touche LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

The most recent analyst rating on (ONB) stock is a Buy with a $63.00 price target. To see the full list of analyst forecasts on Old National Bancorp Capital stock, see the ONB Stock Forecast page.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Old National Bancorp Highlights Q1 2025 Performance
Neutral
May 15, 2025

Old National Bancorp has released an investor presentation for the first quarter of 2025, highlighting its strategic objectives and financial performance. The company emphasizes the use of non-GAAP financial measures to provide a clearer picture of its operational performance, excluding items that do not pertain to core operations. The release also discusses the potential impacts of its merger with Bremer Financial Corporation, including risks related to integration and financial benefits.

The most recent analyst rating on (ONB) stock is a Buy with a $63.00 price target. To see the full list of analyst forecasts on Old National Bancorp Capital stock, see the ONB Stock Forecast page.

Dividends
Old National Bancorp Declares Quarterly Cash Dividends
Positive
May 14, 2025

On May 14, 2025, Old National Bancorp announced that its Board of Directors declared a quarterly cash dividend of $0.14 per share on its common stock, payable on June 16, 2025, to shareholders recorded by June 5, 2025. Additionally, a quarterly cash dividend of $17.50 per share on its 7.0% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A and C, was declared, payable on August 20, 2025, to shareholders recorded by August 5, 2025. These dividends reflect the company’s ongoing commitment to providing shareholder value and may enhance its attractiveness to investors, reinforcing its strong market position.

The most recent analyst rating on (ONB) stock is a Buy with a $63.00 price target. To see the full list of analyst forecasts on Old National Bancorp Capital stock, see the ONB Stock Forecast page.

Executive/Board ChangesM&A Transactions
Old National Completes Merger with Bremer Financial
Positive
May 1, 2025

On May 1, 2025, Old National Bancorp completed its merger with Bremer Financial Corporation, significantly enhancing its market presence and operational scale. This merger, which included the integration of Bremer Bank into Old National Bank, positions Old National among the top 25 U.S. banking companies and increases its Community Growth Plan commitments to $11.1 billion. The merger also sees the addition of Daniel Reardon to the Old National Board of Directors, further strengthening its leadership team.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 24, 2025