Old National Bancorp (ONB) Q3 2025 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 22 2025
0mins
Should l Buy ONB?
Source: SeekingAlpha
Adjusted Earnings Per Share (EPS) $0.59, an 11% increase over the prior quarter and a 28% increase year-over-year. This was driven by the full quarter impact of Bremer operations, margin expansion, better-than-expected growth in fee income, and well-controlled expenses.
Return on Average Tangible Common Equity 20%, reflecting strong profitability and operational efficiency.
Return on Assets (ROA) 1.3%, indicating strong asset utilization and profitability.
Efficiency Ratio Below 50%, showing improved operational efficiency.
CET1 Ratio Over 11%, a 28 basis points increase from the prior quarter, driven by strong retained earnings and capital generation despite merger-related charges and share repurchases.
Tangible Book Value Per Share Grew 4% from 2Q and 10% year-over-year, even with the impact of merger charges and share repurchases.
Loan Growth (Excluding Bremer) 3.1% annualized from last quarter, supported by a 20% increase in production from the prior quarter and a 40% year-over-year increase in the legacy Old National pipeline.
Deposit Growth 4.8% annualized, with core deposits (excluding brokered) growing 5.8% annualized, driven by growth from existing and new commercial clients.
Net Interest Income and Margin Increased due to the full quarter impact of Bremer, asset repricing, and organic growth.
Adjusted Noninterest Income $130 million for the quarter, exceeding guidance, driven by Bremer and organic growth in primary fee businesses, with strong performance in capital markets.
Adjusted Noninterest Expenses $376 million for the quarter, reflecting a full quarter impact of Bremer operations, with well-controlled run rate expenses and a low 48% efficiency ratio.
Credit Metrics Total net charge-offs were 25 basis points, with a 6% reduction in criticized and classified loans, reflecting active portfolio management.
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Analyst Views on ONB
Wall Street analysts forecast ONB stock price to rise
7 Analyst Rating
4 Buy
3 Hold
0 Sell
Moderate Buy
Current: 24.175
Low
25.00
Averages
26.29
High
29.00
Current: 24.175
Low
25.00
Averages
26.29
High
29.00
About ONB
Old National Bancorp is the financial holding company of Old National Bank. Old National Bank is a commercial bank that provides a range of services primarily throughout the Midwest and Southeast regions of the United States. It provides commercial and consumer loan and depository services, private banking, capital markets, brokerage, wealth management, trust, investment advisory, and other traditional banking services. It also provides services in consumer and commercial banking; Old National Bank offers comprehensive wealth management and capital markets services. Each of the banking centers of Old National Bank provides a group of similar community banking services, including such products and services as commercial, real estate, and consumer loans; deposits; and private banking, capital markets, brokerage, wealth management, trust, and investment advisory services. Its lending activities include loans to individuals, and loans to commercial clients.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Old National Bank Engages in Financial Literacy Roundtable
- Financial Literacy Advocacy: Old National Bank participated in the U.S. Treasury's Financial Literacy Month Roundtable, emphasizing the importance of financial education for the long-term success of clients and the bank, showcasing its leadership in the community.
- Education Platform Expansion: Through its Real-Life Finance® platform, Old National Bank offers diverse financial education services, including school programs and partnerships with nonprofits, recently adding Spanish-language content to meet the needs of a diverse clientele.
- Community Impact: Treasury Secretary Bessent highlighted the critical role of community banks in enhancing financial education and creating opportunities, aligning Old National's efforts with the National Strategy for Financial Inclusion aimed at reducing unbanked households.
- Industry Recognition: Old National Bank was named one of
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Old National Bancorp Preferred Stock Dividend History
- Dividend History Overview: Old National Bancorp's 7.00% Non-Cumulative Preferred Stock Series A (ONBPP) recently declared a dividend of $0.4375 per share, indicating the company's commitment to maintaining shareholder returns.
- ETF Holdings Insight: According to ETF Finder, Old National Bancorp (ONB) constitutes 2.79% of the First Trust Dorsey Wright Momentum & Value ETF (DVLU), highlighting its significance within investment portfolios.
- Stock Performance: In Friday trading, Old National Bancorp's preferred shares (ONBPP) were down about 0.1%, while common shares (ONB) rose approximately 0.3%, suggesting a growing preference for common stock among investors.
- Market Dynamics: Despite the slight decline in preferred shares, the overall market interest in Old National Bancorp remains high, reflecting investor confidence in its future performance.
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Banking Sector Faces Disruption from Fintech
- Banking Sector Growth: The banking industry has posted an 11.3% gain over the past six months, outperforming the S&P 500 by 6.3 percentage points, indicating improved net interest margins and robust credit growth, but future competition from fintech is expected to intensify.
- Concerns on Old National Bank: Old National Bank's net interest margin stands at 3.5%, significantly below industry averages, and its five-year annual earnings per share growth of 5.8% suggests insufficient profitability, which may deter long-term investment interest.
- NBT Bancorp's Lackluster Growth: NBT Bancorp has experienced only 9.3% annual sales growth, below typical banking standards, and its estimated net interest income growth of 6.7% for the next 12 months indicates a slowdown in demand, potentially leading to further market share loss.
- Arbor Realty Trust's Capital Management Issues: Arbor Realty Trust has seen a decline in earnings per share over the past two years, with an annual tangible book value per share decrease of 5.1%, highlighting challenges in capital management during the current economic cycle, which could undermine investor confidence.
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Old National Bancorp Q1 2026 Earnings Exceed Expectations
- Earnings Beat: Old National Bancorp reported Q1 2026 GAAP earnings per share of $0.59, with adjusted EPS at $0.61, exceeding analyst expectations and demonstrating robust loan growth and effective funding management in a competitive market.
- Capital Return Strategy: The company repurchased 3.9 million shares during the quarter and plans to continue buybacks under existing authorization, indicating a strong commitment to shareholder returns while asserting that acquisitions are not necessary for growth objectives.
- Loan and Deposit Growth: Total loans grew at an annualized rate of 8% in Q1, led by a 16.9% annualized increase in commercial and industrial loans, while total deposits increased by 4.2% annualized, reflecting strong performance in the core deposit franchise.
- Stable Outlook: Management maintained its full-year 2026 guidance, expecting earnings per share growth of over 15%, and emphasized that the company's profitability and expense control will remain peer-leading in a stable interest rate environment.
See More
Old National Bancorp Reports Q1 Earnings Growth
- Significant Earnings Growth: Old National Bancorp reported a net income of $229.64 million for Q1, translating to $0.59 per share, which marks a substantial increase from last year's $140.63 million and $0.44 per share, indicating a strong enhancement in the company's profitability.
- Adjusted Earnings Performance: Excluding special items, the bank's adjusted earnings reached $237.65 million, or $0.61 per share, further reflecting robust performance in core operations and an increase in profitability.
- Revenue Surge: The company's revenue for the quarter rose by 47.7% to $572.57 million, compared to $387.64 million last year, showcasing strong market demand and business expansion capabilities.
- Enhanced Market Competitiveness: With continuous revenue and earnings growth, Old National Bancorp's competitive position in the financial market has significantly improved, suggesting potential market share expansion and increased investor confidence in the future.
See More
Old National Bancorp Q1 Earnings Beat Expectations
- Earnings Beat: Old National Bancorp reported a Q1 non-GAAP EPS of $0.61, exceeding expectations by $0.01, indicating stability in profitability and market confidence.
- Significant Revenue Growth: The bank's revenue reached $702.77 million, up 46.0% year-over-year, although it fell short of expectations by $3.7 million, reflecting increased market competition and economic uncertainty.
- Slight Margin Decline: The net interest margin (NIM) on a fully taxable equivalent basis was 3.55%, down 10 basis points from the previous quarter, highlighting the impact of changing interest rate environments on profitability.
- Share Buyback Plan: Old National Bancorp announced a share buyback of up to $400 million, a move aimed at enhancing shareholder value and potentially reflecting the company's confidence in future growth.
See More
Old National Bank Engages in Financial Literacy Roundtable
- Financial Literacy Advocacy: Old National Bank participated in the U.S. Treasury's Financial Literacy Month Roundtable, emphasizing the importance of financial education for the long-term success of clients and the bank, showcasing its leadership in the community.
- Education Platform Expansion: Through its Real-Life Finance® platform, Old National Bank offers diverse financial education services, including school programs and partnerships with nonprofits, recently adding Spanish-language content to meet the needs of a diverse clientele.
- Community Impact: Treasury Secretary Bessent highlighted the critical role of community banks in enhancing financial education and creating opportunities, aligning Old National's efforts with the National Strategy for Financial Inclusion aimed at reducing unbanked households.
- Industry Recognition: Old National Bank was named one of
See More
Old National Bancorp Preferred Stock Dividend History
- Dividend History Overview: Old National Bancorp's 7.00% Non-Cumulative Preferred Stock Series A (ONBPP) recently declared a dividend of $0.4375 per share, indicating the company's commitment to maintaining shareholder returns.
- ETF Holdings Insight: According to ETF Finder, Old National Bancorp (ONB) constitutes 2.79% of the First Trust Dorsey Wright Momentum & Value ETF (DVLU), highlighting its significance within investment portfolios.
- Stock Performance: In Friday trading, Old National Bancorp's preferred shares (ONBPP) were down about 0.1%, while common shares (ONB) rose approximately 0.3%, suggesting a growing preference for common stock among investors.
- Market Dynamics: Despite the slight decline in preferred shares, the overall market interest in Old National Bancorp remains high, reflecting investor confidence in its future performance.
See More
Banking Sector Faces Disruption from Fintech
- Banking Sector Growth: The banking industry has posted an 11.3% gain over the past six months, outperforming the S&P 500 by 6.3 percentage points, indicating improved net interest margins and robust credit growth, but future competition from fintech is expected to intensify.
- Concerns on Old National Bank: Old National Bank's net interest margin stands at 3.5%, significantly below industry averages, and its five-year annual earnings per share growth of 5.8% suggests insufficient profitability, which may deter long-term investment interest.
- NBT Bancorp's Lackluster Growth: NBT Bancorp has experienced only 9.3% annual sales growth, below typical banking standards, and its estimated net interest income growth of 6.7% for the next 12 months indicates a slowdown in demand, potentially leading to further market share loss.
- Arbor Realty Trust's Capital Management Issues: Arbor Realty Trust has seen a decline in earnings per share over the past two years, with an annual tangible book value per share decrease of 5.1%, highlighting challenges in capital management during the current economic cycle, which could undermine investor confidence.
See More
Old National Bancorp Q1 2026 Earnings Exceed Expectations
- Earnings Beat: Old National Bancorp reported Q1 2026 GAAP earnings per share of $0.59, with adjusted EPS at $0.61, exceeding analyst expectations and demonstrating robust loan growth and effective funding management in a competitive market.
- Capital Return Strategy: The company repurchased 3.9 million shares during the quarter and plans to continue buybacks under existing authorization, indicating a strong commitment to shareholder returns while asserting that acquisitions are not necessary for growth objectives.
- Loan and Deposit Growth: Total loans grew at an annualized rate of 8% in Q1, led by a 16.9% annualized increase in commercial and industrial loans, while total deposits increased by 4.2% annualized, reflecting strong performance in the core deposit franchise.
- Stable Outlook: Management maintained its full-year 2026 guidance, expecting earnings per share growth of over 15%, and emphasized that the company's profitability and expense control will remain peer-leading in a stable interest rate environment.
See More
Old National Bancorp Reports Q1 Earnings Growth
- Significant Earnings Growth: Old National Bancorp reported a net income of $229.64 million for Q1, translating to $0.59 per share, which marks a substantial increase from last year's $140.63 million and $0.44 per share, indicating a strong enhancement in the company's profitability.
- Adjusted Earnings Performance: Excluding special items, the bank's adjusted earnings reached $237.65 million, or $0.61 per share, further reflecting robust performance in core operations and an increase in profitability.
- Revenue Surge: The company's revenue for the quarter rose by 47.7% to $572.57 million, compared to $387.64 million last year, showcasing strong market demand and business expansion capabilities.
- Enhanced Market Competitiveness: With continuous revenue and earnings growth, Old National Bancorp's competitive position in the financial market has significantly improved, suggesting potential market share expansion and increased investor confidence in the future.
See More
Old National Bancorp Q1 Earnings Beat Expectations
- Earnings Beat: Old National Bancorp reported a Q1 non-GAAP EPS of $0.61, exceeding expectations by $0.01, indicating stability in profitability and market confidence.
- Significant Revenue Growth: The bank's revenue reached $702.77 million, up 46.0% year-over-year, although it fell short of expectations by $3.7 million, reflecting increased market competition and economic uncertainty.
- Slight Margin Decline: The net interest margin (NIM) on a fully taxable equivalent basis was 3.55%, down 10 basis points from the previous quarter, highlighting the impact of changing interest rate environments on profitability.
- Share Buyback Plan: Old National Bancorp announced a share buyback of up to $400 million, a move aimed at enhancing shareholder value and potentially reflecting the company's confidence in future growth.
See More
