ONBPO Overview

• Outstanding Earnings: Old National Bancorp reported an adjusted EPS of $0.62 for Q4 2025, reflecting a 5% quarter-over-quarter increase and a 27% year-over-year rise, showcasing significant improvements in profitability that solidify its competitive position in the industry.
• Loan Growth Outlook: Management anticipates loan growth of 4% to 6% in 2026, a positive outlook that reflects the success of the company's core deposit strategy execution, expected to drive future revenue growth and market share expansion.
• Capital Management Strategy: Despite merger-related charges, Old National Bancorp achieved a 15% increase in tangible book value per share and plans to be more active in share repurchases in 2026, indicating a strong balance between capital returns and organic growth.
• Efficiency Ratio Innovation: The adjusted efficiency ratio dropped to a record low of 46%, demonstrating ongoing improvements in cost control and operational efficiency, which further enhance its profitability and competitive edge in the market.

• Quarterly Cash Dividend Declared: Old National Bancorp's Board of Directors announced a quarterly cash dividend of $0.14 per share, payable on December 15, 2025, to shareholders of record by December 5, 2025.

• Preferred Stock Dividend Announced: The Board also declared a quarterly cash dividend of $17.50 per share on its 7.0% Fixed Rate Non-Cumulative Perpetual Preferred Stock, payable on February 20, 2026, to shareholders of record by February 5, 2026.

• Company Overview: Old National Bancorp, the sixth largest commercial bank in the Midwest, manages approximately $71 billion in assets and focuses on building long-term partnerships while serving clients primarily in the Midwest and Southeast.

• Community Recognition: In 2025, Old National was recognized as one of "The Civic 50," highlighting its commitment to community service and being among the most community-minded companies in the U.S.

• Earnings Release Date: Old National Bancorp (NASDAQ:ONB) is scheduled to announce its Q3 2025 earnings on October 22, 2025, with expected revenue of $696.71 million and earnings of $0.49 per share.

• Revenue and Earnings Estimates: Full year 2025 revenue estimates remain at $2.53 billion, while earnings estimates have decreased from $1.86 to $1.82 per share; 2026 revenue estimates have slightly declined.

• Previous Quarter Performance: In Q2 2025, ONB reported revenue of $647.31 million, exceeding expectations, and earnings of $0.34 per share, also surpassing forecasts, despite a 1.50% drop in stock price post-results.

• Analyst Recommendations: The average target price for ONB is $26.33, indicating a potential upside of 27.52%, with a consensus recommendation of 2.1, suggesting an "Outperform" status among analysts.

• Presentation Announcement: Old National Bancorp's CEO Jim Ryan will present at the 2025 Barclays Global Financial Services Conference on September 8, 2025, at 2:45 p.m. ET, with a live webcast available on their Investor Relations website.

• Company Overview: Old National Bancorp, the sixth largest commercial bank in the Midwest, manages approximately $71 billion in assets and has been recognized as one of "The Civic 50" for its community engagement efforts.

Old National Bancorp Dividend Information

• Ex-Dividend Date: Old National Bancorp (NASDAQ: ONB) will go ex-dividend in 4 days, specifically on September 5th. Investors must own shares before this date to receive the upcoming dividend payment.
• Dividend Payment: The next dividend payment is set at US$0.14 per share, with a total distribution of US$0.56 to shareholders over the last year. This results in a trailing yield of 2.4% based on the current share price of US$22.89.

Dividend Sustainability and Company Performance

• Payout Ratio: The company paid out 33% of its profit in dividends last year, indicating a sustainable dividend as it is less than the earnings generated.
• Earnings Stability: Old National Bancorp's earnings have remained flat over the past five years, which raises concerns about long-term dividend sustainability. However, the company reinvests over half of its profits, which may support future growth.

Historical Dividend Growth

• Dividend Growth Rate: Over the past decade, Old National Bancorp has increased its dividend by approximately 2.4% annually, suggesting a modest but consistent growth in dividend payments.

Investment Considerations

• Investment Risks: While the dividend appears attractive, there is one identified warning sign regarding the company's financial health that potential investors should consider.
• Recommendation: Despite stagnant earnings, Old National Bancorp shows promise as a dividend stock, warranting further investigation by potential investors.

General Disclaimer

• The article emphasizes that the analysis is based on historical data and does not constitute financial advice or a recommendation to buy or sell stocks.

• Dividend Announcement: Old National Bancorp declared a quarterly cash dividend of $0.14 per share on common stock, payable on September 15, 2025, and a dividend of $17.50 per share on its preferred stock, payable on November 20, 2025.

• Company Overview: Old National Bancorp is the sixth largest commercial bank in the Midwest with approximately $71 billion in assets, focusing on long-term client partnerships and community support, recognized as one of "The Civic 50" for its community-minded initiatives.