How Old National Bancorp's (ONB) Net Interest Income Surge Could Reshape Its Role Among Regional Banks

• Recent analyst commentary highlighted Old National Bancorp's robust 25.5% annual net interest income growth and improved efficiency forecast compared to peers, emphasizing the company's favorable position among regional banks.
• This clear distinction in financial performance sets Old National Bancorp apart during a period of increased caution and challenges for other banks in the sector.
• We'll explore how Old National's accelerating net interest income growth strengthens its investment narrative and future outlook within the regional banking sector.

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Old National Bancorp Investment Narrative Recap

Owning shares of Old National Bancorp (ONB) means believing in its ability to continue outpacing regional bank peers in net interest income growth and efficiency, even as the sector faces persistent caution. The recent news highlighting ONB’s 25.5% annual net interest income growth affirms its current momentum but does not materially change the central short-term catalyst, sustained margin expansion, and leaves the key risk of heightened commercial real estate (CRE) exposure firmly in place.

Among recent announcements, ONB’s Q2 2025 earnings stand out: net interest income soared to US$514.79 million, up significantly year over year, supporting a compelling investment narrative built around core banking strength and operational discipline. This performance directly relates to the key catalysts analysts have pointed to, while the company’s resilience will continue to be tested against credit risk and regulatory shifts.

In contrast to the positive headlines, investors should also be alert to the company’s ongoing concentration in CRE loans and what that means for future credit losses if the sector falters…

Read the full narrative on Old National Bancorp (it's free!)

Old National Bancorp's outlook anticipates $3.6 billion in revenue and $1.5 billion in earnings by 2028. This scenario requires 24.2% annual revenue growth and an increase in earnings of $948.4 million from the current $551.6 million level.

Uncover how Old National Bancorp's forecasts yield a $26.45 fair value, a 19% upside to its current price.

Exploring Other Perspectives

Three fair value estimates from the Simply Wall St Community range widely from US$17.70 to US$39.03 per share. While ONB’s robust net interest income growth is a positive sign, the bank’s significant CRE exposure remains a focal point for broader market concerns.

Explore 3 other fair value estimates on Old National Bancorp - why the stock might be worth 20% less than the current price!

Build Your Own Old National Bancorp Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Old National Bancorp research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Old National Bancorp research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Old National Bancorp's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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