Leadership Transition and Earnings Growth Could Be a Game Changer for Old National Bancorp (ONB)

• Old National Bancorp recently reported its second-quarter 2025 earnings, highlighting growth in net interest income to US$514.79 million and an increase in net income to US$125.41 million year-over-year, with no shares repurchased during the quarter under its existing buyback program.
• An important leadership transition occurred as Timothy M. Burke, Jr. was appointed President and COO, bringing substantial Midwest banking experience to the company’s executive team.
• We’ll explore how the executive leadership transition may influence Old National Bancorp’s investment narrative and future business strategy.

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Old National Bancorp Investment Narrative Recap

To be a shareholder of Old National Bancorp, you need to believe in its ability to drive sustainable growth from its Midwest banking footprint, leverage recent acquisitions, and control risk in its commercial lending portfolio. The appointment of Timothy M. Burke, Jr. as President and COO may help with operational execution, but the recent news, including no share repurchases and higher charge-offs, does not materially change the biggest catalyst (expansion from the Bremer acquisition) or the primary risk (exposure to commercial real estate loan markets) over the short term.

The most relevant announcement for the current outlook is the recent spike in net charge-offs, which increased to US$26.53 million in the second quarter. This development is important as it ties directly to Old National’s significant exposure to commercial real estate, a segment that remains sensitive to changing market conditions and is the key risk that could affect near-term performance and investor confidence.

By contrast, investors should be aware of how increasing credit losses could eventually pressure margins if commercial real estate market trends deteriorate...

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

Old National Bancorp's narrative projects $3.6 billion revenue and $1.5 billion earnings by 2028. This requires 24.2% yearly revenue growth and a $948 million earnings increase from $551.6 million currently.

Uncover how Old National Bancorp's forecasts yield a $26.45 fair value, a 27% upside to its current price.

Exploring Other Perspectives

Three fair value estimates from the Simply Wall St Community stretch from US$17.70 to US$43.36, highlighting a broad spread of individual views. This diversity stands against analyst consensus that commercial real estate exposure remains a risk to watch for ongoing performance.

Explore 3 other fair value estimates on Old National Bancorp - why the stock might be worth 15% 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 5 key rewards and 3 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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