Why Old National Bancorp (ONB) Is Down 5.4% After Q2 Earnings and Leadership Change and What's Next

• Old National Bancorp recently reported its second quarter 2025 earnings, with net interest income rising to US$514.79 million and net income reaching US$125.41 million, alongside a leadership transition as Timothy M. Burke, Jr. joined as President and Chief Operating Officer.
• While net interest income and net income increased, the bank also experienced higher net charge-offs compared to the previous year and saw diluted earnings per share from continuing operations edge down slightly for the quarter.
• We'll examine how the combination of stronger earnings and new leadership may influence Old National Bancorp's long-term growth outlook.

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Old National Bancorp Investment Narrative Recap

To be a shareholder in Old National Bancorp, you need confidence in the bank’s ability to capitalize on Midwest market strength and expand fee-based income streams, while managing risks from commercial real estate loan exposure and credit quality. The most recent results, showing net income growth and higher net interest income, but with rising net charge-offs, do not substantially shift the near-term catalyst of integration benefits from past acquisitions, or the ongoing risk that credit losses could increase if market conditions deteriorate. For now, the updates reinforce but do not materially alter the company’s position relative to these factors.

Among recent announcements, the appointment of Timothy M. Burke, Jr. as President and COO is highly relevant. Burke’s long experience in Midwest banking markets could help bolster Old National Bancorp’s efforts to realize growth and deepen client relationships, especially as the company works to integrate new leadership with its earnings momentum from recent acquisitions.

By contrast, while loan growth ambitions remain, investors should be aware that exposure to commercial real estate loans still poses a significant risk if...

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

Old National Bancorp's narrative projects $3.7 billion revenue and $1.5 billion earnings by 2028. This requires 24.6% yearly revenue growth and a $948.4 million earnings increase from $551.6 million today.

Uncover how Old National Bancorp's forecasts yield a $26.23 fair value, a 21% upside to its current price.

Exploring Other Perspectives

The Simply Wall St Community’s individual fair value estimates for Old National Bancorp range widely from US$17.70 to US$44.67, based on three perspectives. Rising charge-offs highlight how credit quality remains a closely watched factor for future performance, so consider how varied opinions could shape your own view.

Explore 3 other fair value estimates on Old National Bancorp - why the stock might be worth 18% 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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