Will ONB’s Focus on Loan Diversification Shape Old National’s Next Chapter?

• Old National Bancorp recently released an investor presentation outlining its Q3 2025 financial results, highlighting priorities such as a diversified loan portfolio, robust credit culture, and a low-cost deposit base for sustained shareholder value.
• An interesting aspect included the company's emphasis on non-GAAP financial measures to present core operational performance and recent positive analyst sentiment, including an Outperform rating, which reflects renewed confidence in its capital management and growth initiatives.
• We'll explore how the presentation's focus on loan diversification and capital management impacts Old National Bancorp's future investment outlook.

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Old National Bancorp Investment Narrative Recap

To be an Old National Bancorp shareholder, you need to believe in the bank's disciplined credit management, growth from solid Midwest and Bremer-acquired markets, and an ability to manage deposit costs and loan diversity, all underpinned by ongoing balance sheet strength. The latest investor presentation supports this focus, but doesn't materially change the key short-term catalyst, continued integration and efficient capital deployment from the Bremer transaction, nor the biggest risk, which remains sizable exposure to commercial real estate amidst sector headwinds.

The quarterly repurchase of over 1.1 million shares for US$25.02 million stands out among recent announcements, underlining the company's capital management priorities discussed in the Q3 results. This initiative complements ONB's drive to unlock value from recent operational and market expansions, reinforcing a central catalyst for investors monitoring efficiency and return metrics in the post-Bremer period.

On the flip side, investors should keep in mind the heightened competition and persistent commercial real estate exposure, which could ...

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 implies an annual revenue growth rate of 24.2% and an increase in earnings of $948.4 million from the current $551.6 million.

Uncover how Old National Bancorp's forecasts yield a $25.75 fair value, a 22% upside to its current price.

Exploring Other Perspectives

Fair value estimates from three Simply Wall St Community members stretch from US$25.75 to over US$12,000 per share. While community perspectives vary widely, ONB's continued focus on fee-based growth and strong core capital underscore how different expectations may play into future performance, explore these views to compare your own analysis.

Explore 3 other fair value estimates on Old National Bancorp - why the stock might be worth just $25.75!

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 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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