ONB Stock Forecast & Price Target

Old National Bancorp has demonstrated strong financial performance following its latest acquisition, with core deposit balances increasing by 0.8% and a significant rise in net interest income by 32.8% sequentially, reaching $514.8 million. The company achieved a notable increase in its reported margin, expanding to 3.53%, aided by the merger, which positively impacted profitability metrics. Furthermore, the total loan pipeline has grown to $4.8 billion, primarily driven by a surge in commercial loan balances, signaling robust demand and potential for future earnings growth.

Old National Bancorp faces significant risks that could adversely affect its earnings and overall financial performance, including potential asset quality deterioration, challenges in maintaining a competitive net interest margin, and a weaker economic outlook in its primary Midwestern markets. The company's common equity tier 1 (CET1) ratio has decreased by 88 basis points quarter-over-quarter to 10.74%, indicating concerns about capital adequacy. Additionally, the marginal decrease in earnings per share (EPS) due to merger-related costs highlights ongoing integration challenges, which may hinder anticipated benefits and affect future profitability.