ONB Stock Forecast & Price Target

Old National Bancorp has demonstrated a solid financial position with adjusted expenses increasing marginally by 2.2% to approximately $268.7 million, indicating effective cost management amid growth. The company's spread revenues showed a slight increase of 0.6% sequentially to $394.2 million, coupled with a 1.7% rise in core fee income to $95.8 million, signaling a positive trend in income generation. Additionally, the increase in average deposits by 5.3% year-over-year, driven primarily by growth in private banking and community deposits, highlights the company's robust customer retention and growth strategy in a competitive market.

Old National Bancorp has reported a decline in significant revenue streams, with mortgage banking results down 8.4% and capital markets revenues declining 29.4% from a previously strong quarter, raising concerns about the sustainability of its earnings. Furthermore, the company's core margin has weakened, reflecting a 4 basis points decrease to approximately 3.15%, while total loans have decreased by 0.3% sequentially, primarily due to reduced commercial and industrial loan balances. Additionally, total deposits have also seen a slight decline of 0.1% sequentially, indicating challenges in attracting and retaining customer funds amidst a modest loan demand environment.