ONB Stock Forecast & Price Target

Old National Bancorp reported a sequential increase in net interest income of 1.1%, reaching $581 million, bolstered by a marginal increase in the margin to 3.65%. The bank experienced a 1.7% growth in total loans to $48.8 billion, with significant contributions from commercial and residential mortgage sectors, and a robust loan production increase of 25% from the previous quarter, totaling $3.5 billion. The acquisition of Bremer Financial Corporation is expected to enhance Old National's operational scale in the Upper Midwest, particularly enhancing its presence in the Twin Cities area, which supports a positive outlook for the institution's loan growth trajectory.

Old National Bancorp faces significant risks related to asset quality performance and net interest margin, which could hinder its earnings potential and overall growth outlook. The recent decrease in core fee income by 3.7% and a marginal decline in reserves signal existing challenges that may affect the bank's financial stability. Furthermore, a deteriorating macroeconomic environment and increased pressure on the company's ability to control expenses and manage loan growth contribute to a negative outlook for the stock.