ONB Stock Forecast & Price Target

Old National Bancorp demonstrated a strong financial performance with adjusted expenses rising marginally by 2.2% to approximately $268.7 million, indicating effective cost management amidst growth initiatives. The bank saw a slight sequential increase in spread revenues by 0.6% to $394.2 million and a sequential rise in core fee income by 1.7% to $95.8 million, showcasing revenue resilience and growth potential. Additionally, average deposits grew by 5.3% on an annual basis, reflecting the strength of the bank's private banking and community deposit segments, which positions Old National favorably for continued expansion in its markets.

Old National Bancorp's financial challenges are underscored by a sequential decline in mortgage banking results by 8.4% to $7.0 million and a significant drop in capital markets revenues by 29.4% to $5.2 billion. Additionally, the company's core margin experienced a slight contraction, decreasing by 4 basis points to approximately 3.15%, while total loans fell by 0.3% sequentially to $36.3 billion, driven primarily by reduced commercial and commercial real estate balances. Furthermore, total deposits saw a marginal decline of 0.1% to $40.8 billion, indicating a stagnation in deposit growth amidst a backdrop of generally flat expectations for non-loan earning asset growth going forward.