Midwestern regional bank Old National Bancorp (NASDAQ: ONB) beat Wall Street’s revenue expectations in Q4 CY2025, with sales up 44.1% year on year to $714.4 million. Its non-GAAP profit of $0.62 per share was 4.8% above analysts’ consensus estimates.

Is now the time to buy ONB? Find out in our full research report (it’s free for active Edge members).

StockStory’s Take

Old National Bank’s fourth quarter results drew a positive market response, as management attributed the performance to strong core deposit growth, disciplined expense control, and credit improvement. CEO Jim Ryan highlighted the successful completion of the Bremer Bank integration and noted the company’s ability to boost tangible book value per share, despite merger charges and share repurchases. Management also emphasized positive trends in fee income, particularly in mortgage and capital markets, which benefited from a more supportive interest rate environment.

Looking ahead, management’s guidance centers on stable to improving net interest income and margin, driven by ongoing loan growth, stable deposit levels, and anticipated rate cuts. CFO John Moran noted that operating leverage and further realization of Bremer cost savings will be key contributors, while CEO Jim Ryan stressed the importance of continued investment in talent and technology. Management remains focused on organic growth and capital return, with Moran stating, "We plan to be more active with share repurchases in 2026 while maintaining strong capital to fund growth."

Key Insights from Management’s Remarks

Management pointed to a combination of steady loan and deposit growth, operational integration, and credit improvement as key drivers of Q4 performance, while also highlighting continued investment in talent and technology.

• Bremer integration completed: The full systems conversion from the Bremer Bank partnership was finalized, with management noting it was among the smoothest and most successful integrations in the company’s history. This expansion solidified Old National Bank’s position in Minnesota and added funding in North Dakota.

• Loan growth and production: Total loans grew at a 6.4% annualized rate, fueled by strong production throughout the commercial portfolio. The company’s loan pipeline also increased nearly 15% from the prior quarter, indicating momentum for future asset growth.

• Deposit and liquidity management: Core deposit growth kept pace with asset growth, maintaining a loan-to-deposit ratio of 89%. Management noted a 17 basis point decrease in cost of deposits, attributing this to a proactive deposit strategy and favorable rate actions.

• Expense discipline and efficiency: Adjusted noninterest expenses were well controlled, supporting a record-low efficiency ratio of 46%. Management expects to fully realize Bremer-related cost savings in the next quarter, which should further support positive operating leverage.

• Credit quality improvement: The quarter saw an 8% reduction in criticized and classified loans, with upgrades and payoffs in commercial real estate portfolios outpacing downgrades by a two-to-one margin. Management reported low levels of charge-offs and maintained confidence in the company’s credit outlook.

Drivers of Future Performance

Old National Bank’s outlook for 2026 is shaped by expectations of continued loan and deposit growth, margin stability, and disciplined capital deployment.

• Stable to improving margins: Management anticipates that loan growth, fixed asset repricing, and effective deposit cost management will help maintain or slightly expand net interest margin, even as the rate environment evolves.

• Operating leverage from cost savings: The finalization of Bremer cost synergies is expected to drive further improvement in the efficiency ratio, supporting non-GAAP earnings growth and enabling higher capital returns through share repurchases.

• Talent and technology investments: The company plans to ramp up hiring, particularly in client-facing roles and wealth management. Investments in technology are being self-funded through expense discipline, targeting enhancements in payments and client capabilities to drive organic growth.

Catalysts in Upcoming Quarters

In the coming quarters, StockStory analysts will monitor (1) the pace of loan and deposit growth relative to peers, (2) the full realization of Bremer Bank cost synergies and their impact on operating leverage, and (3) the effectiveness of talent and technology investments in driving client acquisition and expanding the wealth management business. Updates on net interest margin resilience amid potential rate changes will also be key signposts.

Old National Bank currently trades at $24.03, up from $22.90 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).

Our Favorite Stocks Right Now

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.