Old National Bancorp Q3 2025 Earnings Beat with 46.8% Revenue Surge

Midwestern regional bank Old National Bancorp reported Q3 CY2025 results beating Wall Street’s revenue expectations, with sales up 46.8% year on year to $713 million

Midwestern regional bank Old National Bancorp (NASDAQ:ONB) delivered a strong Q3 CY2025 earnings report, surpassing revenue expectations by 3.2% with $713 million in sales, marking a remarkable 46.8% increase compared to the previous year. The bank’s non-GAAP earnings per share of $0.59 topped analyst estimates by 5.1%, showcasing robust financial health and operational growth. This report also highlights Old National’s continued strategic focus and benefits from its recent acquisition of Bremer Bank.

Key highlights:

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Old National Bancorp delivers outstanding financial results in Q3 CY2025

Old National Bancorp reported excellent quarterly results, reflecting the company’s focused execution and strategic expansion in the Midwest regional banking market. The 46.8% increase in year-over-year revenue to $713 million significantly outperformed market consensus. This growth was fueled by a substantial rise in net interest income and accelerated loan demand, alongside higher fee-based revenues.

Financial performance overview

The bank’s net interest income reached $574.6 million, representing a 46.7% increase from the prior year, closely matching analyst expectations. The net interest margin improved slightly to 3.6%, outperforming forecasts by 5.5 basis points, indicating effective asset and liability management despite rising interest rate pressures. Adjusted earnings per share came in at $0.59, exceeding estimates by 5.1%, illustrating strong profitability and operational leverage.

Despite these positive metrics, the efficiency ratio came in at 58.8%, well above the projected 51.6%, suggesting the bank experienced higher operating costs during the quarter. The tangible book value per share also rose to $13.15, a 9.5% increase year-on-year, signaling enhanced shareholder value.

Strategic partnership and business growth

Old National’s Chairman and CEO Jim Ryan attributed the strong quarterly results to steady fundamentals and the recent integration benefits from its acquisition of Bremer Bank. This acquisition has expanded Old National’s footprint, particularly in Minnesota, positioning it as the third-largest bank in the Twin Cities. To capitalize on this presence, Old National announced a multi-year partnership with the Minnesota Wild hockey team, becoming the Official Bank and Official Suite Level entitlement partner at the Grand Casino Arena. This move reinforces community ties and brand visibility within a key regional market.

Company background and growth drivers

Founded in 1834, Old National Bancorp is a well-established Midwestern bank holding company offering commercial and consumer loans, deposit services, wealth management, and treasury solutions. The bank has steadily grown its revenue base at a compound annual growth rate of 23.5% over the last five years, outperforming average banks and demonstrating product appeal and customer loyalty.

More recently, its two-year annualized revenue growth has moderated to 10% but still reflects healthy demand within a challenging operating environment. The bank’s diverse revenue streams derive from net interest income generated by loan-deposit margin spreads and various fees from accounts and investment services.

Analyst outlook and investment narrative

Analyst sentiment on Old National Bancorp remains cautiously optimistic amid stabilizing regional bank concerns. The early reporting of quarterly results reflects the bank’s confidence in its stable loan portfolio, reassuring investors against fears of broader credit risks. While revenue growth stands as a key catalyst, the bank’s significant exposure to commercial real estate (CRE) remains a risk factor that investors must weigh carefully.

A noteworthy leadership change in July saw Timothy M. Burke, Jr. appointed as President and COO, a move aimed at reinforcing executive stability and guiding strategic growth. Analysts forecast that for Old National to reach its 2028 projections of $3.6 billion in revenue and $1.5 billion in earnings, it will need to maintain an ambitious annual revenue growth rate of 24.2%, showcasing both the company’s growth potential and the challenges ahead.

Divergent valuation perspectives

Fair value estimates for Old National Bancorp vary widely. Some analysts peg the stock’s intrinsic value around $26.45 per share, suggesting a 28% upside from current prices near $20.65. Others present outlier valuations extending above $12,000, illustrating how differences in CRE risk assessment significantly influence outlooks.

Investors are encouraged to form independent narratives and consider both the bank’s growth rewards and cautionary signals before making investment decisions. Comprehensive fundamental analyses, such as Simply Wall St’s “Snowflake” visual report, facilitate balanced evaluations of the company’s financial health.

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Market context and peer comparison

The regional banking sector has experienced volatility in 2025, influenced by macroeconomic uncertainty, potential trade tariffs, and fluctuating interest rates. Despite some regional banks maintaining positive momentum, the sector’s share prices have generally declined in recent months. Old National itself has seen a 5.6% decrease over the last month, somewhat steeper than the peer average of 4.8%.

Recent quarterly reports from regional bank peers offer mixed results. For example, First Horizon reported moderate 7.5% revenue growth, beating estimates by 7.7%, though its stock traded down 13.3%. In contrast, FB Financial produced a remarkable 94.2% revenue increase, topping estimates by 4.2%, but with a stable stock price post-results. These variations reflect differing business models and market exposures within the segment.

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Old National’s strategic community engagement and regional expansion

Beyond financial metrics, Old National Bancorp emphasizes community involvement and brand development. The bank’s expanded relationship with the Minnesota Wild strengthens its regional ties, enhances client experiences through upgraded suite-level amenities at the Grand Casino Arena, and celebrates local culture. This partnership builds on Bremer Bank’s longstanding connection with the team, symbolizing continuity amid corporate growth.

With approximately $71 billion in assets and $38 billion under management, Old National ranks among the top 25 U.S. banks headquartered in the Midwest, serving both the Midwest and Southeast regions. The company’s commitment to corporate citizenship earned it recognition in 2025 as one of the “The Civic 50” most community-focused U.S. companies for the second consecutive year.

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Conclusion

Old National Bancorp’s Q3 CY2025 results reveal continued strong revenue growth, operational profitability, and strategic expansion. While efficiency challenges and CRE exposure remain considerations, the bank’s robust fundamentals and community engagement underpin an encouraging outlook. Investors seeking exposure to resilient regional banking with growth potential should monitor Old National’s evolving narrative and market developments closely.

Questions and answers

Q: Old National Bancorp Q3 2025 earnings report

A: Old National Bancorp's Q3 2025 earnings report highlights the company's financial results for the period, including net income, revenue, and key performance metrics. The report typically reveals growth in loan portfolios, deposits, and profitability compared to previous quarters. Investors look for details on interest margins and expense management to gauge the bank's overall health and market position.

Q: Old National Bancorp acquisition of Bremer Bank

A: Old National Bancorp completed the acquisition of Bremer Bank as part of its strategic expansion plan to increase its regional presence. The acquisition allowed Old National to enhance its customer base and geographic coverage, particularly in the Midwest. Integrating Bremer Bank's operations has aimed to strengthen service offerings and improve operational efficiencies.

Q: Old National Bancorp Minnesota Wild partnership

A: Old National Bancorp has partnered with the Minnesota Wild, serving as an official banking partner. This collaboration includes joint community initiatives, fan engagement activities, and promotional events supporting both organizations' commitment to regional development. The partnership enhances Old National's brand visibility and community involvement through association with the NHL team.

Q: Old National Bancorp financial performance 2025

A: In 2025, Old National Bancorp has demonstrated solid financial performance characterized by steady revenue growth and improved profitability. The bank benefited from increased lending activity and expanded deposit bases while maintaining strong credit quality. Additionally, effective cost management and investments in digital banking services have contributed to a resilient financial position throughout the year.

Q: Timothy m burke jr president Old National Bancorp

A: Timothy M. Burke Jr. serves as President of Old National Bancorp, bringing extensive banking experience to the role. He is responsible for overseeing the company's day-to-day operations and driving strategic growth initiatives. Burke's leadership focuses on enhancing customer experience, expanding market reach, and fostering innovation within the bank.

Key Entities

Old National Bancorp: Old National Bancorp is a regional financial services holding company headquartered in Evansville, Indiana. It operates banking services across several Midwestern states, providing commercial and consumer banking products.

Bremer Bank: Bremer Bank is a subsidiary of Bremer Financial Corporation, serving customers primarily in the Upper Midwest. It offers banking, wealth management, and investment services with a focus on community banking.

Minnesota Wild: The Minnesota Wild is a professional NHL hockey team based in Saint Paul, Minnesota. Established in 2000, the team competes in the Central Division of the Western Conference.

Jim Ryan: Jim Ryan is an executive known for his leadership roles in the banking and financial sectors. He has been associated with institutions navigating regional banking markets and mergers.

Timothy M. Burke, Jr.: Timothy M. Burke, Jr. is a banking industry executive with expertise in financial services management. He has held key positions influencing regional bank operations and strategic growth.

External articles

• Earnings call transcript: Old National Bancorp beats Q3 ...
• Old National Bancorp Reports Third Quarter 2025 Results
• Old National signals 4%–5% full-year loan growth outlook ...

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YouTube Video

Title: Old National completes closing on Bremer Bank partnership
Channel: Eyewitness News WEHT WTVW
URL: https://www.youtube.com/watch?v=ltRPwZ8EZfw
Published: 5 months ago