Old National Bancorp (ONB) Financials

Old National Bancorp (NASDAQ:ONBPO) has demonstrated solid financial performance over the past four years, showing consistent growth in key areas, though with some fluctuations in expenses and investment activities.

Positive Trends:

• Net interest income increased steadily from approximately $381.5 million in Q1 2023 to $387.6 million in Q1 2025, illustrating strong earnings from loans and securities.
• Provision for credit losses, while rising, has been managed prudently, reflecting the bank's controlled risk exposure in loan management.
• Total revenues showed an upward trajectory, from about $452 million in Q1 2023 to $481 million in Q1 2025, indicating expanding business operations and diversified income streams.
• The bank maintained consistent net income attributable to common shareholders, with Q1 2025 net income of $140.6 million closely tracking Q1 2023 levels, supporting earnings stability.
• Total assets grew from roughly $47.8 billion in Q1 2023 to $53.9 billion in Q1 2025, suggesting asset base expansion fueling future income potential.
• The company steadily increased its deposits, with interest-bearing deposits rising from approximately $23.9 billion in Q1 2023 to $31.8 billion in Q1 2025, enhancing liquidity and funding.
• Consistent dividends per share of $0.14 signal stable shareholder returns and confidence in future cash flows.
• Strong operating cash flow generation, exemplified by $108.2 million net cash from continuing operating activities in Q1 2025, supports financial flexibility.
• Capital levels improved, with total common equity increasing from about $5.0 billion in Q1 2023 to $6.3 billion in Q1 2025, indicating strengthened capitalization.
• Diluted earnings per share remained stable around $0.44 to $0.45, reflecting steady profitability on a per-share basis despite minor share count variations.

Neutral Observations:

• Marketing expenses fluctuated slightly but stayed around $9 million to $12 million, reflecting ongoing investments in business development without excessive escalation.
• Non-interest income has shown modest variations but generally remained consistent, driven by fees and service charges.
• Amortization expense increased somewhat, suggesting ongoing investments in intangible assets or acquired goodwill.
• The company continues to buy and sell investment securities in sizable volumes each quarter, causing significant swings in investing cash flows but reflecting active asset-liability management.
• Issuance and repayment of debt have seen substantial quarter-by-quarter variation, indicating active capital and debt structure management aimed at optimizing cost of funds.
• Share repurchase activity and common equity issuance occurred each quarter but at relatively modest dollar amounts, showing measured capital return and issuance strategies.
• Cash and cash equivalents fluctuated quarter to quarter due to operating, investing, and financing cash flow activity without a clear upward or downward trend.

Negative Considerations:

• Total non-interest expenses decreased slightly but remain high at approximately $268 million in Q1 2025, requiring attention to operational efficiency.
• Provision for credit losses increased by about 66% from Q1 2023 ($18.9 million) to Q1 2025 ($31.4 million), indicating a potential uptick in credit risk or cautious reserve building.
• Investing activities reflect significant net cash outflows, such as $270.5 million in Q1 2025, due to heavy purchases of investment securities, which could pressure liquidity if not managed well.
• Other special charges and property & liability insurance claims have shown variability, with some spikes that could impact quarterly earnings negatively.
• Accumulated other comprehensive income remains negative and has increased in magnitude from roughly -$0.7 billion in Q1 2023 to -$0.65 billion in Q1 2025, potentially reflecting unrealized losses on certain assets.

Overall, Old National Bancorp demonstrates solid core earnings growth and stability in key financial metrics. The bank's strategy to expand its loan and deposit base while managing credit risk and investing in securities supports steady performance. However, attention is warranted on rising credit loss provisions and high non-interest expenses to ensure sustained profitability. The consistent dividend and capital growth signal management's commitment to shareholder value.