Powerpack

Unlock full stockrow access for only $9.90/month and boost yourself as an investor.

  • Full quarterly history

    Every quarter and TTM period we hold, not just the last 12.

  • Analyst estimates

    Three years of forward estimates and dividend forecasts.

  • Unlimited screener

    All results, unlimited saved screens, email when a screen changes.

  • Unlimited Excel

    Full workbooks and screener exports.

  • Unlimited follows

See Powerpack
Screener Weekly Summary Pricing

Old National Bancorp ONB

Financial  —  Banks Regional
25.49 0.40 1.59% as of 25 Sep
Market cap
$9.6B
P/E
11.3×
Dividend Champion (10y) Revenue Champion (3y)
Growth Flags show if company had growth for consecutive years
Overview Business Profile Financial Analysis Income Statement Balance Sheet Cash Flow Metrics & Ratios 10-Q 10-K

Old National Bancorp (ONB) Business Profile

Updated before January 2025

Company Overview

Old National Bancorp (ONB) is a regional bank holding company headquartered in Evansville, Indiana. Established in 1834, it is one of the oldest and most respected financial institutions in the United States. Over its nearly two-century-long history, ONB has grown from a single branch to a robust network of banking centers across the Midwest. The company operates primarily in Indiana, Kentucky, Michigan, Minnesota, and Wisconsin, serving individuals, businesses, and communities with a wide range of financial products and services.

ONB is led by a seasoned executive team, with James C. Ryan III serving as Chairman and Chief Executive Officer. Under his leadership, the company has focused on expanding its footprint, enhancing customer experience, and adopting innovative technologies to stay competitive in the evolving financial landscape. The company is publicly traded on the NASDAQ under the ticker symbol “ONB.”

Core Business Segments

Old National Bancorp operates through several core business segments, offering a diverse range of financial products and services tailored to meet the needs of its customers. These segments include:

1. Retail Banking

ONB provides a comprehensive suite of retail banking services to individual customers. Key offerings include:

  • Checking and Savings Accounts: Traditional and interest-bearing accounts designed for everyday banking needs.
  • Consumer Loans: Personal loans, auto loans, and home equity lines of credit (HELOCs).
  • Mortgage Services: Fixed-rate and adjustable-rate mortgage options for homebuyers.
  • Digital Banking: Online and mobile banking platforms that allow customers to manage their accounts, pay bills, and transfer funds conveniently.

2. Commercial Banking

ONB caters to small, medium, and large businesses through its commercial banking division. Services include:

  • Business Checking and Savings Accounts: Tailored solutions for managing business finances.
  • Commercial Loans: Financing options for working capital, equipment purchases, and real estate investments.
  • Treasury Management Services: Tools to optimize cash flow, manage payments, and mitigate financial risks.
  • Merchant Services: Payment processing solutions for businesses of all sizes.

3. Wealth Management

The wealth management division offers personalized financial planning and investment services to high-net-worth individuals and families. Key services include:

  • Investment Management: Portfolio management and advisory services.
  • Trust and Estate Planning: Assistance with wealth transfer and legacy planning.
  • Retirement Planning: Strategies to help clients achieve their retirement goals.

4. Insurance Services

ONB provides a range of insurance products to protect individuals and businesses from financial risks. Offerings include:

  • Property and Casualty Insurance
  • Life and Health Insurance
  • Employee Benefits Programs

Business Model

Old National Bancorp operates on a relationship-driven business model, emphasizing personalized service and community engagement. The company generates revenue primarily through:

  • Net Interest Income: The difference between interest earned on loans and interest paid on deposits.
  • Non-Interest Income: Fees from wealth management, insurance services, and treasury management.
  • Loan Origination Fees: Income from originating mortgages and commercial loans.

ONB integrates its products and services through a seamless omnichannel approach, combining physical branches with digital platforms to provide a consistent customer experience. The company also invests in technology to enhance operational efficiency and reduce costs.

Strategic Direction

Old National Bancorp is focused on sustainable growth and innovation. Key strategic priorities include:

  • Geographic Expansion: Continuing to grow its presence in the Midwest through acquisitions and organic growth.
  • Digital Transformation: Investing in advanced technologies to improve digital banking capabilities and enhance customer experience.
  • Sustainability Goals: Implementing environmentally friendly practices and supporting community development initiatives.
  • Product Diversification: Expanding its range of financial products and services to meet evolving customer needs.

Competitive Landscape

Old National Bancorp operates in a highly competitive industry, facing competition from regional banks, national banks, credit unions, and fintech companies. Key competitors include:

  • Fifth Third Bank: A regional bank with a strong presence in the Midwest.
  • Huntington Bancshares: Known for its customer-centric approach and innovative products.
  • PNC Financial Services: A national bank with a comprehensive suite of financial services.
  • Local Credit Unions: Offering competitive rates and personalized service.
  • Fintech Companies: Disrupting traditional banking with digital-first solutions.

Risk Factors

Old National Bancorp faces several risks that could impact its operations and financial performance:

  • Economic Conditions: Changes in interest rates, inflation, and unemployment levels can affect loan demand and credit quality.
  • Regulatory Compliance: The banking industry is heavily regulated, and non-compliance can result in fines and reputational damage.
  • Cybersecurity Threats: Increasing reliance on digital platforms exposes the company to potential cyberattacks.
  • Competition: Intense competition from traditional banks and fintech companies could pressure margins.
  • Credit Risk: The possibility of loan defaults, particularly during economic downturns.

Recent Developments

Old National Bancorp has made significant strides in recent years to enhance its offerings and strengthen its market position. Recent developments include:

  • Acquisitions: The company has completed several strategic acquisitions to expand its geographic footprint and customer base.
  • Digital Banking Enhancements: Launching new features in its mobile app and online banking platform to improve user experience.
  • Community Initiatives: Increasing investments in community development programs and charitable contributions.
  • Sustainability Efforts: Implementing green banking practices and reducing its carbon footprint.

Investment Considerations

Strengths:

  • Strong Regional Presence: A well-established brand with deep roots in the Midwest.
  • Diverse Revenue Streams: Balanced income from interest and non-interest sources.
  • Customer-Centric Approach: Focus on building long-term relationships with clients.
  • Growth Potential: Opportunities for expansion through acquisitions and digital transformation.

Risks:

  • Economic Sensitivity: Vulnerability to changes in economic conditions.
  • Regulatory Challenges: Compliance with complex regulations can be costly.
  • Competitive Pressure: Intense competition from both traditional and non-traditional players.

Conclusion

Old National Bancorp is a well-established financial institution with a strong regional presence and a diverse range of products and services. The company is well-positioned for growth, thanks to its strategic focus on digital transformation, geographic expansion, and sustainability. While it faces challenges from economic conditions and competition, its customer-centric approach and commitment to innovation make it a compelling choice for investors and customers alike.