Midwestern regional bank Old National Bancorp (NASDAQ:ONB) reported Q2 CY2025 results topping the market’s revenue expectations, with sales up 37.6% year on year to $654.4 million. Its non-GAAP profit of $0.53 per share was 2.2% above analysts’ consensus estimates.
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Old National Bank (ONB) Q2 CY2025 Highlights:
- Net Interest Income: $514.8 million vs analyst estimates of $518 million (32.5% year-on-year growth, 0.6% miss)
- Net Interest Margin: 3.5% vs analyst estimates of 3.6% (20 basis point year-on-year increase, 3.8 bps miss)
- Revenue: $654.4 million vs analyst estimates of $619.7 million (37.6% year-on-year growth, 5.6% beat)
- Efficiency Ratio: 55.8% vs analyst estimates of 53.6% (2.3 percentage point miss)
- Adjusted EPS: $0.53 vs analyst estimates of $0.52 (2.2% beat)
- Market Capitalization: $8.38 billion
“I’m truly thrilled to join a team that’s so deeply committed to relationship banking and making a real impact on our communities,” said Burke. “Old National’s core values and mission strongly align with my personal values, positioning me well to jump into the role, take care of clients and deliver standout products and services consistently across all of our markets.”
Company Overview
Tracing its roots back to 1834 when Andrew Jackson was president, Old National Bancorp (NASDAQ:ONB) is a bank holding company that provides commercial and consumer loans, deposit services, wealth management, and treasury solutions primarily throughout the Midwest region.
Sales Growth
Net interest income and and fee-based revenue are the two pillars supporting bank earnings. The former captures profit from the gap between lending rates and deposit costs, while the latter encompasses charges for banking services, credit products, wealth management, and trading activities.
Luckily, Old National Bank’s revenue grew at an incredible 21.2% compounded annual growth rate over the last five years. Its growth beat the average bank company and shows its offerings resonate with customers.
Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Old National Bank’s recent performance shows its demand has slowed significantly as its annualized revenue growth of 4.6% over the last two years was well below its five-year trend. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Old National Bank reported wonderful year-on-year revenue growth of 37.6%, and its $654.4 million of revenue exceeded Wall Street’s estimates by 5.6%.
Net interest income made up 77.9% of the company’s total revenue during the last five years, meaning lending operations are Old National Bank’s largest source of revenue.
While banks generate revenue from multiple sources, investors view net interest income as the cornerstone - its predictable, recurring characteristics stand in sharp contrast to the volatility of non-interest income.
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Tangible Book Value Per Share (TBVPS)
Banks operate as balance sheet businesses, with profits generated through borrowing and lending activities. Valuations reflect this reality, emphasizing balance sheet strength and long-term book value compounding ability.
Because of this, tangible book value per share (TBVPS) emerges as the critical performance benchmark. By excluding intangible assets with uncertain liquidation values, this metric captures real, liquid net worth per share. On the other hand, EPS is often distorted by mergers and flexible loan loss accounting. TBVPS provides clearer performance insights.
Old National Bank’s TBVPS grew at a tepid 3.2% annual clip over the last five years. However, TBVPS growth has accelerated recently, growing by 11.8% annually over the last two years from $10.08 to $12.60 per share.
Over the next 12 months, Consensus estimates call for Old National Bank’s TBVPS to grow by 10.9% to $13.97, solid growth rate.
Key Takeaways from Old National Bank’s Q2 Results
We liked how Old National Bank beat analysts’ revenue expectations this quarter. We were also excited its tangible book value per share outperformed Wall Street’s estimates by a wide margin. On the other hand, its EPS was in line and its net interest income fell slightly short of Wall Street’s estimates. Overall, we think this was still a decent quarter with some key metrics above expectations. The stock remained flat at $22.49 immediately after reporting.
Is Old National Bank an attractive investment opportunity right now? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it’s free.