Can ONBPO sustain its earnings momentum into 2025?

**Old National Bancorp (ONB) is poised to sustain its earnings momentum into 2025**, based on several key indicators: 1. **Consistent Performance and Strategic Growth**: ONB has demonstrated consistent core performance trends, with recent acquisitions like CapStar showing positive impacts on balance sheet growth and market position. The successful integration of CapStar is expected to drive further synergies in the coming quarters, enhancing ONB's financial strength and competitiveness. 2. **Earnings and Revenue Projections**: Analysts project that ONB will announce quarterly earnings of $0.46 per share in its forthcoming report, representing no change year over year. Revenues are projected to reach $486.03 million, increasing 3.3% from the same quarter last year. For the full year 2025, revenue estimates have increased from $1.89 billion to $1.90 billion, indicating a positive outlook. 3. **Efficiency and Profitability Ratios**: The bank's efficiency ratio is expected to improve to 53.0% compared to 59% in the previous year, suggesting better operational efficiency. The net interest margin (NIM) is forecasted to remain stable at 3.3%, which is a positive sign for sustaining earnings momentum. 4. **Return on Assets and Equity**: ONB's adjusted return on average tangible common equity (ROATCE) is projected to be 16.8%, and the adjusted return on assets (ROA) is expected to be 1.13%. These metrics indicate strong profitability and the ability to generate returns on capital, which are crucial for sustaining earnings momentum. 5. **Stock Price Targets and Analyst Confidence**: The average one-year price target for ONB is $26.67, with a high estimate of $28.00 and a low estimate of $24.00. This suggests that analysts are optimistic about the stock's future performance, which can be a reflection of expected earnings sustainability. 6. **Momentum and Market Position**: ONB's strong financial performance and strategic initiatives position it well in the market. The bank's focus on fee income businesses and treasury management, along with a solid capital position, are expected to support continued growth. In conclusion, ONB's consistent performance, strategic growth initiatives, and positive financial projections suggest that the bank can sustain its earnings momentum into 2025. However, it is important to monitor the bank's ability to manage interest rate risks and maintain asset quality, which are key factors influencing the sustainability of earnings in a changing economic environment.