Old National Bancorp (NASDAQ:ONB) Issues Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Old National Bancorp (NASDAQ:ONB) issued its quarterly earnings data on Wednesday. The bank reported $0.65 EPS for the quarter, topping analysts’ consensus estimates of $0.63 by $0.02, FiscalAI reports. The firm had revenue of $726.86 million for the quarter, compared to analyst estimates of $716.25 million. Old National Bancorp had a net margin of 18.90% and a return on equity of 11.23%. The company’s revenue was up 13.2% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.53 EPS.

Here are the key takeaways from Old National Bancorp’s conference call:

• Old National reported a record second quarter with record adjusted EPS, net income, and efficiency ratio, while also delivering an adjusted ROE/ROTCE near 20% and an adjusted ROA of 1.39%.
• Organic loan growth remained strong, with end-of-period loans up $1 billion and a record commercial pipeline of $5.6 billion, supporting raised full-year loan growth guidance of 6%–8%.
• Fee income was a standout, with broad-based strength across wealth, investments, mortgage, and capital markets; management raised full-year non-interest income guidance and expects continued momentum in core fee businesses.
• Credit quality stayed solid, as non-accruals declined and charge-offs remained within expectations, while the company said its underwriting and portfolio management discipline continue to support stable credit performance.
• Capital remains strong, with CET1 above 11%, tangible book value per share up 14% year over year, and $163 million returned to shareholders in the quarter through dividends and buybacks; management said it plans to keep using the remaining repurchase authorization opportunistically.

Old National Bancorp Trading Up 0.8%

ONB opened at $26.39 on Thursday. The company has a debt-to-equity ratio of 0.89, a current ratio of 0.94 and a quick ratio of 0.93. The company has a market cap of $10.20 billion, a price-to-earnings ratio of 13.60 and a beta of 0.83. The firm has a 50 day simple moving average of $25.02 and a 200 day simple moving average of $23.99. Old National Bancorp has a fifty-two week low of $19.39 and a fifty-two week high of $27.32.

Old National Bancorp Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Monday, June 15th. Stockholders of record on Friday, June 5th were given a dividend of $0.145 per share. The ex-dividend date was Friday, June 5th. This represents a $0.58 annualized dividend and a dividend yield of 2.2%. Old National Bancorp’s payout ratio is currently 29.90%.

Wall Street Analyst Weigh In

ONB has been the topic of a number of research reports. UBS Group initiated coverage on shares of Old National Bancorp in a research report on Tuesday, July 7th. They set a “buy” rating and a $32.00 target price on the stock. Keefe, Bruyette & Woods raised their price target on shares of Old National Bancorp from $27.00 to $28.00 and gave the company an “outperform” rating in a report on Thursday, April 23rd. Weiss Ratings restated a “buy (b)” rating on shares of Old National Bancorp in a research report on Thursday, June 4th. Raymond James Financial started coverage on Old National Bancorp in a report on Tuesday, July 7th. They set a “market perform” rating on the stock. Finally, Barclays lifted their target price on Old National Bancorp from $30.00 to $31.00 and gave the company an “overweight” rating in a research note on Tuesday, July 7th. Nine equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, Old National Bancorp currently has a consensus rating of “Moderate Buy” and a consensus price target of $28.73.

Old National Bancorp News Roundup

Here are the key news stories impacting Old National Bancorp this week:

• Positive Sentiment: Old National Bancorp posted diluted EPS of $0.65, topping estimates, while revenue of $726.9 million also exceeded forecasts. The beat suggests solid core banking performance and is helping support the stock. Q2 earnings release and transcript
• Positive Sentiment: Management said the quarter was a record one, with net income applicable to common shareholders of $249.4 million, reinforcing the idea that earnings momentum remains strong. GlobeNewswire press release
• Positive Sentiment: Revenue increased 13.2% year over year, showing improved business activity versus last year and suggesting the bank is growing even in a tougher rate environment. Zacks earnings beat article
• Neutral Sentiment: Analysts are looking at the quarter’s key metrics versus expectations and prior-year results, but the main takeaway so far is that ONB’s fundamentals remain in focus after the earnings release. Zacks metrics comparison article

Hedge Funds Weigh In On Old National Bancorp

A number of hedge funds and other institutional investors have recently bought and sold shares of ONB. Kemnay Advisory Services Inc. acquired a new position in shares of Old National Bancorp in the 4th quarter valued at $27,000. Los Angeles Capital Management LLC acquired a new stake in shares of Old National Bancorp during the fourth quarter worth $36,000. Peterson Wealth Services increased its holdings in Old National Bancorp by 9,711.8% in the fourth quarter. Peterson Wealth Services now owns 1,668 shares of the bank’s stock valued at $37,000 after purchasing an additional 1,651 shares during the last quarter. Parallel Advisors LLC increased its holdings in Old National Bancorp by 41.5% in the fourth quarter. Parallel Advisors LLC now owns 3,566 shares of the bank’s stock valued at $80,000 after purchasing an additional 1,046 shares during the last quarter. Finally, EverSource Wealth Advisors LLC lifted its stake in Old National Bancorp by 794.2% in the second quarter. EverSource Wealth Advisors LLC now owns 3,568 shares of the bank’s stock valued at $76,000 after buying an additional 3,169 shares during the period. 83.66% of the stock is owned by institutional investors.

About Old National Bancorp

Old National Bancorp (NASDAQ: ONB) is the bank holding company for Old National Bank, a regional financial services firm headquartered in Evansville, Indiana. Through its network of community banking offices, the company provides a full range of commercial and consumer banking services. Its offerings include checking and savings accounts, personal and business loans, and deposit products designed to meet the needs of individuals, small businesses, and larger corporate customers.

In addition to traditional banking, Old National Bancorp delivers specialty financial services such as treasury management, wealth management, mortgage loan production, and insurance solutions.