Old National reports Q2 profit of $0.34 per share, $0.53 adjusted

EVANSVILLE, Ind. - Old National Bancorp (NASDAQ:ONB), an $8.38 billion market cap regional bank, reported second quarter net income of $121.4 million, or $0.34 per diluted share, below the adjusted earnings of $0.53 per share after excluding one-time items. According to InvestingPro data, five analysts have recently revised their earnings estimates upward for the upcoming period.

The regional bank’s quarterly results included several notable items: $75.6 million in provision expenses related to its Bremer Financial acquisition, $41.2 million in merger-related charges, and a $21 million pension plan gain.

Old National completed its acquisition of Bremer on May 1, significantly expanding its balance sheet. Total assets increased to $71 billion, up from $53.9 billion in the previous quarter, while total deposits grew to $54.4 billion from $41 billion.

"Old National’s impressive second quarter results were achieved through a strong focus on the fundamentals: Growing our balance sheet, expanding our fee-based businesses, and controlling expenses," said Chairman and CEO Jim Ryan in a press release statement. InvestingPro analysis shows the bank maintains a "GOOD" Financial Health Score of 2.65, reflecting solid operational performance.

Net interest income on a fully taxable equivalent basis rose to $521.9 million, with net interest margin increasing 26 basis points to 3.53%. Total loans grew to $48 billion, up $11.5 billion from the previous quarter, primarily due to the Bremer acquisition.

The bank also announced Timothy Burke joined as President and Chief Operating Officer on July 22, assuming the role previously held by Mark Sander who announced his retirement earlier this year.

Credit quality metrics showed nonaccrual loans at 1.24% of total loans, while the efficiency ratio improved to 50.2% on an adjusted basis, compared to 51.8% in the previous quarter. The bank trades at a P/E ratio of 13.2 and offers a 2.47% dividend yield, having maintained dividend payments for 43 consecutive years. For deeper insights into Old National’s financial metrics and future outlook, investors can access the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Old National Bancorp announced the completion of its forward sale agreements, which resulted in net proceeds of approximately $443.2 million. These agreements involved the sale of 19,047,619 shares of common stock, with Citibank, N.A. and Citigroup Global Markets Inc. playing key roles in the transaction. Additionally, Old National Bancorp has appointed Matt Keen as its new Chief Information Officer. Keen brings over 30 years of technology leadership experience, having previously served as CIO for Bremer Bank.

Meanwhile, Jefferies initiated coverage on Old National Bancorp’s stock with a Hold rating and set a price target of $24.00. The firm noted the company’s potential to enhance net interest income through strategic repricing but highlighted that its stock valuation could remain subdued in the short term. Keefe, Bruyette & Woods analysts confirmed that Old National Bancorp would remain stationary within the Russell indexes, despite expectations of migration due to previous merger activities. Finally, at its 2025 Annual Meeting of Shareholders, Old National Bancorp saw all agenda items approved, including the election of nominated directors for a one-year term.

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