Old National Bancorp finalizes forward sale agreements

Published 28/05/2025, 21:30
Old National Bancorp finalizes forward sale agreements

Old National Bancorp /IN/ (NASDAQ:ONB), a $7.78 billion market cap financial institution headquartered in Evansville, Indiana, announced the completion of its forward sale agreements, resulting in net proceeds of approximately $443.2 million. Trading at $21.06 per share, InvestingPro analysis suggests the stock is slightly overvalued. This financial move was finalized on May 23, 2025, as disclosed in the company’s recent SEC filing.

The company had previously entered into two forward sale agreements with Citibank, N.A., acting as the forward purchaser, and Citigroup (NYSE:C) Global Markets Inc., serving as the forward seller. These agreements pertained to the sale of 19,047,619 shares of Old National Bancorp’s common stock, which currently offers a 2.61% dividend yield and has maintained dividend payments for 43 consecutive years. Additionally, the underwriters were granted a 30-day option to purchase up to an additional 2,857,143 shares.

On November 25, 2024, the underwriters exercised this option in full, leading to an additional forward sale agreement for the extra shares, under similar terms as the original. The full physical settlement of both agreements involved the delivery of 21,904,762 shares to the forward purchaser.

Details of the underwriting agreement and both forward sale agreements are referenced in previous SEC filings dated November 25 and November 26, 2024. These documents provide the complete terms and conditions of the agreements.

This announcement, based on a press release statement, showcases Old National Bancorp’s strategic financial planning and is a significant event in the company’s fiscal management. The successful settlement of these agreements reflects the company’s active engagement in managing its capital structure. With nine analysts recently revising earnings upward and an overall FAIR financial health score according to InvestingPro, which offers comprehensive analysis and additional insights through its detailed Pro Research Report covering 1,400+ US stocks.

In other recent news, Old National Bancorp announced the approval of all proposals at its 2025 Annual Meeting of Shareholders. This includes the election of directors and the endorsement of executive compensation, reflecting strong shareholder support with 91% participation. Additionally, Old National declared a quarterly cash dividend of $0.14 per share for common stock, payable in June, and dividends for preferred stock, payable in August. The acquisition of Bremer Financial Corporation is a significant development, with analysts observing its potential impact on future earnings and operational efficiency.

Jefferies initiated coverage on Old National with a Hold rating and a $24 price target, noting the bank’s potential for net interest income growth. Meanwhile, Keefe, Bruyette & Woods (KBW) adjusted their price target to $26, maintaining an Outperform rating, citing Old National’s strong balance sheet and profitability projections. Citi also revised its price target to $28 while keeping a Buy rating, highlighting the bank’s strong first-quarter earnings and the advancement of a major deal closure. These analyst perspectives underscore the varied outlooks on Old National’s financial prospects amidst ongoing economic uncertainties.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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