Old National Bancorp Q3 net interest income rises on loan growth

Overview

• US regional bank reported record Q3 net income and adjusted EPS at $0.66 per share

• Company's period-end deposits rose 10.6% annualized, loans up 2.9% annualized

• Repurchased $100 mln of common stock during the quarter

Outlook

• Company did not provide specific financial guidance for the current or future periods in its press release

Result Drivers

• LOAN AND DEPOSIT GROWTH - Co said net interest income rose due to high quality loan and deposit growth, partly offset by higher deposit costs

• EXPENSE MANAGEMENT - Co attributed record efficiency ratio to disciplined expense management, with adjusted noninterest expense declining from prior quarter

• NONINTEREST INCOME DECLINE - Co said noninterest income fell 9.1% from prior quarter due to normalization after elevated other income in Q2

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Old National Bancorp is $29.00, about 14.4% above its October 20 closing price of $25.34

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads

• Oct 20 - KeyCorp Q3 revenue rises 8% to record, profit up 24%

• Oct 19 - Zions Bancorp Q3 EPS rises 20% on improved credit quality

• Oct 20 - East West Bancorp Q3 revenue beats estimates on loan and deposit growth

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)