Old National Bancorp Q3 net interest income rises on loan growth

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Adjusted EPS

$0.66

Q3 EPS

$0.66

Q3 Net Income

$249.96 mln

Q3 Net Interest Income

$584.29 mln

Q3 Credit Loss Provision

$33.58 mln


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


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.