Old National Bancorp Reports Strong Q2 Growth

By Tamara Parker • Tuesday, July 23 15:28 • Permanent Link

Old National Bancorp (NASDAQ: ONB) has reported its second-quarter 2024 financial results, showcasing impressive growth and strong performance. The company's net income applicable to common shares for the second quarter was $117.2 million, with diluted earnings per share (EPS) of $0.37. On an adjusted basis, the net income applicable to common shares was $144.1 million, with adjusted EPS of $0.46.

The net interest income on a fully taxable equivalent basis stood at $394.8 million, reflecting a notable increase. The net interest margin on a fully taxable equivalent basis also saw growth, reaching 3.33%, up 5 basis points from the previous period.

Old National's pre-provision net revenue (PPNR) was $199.0 million, with adjusted PPNR at $218.5 million. The company managed its noninterest expenses well, with expenses totaling $283.0 million and adjusted noninterest expenses at $263.6 million. The efficiency ratio was 57.2%, which improved to 52.6% on an adjusted basis.

The period-end total deposits reached $40.0 billion, marking an increase of $2.3 billion. The total loans at the end of the period were $36.2 billion, up by $2.6 billion. The company's provision for credit losses was $36.2 million, with net charge-offs of $14.0 million.

Old National's return on average tangible common equity was 14.1%, and when adjusted, it reached 17.2%. The company maintained strong capital ratios, with tangible common equity to tangible assets at 6.94%.

The completion of the acquisition of Capstar Financial Holdings, Inc. ("Capstar") on April 1, 2024, significantly contributed to Old National's growth. Capstar added approximately $3.1 billion of total assets, $2.1 billion of total loans, and $2.6 billion of deposits. The consideration paid totaled $417.6 million and consisted of 24.0 million shares of Old National common stock.

Old National's successful performance in the second quarter positions the company as a strong player in the banking sector, with notable improvements in key financial metrics compared to the previous period. The market has reacted to these announcements by moving the company's shares 2.2% to a price of $20.18. Check out the company's full 8-K submission here.

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