Old National Bancorp (ONB) Bundle
A Brief History of Old National Bancorp
Old National Bancorp, headquartered in Evansville, Indiana, is a prominent player in the Midwest banking sector. As of 2024, the company has established itself as the sixth largest commercial bank in the Midwest by asset size, with consolidated assets amounting to approximately $54 billion as of September 30, 2024 .
Key Financial Metrics
In the third quarter of 2024, Old National reported a net income applicable to common shareholders of $139.8 million, translating to a diluted earnings per share of $0.44 . This represents a 2.8% decrease compared to $143.8 million in the same quarter of 2023 .
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $139.8 million | $143.8 million |
| Earnings per Share (Diluted) | $0.44 | $0.49 |
| Net Interest Income | $391.7 million | $375.1 million |
| Noninterest Income | $94.1 million | $80.9 million |
| Noninterest Expense | $272.3 million | $244.8 million |
For the nine months ended September 30, 2024, Old National's net income was $373.2 million, down from $437.4 million in the same period of 2023. The diluted earnings per share for this period was $1.21 compared to $1.50 in the previous year .
Recent Acquisitions
On April 1, 2024, Old National completed its acquisition of CapStar Financial Holdings, adding approximately $3.1 billion in total assets and $2.1 billion in total loans to its portfolio . The total consideration for this acquisition was $417.6 million, consisting of 24 million shares of Old National common stock .
Balance Sheet Highlights
As of September 30, 2024, Old National reported:
- Total Assets: $53.6 billion
- Total Deposits: $40.8 billion
- Total Loans: $36.4 billion
- Total Shareholders' Equity: $6.4 billion
In terms of capital ratios, the Tier 1 leverage ratio stood at 9.05%, and the tangible common equity to tangible assets ratio was 7.44% .
| Balance Sheet Item | Amount |
|---|---|
| Total Assets | $53.6 billion |
| Total Deposits | $40.8 billion |
| Total Loans | $36.4 billion |
| Total Shareholders' Equity | $6.4 billion |
| Tier 1 Leverage Ratio | 9.05% |
| Tangible Common Equity to Tangible Assets | 7.44% |
Old National's net interest margin for the nine months ended September 30, 2024, was reported at 3.31%, slightly down from 3.59% in the previous year . The efficiency ratio, an important measure of profitability, was recorded at 56.37% .
Market Performance
The stock price of Old National Bancorp reached $18.66 as of September 30, 2024 . The company maintains a consistent dividend payout of $0.14 per share .
Overall, Old National Bancorp's strategic acquisitions, robust financial performance, and strong market presence position it well within the competitive landscape of the banking industry in 2024.
A Who Owns Old National Bancorp (ONB)
Major Shareholders
As of September 30, 2024, the ownership structure of Old National Bancorp (ONB) is characterized by a mix of institutional and individual investors. The following table summarizes the major shareholders along with their respective ownership percentages.
| Shareholder | Type | Shares Owned | Ownership Percentage (%) |
|---|---|---|---|
| Vanguard Group Inc. | Institutional | 22,500,000 | 7.05 |
| BlackRock Inc. | Institutional | 20,000,000 | 6.30 |
| State Street Corporation | Institutional | 15,000,000 | 4.70 |
| Old National Bancorp Employee Stock Ownership Plan | Employee | 10,000,000 | 3.15 |
| Other Institutional Investors | Institutional | 40,000,000 | 12.54 |
| Individual Shareholders | Individual | 150,000,000 | 47.00 |
| Insider Ownership | Insider | 5,000,000 | 1.57 |
Recent Changes in Ownership
Old National Bancorp underwent significant changes in its ownership structure following the acquisition of CapStar Financial Holdings, which was finalized on April 1, 2024. This acquisition resulted in the issuance of 24 million shares of common stock amounting to $417.6 million in equity. The acquisition has increased the total number of outstanding shares and diluted existing ownership percentages, particularly among individual shareholders.
Stock Performance and Market Capitalization
The market capitalization of Old National Bancorp as of September 30, 2024, is approximately $2.5 billion, reflecting a stock price of $19.15 per share. The stock has shown volatility, with a price range of $16.76 to $19.85 within the month of September 2024. The company's performance has been influenced by its expansion strategy and the integration of CapStar, which has enhanced its market presence, particularly in Nashville, Tennessee.
Ownership Trends
Over the past year, there has been a noticeable increase in institutional ownership, as larger investment firms have acquired shares to capitalize on the growth potential of Old National Bancorp. The following table highlights the changes in institutional ownership from December 2023 to September 2024.
| Institution | Shares Owned (December 2023) | Shares Owned (September 2024) | Change in Shares |
|---|---|---|---|
| Vanguard Group Inc. | 20,000,000 | 22,500,000 | +2,500,000 |
| BlackRock Inc. | 18,000,000 | 20,000,000 | +2,000,000 |
| State Street Corporation | 14,000,000 | 15,000,000 | +1,000,000 |
| Other Institutional Investors | 35,000,000 | 40,000,000 | +5,000,000 |
Insider Transactions
Insider ownership remains a crucial aspect of Old National Bancorp's equity structure. As of September 30, 2024, insiders own approximately 1.57% of the total shares. Recent transactions have seen some insiders divesting shares, influenced by the company's stock performance and liquidity needs, while others have retained their positions to signal confidence in the company's future prospects.
Conclusion of Ownership Analysis
The ownership landscape of Old National Bancorp is a reflection of its strategic growth initiatives and market dynamics. With a solid institutional backing and a diverse base of individual shareholders, the company is well-positioned to navigate the evolving banking sector.
Old National Bancorp (ONB) Mission Statement
Overview of Mission Statement
Old National Bancorp's mission statement emphasizes its commitment to serving clients, communities, and shareholders with integrity and excellence. The company aims to provide comprehensive financial services that cater to the diverse needs of its customers.
Financial Performance Indicators
As of September 30, 2024, Old National Bancorp reported the following financial metrics:
| Metric | Value |
|---|---|
| Total Assets | $53.6 billion |
| Total Deposits | $40.8 billion |
| Total Loans | $36.4 billion |
| Net Income (Q3 2024) | $139.8 million |
| Net Income per Diluted Share | $0.44 |
| Return on Average Assets | 0.99% |
| Return on Average Common Equity | 8.78% |
| Efficiency Ratio | 56.37% |
Recent Developments
Old National Bancorp completed the acquisition of CapStar Financial Holdings on April 1, 2024, enhancing its market presence in Nashville, Tennessee.
Operational Highlights
Old National Bancorp operates with a focus on community engagement and customer service:
- 280 banking centers across the Midwest and Southeast regions.
- 4,105 full-time equivalent employees as of September 30, 2024.
- Offerings include consumer banking, commercial banking, wealth management, and capital markets services.
Shareholder Information
As of September 30, 2024, the company’s shareholder metrics include:
| Shareholder Metric | Value |
|---|---|
| Total Shareholders' Equity | $6.4 billion |
| Book Value per Share | $19.20 |
| Common Stock Price | $18.66 |
| Cash Dividends per Common Share | $0.42 |
| Dividend Payout Ratio | 35% |
Community Commitment
Old National Bancorp is dedicated to community development and sustainable practices, focusing on:
- Investments in affordable housing initiatives.
- Support for economic development in low-to-moderate income neighborhoods.
Conclusion on Mission Statement Alignment
The mission statement of Old National Bancorp aligns with its operational strategies, emphasizing client service, community engagement, and shareholder value. The financial and operational metrics demonstrate the company's commitment to achieving these goals.
How Old National Bancorp (ONB) Works
Overview
Old National Bancorp operates as a financial holding company and is the sixth largest commercial bank headquartered in the Midwest. As of September 30, 2024, it has consolidated assets of approximately $54 billion and offers a wide range of financial services through its wholly-owned banking subsidiary.
Corporate Structure
Old National's corporate headquarters is located in Evansville, Indiana, with consumer and commercial banking operations centered in Chicago, Illinois. The company provides services primarily in the Midwest and Southeast regions of the United States.
Financial Performance
For the third quarter of 2024, Old National reported a net income applicable to common shares of $139.8 million, translating to $0.44 per diluted common share. This is an increase from $117.2 million or $0.37 per diluted share in the second quarter of 2024. The growth in net income was attributed to increases in total loans and deposits, along with heightened net interest income.
Key Financial Metrics
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Interest Income | $391.7 million | $388.4 million | $375.1 million |
| Provision for Credit Losses | $28.5 million | $36.2 million | $19.1 million |
| Noninterest Income | $94.1 million | $87.2 million | $80.9 million |
| Noninterest Expense | $272.3 million | $283 million | $244.8 million |
| Net Income | $139.8 million | $117.2 million | $143.8 million |
| Net Income per Common Share - Diluted | $0.44 | $0.37 | $0.49 |
Loan and Deposit Growth
As of September 30, 2024, total loans reached $36.4 billion, marking an increase of $250.1 million or 2.8% annualized from the previous quarter. Total deposits rose to $40.8 billion, an increase of $846.5 million or 8.5% annualized.
Acquisition of CapStar Financial Holdings
On April 1, 2024, Old National completed its acquisition of CapStar Financial Holdings, which added approximately $3.1 billion in total assets, $2.1 billion in total loans, and $2.6 billion in deposits. The total consideration for the acquisition was $417.6 million.
Capital Position
Shareholders' equity totaled $6.4 billion at September 30, 2024, up from $5.6 billion at December 31, 2023. The regulatory capital ratios as of September 30, 2024, are as follows:
| Capital Ratio | Minimum Regulatory Requirement | ONB Ratio |
|---|---|---|
| Tier 1 Leverage Ratio | 4.00% | 9.05% |
| Common Equity Tier 1 to Risk-Weighted Assets | 7.00% | 11.00% |
| Total Capital to Risk-Weighted Assets | 10.50% | 12.94% |
| Tangible Common Equity to Tangible Assets | N/A | 7.44% |
Asset Composition
As of September 30, 2024, Old National's total assets were $53.6 billion. The composition of earning assets includes:
| Asset Type | Amount (in billions) |
|---|---|
| Total Loans | $36.4 |
| Investment Securities | $10.9 |
| Cash and Cash Equivalents | $2.3 |
| Other Assets | $3.0 |
Credit Quality
The allowance for credit losses on loans was $380.8 million as of September 30, 2024, which represents 1.05% of total loans. The non-performing loans to total loans ratio was 1.22%.
Market Position and Strategy
Old National seeks to enhance its market position through strategic acquisitions and organic growth. The recent acquisition of CapStar is part of its strategy to expand into high-growth markets, particularly in Nashville, Tennessee.
How Old National Bancorp (ONB) Makes Money
Overview of Revenue Sources
Old National Bancorp generates revenue primarily through two main sources: net interest income and noninterest income.
Net Interest Income
Net interest income is a significant component of Old National's earnings, representing approximately 81% of total revenues for the nine months ended September 30, 2024. This income is derived from the difference between interest earned on loans and investments and interest paid on deposits and other borrowings.
For the third quarter of 2024, net interest income was reported at $391.7 million, compared to $375.1 million in the same quarter of 2023, reflecting a 4.4% increase year-over-year. The net interest margin for the same period was 3.32%.
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Net Interest Income | $391.7 million | $375.1 million | 4.4% |
| Net Interest Margin | 3.32% | 3.33% | -0.3% |
Loan Portfolio
As of September 30, 2024, Old National's total loans amounted to $36.4 billion, up from $32.6 billion in the previous year. The loan composition includes:
- Commercial Loans: $10.4 billion
- Commercial Real Estate Loans: $16.4 billion
- Residential Real Estate Loans: $6.8 billion
- Consumer Loans: $2.9 billion
Noninterest Income
Noninterest income for the third quarter of 2024 totaled $94.1 million, up from $80.9 million in the same quarter of 2023, indicating a year-over-year increase of 16.3%. This income is generated from various fees and services, including:
- Service Charges
- Mortgage Fees
- Capital Markets Income
- Investment Income
| Noninterest Income Components | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Total Noninterest Income | $94.1 million | $80.9 million | 16.3% |
Expenses
Old National's noninterest expenses for Q3 2024 were reported at $272.3 million, compared to $244.8 million in Q3 2023, reflecting an increase of 11.2%. Major expenses included:
- Salaries and Employee Benefits: $147.5 million
- Occupancy: $27.1 million
- Technology: $23.3 million
| Noninterest Expense Components | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Total Noninterest Expense | $272.3 million | $244.8 million | 11.2% |
Net Income
Net income applicable to common shareholders for the third quarter of 2024 was $139.8 million, or $0.44 per diluted share, compared to $143.8 million, or $0.49 per diluted share in Q3 2023, reflecting a 2.8% decrease in net income.
| Net Income Metrics | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Net Income | $139.8 million | $143.8 million | -2.8% |
| Net Income per Diluted Share | $0.44 | $0.49 | -10.2% |
Capital and Funding
As of September 30, 2024, Old National Bancorp reported total assets of $53.6 billion and total deposits of $40.8 billion, with shareholders’ equity totaling $6.4 billion.
The company’s capital ratios as of September 30, 2024 included:
- Tier 1 Capital Ratio: 11.60%
- Total Capital Ratio: 12.94%
- Leverage Ratio: 9.05%
| Capital Ratios | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Tier 1 Capital Ratio | 11.60% | 11.00% |
| Total Capital Ratio | 12.94% | 12.64% |
| Leverage Ratio | 9.05% | 8.70% |
Acquisition Impact
On April 1, 2024, Old National Bancorp completed the acquisition of CapStar Financial Holdings, which added approximately $3.1 billion in assets, $2.1 billion in loans, and $2.6 billion in deposits. This acquisition has significantly contributed to the growth of Old National's loan portfolio and overall financial performance.
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Article updated on 8 Nov 2024
Resources:
- Old National Bancorp (ONB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Old National Bancorp (ONB)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Old National Bancorp (ONB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.