Post Earnings Coverage as Old National Bancorp’s Q4 Results Beat Estimates

Upcoming AWS Coverage on Commerce Bancshares Post-Earnings Results

LONDON, UK / ACCESSWIRE / February 1, 2017 / Active Wall St. announces its post-earnings coverage on Old National Bancorp (NASDAQ: ONB). The Company reported its financial results for the fourth quarter fiscal 2016 (Q4 FY16) and full year 2016 (FY16) on January 24, 2017. The Evansville, Indiana-based company’s operating revenues surged 18.1%, outperforming Wall Street’s estimates. Register with us now for your free membership at:

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One of Old National Bancorp’s competitors within the Regional – Midwest Banks space, Commerce Bancshares, Inc. (NASDAQ: CBSH), reported its Q4 2016 earnings on January 18, 2017. AWS will be initiating a research report on Commerce Bancshares in the coming days.

Today, AWS is promoting its earnings coverage on ONB; touching on CBSH. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=ONB

http://www.activewallst.com/registration-3/?symbol=CBSH

Earnings Reviewed

During Q4 FY16, Old National Bancorp’s operating revenues came in at $172.7 million, which was above the $146.5 million reported in the year ago same quarter. Revenue was also above market consensus estimates of $154.7 million. The Company’s interest income grew to $121.85 million in Q4 FY16 from $94.96 million in Q4 FY15. The Company’s interest expenses increased to $11.93 million in Q4 FY16 from $9.04 million in Q4 FY15. Old National Bancorp’s net interest income also rose during the reported quarter to $109.92 million from $85.92 million in Q4 FY15. Furthermore, total non-interest income for the reported quarter came in at $62.75 million versus $60.61 million in the year ago comparable quarter.

The holding company for Old National Bank reported net income of $33.46 million, or $0.25 per diluted share, in Q4 FY16 compared to $31.99 million, or $0.27 per diluted share, in Q4 FY15. The Company’s quarterly earnings per diluted share beat market consensus estimates of $0.24 per diluted share.

For FY16, Old National Bancorp’s operating revenue was $655.5 million, up 5.9% from $596.7 million reported in FY15. The Company’s net interest income increased to $402.70 million in Q4 FY16 from $366.12 million in FY15. The Company’s total noninterest income also improved to $252.83 million in FY16 from $230.63 million in the previous year. Furthermore, net income for the reported quarter came in at $134.26 million, or $1.05 per diluted share, compared to $116.72 million, or $1.00 per diluted share in FY15.

Earnings Metrics

During the reported quarter, the Company’s return on average assets fell to 0.91% from 1.07% in the previous year comparable quarter. The return on average common equity came in at 7.33% in Q4 FY16, which was below 8.63% reported in Q4 FY15. The Company’s return on tangible common equity for the reported quarter also fell to 13.07% in Q4 FY16 from 15.85% in the year ago same quarter. Furthermore, tangible common book value grew 8.9% y-o-y to $8.30 per share in Q4 FY16.

The Old National Bancorp’s efficiency ratio was 69.53% in Q4 FY16 compared to 66.42% in Q4 FY15. However, the Company’s net interest margin (fully tax equivalent) rose during Q4 FY16 to 3.63% from 3.50% in Q4 FY15. The tangible common equity to tangible assets ratio remained also grew to 7.92% at December 31, 2016 from 7.66% as on December 31, 2015. The Company’s equity tier 1 risk-based capital ratio was 11.7% as on December 31, 2016, compared to 12.6% as on December 31, 2015. Furthermore, total risk-based capital ratio stood at 12.2% as on December 31, 2016, versus 13.3% as on December 31, 2015.

Balance Sheet Analyzed

Old National Bancorp’s average total loans balance at the end of Q4 FY16 was $9.03 billion compared to $6.89 billion at the end of last year quarter. In Q4 FY14, the yield on average loans was 4.42% compared to 4.32 % in Q4 FY15. Total average earning assets for the quarter ended December 31, 2016, were $12.71 billion versus $10.41 billion recorded in the prior year’s corresponding period. In Q4 FY16, Old National Bancorp’s interest spread was 3.48%, compared to 3.34% in Q4 FY15. Furthermore, average total interest-bearing deposits and CD’s increased to $7.74 billion in Q4 FY16 from $6.09 billion in the last year’s comparable quarter.

The Company had total non-performing loans of $145.78 million at December 31, 2016, compared to $146.66 million as on December 31, 2015. Non-performing assets as a percent of end of period (EOP) loans was 1.62% at December 31, 2016, versus 2.11% as on December 31, 2015.

Dividend

In a separate press release on January 26, 2017, Old National Bancorp’s Board of Directors announced a quarterly cash dividend of $0.13 per diluted share on the outstanding shares of the Company’s common stock. The dividend is payable March 15, 2017, to shareholders of record on March 01, 2017.

Stock Performance

At the closing bell, on Tuesday, January 31, 2017, the stock closed the trading session at $17.75, slightly rising 0.85% from its previous closing price of $17.60. A total volume of 805.17 thousand shares have exchanged hands. Old National Bancorp’s stock price advanced 24.38% in the last three months, 38.34% in the past six months, and 58.09% in the previous twelve months. The Company’s shares are trading at a PE ratio of 16.99 and have a dividend yield of 2.93%.

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