Old National Bancorp (ONB) Tops Q3 EPS by 2c

Old National Bancorp (NASDAQ: ONB) reported Q3 EPS of $0.34, $0.02 better than the analyst estimate of $0.32. Revenue for the quarter came in at $179.6 million versus the consensus estimate of $179.68 million.

“Our record earnings for the quarter were highlighted by positive operating leverage, a modest increase in core deposit costs, stable credit, and a continued focus on expense control,” stated Chairman and CEO Bob Jones. “We were also pleased to see a 21% increase in year-over-year adjusted pre-provision net revenue. While loan balances were stable for the quarter, our loan pipeline at quarter-end remained strong. These strong 3rd quarter results position Old National very well for continued growth.”

Net Income

• Net income of $51.3 million, an increase of 30.4% from third quarter of 2017
• Earnings per share of $0.34, an increase of 17.2% from third quarter of 2017

Net Interest Income/NIM

• Net interest income on a fully taxable equivalent basis was $133.6 million, down 0.9%
• Net interest margin on a fully taxable equivalent basis was 3.51% compared to 3.55%

Operating Performance

• Pre-provision net revenue1 (“PPNR”) was $60.2 million
• Adjusted PPNR1 was $70.9 million, up 8.1%
• Noninterest expense was $119.4 million
• Adjusted noninterest expense1 was $108.4 million, compared to $114.5 million
• Efficiency ratio1 was 64.71%
• Adjusted efficiency ratio1 was 58.67%, a 251-basis point improvement from third quarter of 2017

Loans and Credit Quality

• End-of-period total loans3 were $11,314.0 million compared to $11,321.8 million
• End-of-period commercial and industrial loans were $2,949.3 million compared to $2,962.9 million
• Third quarter total commercial production was $455.2 million; September 30 pipeline was $1.7 billion
• Provision for loan losses of $0.8 million compared to $2.4 million in the second quarter
• Net charge-offs were $1.7 million, or 0.06% annualized, compared to net recoveries of $0.8 million
• Non-performing loans were 1.47% of total loans compared to 1.38%

Capital Returns

• Return on average equity was 9.28%
• Return on average tangible common equity1 was 16.10%
• Adjusted return on average tangible common equity1 was 16.42%

Notable Items

• $1.7 million in merger/integration charges and a $0.1 million net gain in branch actions
• $9.2 million in tax credit amortization
• Footprint rationalization continues with the pending sale of 10 branches, expected to close October 26, 2018

For earnings history and earnings-related data on Old National Bancorp (ONB) click here.

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• JD.com (JD) Reiterated at Buy by Benchmark Amid Earnings Recovery
• Reading (RDI) Tops Q2 EPS by 4c