Old National Bancorp Shares Popped: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Old National Bancorp (NYSE: ONB  ) were banking big gains today, rising as much as 12% in intraday trading on heavier than average volume.

So what: It's earnings season, so it's a good bet that a big stock move has something to do with better or worse than expected second-quarter results. In Old National's case, the bank reported $0.18 in earnings per share, a substantial jump from the second quarter of last year. That figure topped analysts' estimates by $0.02. Management also reminded investors that the bank is growing thanks to the acquisition of Integra Bank at the end of July -- a deal that includes a loss-sharing agreement with the Federal Deposit Insurance Corporation.

Now what: Investors are still leery of most bank stocks, Old National included. Though the stock generally traded at a book value multiple of two or more prior to the financial crisis, it now trades closer to one times book value. With a strong capital position, an improving loan book, and a 2.7% dividend yield, this could be a bank worth watching.

Want to keep up to date on Old National Bancorp? Add it to your watchlist.

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Fool contributor Matt Koppenheffer does not have a financial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or Facebook. The Fool’s disclosure policy prefers dividends over a sharp stick in the eye.


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