Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Old National Bancorp Shares Retreated

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

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 regional bank provider Old National Bancorp (NYSE: ONB  ) probably wishes the market had remained closed with its shares dropping as much as 10% after reporting third-quarter earnings results on Monday.

So what: For the quarter, Old National Bancorp reported EPS of $0.20, which includes charges and expenses related to its purchase of Indiana Community Bancorp. Wall Street had been looking for $0.24 in EPS, but it's unclear whether that figure was meant to include Old National's acquisition costs. On the bright side, net interest margin expanded by 13 basis points over the previous year, tier-1 capital ratios rose year over year, and delinquency rates remain near record lows. On the flipside, problem loans increased, and many sequential comparisons to the second quarter are down.

Now what: Overall, this wasn't nearly as bad of a report as investors are making it out to be. The acquisition of Indiana Community Bancorp will add $493.5 million in loans and $784.6 million in core deposits, and Old National's net interest margin and delinquency rates are better than those of many of its peers. It's not an exceptional value at roughly 1.1 times book value, but all things considered, you could do much worse in the regional banking sector at the moment.

Craving more input? Start by adding Old National Bancorp to your free and personalized watchlist so you can keep up on the latest news with the company.

Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.

Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2086808, ~/Articles/ArticleHandler.aspx, 10/28/2016 10:37:16 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,193.34 23.66 0.13%
S&P 500 2,134.51 1.47 0.07%
NASD 5,212.56 -3.41 -0.07%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/28/2016 10:21 AM
ONB $14.33 Down -0.06 -0.42%
Old National Banco… CAPS Rating: *****