Old National Bancorp Announces Quarterly Dividends and Stock Repurchase Program

Rhea-AI Summary

Old National Bancorp (ONB) declares a quarterly cash dividend of $0.14 per share on common stock and $17.50 per share on preferred stock. Additionally, the company approves a $200 million stock repurchase program.

Financial Analyst

The declaration of a quarterly cash dividend by Old National Bancorp signals a sustained return to shareholders, which is a positive indicator of the company's financial health and confidence in its cash flow stability. The dividend yield, calculated by dividing the annual dividends per share by the current stock price, is a critical figure for income-focused investors. The announcement of a stock repurchase program up to $200 million further suggests that the company considers its stock to be undervalued or that it is seeking to return capital to shareholders in a tax-efficient manner. Stock buybacks can also lead to earnings per share (EPS) accretion, as they reduce the number of shares outstanding. However, investors should consider the opportunity cost of such buybacks, as the funds could alternatively be used for investments, debt reduction, or saved for future downturns.

Market Research Analyst

Old National Bancorp's dividend declaration and repurchase program announcement may influence investor sentiment and stock market performance. Dividend payments often attract a specific investor demographic seeking steady income, potentially increasing the stock's stability and attractiveness. The repurchase program may signal to the market that the company's leadership believes the stock is undervalued, which can be interpreted as a positive sign about its future prospects. It is important for investors to consider the broader market context, including interest rate trends and economic indicators, which can impact the attractiveness of dividend stocks relative to other investment opportunities.

Legal Expert

From a legal standpoint, the authorization of a stock repurchase program must comply with regulatory requirements and corporate governance standards. The company must ensure that buybacks are executed in a manner that does not manipulate the market price of the stock or disadvantage any shareholders. The timing and method of the repurchases, whether on the open market or through privately negotiated transactions, must adhere to the rules set by the Securities and Exchange Commission (SEC) and other regulatory bodies. Shareholders should be aware that while buybacks can be beneficial, they must be executed with transparency and fairness to maintain market integrity.

EVANSVILLE, Ind., Feb. 21, 2024 (GLOBE NEWSWIRE) -- Old National Bancorp (the “Company” or “Old National”) (NASDAQ: ONB) today announced that its Board of Directors declared a quarterly cash dividend of $0.14 per share on the Company’s outstanding shares of common stock. This quarterly cash dividend will be payable on March 15, 2024, to shareholders of record as of the close of business on March 5, 2024.

In addition, the Board of Directors declared a quarterly cash dividend of $17.50 per share (equivalent to $0.4375 per depositary share or 1/40th interest per share) on Old National’s 7.0% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A (NASDAQ: ONBPP) and Series C (NASDAQ: ONBPO). The dividends are payable on May 20, 2024, to shareholders of record as of the close of business on May 5, 2024.

The Company also announced today that its Board of Directors approved a stock repurchase program which authorizes the repurchase of up to $200 million of the Company’s common stock. Share repurchases under this program may be made from time to time on the open market, in privately negotiated transactions or through accelerated share repurchase programs in the discretion of, and at prices to be determined by, the Company. The program will be in effect until February 28, 2025.

ABOUT OLD NATIONAL
Old National Bancorp is the holding company of Old National Bank, which is the sixth largest commercial bank headquartered in the Midwest. With approximately $49 billion of assets and $29 billion of assets under management, Old National ranks among the top 30 banking companies headquartered in the U.S. Tracing our roots to 1834, Old National Bank has focused on community banking by building long-term, highly valued partnerships with clients and in the communities it serves. In addition to providing extensive services in retail and commercial banking, Old National offers comprehensive wealth management, investment, and capital market services. For more information and financial data, please visit Investor Relations at oldnational.com.

Investor Relations:
Lynell Durchholz
(812) 464-1366
lynell.durchholz@oldnational.com

Media Relations:
Kathy Schoettlin
(812) 465-7269
kathy.schoettlin@oldnational.com

FAQ

What is the quarterly cash dividend declared by Old National Bancorp for its common stock?

Old National Bancorp declared a quarterly cash dividend of $0.14 per share on its outstanding shares of common stock.

When will the quarterly cash dividend for common stock be payable?

The dividend will be payable on March 15, 2024, to shareholders of record as of March 5, 2024.

What is the quarterly cash dividend declared by Old National Bancorp for its preferred stock?

Old National Bancorp declared a quarterly cash dividend of $17.50 per share on its 7.0% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A and Series C.

When will the quarterly cash dividend for preferred stock be payable?

The dividends are payable on May 20, 2024, to shareholders of record as of May 5, 2024.

What is the amount authorized for the stock repurchase program by Old National Bancorp?

Old National Bancorp approved a stock repurchase program authorizing the repurchase of up to $200 million of the company's common stock.

Until when will the stock repurchase program be in effect?

The stock repurchase program will be in effect until February 28, 2025.