Old National Bancorp (ONB) Announces New Share Repurchase Plan
Old National Bancorp. ONB announced a new share repurchase program. Per the plan, the company is authorized to buy back up to $200 million worth of shares. The program will be carried through Feb 28, 2025.
Previously, ONB announced share repurchase programs in 2023 and 2022, each worth $200 million. The company didn’t repurchase any shares in 2023 due to unfavorable market conditions.
Concurrently, Old National Bancorp announced a quarterly cash dividend of 14 cents per share. The dividend will be paid out on Mar 15, 2024, to shareholders of record as of Mar 5, 2024.
Based on the last day’s closing price of $16.26, the current annual dividend yield is 3.44%. Notably, Old National Bancorp has kept the dividend payout unchanged for the last four years, with one hike over five years. This has led to a five-year annualized dividend growth rate of 1.44%. The company has a dividend payout ratio of 27%.
As of Dec 31, 2023, ONB’s CET1 capital ratio was 10.7%, up from 10.03% in the prior year period. As of the same date, total deposits were $37.2 billion, other borrowings were $764.9 million, and cash and cash equivalents (primarily consisting of cash and due from banks and money-market and other interest-bearing investments) totaled $1.18 billion.
Given its strong balance sheet and liquidity position, Old National Bancorp is expected to be able to sustain current capital distributions in the future. This will keep enhancing shareholder’s wealth.
Shares of ONB have lost 9.6% over the past year, compared with the industry’s downside of 13.6%.
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Currently, ONB carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Share Buyback Plans of Other Banks
Earlier this month, Zions Bancorporation ZION announced a new share repurchase plan for 2024. The plan authorizes the company to buy back up to $35 million worth of shares.
ZION repurchased shares in each of the last three years, indicating an impressive capital distribution plan on the back of anticipated growth.
In January, Capital City Bank Group, Inc. CCBG announced a new repurchase program. The program equips the bank to buy back up to 750,000 shares of common stock over the next five years. This represents 4.4% of the bank’s issued and outstanding shares of common stock.
CCBG terminated an existing repurchase program in order to pursue the new one, indicating certain capital distribution tweaks. The current plan does not obligate the bank to buy back any specified number of shares.
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