Old National Bancorp. ( ONB ), the Evansville, IN-based Midwest bank, is raising capital through the issuance of unsecured senior notes. In particular, the bank has already started the $150 million public offering of notes. Though the purpose of this offering has not been disclosed, Old National's commitment to drive both organic and inorganic growth as well as fund expansion initiatives might have prompted the capital-raising activity.
Old National reported second-quarter 2014 earnings of $18.8 million or 18 cents per share which included pre-tax merger and integration costs of $6.3 million, along with pre-tax unfavorable changes of $10.5 million in indemnification asset. Moreover, during the quarter, the holding company for Old National Bank completed the acquisition of Tower Bank & Trust Company.
Further, on Jul 28, Old National has inked an agreement to acquire Grand Rapids-based Founders Financial Corporation in a bid to bolster its presence in West Michigan. The recent spate of expansion activities might have propelled the bank to make provision for more capital.
With $10.4 billion in assets as of Jun 30, 2014, Old National ranks among the top 100 banking companies in the U.S., offering services in retail and commercial banking, wealth management, investments and brokerage.
Currently, Old National carries a Zacks Rank #3 (Hold). Some better-ranked mid-west banks include First Business Financial Services, Inc. ( FBIZ ), First Financial Corp. ( THFF ) and German American Bancorp Inc. ( GABC ). All these stocks hold a Zacks Rank #2 (Buy).
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