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Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
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Old National Bancorp. Announces New Share Repurchase Plan & Dividend
Old National Bancorp. (ONB - Free Report) has announced a new share repurchase program alongside quarterly cash dividends.
Under the buyback plan, ONB will be able to repurchase up to $200 million worth of shares. The repurchase plan is set to expire on Feb. 28, 2026.
This new program will replace the existing share repurchase plan, announced in February 2024.
Prior to this, ONB announced a share repurchase plan in February 2023 authorizing the repurchase of up to $200 million of shares, which expired on Feb. 29, 2024.
Old National Bancorp’s Dividend
Apart from share repurchases, Old National Bancorp has announced a quarterly cash dividend of 14 cents per share. The dividend will be paid out on March 17, 2025, to shareholders of record as of March 5.
ONB pays quarterly dividends regularly and has increased dividends once in the last five years. In January 2020, the bank announced a 7.7% dividend hike from the prior payout to 14 cents per share and maintained the same level since then.
Considering Wednesday’s closing price of $24.30, its annualized dividend yield is 2.30%. Apart from being attractive to investors, the yield represents a steady income stream. The company has a dividend payout ratio of 30%.
As of Dec. 31, 2024, Old National Bancorp’s cash and due from banks was $394.5 million. The cash levels are decent relative to other borrowings of $689.6 million.
Hence, a decent balance sheet position, along with its earnings strength, indicates that ONB’s capital distributions are sustainable.
ONB’s Zacks Rank & Price Performance
Shares of Old National Bancorp have risen 30.3% compared with the industry’s 18.2% growth in the past six months.
Image Source: Zacks Investment Research
Currently, ONB carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Similar Steps by Other Finance Firms
Earlier this month, Piper Sandler Companies (PIPR - Free Report) announced a new share repurchase plan. The board of directors has approved the repurchase of up to $150 million worth of shares of PIPR’s outstanding stock.
The buyback program will be effective immediately and expire on Dec. 31, 2026. Before this, a share repurchase authorization was announced in May 2022, which expired on Dec. 31, 2024. Under this, PIPR was authorized to buy back up to $150 million worth of shares.
Similarly, last month, Prosperity Bancshares, Inc. (PB - Free Report) announced a stock repurchase program, authorizing the repurchase of up to 4.8 million of its common stock. This program is set to expire on Jan. 21, 2026.
Prior to this, PB announced a share repurchase plan authorizing a buyback of up to 4.7 million shares in January 2024, which expired on Jan. 16, 2025.