Why did ONBPO's Q2 earnings exceed forecasts?

Old National Bancorp (ONB) reported robust financial results for the second quarter of 2024, surpassing earnings and revenue forecasts. The company's earnings per share (EPS) came in at $0.49, outpacing the forecasted $0.46. Revenue reached $489.95 million, slightly above the anticipated $486.89 million. The following highlights key factors contributing to ONB's strong performance: 1. **Growth in Core Deposits**: Old National Bancorp experienced significant growth in its low-cost core deposits, which expanded by approximately 10% in 2024. This growth effectively funded a corresponding 10% increase in loans. 2. **Successful Acquisitions**: The bank has successfully closed and converted CapStar Bank and Old National Bank, solidifying its presence in high-growth eastern markets. Additionally, a new partnership with Bremer Bank is set to expand its footprint across multiple states. 3. **Robust Financial Metrics**: ONB reported impressive financial metrics, including an adjusted earnings per share of $1.86, an adjusted return on average tangible common equity at 16.9%, and an adjusted efficiency ratio of 52%. The tangible book value per share experienced an annual growth of 8%, indicating strong financial health and operational efficiency. These strategic initiatives, coupled with strong core deposit growth and reduced borrowings, have contributed to Old National Bancorp's robust financial performance and its ability to exceed market expectations.