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Old National Bancorp

Shares of Old National Bancorp (ONB) of Evansville, Ind., closed at $13.92 Tuesday, returning 17% this year after a 5% gain during 2012.

The shares trade for 1.2 times tangible book value, and for 12.3 times the consensus 2014 EPS estimate of $1.13. The consensus 2013 EPS estimate is $1.07.

Based on a quarterly payout of $0.10, the shares have a dividend yield of 2.87%.

Old National had $9.5 billion in total assets as of Dec 31. The balance sheet grew by 7% from a year earlier, mainly reflecting the acquisition of Indiana Community Bancorp in September.

The company reported fourth-quarter earnings of $23 million, or $0.23 a share, increasing from $19.7 million, or $0.20 a share, the previous quarter, and $22.2 million, or $0.23 a share, a year earlier. The company's net interest income totaled $84 million in the fourth-quarter, increasing from $74.1 million in the third quarter, and $76 million in the fourth quarter of 2011.

Net interest income increased significantly from the Indiana Community acquisition, as well as "accretion of purchase accounting discounts" related to the purchase of two failed banks from the Federal Deposit Insurance Corp.

Noninterest expenses rose significantly to $99.4 million in the fourth quarter from $89 million the previous quarter, and $93.7 million a year earlier. The company said fourth-quarter expenses were boosted by $2 million in expenses related to the Indiana Community acquisition, as well as "$2.6 million in branch optimization expense, $1.9 million for the extinguishment of debt," and a $1 million charitable contribution.

The company's 2012 ROA was 1.03%.

Sterne Agee analyst Kenneth James has a $15 price target for Old National, estimating the company will earn $1.08 a share this year, with EPS rising to $1.17 in 2014. The analyst said in a report in December that the stock was a good defensive play because of "better-than-average revenue diversification with 38% from non-interest sources including insurance brokerage and wealth management operations."

ONB Chart ONB data by YCharts

Interested in more on Old National Bancorp? See TheStreet Ratings' report card for this stock.

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