NEW YORK (TheStreet) -- Shares of Old National Bancorp (ONB) - Get Report are retreating by 3.51% to $12.93 on Monday morning, even after the company reported better-than-expected earnings for the 2016 first quarter.
Before the market open, the Evansville, IN-based financial holding company posted adjusted earnings of 25 cents per share, topping analysts' expectations of 23 cents per share.
Revenue for the period was $140.3 million, above analysts' forecasts of $139.26 million.
Old National also said today that it has agreed to sell its insurance agency subsidiary ONB Insurance Group to Prime Risk Partners. The transaction is expected to close during the second quarter.
Additionally, the company said it has closed on its partnership with Anchor BanCorp Wisconsin.
"These actions, when taken together, are examples of how Old National is focusing on creating sustainable long term value for our shareholders," President and CEO Bob Jones said in a statement.
"The sale of our insurance group should improve our efficiency ratio, allow us to increase our tangible book value and helps fund the cash portion of the Anchor partnership," he added.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C+ on the stock.
The primary factors that have impacted the rating are mixed.
The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and weak operating cash flow.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: ONB