Jefferies Lowers ONB EPS Estimates

Old National ONB reported 4Q EPS of $0.07 vs. consensus of $0.12, Jefferies reports. “The quarter reflected the challenging growth environment, with loan balances up just 1% despite a significant ramp in the residential portfolio,” Jefferies writes. “While the bank holds an abundance of capital, we feel shares are pricing in potential growth from capital deployment. “We are lowering our 2011 EPS estimate to $0.65 (from $0.70), 2012 goes to $0.85 (from $0.90), and 2013 goes to $0.90 (from $0.95). The revisions are an effect of a lower loan growth forecast and a higher expense run rate. An improved margin as a result of lower funding costs helps support estimates.” Old National closed Monday at $10.73.