DBRS confirms Old National Bancorp

DBRS Inc. said it confirmed Old National Bancorp's BBB (high) issuer and senior debt rating.

The trend remains stable.

The action follows the company's release of second quarter earnings and its purchase of about $1.2 billion in loans and assumption of roughly $1.5 billion in deposits from Integra Bank National Association in an FDIC-assisted transaction for which ONB paid a core deposit premium of 1%, according to the agency.

The confirmation reflects DBRS's opinion that the acquisition makes strategic sense, is expected to be accretive to earnings and includes a loss share agreement, which mitigates potential loss content embedded in Integra's loan portfolio, the agency said.

Ratings are also underpinned by ONB's deeply rooted community-based banking franchise, relatively sound asset quality, resilient earnings power and ample liquidity, the agency noted.

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