Old National Bancorp in Evansville, Ind., reported Thursday that third-quarter earnings were 54% higher than a year earlier, at $18.2 million.
Diluted earnings per share were up 59%, to 27 cents.
Earnings were down 25% for the nine months that ended Sept. 30, to $49 million. EPS fell 25%, to 73 cents.
The $9 billion-asset company attributed the quarterly profit increase to improved credit quality. Its loan-loss provision fell 73%, to $7.4 million; net chargeoffs were down 47.3%, to $22.1 million.
Net interest income declined 9%, to $67 million, mostly because of a $405.6 million sale of assets at the end of the second quarter, Old National said.
Fee and service charge income slid 8%, to $42 million, primarily because of a $7.8 million drop in mortgage fee revenue.
Old National attributed the nine-month earnings dip to a $17.2 million after-tax charge in the second quarter for its Project Ascend efficiency program. It hired a consulting firm in October 2003 and said in early June that it would take the charge.
The program is expected to save $77 million on a pretax, annualized basis.
