In Brief: Old National Cutting Back Subprime Activity

Old National Bancorp said it has sharply curtailed subprime indirect auto loans and is evaluating exit strategies for its Consumer Acceptance Corp. subsidiary.

The $5.8 billion-asset bank, reporting first-quarter earnings, said it continues to be disappointed by the performance of the unit.

The parent company reported net income of $16.5 million, or 60 cents a share, up from $16.1 million, or 57 cents, in the first quarter of 1997.

Old National said it does not know what impact the exit from subprime auto lending would have on earnings for the rest of the year. Shares were off 25 cents on the news, to $47.75, by late afternoon.

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