Old National Bancorp in Evansville, Ind., returned to profitability in the first quarter after a rough fourth quarter.
The $7.8 billion-asset company reported a $10.1 million profit, 82.6% better than its year-earlier profit, after losing $9.3 million in the fourth quarter of 2009.
Bob Jones, Old National's chief executive, said in a press release Monday that the results highlighted the company's "well-controlled credit metrics, our strong capital position and our highly liquid well-positioned balance sheet."
Jones said loan demand continues to be the company's most challenging area, as its customers' appetite for borrowing remains weak.
Old National's provision for loan losses declined 46.4% year over year, to $9.3 million. Its fourth-quarter provision was $21.8 million. Nonperforming loans totaled $68.1 million on March 31, or 1.8% of total loans. As of March 31, Old National had Tier 1 and total risk-based capital ratios of 14.2% and 16.1%, compared with 9.9% and 12.2% a year earlier, it said.