Old National in Evansville, Ind., reported higher quarterly profit due to securities gains and loan growth tied to its purchase of Anchor BanCorp Wisconsin.
The $14.4 billion-asset company said in a press release Monday that its net income rose 50% from a year earlier to $39.1 million, or 31 cents a share.
Noninterest income rose 70% to $93.3 million on securities gains and higher mortgage banking revenue and investment product fees.
Net interest income increased 8% to $99.3 million. Total loans increased 30% after the company's second-quarter acquisition of the $2.2 billion-asset Anchor, which included a $1.6 billion loan portfolio. The net interest margin narrowed by 18 basis points to 3.57%.
The loan-loss provision fell 42% to $1.3 million.
Noninterest expenses rose 11% to $121.4 million because of increases in salaries and employee benefits, professional fees, and real estate and loan expenses. Anchor's operational costs contributed $11.4 million to noninterest expenses during the quarter.
Old National also exited the insurance business in May when it sold ONB Insurance Group for $93 million to Prime Risk Partners.