Old National Reports Higher Profit on Acquired Loans

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.

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