Shares of Old National Bancorp of Evansville, Ind., rose 7.7% Monday, to close at $17.02, after the company reported first-quarter earnings that handily beat Wall Street estimates.
The $7.7 billion-asset Old National said it earned $19.3 million in the quarter, up 79% from the first quarter of 2007, when it took a $7.7 million charge to account for costs associated with closing eight branches. Per-share earnings rose 81%, to 29 cents, 15 cents better than the average estimate of analysts polled by Thomson Reuters.
The company credited lower expenses and higher net interest income, which helped offset an increase in its loan-loss provision. Its net interest income rose 15%, to $64.2 million, while its noninterest expense fell 3%, to $70.9 million.
Old National's loan-loss provision was $21.9 million, compared with $1.7 million in the fourth quarter. It attributed $17 million of the provision to misconduct by a former Indianapolis loan officer.
Bob Jones, Old National's president and chief executive officer, said in a news release, "We are especially pleased with our overall first-quarter earnings, given the additional provision expense due to our previously disclosed Indianapolis event and the difficult operating environment facing financial institutions today."
