Old National's Profit Dinged by Anchor Merger Costs

Acquisition costs ate into third-quarter profit at Old National Bancorp in Evansville, Ind.

The $14.7 billion-asset company's net income fell 11% from the previous quarter to $34.7 million. Earnings per share fell 19% to 25 cents.

Yearly comparisons were skewed by Old National's April acquisition of Anchor BanCorp Wisconsin. Old National bought the Madison, Wis., company for $461 million.

Net interest income after the loan-loss provision increased 9% to $106 million. Total loans rose 1% to $8.9.

Noninterest income dropped 49.4% to $47.2 million. Old National recorded a one-time gain of $42 million in the second quarter from the sale of ONB Insurance Group. In other noninterest segments, Old National reported quarterly increases in mortgage banking, deposit service changes and investment product fees.

Noninterest expense fell 11% to $108 million. Old National incurred $5.5 million in pretax merger costs related to Anchor.