Old National reports record net income

Evansville-based Old National Bancorp is reporting the highest net income in the company’s history.

In an announcement of total year and fourth quarter 2016 earnings, the company reported 2016 net income of $134.3 million, or $1.05 per diluted share. The net income total represents an increase of 15 percent over full-year 2015 net income of $116.7 million, or $1 per diluted share.

For the fourth quarter of 2016, Old National reported net income of $33.5 million, or 25 cents per diluted share. During that quarter, Old National recognized $12.8 million in pre-tax deferred gains related to the repurchase of various bank properties.

Also included in the fourth quarter of 2016 were pre-tax pension termination charges of $9.8 million, pre-tax branch consolidation charges of $5.1 million, pre-tax merger and integration charges of $1.8 million and severance of $1.6 million.

These quarterly results compare to net income of $32 million recorded in the fourth quarter of 2015.

At Dec. 31, period-end loans, including loans held for sale, totaled $9.101 billion, an increase of $135.7 million from the $8.966 billion as of Sept. 30. This increase represents a 6.1 percent annualized organic growth rate.

Old National’s portfolio of commercial and commercial real estate loans for 2016, including loans held for sale, increased $2.139 billion from 2015.

Excluding the $1.647 billion in loan balances acquired from the Anchor partnership, organic loan growth was $491.9 million, or 7.1 percent. Commercial and commercial real estate loans grew $395.5 million on an organic basis, net of the $968.6 million from Anchor.

Old National’s non-interest expenses totaled $126.3 million for the fourth quarter of 2016. Included in the total is a $9.8 million pre-tax charge for the termination of the company’s pension plan, $5.1 million in pretax charges related to branch consolidation, $1.8 million in pre-tax merger and integration charges and $1.6 million in severance.

Old National Bancorp is the holding company of Old National Bank, the largest financial services holding company headquartered in Indiana. Founded in Evansville in 1834, it has $14.9 billion in assets and ranks among the top 100 banking companies in the United States. Old National has community banking in Indiana, Kentucky, Michigan and Wisconsin, including four locations in Columbus.

Author photo
Julie McClure is assistant managing editor of The Republic. She can be reached at jmcclure@therepublic.com or (812) 379-5631.