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Old National profit slumps, guidance curtailed

October 27, 2008
Evansville-based Old National Bancorp today reported $17 million in third-quarter profit. The 26 cents per share was 25 percent less than a year earlier and a penny less than expected by analysts surveyed by Thomson Reuters.

The parent of Old National Bank also lowered its full-year guidance to $1.10 to $1.15 per share from its previously expected $1.13 to $1.19. Analysts anticipate $1.15 per share.

President Bob Jones hailed the report as good news, given the turbulent financial markets. Non-performing loans leveled off at $68.4 million after a sharp rise late last year, and loans written off as uncollectible also fell. Only 0.46 percent of the banks loans fell into the category in the most recent quarter, compared to 1.35 percent in the prior quarter.

"Clearly, the fundamentals of our business model remain strong and should continue to produce solid underlying earnings support as we proceed through these difficult times," Jones said in a statement.

The bank has 10 locations in the Indianapolis area.

Old National stock climbed 36 cents this morning to trade at $16.36.

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