Acquisition, Sale Lead to Old National Profit Jump

(Image courtesy of Old National.)

Evansville-based Old National Bancorp (Nasdaq: ONB) is reporting second quarter net income of $39.1 million, compared to $26.2 million in the same period a year ago. The company says both the $460 million acquisition of Anchor BanCorp Wisconsin Inc. and the $93 million sale of its Old National Insurance unit boosted the bottom line.

The Anchor transaction, the largest in Old National history, closed in May and the insurance sale to Georgia-based Prime Risk Partners Inc. was complete last month. Another driving factor in what Chief Executive Officer Bob Jones called "a quarter marked by significant milestones" was early termination of Federal Deposit Insurance Corp. loss share agreements. Old National also says the Anchor Bank acquisition has cost $9.5 million less than initially anticipated. "These actions – coupled with solid organic loan growth and a continued focus on expense management – allowed us to continue to grow our business in spite of the economic challenges facing all U.S. financial companies. Our shareholders also benefited by the increase in tangible book value even after the closing of our Anchor partnership," said Jones.

During a conference call with investors Monday morning, Jones was asked about any additional mergers and acquisitions on the horizon. He said the company was spending more energy on execution and that "we’ve earned the right to be more selective on our partners."

Old National Bancorp says it has $14.4 billion in assets and a footprint of 206 branches throughout Indiana, Illinois, Kentucky and Wisconsin.

You can connect to more about the company’s second quarter performance by clicking here.