Old National Bancorp's decision to repurchase branch offices that it had been leasing helped boost the Evansville, Ind., company's fourth-quarter profit.
Net income at the $12 billion-asset company rose 9.4% to $32 million, compared to a year earlier. Earnings per share rose 8% to 27 cents.
Yearly comparisons were skewed by Old National's
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More than half of the deals announced so far this year have involved sellers from the Midwest. Expect activity in the region to rise as more banks mimic Huntington Bancshares and Chemical Financial by becoming acquirers.
January 26 -
Chris Bauer, who navigated Anchor BanCorp through bankruptcy and an IPO, will stay with Old National in an unspecified role. Old National, meanwhile, has added Wisconsin to the list of states where it is looking for acquisitions.
January 12 -
Fifth Third Bancorp in Cincinnati on Thursday reported a big spike in profits, after selling shares in the payment processor Vantiv.
January 21
Results from this year's fourth quarter included several one-time items, including an $11.1 million pretax gain on
Net interest income fell 4.6% to $85.9 million. Total loans rose 10% to $6.9 billion. The net interest margin narrowed to 3.5% from 3.83%.
Noninterest income rose 20% to $60.6 million. The category benefited from a $10.8 million gain from the repurchase of 14 branches, and from a favorable comparison, as the year-ago period included a $6.2 million loss on the FDIC indemnification asset, versus a $57,000 gain this year.
Noninterest expense rose 2.4% to $102.5 million, on the costs to close branches and the litigation settlement. The efficiency ratio improved to 66.42% from 69.54%.
