The Help Wanted sign is out at Old National Bancorp in Evansville, Indiana.
The $46.2 billion-asset company hired 25 relationship managers in commercial lending and wealth management during the third quarter and plans to continue adding bankers for the foreseeable future, according to Chairman and CEO Jim Ryan.
"Our talent pipeline remains robust, and we will continue to make these strategic investments," Ryan said Tuesday on an earnings call with analysts.
The biggest third-quarter hiring news came out of Nashville, Tennessee, where Old National added a seven-person wealth management team led by Steven Cook, who spent 25 years at U.S. Bancorp before jumping to Old National.
Old National's wealth management fee income declined 10% on a linked-quarter basis, falling to $17.3 million on Sept. 30. Ryan is optimistic the team in Nashville can help beef up results.
"This was a fantastic opportunity. We are already adding new clients to the bank," Ryan said. "We're getting some at-bats that we've never had a chance at before given the sophistication level of the new team. … I mean, they're bringing in just great new opportunities for us."
The move into Nashville marks the second time in just over a year that Old National has pushed its wealth management operation outside the boundaries of its traditional Midwestern footprint. The company
Old National's third-quarter wealth management results were affected by the market's broad-based decline the past few months. Rising interest rates had a similar effect on mortgage banking revenue, which fell 17% from June 30 to $5.3 million.
Old National expects to lose another $5 million in noninterest income in 2023, when it eliminates the nonsufficient-funds fee charged to checking customers. The elimination of NSF fees,
Overall, Old National's noninterest income fell 10% on a linked-quarter basis to $80.4 million on Sept. 30. The decline was more than offset by a better-than-expected gain in spread income, which rose 12% linked-quarter to $381.5 million, driven by robust loan growth. Most analysts were modeling an increase in net interest income closer to 3%, according to a research note by Hovde Analyst Ben Gerlinger.
Old National's net income rose 23% linked-quarter to $136.1 million.
"Fee income was a little softer than expected," according to Gerlinger, but "the combination of solid loan growth and higher rates drove material NII upside."
Old National's results have followed a pattern that's become familiar over the course of the third-quarter earnings season, with rising rates and solid loan growth translating into wider net interest margins and substantially higher levels of net interest income at scores of reporting institutions.
Looking ahead, Old National has several things going for it as it enters the fourth quarter. Its commercial pipeline stood at $5.4 billion on Sept. 30, offering hope for continued strong loan growth. The company is also due to receive a $95 million payment from the $38 billion-asset UMB Financial Corp. in Kansas City, Missouri, tied to
Old National completed its
