Old National reports earnings well below expectations

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Evansville-based Old National Bancorp on Monday morning reported a third-quarter profit of $4 million, or 6 cents per diluted share, missing analyst expectations by about 5 cents per share.

The company reported a profit of $17 million, or 26 cents per share, during the same period last year. The bank posted a profit of 15 cents per share in the second quarter this year.

Despite the profit plunge, Old National will still pay its planned 7-cents-per-share quarterly dividend.

The company said it expects to raise $196.4 million in net proceeds from a stock offering of 20.7 million shares it made in the quarter.

"During the third quarter, we accomplished our near-term goals of significantly strengthening Old National’s capital position with a successful stock offering and controlling credit costs associated with our loan portfolio," Old National CEO Bob Jones said in a statement. "However, the economy in our footprint continues to be challenging, as evidenced by soft loan demand and subsequent decrease in our loan portfolio."

Old National reported fees, service charges and other revenue of $39.6 million in the third quarter, compared to $42.7 million in the second quarter and $39.1 million in the third quarter of 2008.

Old National has $8 billion in assets and more than 180 branches in Indiana, Kentucky and Illinois, including 74 in the Indianapolis area. Company shares were unchanged today in early trading.

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