Loan losses lower Old National’s profit-WEB ONLY

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Evansville-based Old National Bancorp today reported fourth-quarter profit of $6.6 million, down from $22 million in the same period the prior year.

Earlier this month, the company told the U.S. Securities and Exchange Commission that its quarterly results would be affected by higher-than-expected loan losses of $17 million and the write-off of a check fraud loss for $6.3 million.

“We were not immune from the impact of the economy on our borrowers, which led to a substantial increase in our credit costs for the fourth quarter,” CEO Bob Jones said in a statement.

Profit for the 12 months ended Dec. 31, 2008, was $62.5 million, down from $74.9 million in 2007.

The largest bank headquartered in Indiana, Old National has 10 branches in the Indianapolis area. But it is in the process of integrating 65 additional Charter One locations in Indiana it acquired last year for $16 million.

The company expects to convert those sites – many of them within Kroger, Marsh and Wal-Mart stores – to Old National branches by late March.

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