Old National Bancorp Announces Record 18% Gain On Second Quarter Results; Roe Exceeds 16%; Loan Growth Advances 14%; Declares Cash Dividend
Updated 1:08 PM ET July 22, 1999
EVANSVILLE, Ind. (BUSINESS WIRE) - Old National Bancorp (NASDAQ:OLDB) announced record earnings of $21.25 million for the second quarter ending June 30, 1999. The results for the quarter represent a 16.9% improvement over last year's second quarter results. On a per share basis, diluted earnings were $0.45 per share, up 18.4% over last year's second quarter $0.38 per share. Compared to the first quarter of 1999, per share results were up 7.1%.
Year to date earnings through June 30, 1999, were $41.26 million, representing an improvement of 14.1% over last year's $36.15 million. Diluted per share earnings for the first six months of 1999 were $0.87, a 14.5% increase over the $0.76 per share earned during the first half of 1998.
Chairman and CEO Jim Risinger stated that "The strong earnings momentum that has developed over the last six to eight quarters continues to reflect both the dynamic economy of the regions we serve and the continued strides being taken internally to enhance revenue and streamline our operations."
Strong loan demand continues to be a major factor in the earnings growth, with total loans at June 30, 1999, up over 14% from the same date last year. Since December 31, 1998, loans have grown at an annualized rate of 14.8%. Credit quality, long a hallmark of Old National's operating philosophy, continues to be very strong despite the robust loan growth. Through the first six months of the year, net charge-offs amounted to $2.3 million and represented less than 0.10% of loans on an annualized basis.
Commenting on the strong revenue growth, Old National Bancorp President Ron Lankford emphasized that "Our continuing efforts to broaden our customer base and increase revenue from services like trust, investment and annuity sales, and a broad range of insurance products for our individual and corporate customers, are really taking hold. The over 11% growth of non-interest income was a major contributor to our record first half earnings."
Return on average assets during the first half of 1999 was 1.25% compared with 1.21% in 1998. Return on average equity was 16.01% compared with 14.78% last year. Return on equity during the second quarter was 16.07% and marked the first quarter in the company's history that ROE exceeded 16%.
Planning for the consolidation of Old National's 18 separate bank charters into a single charter is on schedule and is
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