EVANSVILLE —Old National Bancorp's second quarter net income rose to $17 million, or 18 cents per share, exceeding analysts' consensus estimates, it was announced Monday.
The figures in the bank's second quarter 2011 financial review outpaced the net income of $16.4 million, or 17 cents per share, reported in the first quarter.
The figures also represent a substantial increase of 61.7 percent over Old National's second quarter 2010 net income of $10.5 million, or 12 cents per share.
And, Old National's net interest margin continued to improve and its credit remained well controlled, according to the report.
In an interview, Bob Jones, Old National president and chief executive officer, attributed the good results partly to new customers, which the bank has gained through its recent purchase of Bloomington-based Monroe Bancorp.
He also credited Old National's knowledge of its customers in general.
"We know our customers well and we focus on the basics," which, he said, includes assisting customers with obtaining loans in both good economic times and bad economic times. "We don't do markets we don't know."
Chris Wolking, Old National senior executive vice president and chief financial officer, said: "Old National continues to operate from a very strong capital and liquidity position, which not only provides comfort to our clients, shareholders and the communities we serve, but which also positions Old National to continue to actively pursue merger and acquisition opportunities."
Old National ranks as the largest Indiana-based bank and the fourth-largest bank in the state.
"These strong results demonstrate Old National's ability to grow revenue while managing risk and expenses, and they reinforce our continued strength as a secure, client-focused community bank," said Jones in a printed release.
He said the bank succeeded in controlling noninterest expenses for the quarter despite having to account for merit increases and one-time costs of $2.2 million related to the Monroe Bank acquisition.
"And, then factor in our just-announced FDIC-assisted acquisition of all 52 Integra Bank branches, you can see that Old National is well-positioned for future success."
In the interview, Jones declined to speculate on what the third quarter report might bring. He said the economy, the gross national product and the jobs market were still challenging.
“It will depend on the strength of our borrowers,” Jones said.