Old National Bancorp (NASDAQ:ONB) saw its shares take flight on third-quarter earnings.
The Evansville, Indiana company reported net income of $69.8 million, an increase of 36% from third quarter of 2018. Earnings per share of $0.41, an increase of 21% from third quarter of 2018.
Included in the third quarter were pre-tax charges of $1.3 million for merger and integration activity. Excluding these charges from the current quarter and netting out debt securities gains, adjusted net income was $70.5 million, or $0.41 per diluted share.
Net interest income decreased to $153.1 million in the third quarter of 2019 from $155.2 million in the second quarter of 2019. The net interest margin on a fully taxable equivalent basis decreased nine basis points to 3.57% compared to 3.66% in the second quarter of 2019.
Accretion income was $13.4 million, or 31 basis points of net interest margin, in the third quarter of 2019 compared to $11.8 million, or 27 basis points of net interest margin, in the second quarter of 2019. In the third quarter of 2019, accretion income was 6.4% of adjusted total revenue.
Interest collected on non-accrual loans was $2.0 million, or five basis points of net interest margin, in the third quarter of 2019 compared to $5.7 million, or 13 basis points of net interest margin, in the second quarter of 2019.
The cost of total deposits remained flat at 0.52% in the third quarter of 2019 while the cost of total interest-bearing deposits increased just one basis point to 0.71%.
CEO Jim Ryan said, "For the second-straight quarter, Old National combined record net income with record loan production, defense of our net interest margin, good fee income and excellent credit metrics, all of which allowed us to continue to generate positive operating leverage."
Shares picked up 84 cents, or 4.9%, to $18.04
