Southern Indiana Business Report
EVANSVILLE — Old National Bancorp reported fourth quarter 2021 net income of $56.2 million, or $0.34 per diluted share. “Old National’s fourth quarter capped off a year of record earnings driven by robust commercial loan growth, strong credit quality and well-controlled expenses,” said Old National Chairman and CEO Jim Ryan. “I’m particularly pleased that we achieved these strong results while also working steadily to remain on-task to complete our anticipated merger with First Midwest Bank ‑ which also enjoyed strong fourth-quarter and full-year 2021 results.”
Included in the fourth quarter were pre-tax charges of $6.7 million related to the pending merger with First Midwest Bancorp Inc. Excluding these charges from the current quarter and netting out debt securities gains, adjusted net income was $60.9 million, or $0.37 per diluted share.
Strong commercial production resulted in 6.9% annualized commercial loan growth. Period-end total loans were $13,637.3 million at Dec. 31, 2021, consistent with the $13,636.1 million at Sept. 30, 2021. Paycheck Protection Program (PPP) loans declined $185.9 million to $169 million at Dec. 31, 2021, compared to $354.9 million at Sept. 30, 2021. Excluding the $185.9 million decrease in PPP loans during the quarter, total loans increased $187.1 million, or 5.6% annualized. Also excluding PPP loans, total commercial loans increased $162.5 million, or 6.9% annualized. Total commercial loan production in the fourth quarter was $1.1 billion; period-end pipeline totaled $2.5 billion. Consumer loans increased $9.9 million to $1,574.1 million, and residential mortgage loans increased $30.5 million to $2,255.3 million. Average total loans in the fourth quarter were $13,603.6 million, a decrease of $83.7 million from the third quarter of 2021. Excluding PPP loans, average total loans in the fourth quarter increased $178.1 million from the third quarter of 2021.
Total deposit growth was bolstered by a strong increase in checking and NOW accounts. Period-end total deposits were $18,569.2 million at Dec. 31, 2021, an increase of $373.0 million, or 8.2% annualized, when compared to the $18,196.1 million at Sept. 30, 2021. Checking and NOW deposits increased $382 million to $5,338 million at Dec. 31, 2021, from $4,956 million at Sept. 30, 2021. On average, total deposits in the fourth quarter increased $438.3 million to $18,414.3 million, compared to $17,976 million in the third quarter of 2021.
About Old National
Old National Bancorp (NASDAQ: ONB), the holding company of Old National Bank, is the largest bank holding company headquartered in Indiana. It ranks among the top 100 banking companies in the U.S. and has been recognized as a World’s Most Ethical Company by the Ethisphere Institute for 10 consecutive years.Since its founding in Evansville in 1834, Old National Bank’s footprint has grown to include Indiana, Kentucky, Michigan, Minnesota and Wisconsin.