National and international economic challenges aren't affecting Old National Bank's strong performance, company executives say.
The Evansville-based bank's full-year net profits totaled $116.7 million ($1 per share) in 2015, up 12.6 percent from the $103.7 million (95 cents per share) it earned in 2014.
For the fourth quarter alone, the Evansville-based bank reported net income of $32.0 million (27 cents per share), up 9.4 percent from the $29.3 million (25 cents per share) it reported during the same period in 2014.
"All in all, 2015 was a very good year for Old National," President and Chief Executive Officer Bob Jones told analysts during an earnings call Monday morning.
The company booked several one-time items last quarter: $11.1 million in pretax gains related to its previously disclosed repurchase of 14 Old National banking properties; $2.4 million in pretax charges related to ongoing efficiency initiatives; and a $4.8 million pretax charge to cover the anticipated settlement of a class-action lawsuit concerning overdraft fees.
Excluding those one-time items, Old National would have reported fourth-quarter net income of $29.4 million (25 cents per share).
Jones acknowledged that financial stocks have taken a beating in recent weeks — Old National's stock closed at $11.67 Monday on the Nasdaq market, down 5 percent from Friday's close and near the stock's 52-week low of $11.25.
"It has been an interesting start to the New Year for all banks," Jones said.
He said it's unclear whether Federal Reserve policies, low oil prices or a slower Chinese economy are to blame.
But whatever the reason, Jones said, these factors aren't having much impact on Old National or its customers.
"When I speak with our clients and our prospects, we get a much different tune. The vast majority of these folks share our optimism for the local economies."
Turning to Old National's earnings report:
As of Dec. 31, loans totaled $7.0 billion, representing 5.1 percent organic growth over the past 12 months.
Net interest income for the quarter totaled $85.9 million, down 4 .6 percent from the same period in 2014. Net interest income for the full year was $366.1 million, essentially unchanged from 2014.
Noninterest income for the quarter totaled $60.6 million, up 20.0 percent from the same period a year earlier.
Noninterest expenses for the quarter totaled $102.5 million, up 2.4 percent from a year earlier.