What led to stock pressure: Old National Bancorp (NASDAQ: ONB) stock fell over 4.7% on January 22nd, 2019 (as of 10:56 am GMT-5 ; Source: Google finance). ONB in the fourth quarter of FY 18 has reported the adjusted earnings per share of 32 cents, missing the analysts’ estimates for the adjusted earnings per share of 37 cents, as per the analysts surveyed by Zacks Investment Research. The company had reported the adjusted revenue of $204.4 million in the fourth quarter of FY 18. The total loans increased to $12,258.8 million at December 31, 2018 from $11,314.0 million at September 30, 2018. The total deposits increased to $14,349.9 million at December 31, 2018, from $12,598.2 million at September 30, 2018
More growth in non-Interest income: ONB has posted the total noninterest income for the fourth quarter of 2018 of $58.2 million, an increase of $12.2 million from the third quarter of 2018. Included in noninterest income in the fourth quarter was a net gain of $14.0 million from the sale of 10 Wisconsin branches. Klein has contributed $2.8 million to noninterest income during the quarter (for the two months since the closing of the partnership), which was offset by lower capital markets income (down $1.9 million) and the normal seasonal decline in mortgage banking revenue. For the fourth quarter of 2018 , the noninterest expense is of $150.3 million and included $14.8 million in merger and integration charges, $7.5 million in ONB Foundation funding and $1.1 million in tax credit amortization. Excluding these items, adjusted noninterest expense for the fourth quarter was $126.9 million, compared to the $108.4 million in adjusted noninterest expense in the third quarter of 2018. Klein noninterest expenses were $7.4 million during the fourth quarter (for the two months since the closing of the partnership). The fourth quarter of 2018 also included $7.6 million in incentive compensation true-ups and benefit adjustments.
Balance sheet metrics: Further, at the end of the fourth quarter, total risk-based capital was 12.3% and regulatory tier 1 capital was 11.4%. Tangible common equity to tangible assets was 8.47% at the end of the fourth quarter compared to 8.08% in the third quarter of 2018.
Moreover, asset quality remained strong with net charge-offs in the fourth quarter of $0.6 million, or 0.02% of total average loans, and 30-89-day delinquencies of 0.39%. For the fourth quarter, provision expense was $3.4 million, driven primarily due to two specific reserves. Non-performing loans as a percentage of total loans was 1.43%.