Old National Bancorp (ONB), the holding company of Old National Bank, Wednesday updated its fourth quarter forecast, expecting to record a loss of $12.0 million due to a significant deterioration in a non real estate loan participation held by the company.
As a result, the company said it now expects total charge-offs in a range of $21.0 million to $22.0 million in the fourth quarter. The loss was recorded in December.
The management, however, considers this not as a systematic issue, and said it expects non-performing loans to decline to $67.0 million at December 31, 2009 from $73.7 million at September 30, 2009.
As per the revised forecast, the company has also lowered it net interest margin for the quarter to a range from 3.30% to 3.35% from the prior guidance of 3.40% to 3.45%.
For the full-year, interest margin forecast is, however, maintained at the prior guidance range of 3.50% to 3.55%.
Reserve position relative to non-performing and total loans remains strong at 104% and 1.81%, respectively, compared to 94% and 1.72% at September 30, 2009. Fourth quarter provision for loan and lease loss expense is expected to be at $22.0 million.
During the fourth quarter, the company also expects to record a credit loss in the range of $9.0 to $10.0 million.
ONB is currently trading at $11.66, down $0.37 or 3.08%, on a volume of 0.60 million shares.
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