Old National Bank,is in the red. Reported third-quarter net income dropped 76 percent as the bank struggled with a decrease in its loan portfolio.

Evansville, Ind.-based Old National (NYSE: ONB) said third-quarter net income declined to $4 million, or 6 cents per share, from $17 million, or 26 cents per share, in the third quarter of 2008.

A consensus of financial analysts polled by Thomson Financial Network had predicted earnings of 11 cents per share.

Third-quarter net interest income, or income from interest accounts such as loans and deposits, declined 7 percent, to $61.6 million from $66.3 million a year earlier.

Non-interest income (fees, service charges, etc.) fell 7.1 percent, to $39.6 million from $42.3 million a year earlier.

For the first nine months of 2009, Old National had net income of $19.1 million, or 29 cents per share, compared with $55.8 million, or 85 cents, a year earlier.

Net interest income for the first nine months declined to $193.1 million from $194.6 million, and non-interest income fell to $120.9 million from $123.9 million a year earlier.