Attached files
file | filename |
---|---|
8-K - FORM 8-K - OLD NATIONAL BANCORP /IN/ | c07311e8vk.htm |
EX-99.2 - EXHIBIT 99.2 - OLD NATIONAL BANCORP /IN/ | c07311exv99w2.htm |
Exhibit 99.1
NYSE: ONB
oldnational.com
oldnational.com
FINANCIAL NEWS
November 1, 2010
November 1, 2010
OLD NATIONAL REPORTS THIRD QUARTER NET INCOME OF
$11.9 MILLION OR $.13 PER COMMON SHARE
$11.9 MILLION OR $.13 PER COMMON SHARE
| Net income increases 196% over third quarter of 2009 and 13.0% over second
quarter of 2010 |
| Earnings per share of $.13 exceed analysts consensus estimates of $.11 |
| Net interest margin increases to 3.42% |
| Board of directors declares cash dividend of $.07 per common share |
Contacts:
Financial Community:
|
Media: | |
Lynell J. Walton (812) 464-1366
|
Kathy A. Schoettlin (812) 465-7269 | |
Senior Vice President Investor Relations
|
Executive Vice President Communications |
Evansville, Ind., November 1, 2010 Old National Bancorp (NYSE: ONB) today announced third-quarter
net income of $11.9 million, or $.13 per common share. These results compare favorably to the net
income of $10.5 million, or $.12 per common share, reported in the second quarter of 2010, as well
as the net income of $4.0 million, or $.06 per common share, reported in the third quarter of 2009.
Old National Bancorps Board of Directors also declared a common stock dividend of $.07 per share
on the Companys outstanding shares. The dividend is payable December 15, 2010, to shareholders of
record December 1, 2010. For purposes of broker trading, the ex-date of the cash dividend is
November 29, 2010.
We are quite pleased with our third quarter results as they clearly demonstrate our strong focus
on reducing noninterest expenses, maintaining strong capital ratios and holding credit metrics
stable, stated Bob Jones, President and CEO. Also, our net interest margin improved despite
continued soft loan demand. In addition, our announced acquisition of Monroe Bancorp on October 6
will position Old National with number one market share in one of the strongest geographies in the
state of Indiana. We are working diligently to close on this partnership.
Strategic Imperatives
Old National continues to be guided by three strategic imperatives that are critical in
establishing the Companys presence as a high-performing financial institution:
1. Strengthen the risk profile.
2. Enhance management discipline.
3. Achieve consistent quality earnings.
Strengthen the Risk Profile
Old Nationals key credit trends are as follows:
($ in millions) | 2006 | 2007 | 2008 | 2009 | 1Q10 | 2Q10 | 3Q10 | |||||||||||||||||||||
Non-Performing Loans |
$ | 41.6 | $ | 40.8 | $ | 64.0 | $ | 67.0 | $ | 68.1 | $ | 68.9 | $ | 69.8 | ||||||||||||||
Problem Loans* |
$ | 153.2 | $ | 115.1 | $ | 180.1 | $ | 157.1 | $ | 160.5 | $ | 157.7 | $ | 170.9 | ||||||||||||||
Special Mention Loans |
$ | 119.8 | $ | 103.2 | $ | 124.9 | $ | 103.5 | $ | 104.9 | $ | 100.7 | $ | 75.0 | ||||||||||||||
Net Charge-Off Ratio |
.38 | % | .44 | % | .87 | % | 1.40 | % | .72 | % | .90 | % | .66 | % | ||||||||||||||
Provision for Loan Losses |
$ | 7.0 | $ | 4.1 | $ | 51.5 | $ | 63.3 | $ | 9.3 | $ | 8.0 | $ | 6.4 |
* | Includes Non-Performing loans |
The allowance for loan losses at September 30, 2010, was $72.1 million, or 1.95% of total loans.
This compared to an allowance of $71.9 million, or 1.93% of total loans at June 30, 2010, and $69.6
million, or 1.72% of total loans, at September 30, 2009. The ratio of allowance to non-performing
loans decreased slightly to 103% at September 30, 2010, compared to 104% at June 30, 2010.
Chief Credit Officer Daryl Moore noted, Provision expense in the quarter fell to $6.4 million as a
result of lower net loan losses in the period as well as a significant decline in Special Mention
loans. While we did see an increase in total Problem (Classified) loans during the period, the
nonperforming segment of this group of loans remained relatively unchanged.
Enhance Management Discipline
Expense Management
The Companys efforts to reduce noninterest expenses yielded positive results as Old National
reported total noninterest expenses for the third quarter of 2010 at $76.1 million. These results
represent decreases of $1.8 million and $7.9 million, respectively, when compared to total
noninterest expenses of $77.9 million and $84.0 million reported for the second quarter of 2010 and
the third quarter of 2009. Noninterest expenses for the third quarter of 2010 included a $1.3
million severance accrual and a $.9 million charge for the extinguishment of debt. The second
quarter of 2010 included no severance accrual and a $1.4 million charge for the extinguishment of
debt.
Capital Management
Old Nationals already strong capital position continued to improve at September 30, 2010, with
regulatory tier 1 and total risk-based capital ratios of 15.4% and 17.3%, respectively, compared to
15.1% and 17.0% at June 30, 2010, and 14.1% and 16.5% at September 30, 2009. The ratio of tangible
common equity to tangible assets improved to 9.58% at September 30, 2010, from 9.03% at June 30,
2010, and 8.53% at September 30, 2009. Refer to Table 1 for Non-GAAP reconciliation of the
tangible capital ratio. Chris Wolking, Chief Financial Officer, noted, We believe it is important
to maintain a strong capital position in the face of a continued weak economy. Our capital ratios
continue to be at levels far above those required for well capitalized institutions, as displayed
in the table below.
Well Capitalized | ONB at Sept. 30, 2010 | |||||||
Tier 1 Risk-Based Capital Ratio |
≥ 6 | % | 15.4 | % | ||||
Total Risk-Based Capital Ratio |
≥ 10 | % | 17.3 | % | ||||
Tier 1 Leverage Capital Ratio |
≥ 5 | % | 10.2 | % |
Page 2 of 8
Achieve Consistent Quality Earnings
Balance Sheet and Net Interest Margin
Old Nationals total loan portfolio at September 30, 2010, totaled $3.707 billion, compared to
$3.737 billion at June 30, 2010, a decline of $30.3 million. On average, total loans were $3.719
billion for the third quarter of 2010 compared to $3.725 billion for the second quarter of 2010.
Old National did experience a $23.6 million increase in average commercial loans during the third
quarter.
Total investments, including money market accounts, were $3.024 billion at September 30, 2010, a
decrease of $166.5 million compared to $3.190 billion at June 30, 2010. Average total investments
were $2.982 billion at September 30, 2010, compared to $3.168 billion at June 30, 2010. Securities
gains for the third quarter (net of just $39 thousand of other-than-temporary impairment) totaled
$3.2 million, compared to the second quarter when securities gains (net of $2.8 million of
other-than-temporary-impairment) were $3.2 million. In the second and third quarters this year we
prepaid $74 million of debt while incurring debt termination costs of $2.3 million and had $50
million of debt mature, continued Wolking. This contributed to our ability to reduce the average
investment portfolio, which declined $186 million from June 30, 2010. Reducing both debt and the
investment portfolio is consistent with our objective of reducing leverage and minimizing our
exposure to rising interest rates.
At September 30, 2010, total core deposits, including demand and interest-bearing deposits, totaled
$5.419 billion, a decrease of $182.2 million from the $5.601 billion at June 30, 2010.
Noninterest-bearing demand deposits did increase $97.2 million during the third quarter while all
other categories of deposits either declined or remained relatively flat. On average, total core
deposits declined $122.1 million from the second quarter to the third quarter of 2010.
Old National reported net interest income of $54.2 million for the third quarter of 2010 compared
to $55.2 million in the second quarter of 2010 and $56.4 million for the third quarter of 2009.
Net interest income on a fully taxable equivalent basis was $57.3 million for the third quarter of
2010 and represented a net interest margin on total average earning assets of 3.42%. This compares
to net interest income on a fully taxable equivalent basis of $58.6 million and a margin of 3.40%
in the second quarter of 2010 and net interest income on a fully taxable equivalent basis of $61.7
million and a margin of 3.51% for the third quarter of 2009.
Fees, Service Charges and Other Revenue
Total fees, service charges and other revenue were $38.4 million for the third quarter of 2010, a
decrease of $.9 million from the $39.3 million reported in the second quarter of 2010 and a
decrease of $1.2 million from the $39.6 million reported in the third quarter of 2009. A decline
in service charges on deposit accounts was the primary driver for the variances to both prior
periods.
Page 3 of 8
About Old National
Old National Bancorp, which celebrated its 175th anniversary in 2009, is the largest
financial services holding company headquartered in Indiana and, with $7.5 billion in assets, ranks
among the top 100 banking companies in the United States. Since its founding in Evansville in 1834,
Old National has focused on community banking by building long-term, highly valued partnerships
with clients in its primary footprint of Indiana, Illinois and Kentucky. In addition to providing
extensive services in retail and commercial banking, wealth management, investments and brokerage,
Old National also owns one of the largest independent insurance agencies headquartered in Indiana,
offering complete personal and commercial insurance solutions. For more information and financial
data, please visit the Investor Relations section of the Companys website at oldnational.com.
Additional Information for Shareholders
In connection with the proposed merger, Old National Bancorp has filed with the Securities and Exchange Commission a
Registration Statement on Form S-4 that includes a Proxy Statement of Monroe Bancorp and a Prospectus of Old National,
as well as other relevant documents concerning the proposed transaction. A definitive Proxy Statement/Prospectus will
be mailed to shareholders of Monroe Bancorp after the Registration Statement is declared effective. The Registration
Statement has not yet become effective. Shareholders are urged to read the Registration Statement and the Proxy
Statement/Prospectus regarding the merger and any other relevant documents filed with the SEC, as well as any
amendments or supplements to those documents, because they will contain important information. A free copy of the Proxy
Statement/Prospectus, as well as other filings containing information about Old National and Monroe, may be obtained at
the SECs Internet site (http://www.sec.gov). You will also be able to obtain these documents, free of charge, from Old
National at www.oldnational.com under the tab Investor Relations and then under the heading Financial Information
or from Monroe by accessing Monroes website at www.monroebank.com under the tab Shareholder Relations and then under
the heading Financial Reports.
Old National and Monroe and certain of their directors and executive officers may be deemed to be participants in the
solicitation of proxies from the shareholders of Monroe in connection with the proposed merger. Information about the
directors and executive officers of Old National is set forth in the proxy statement for Old Nationals 2010 annual
meeting of shareholders, as filed with the SEC on a Schedule 14A on March 19, 2010. Information about the directors and
executive officers of Monroe is set forth in the proxy statement for Monroes 2010 annual meeting of shareholders, as
filed with the SEC on a Schedule 14A on March 29, 2010. Additional information regarding the interests of those
participants and other persons who may be deemed participants in the transaction may be obtained by reading the Proxy
Statement/Prospectus regarding the proposed merger when it becomes available. Free copies of this document may be
obtained as described in the preceding paragraph.
Conference Call
Old National will hold a conference call at 10:00 a.m. Central on Monday, November 1, 2010, to
discuss third-quarter 2010 financial results, strategic developments, and the Companys outlook for
2010. The live audio web cast of the call, along with the corresponding presentation slides, will
be available on the Companys Investor Relations web page at www.oldnational.com and will
be archived there for 12 months. A replay of the call will also be available from 1:00 p.m.
Central on November 1 through November 15. To access the replay, dial 1-800-642-1687, conference
code 17766785.
Use of Non-GAAP Financial Measures
This earnings release contains GAAP financial measures and non-GAAP financial measures where
management believes it to be helpful in understanding Old Nationals results of operations or
financial position. Where non-GAAP financial measures are used, the comparable GAAP financial
measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in
this release or the Quarterly Financial Trends supplement to this earnings release, which can be
found on the Investor Relations section of Old Nationals website at www.oldnational.com.
Page 4 of 8
Forward-Looking Statement
This press release contains certain forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements include, but are not limited to,
descriptions of Old Nationals financial condition, results of operations, asset and credit quality
trends and profitability and statements about the expected timing, completion, financial benefits
and other effects of the proposed merger. Forward-looking statements can be identified by the use
of the words anticipate, believe, expect, intend, could and should, and other words of
similar meaning. These forward-looking statements express managements current expectations or
forecasts of future events and, by their nature, are subject to risks and uncertainties and there
are a number of factors that could cause actual results to differ materially from those in such
statements. Factors that might cause such a difference include, but are not limited to; market,
economic, operational, liquidity, credit and interest rate risks associated with Old Nationals
business, competition, government legislation and policies (including the impact of the Dodd-Frank
Wall Street Reform and Consumer Protection Act and its related regulations), ability of Old
National to execute its business plan (including the proposed acquisition of Monroe Bancorp),
changes in the economy which could materially impact credit quality trends and the ability to
generate loans and gather deposits, failure or circumvention of Old Nationals internal controls,
failure or disruption of our information systems, significant changes in accounting, tax or
regulatory practices or requirements, new legal obligations or liabilities or unfavorable
resolutions of litigations, other matters discussed in this press release and other factors
identified in the Companys Annual Report on Form 10-K and other periodic filings with the
Securities and Exchange Commission. These forward-looking statements are made only as of the date
of this press release, and Old National undertakes no obligation to release revisions to these
forward-looking statements to reflect events or conditions after the date of this release.
Table 1: Non-GAAP Reconciliation-Tangible Equity to Tangible Assets
(end of period balances $ in millions) | September 30, 2010 | June 30, 2010 | ||||||
Total Shareholders Equity |
$ | 895.7 | $ | 874.7 | ||||
Deduct: Goodwill and Intangible Assets |
(195.6 | ) | (197.1 | ) | ||||
Tangible Shareholders Equity |
$ | 700.1 | $ | 677.7 | ||||
Total Assets |
$ | 7,506.1 | $ | 7,701.1 | ||||
Add: Trust Overdrafts |
.1 | .1 | ||||||
Deduct: Goodwill and Intangible Assets |
(195.6 | ) | (197.1 | ) | ||||
Tangible Assets |
$ | 7,310.6 | $ | 7,504.1 | ||||
Tangible Equity to Tangible Assets |
9.58 | % | 9.03 | % |
Page 5 of 8
OLD NATIONAL BANCORP
Financial Highlights
Financial Highlights
Three-Months Ended | ||||||||||||||||
($ in thousands except per-share data) | September 30, | June 30, | ||||||||||||||
(FTE) Fully taxable equivalent basis. | 2010 | 2010 | Change | % Change | ||||||||||||
Income Data: |
||||||||||||||||
Net Interest Income |
$ | 54,168 | $ | 55,154 | $ | (986 | ) | (1.8 | )% | |||||||
Taxable Equivalent Adjustment |
3,154 | 3,470 | (316 | ) | (9.1 | ) | ||||||||||
Net Interest Income (FTE) |
57,322 | 58,624 | (1,302 | ) | (2.2 | ) | ||||||||||
Fees, Service Charges and Other Revenues |
38,367 | 39,335 | (968 | ) | (2.5 | ) | ||||||||||
Securities Gains (Losses) (a) |
3,242 | 3,244 | (2 | ) | (.1 | ) | ||||||||||
Derivative Gains (Losses) |
370 | 395 | (25 | ) | (6.3 | ) | ||||||||||
Total Revenue (FTE) |
99,301 | 101,598 | (2,297 | ) | (2.3 | ) | ||||||||||
Provision for Loan Losses |
6,400 | 8,000 | (1,600 | ) | (20.0 | ) | ||||||||||
Noninterest Expense |
76,102 | 77,871 | (1,769 | ) | (2.3 | ) | ||||||||||
Income before Taxes |
16,799 | 15,727 | 1,072 | 6.8 | ||||||||||||
Provision for Taxes (FTE) |
4,903 | 5,204 | (301 | ) | (5.8 | ) | ||||||||||
Net Income |
11,896 | 10,523 | 1,373 | 13.0 | ||||||||||||
Per Common Share Data: (Diluted) (b) |
||||||||||||||||
Net Income Attributable to Common Shareholders |
.13 | .12 | .01 | 8.3 | ||||||||||||
Average Diluted Shares Outstanding |
86,931 | 86,911 | 20 | | ||||||||||||
Book Value |
10.27 | 10.03 | .24 | 2.4 | ||||||||||||
Stock Price |
10.50 | 10.36 | .14 | 1.4 | ||||||||||||
Performance Ratios: |
||||||||||||||||
Return on Average Assets |
.64 | % | .55 | % | .09 | % | 16.4 | |||||||||
Return on Average Common Equity (c) |
5.40 | 4.91 | .49 | 10.0 | ||||||||||||
Net Interest Margin (FTE) |
3.42 | 3.40 | .02 | .6 | ||||||||||||
Other Expense to Revenue (Efficiency Ratio) |
76.64 | 76.65 | (.01 | ) | | |||||||||||
Net Charge-offs to Average Loans (d) |
.66 | .90 | (.24 | ) | (26.7 | ) | ||||||||||
Reserve for Loan Losses to Ending Loans |
1.95 | 1.93 | .02 | 1.0 | ||||||||||||
Non-Performing Loans to Ending Loans (d) |
1.89 | 1.85 | .04 | 2.2 | ||||||||||||
Balance Sheet: |
||||||||||||||||
Average Assets |
$ | 7,465,989 | $ | 7,671,155 | $ | (205,166 | ) | (2.7 | ) | |||||||
End of Period Balances: |
||||||||||||||||
Assets |
7,506,114 | 7,701,064 | (194,950 | ) | (2.5 | ) | ||||||||||
Investments |
2,980,729 | 2,882,625 | 98,104 | 3.4 | ||||||||||||
Money Market Investments (e) |
43,102 | 307,672 | (264,570 | ) | (86.0 | ) | ||||||||||
Commercial Loans and Leases |
1,266,893 | 1,292,841 | (25,948 | ) | (2.0 | ) | ||||||||||
Finance Leases Held for Sale |
| | | | ||||||||||||
Commercial Real Estate Loans |
981,524 | 1,002,463 | (20,939 | ) | (2.1 | ) | ||||||||||
Consumer Loans |
971,756 | 1,007,961 | (36,205 | ) | (3.6 | ) | ||||||||||
Residential Real Estate Loans |
482,967 | 427,838 | 55,129 | 12.9 | ||||||||||||
Residential Real Estate Loans Held for Sale |
3,512 | 5,836 | (2,324 | ) | (39.8 | ) | ||||||||||
Earning Assets |
6,730,483 | 6,927,236 | (196,753 | ) | (2.8 | ) | ||||||||||
Core Deposits (Excluding Brokered CDs) |
5,419,159 | 5,601,432 | (182,273 | ) | (3.3 | ) | ||||||||||
Borrowed Funds (Including Brokered CDs) |
966,321 | 981,475 | (15,154 | ) | (1.5 | ) | ||||||||||
Common Shareholders Equity |
895,684 | 874,733 | 20,951 | 2.4 |
(a) | Includes $39 and $2,764, respectively, for other-than-temporary impairment in third quarter
2010 and second quarter 2010. |
|
(b) | Assumes conversion of stock options, restricted stock and warrants. |
|
(c) | Based on average common shareholders equity of $881,044 and $857,186, respectively, for
September 30, 2010 and June 30, 2010. |
|
(d) | Excludes residential loans held for sale and finance leases held for sale. |
|
(e) | Includes money market investments and Federal Reserve interest earning accounts. |
|
N/M | = Not meaningful. |
Page 6 of 8
OLD NATIONAL BANCORP
Financial Highlights
Financial Highlights
Three-Months Ended | ||||||||||||||||
($ in thousands except per-share data) | September 30 | |||||||||||||||
(FTE) Fully taxable equivalent basis. | 2010 | 2009 | Change | % Change | ||||||||||||
Income Data: |
||||||||||||||||
Net Interest Income |
$ | 54,168 | $ | 56,411 | $ | (2,243 | ) | (4.0 | )% | |||||||
Taxable Equivalent Adjustment |
3,154 | 5,272 | (2,118 | ) | (40.2 | ) | ||||||||||
Net Interest Income (FTE) |
57,322 | 61,683 | (4,361 | ) | (7.1 | ) | ||||||||||
Fees, Service Charges and Other Revenues |
38,367 | 39,638 | (1,271 | ) | (3.2 | ) | ||||||||||
Securities Gains (Losses) (a) |
3,242 | 40 | 3,202 | N/M | ||||||||||||
Derivative Gains (Losses) |
370 | (675 | ) | 1,045 | N/M | |||||||||||
Total Revenue (FTE) |
99,301 | 100,686 | (1,385 | ) | (1.4 | ) | ||||||||||
Provision for Loan Losses |
6,400 | 12,191 | (5,791 | ) | (47.5 | ) | ||||||||||
Noninterest Expense |
76,102 | 83,966 | (7,864 | ) | (9.4 | ) | ||||||||||
Income before Taxes |
16,799 | 4,529 | 12,270 | 270.9 | ||||||||||||
Provision for Taxes (FTE) |
4,903 | 512 | 4,391 | N/M | ||||||||||||
Net Income |
11,896 | 4,017 | 7,879 | 196.1 | ||||||||||||
Per Common Share Data: (Diluted) (b) |
||||||||||||||||
Net Income Attributable to Common Shareholders |
.13 | .06 | .07 | 116.7 | ||||||||||||
Average Diluted Shares Outstanding |
86,931 | 66,706 | 20,225 | 30.3 | ||||||||||||
Book Value |
10.27 | 9.93 | .34 | 3.4 | ||||||||||||
Stock Price |
10.50 | 11.20 | (.70 | ) | (6.2 | ) | ||||||||||
Performance Ratios: |
||||||||||||||||
Return on Average Assets |
.64 | % | .21 | % | .43 | % | 204.8 | |||||||||
Return on Average Common Equity (c) |
5.40 | 2.53 | 2.87 | 113.4 | ||||||||||||
Net Interest Margin (FTE) |
3.42 | 3.51 | (.09 | ) | (2.6 | ) | ||||||||||
Other Expense to Revenue (Efficiency Ratio) |
76.64 | 83.39 | (6.75 | ) | (8.1 | ) | ||||||||||
Net Charge-offs to Average Loans (d) |
.66 | 1.25 | (.59 | ) | (47.2 | ) | ||||||||||
Reserve for Loan Losses to Ending Loans |
1.95 | 1.72 | .23 | 13.4 | ||||||||||||
Non-Performing Loans to Ending Loans (d) |
1.89 | 1.83 | .06 | 3.3 | ||||||||||||
Balance Sheet: |
||||||||||||||||
Average Assets |
$ | 7,465,989 | $ | 7,832,926 | $ | (366,937 | ) | (4.7 | ) | |||||||
End of Period Balances: |
||||||||||||||||
Assets |
7,506,114 | 7,973,492 | (467,378 | ) | (5.9 | ) | ||||||||||
Investments |
2,980,729 | 2,960,443 | 20,286 | .7 | ||||||||||||
Money Market Investments (e) |
43,102 | 110,753 | (67,651 | ) | (61.1 | ) | ||||||||||
Commercial Loans and Leases |
1,266,893 | 1,396,997 | (130,104 | ) | (9.3 | ) | ||||||||||
Finance Leases Held for Sale |
| 58,394 | (58,394 | ) | (100.0 | ) | ||||||||||
Commercial Real Estate Loans |
981,524 | 1,091,494 | (109,970 | ) | (10.1 | ) | ||||||||||
Consumer Loans |
971,756 | 1,125,509 | (153,753 | ) | (13.7 | ) | ||||||||||
Residential Real Estate Loans |
482,967 | 421,666 | 61,301 | 14.5 | ||||||||||||
Residential Real Estate Loans Held for Sale |
3,512 | 11,365 | (7,853 | ) | (69.1 | ) | ||||||||||
Earning Assets |
6,730,483 | 7,176,621 | (446,138 | ) | (6.2 | ) | ||||||||||
Core Deposits (Excluding Brokered CDs) |
5,419,159 | 5,624,408 | (205,249 | ) | (3.6 | ) | ||||||||||
Borrowed Funds (Including Brokered CDs) |
966,321 | 1,204,634 | (238,313 | ) | (19.8 | ) | ||||||||||
Common Shareholders Equity |
895,684 | 865,413 | 30,271 | 3.5 |
(a) | Includes $39 and $5,062, respectively, for other-than-temporary impairment in third quarter
2010 and third quarter 2009. |
|
(b) | Assumes conversion of stock options, restricted stock and warrants. |
|
(c) | Based on average common shareholders equity of $881,044 and $635,631, respectively, for 2010 and 2009. |
|
(d) | Excludes residential loans held for sale and finance leases held for sale. |
|
(e) | Includes money market investments and Federal Reserve interest earning accounts. |
|
N/M | = Not meaningful. |
Page 7 of 8
OLD NATIONAL BANCORP
Financial Highlights
Financial Highlights
Nine-Months Ended | ||||||||||||||||
($ in thousands except per-share data) | September 30 | |||||||||||||||
(FTE) Fully taxable equivalent basis. | 2010 | 2009 | Change | % Change | ||||||||||||
Income Data: |
||||||||||||||||
Net Interest Income |
$ | 164,439 | $ | 176,376 | $ | (11,937 | ) | (6.8 | ) | |||||||
Taxable Equivalent Adjustment |
10,335 | 16,695 | (6,360 | ) | (38.1 | ) | ||||||||||
Net Interest Income (FTE) |
174,774 | 193,071 | (18,297 | ) | (9.5 | ) | ||||||||||
Fees, Service Charges and Other Revenues |
117,075 | 120,863 | (3,788 | ) | (3.1 | ) | ||||||||||
Securities Gains (Losses) (a) |
9,484 | 5,657 | 3,827 | 67.7 | ||||||||||||
Derivative Gains (Losses) |
1,386 | 324 | 1,062 | N/M | ||||||||||||
Total Revenue (FTE) |
302,719 | 319,915 | (17,196 | ) | (5.4 | ) | ||||||||||
Provision for Loan Losses |
23,681 | 41,459 | (17,778 | ) | (42.9 | ) | ||||||||||
Noninterest Expense |
231,033 | 248,181 | (17,148 | ) | (6.9 | ) | ||||||||||
Income before Taxes |
48,005 | 30,275 | 17,730 | 58.6 | ||||||||||||
Provision for Taxes (FTE) |
15,517 | 7,218 | 8,299 | 115.0 | ||||||||||||
Net Income |
32,488 | 23,057 | 9,431 | 40.9 | ||||||||||||
Preferred Stock Dividends & Amortization |
| (3,892 | ) | 3,892 | 100.0 | |||||||||||
Net Income Attributable to Common Shareholders |
32,488 | 19,165 | 13,323 | 69.5 | ||||||||||||
Per Common Share Data: (Diluted) (b) |
||||||||||||||||
Net Income Attributable to Common Shareholders |
.37 | .29 | .08 | 27.6 | ||||||||||||
Average Diluted Shares Outstanding |
86,890 | 66,173 | 20,717 | 31.3 | ||||||||||||
Book Value |
10.27 | 9.93 | .34 | 3.4 | ||||||||||||
Stock Price |
10.50 | 11.20 | (.70 | ) | (6.2 | ) | ||||||||||
Performance Ratios: |
||||||||||||||||
Return on Average Assets |
.57 | % | .38 | % | .19 | % | 50.0 | |||||||||
Return on Average Common Equity (c) |
5.02 | 4.00 | 1.02 | 25.5 | ||||||||||||
Net Interest Margin (FTE) |
3.38 | 3.57 | (.19 | ) | (5.3 | ) | ||||||||||
Other Expense to Revenue (Efficiency Ratio) |
76.32 | 77.58 | (1.26 | ) | (1.6 | ) | ||||||||||
Net Charge-offs to Average Loans (d) |
.76 | 1.17 | (.41 | ) | (35.0 | ) | ||||||||||
Reserve for Loan Losses to Ending Loans |
1.95 | 1.72 | .23 | 13.4 | ||||||||||||
Non-Performing Loans to Ending Loans (d) |
1.89 | 1.83 | .06 | 3.3 | ||||||||||||
Balance Sheet: |
||||||||||||||||
Average Assets |
$ | 7,662,365 | $ | 7,989,415 | $ | (327,050 | ) | (4.1 | ) | |||||||
End of Period Balances: |
||||||||||||||||
Assets |
7,506,114 | 7,973,492 | (467,378 | ) | (5.9 | ) | ||||||||||
Investments |
2,980,729 | 2,960,443 | 20,286 | .7 | ||||||||||||
Money Market Investments (e) |
43,102 | 110,753 | (67,651 | ) | (61.1 | ) | ||||||||||
Commercial Loans and Leases |
1,266,893 | 1,396,997 | (130,104 | ) | (9.3 | ) | ||||||||||
Finance Leases Held for Sale |
| 58,394 | (58,394 | ) | (100.0 | ) | ||||||||||
Commercial Real Estate Loans |
981,524 | 1,091,494 | (109,970 | ) | (10.1 | ) | ||||||||||
Consumer Loans |
971,756 | 1,125,509 | (153,753 | ) | (13.7 | ) | ||||||||||
Residential Real Estate Loans |
482,967 | 421,666 | 61,301 | 14.5 | ||||||||||||
Residential Real Estate Loans Held for Sale |
3,512 | 11,365 | (7,853 | ) | (69.1 | ) | ||||||||||
Earning Assets |
6,730,483 | 7,176,621 | (446,138 | ) | (6.2 | ) | ||||||||||
Core Deposits (Excluding Brokered CDs) |
5,419,159 | 5,624,408 | (205,249 | ) | (3.6 | ) | ||||||||||
Borrowed Funds (Including Brokered CDs) |
966,321 | 1,204,634 | (238,313 | ) | (19.8 | ) | ||||||||||
Common Shareholders Equity |
895,684 | 865,413 | 30,271 | 3.5 |
(a) | Includes $3,308 and $15,317, respectively, for other-than-temporary impairment in 2010 and
2009. |
|
(b) | Assumes conversion of stock options, restricted stock and warrants. |
|
(c) | Based on average common shareholders equity of $862,390 and $639,292, respectively, for 2010 and 2009. |
|
(d) | Excludes residential loans held for sale and finance leases held for sale. |
|
(e) | Includes money market investments and Federal Reserve interest earning accounts. |
|
N/M = Not
meaningful. |
Page 8 of 8