OLD NATIONAL BANCORP /IN/ - FORM 8-K - EX-99.2 - EXHIBIT 99.2

Attached files

file	filename
8-K - FORM 8-K - OLD NATIONAL BANCORP /IN/	c11534e8vk.htm
EX-99.1 - EXHIBIT 99.1 - OLD NATIONAL BANCORP /IN/	c11534exv99w1.htm

Exhibit 99.2


		Old National Bancorp Financial Trends Fourth Quarter 2010 January 31, 2011

Please direct inquiries to:

Christopher A. Wolking, Senior Executive Vice President & Chief Financial Officer (812) 464-1322
or Joan M. Kissel, Senior Vice President & Corporate Controller (812) 465-7290

Notes: -Summations may not equal due to rounding.

Old National Bancorp
Financial Summary
Fourth Quarter 2010


2007			2008			2009			2010				2009												2010
													1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
												Profitability (in millions)
$	74.9		$	62.5		$	13.7		$	38.2		Net Income (Loss)	$	9.4		$	9.6		$	4.0		$	(9.3	)	$	10.1		$	10.5		$	11.9		$	5.7
	—			0.3			3.9			—		Preferred Dividend and Amort on Preferred Stock		3.9			—			—			—			—			—			—			—
	74.9			62.2			9.8			38.2		Net Income (Loss) Avail. to Common Shareholders		5.5			9.6			4.0			(9.3	)		10.1			10.5			11.9			5.7

												Diluted EPS
$	1.14		$	0.95		$	0.14		$	0.44		Net Income (Loss) Avail. to Common Shareholders	$	0.08		$	0.15		$	0.06		$	(0.11	)	$	0.12		$	0.12		$	0.13		$	0.07

												Ratios — Net Income
	11.67	%		9.49	%		1.41	%		4.40	%	Return on Average Common Equity		3.43	%		6.02	%		2.53	%		-4.23	%		4.74	%		4.91	%		5.40	%		2.57	%
	0.94	%		0.82	%		0.17	%		0.50	%	Return on Average Assets		0.47	%		0.47	%		0.21	%		-0.47	%		0.51	%		0.55	%		0.64	%		0.31	%
	71.01	%		69.18	%		81.54	%		78.18	%	Efficiency Ratio		72.20	%		77.50	%		83.39	%		94.78	%		75.68	%		76.65	%		76.64	%		83.83	%
	3.28	%		3.82	%		3.50	%		3.40	%	Net Interest Margin (FTE)		3.62	%		3.58	%		3.51	%		3.28	%		3.33	%		3.40	%		3.42	%		3.46	%

												Capital Ratios:
												Risk-Based Capital Ratios (EOP):
	10.6	%		12.7	%		14.3	%		13.6	%	Tier 1		9.9	%		10.2	%		14.1	%		14.3	%		14.2	%		15.1	%		15.4	%		13.6	%
	13.3	%		15.1	%		16.1	%		14.8	%	Total		12.2	%		12.6	%		16.5	%		16.1	%		16.1	%		17.0	%		17.3	%		14.8	%
	7.7	%		9.5	%		9.5	%		9.0	%	Leverage Ratio (to Average Assets)		7.3	%		7.1	%		10.0	%		9.5	%		9.4	%		9.8	%		10.2	%		9.0	%

	8.04	%		8.67	%		9.06	%		11.46	%	Total Equity to Assets (Averages)		9.32	%		7.79	%		8.11	%		11.03	%		10.81	%		11.17	%		11.80	%		12.09	%
	6.03	%		5.81	%		8.25	%		9.68	%	Tangible Common Equity to Tangible Assets (3)		5.23	%		5.51	%		8.53	%		8.25	%		8.62	%		9.03	%		9.58	%		9.68	%

												Per Common Share Data:
	1.11			0.69			0.44			0.28		Cash Dividends Declared (1)		0.23			0.07			0.07			0.07			0.07			0.07			0.07			0.07
	97	%		73	%		309	%		64	%	Dividend Payout Ratio (1)		274	%		48	%		117	%		N/M			60	%		58	%		51	%		106	%
	9.86			9.56			9.68			10.08		Common Book Value (EOP)		9.51			9.55			9.93			9.68			9.82			10.03			10.27			10.08
	14.96			18.16			12.43			11.89		Market Value (EOP)		11.17			9.82			11.20			12.43			11.95			10.36			10.50			11.89
	6.98			6.74			7.38			7.85		Tangible Common Book Value (3)		6.42			6.48			7.61			7.38			7.54			7.77			8.03			7.85

												Other Statistics
	2,494			2,507			2,812			2,491		Full Time Equivalent Employees (2)		2,513			2,875			2,828			2,812			2,708			2,646			2,585			2,491


FTE — Fully taxable equivalent basis

EOP — End of period actual balances

(1)		The 1st Qtr 2008 dividend was declared in December 2007 and is included in the 2007 totals.

(2)		1st quarter 2009 doesn’t include Charter associates who joined on March 20, 2009.

(3)		See Non-GAAP Reconciliation on Page 8.

PAGE 1

Old National Bancorp

INCOME STATEMENT

($ In Millions except EPS information)


Twelve Months					Change							Fourth Quarter					Change
2010		2009			$			%				2010		2009			$			%
$	296.8	$	340.7		$	(43.8	)		-12.9	%	Interest Income	$	71.0	$	80.1		$	(9.1	)		-11.4	%
	78.4		109.3			(30.8	)		-28.2	%	Less: Interest Expense		17.0		25.1			(8.1	)		-32.2	%

	218.4		231.4			(13.0	)		-5.6	%	Net Interest Income		54.0		55.0			(1.0	)		-1.9	%

	16.1		16.0			0.2			1.0	%	Wealth Management Fees		4.0		4.0			(0.0	)		-0.1	%
	50.0		55.2			(5.2	)		-9.4	%	Service Charges on Deposit Accounts		12.5		13.8			(1.3	)		-9.1	%
	23.0		20.5			2.5			12.2	%	ATM Fees		5.7		5.5			0.2			3.4	%
	2.2		6.2			(4.0	)		-64.3	%	Mortgage Banking Revenue		0.5		1.2			(0.8	)		-62.2	%
	36.5		37.9			(1.4	)		-3.7	%	Insurance Premiums and Commissions		8.7		8.7			(0.1	)		-1.1	%
	9.2		8.5			0.7			8.0	%	Investment Product Fees		2.6		1.7			0.9			55.9	%
	4.1		2.4			1.7			72.1	%	Company-owned Life Insurance		1.0		0.8			0.2			32.3	%
	14.4		13.7			0.7			5.3	%	Other Income		3.5		3.7			(0.3	)		-7.4	%

	155.5		160.3			(4.8	)		-3.0	%	Total Fees, Service Charges & Other Rev.		38.4		39.4			(1.0	)		-2.6	%

	13.2		2.5			10.7			N/M		Gains (Losses) Sales of Securities (1)		3.7		(3.2	)		6.9			N/M
	1.5		0.7			0.8			107.6	%	Gains (Losses) Derivatives		0.1		0.4			(0.3	)		-73.3	%

	170.1		163.5			6.7			4.1	%	Total Noninterest Income		42.2		36.6			5.6			15.3	%

	388.6		394.9			(6.3	)		-1.6	%	Total Revenues		96.2		91.6			4.5			5.0	%

	170.6		181.4			(10.8	)		-5.9	%	Salaries and Employee Benefits		45.4		47.0			(1.6	)		-3.3	%
	46.4		47.1			(0.7	)		-1.4	%	Occupancy		10.6		12.4			(1.8	)		-14.2	%
	10.6		10.4			0.2			1.9	%	Equipment		2.6		2.5			0.1			2.8	%
	5.7		9.6			(3.9	)		-40.3	%	Marketing		1.4		2.7			(1.2	)		-45.9	%
	21.4		20.7			0.7			3.4	%	Data Processing		5.1		5.1			0.0			0.0	%
	9.8		10.9			(1.1	)		-10.2	%	Communication		2.3		2.8			(0.5	)		-16.8	%
	8.3		9.5			(1.2	)		-13.0	%	Professional Fees		2.8		2.7			0.1			3.6	%
	3.9		4.3			(0.4	)		-9.2	%	Loan Expenses		0.9		1.1			(0.2	)		-17.1	%
	2.9		4.3			(1.4	)		-31.6	%	Supplies		0.8		0.9			(0.2	)		-17.6	%
	8.4		12.4			(4.1	)		-32.8	%	FDIC Assessment		2.2		2.3			(0.1	)		-4.0	%
	26.2		28.3			(2.1	)		-7.4	%	Other Expense		9.1		11.3			(2.2	)		-19.4	%

	314.3		339.0			(24.7	)		-7.3	%	Total Noninterest Expense		83.3		90.8			(7.5	)		-8.3	%

	30.8		63.3			(32.5	)		-51.4	%	Provision for loan losses		7.1		21.8			(14.7	)		-67.5	%

	43.5		(7.4	)		50.9			N/M		Income (loss) before Income Taxes		5.8		(21.0	)		26.8			N/M

	5.3		(21.1	)		26.4			N/M		Total Taxes		0.1		(11.6	)		11.7			N/M

$	38.2	$	13.7		$	24.5			178.2	%	Net Income (Loss)	$	5.7	$	(9.3	)	$	15.0			N/M


											Diluted EPS
$	0.44	$	0.14		$	0.29			204.2	%	Net Income (Loss) Avail to Common	$	0.07	$	(0.11	)	$	0.17			N/M

											Average Common Shares Outstanding (000’s)
	86,785		71,314			15,470			21.7	%	Basic		86,804		86,701			103			0.1	%
	86,928		71,367			15,561			21.8	%	Diluted		87,005		86,701			303			0.3	%

	87,183		87,182			1			0.0	%	Common Shares Outstanding (EOP) (000’s)		87,183		87,182			1			0.0	%


(1)		Includes $4.3 million of net gains and $0.6 million of OTTI in 4Q10 and $6.3 million of net gains and $9.5 million of OTTI in 4Q09.

		Includes $17.1 million of net gains and $3.9 million of OTTI in YTD 2010 and $27.3 million of net gains and $24.8 million of OTTI in YTD 2009.

OTTI — Other Than Temporary Impairment

EOP — End of period actual balances

N/M = Not meaningful

PAGE 2

Old National Bancorp

NET INCOME TRENDS

Fourth Quarter 2010

($ In Millions except EPS information)


2007			2008			2009			2010			2009												2010
												1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr		2nd Qtr		3rd Qtr		4th Qtr
$	461.4		$	392.5		$	340.7		$	296.8	Interest Income	$	88.0		$	89.2		$	83.4		$	80.1		$	77.3	$	75.6	$	72.9	$	71.0
	242.2			149.2			109.3			78.4	Less: Interest Expense		28.8			28.4			27.0			25.1			22.2		20.4		18.8		17.0

	219.2			243.3			231.4			218.4	Net Interest Income		59.2			60.8			56.4			55.0			55.1		55.2		54.2		54.0

	18.7			17.4			16.0			16.1	Wealth Management Fees		3.8			4.3			3.9			4.0			4.3		4.0		3.8		4.0
	44.8			45.2			55.2			50.0	Service Charges on Deposit Accounts		10.7			15.7			15.1			13.8			11.9		13.2		12.4		12.5
	14.5			17.2			20.5			23.0	ATM Fees		4.1			5.4			5.4			5.5			5.5		5.9		5.8		5.7
	4.4			5.1			6.2			2.2	Mortgage Banking Revenue		1.7			1.8			1.5			1.2			0.5		0.6		0.6		0.5
	39.0			39.2			37.9			36.5	Insurance Premiums and Commissions		11.4			8.9			8.8			8.7			10.2		8.9		8.7		8.7
	10.7			9.5			8.5			9.2	Investment Product Fees		2.2			2.2			2.4			1.7			2.1		2.2		2.3		2.6
	9.8			9.2			2.4			4.1	Company-owned Life Insurance		0.7			0.4			0.5			0.8			0.8		1.2		1.0		1.0
	16.1			17.9			13.7			14.4	Other Income		3.8			4.0			2.1			3.7			4.0		3.3		3.6		3.5

	158.0			160.6			160.3			155.5	Total Fees, Service Charges & Other Rev.		38.6			42.7			39.6			39.4			39.4		39.3		38.4		38.4

	(3.0	)		7.6			2.5			13.2	Gains (Losses) Sales of Securities (1)		3.2			2.4			0.0			(3.2	)		3.0		3.2		3.2		3.7
	0.2			(1.1	)		0.7			1.5	Gains (Losses) Derivatives		0.5			0.5			(0.7	)		0.4			0.6		0.4		0.4		0.1

	155.1			167.0			163.5			170.1	Total Noninterest Income		42.2			45.6			39.0			36.6			43.0		43.0		42.0		42.2

	374.3			410.3			394.9			388.6	Total Revenues		101.4			106.4			95.4			91.6			98.1		98.1		96.1		96.2

	163.7			167.8			181.4			170.6	Salaries and Employee Benefits		42.7			45.2			46.5			47.0			42.4		41.1		41.7		45.4
	26.5			39.7			47.1			46.4	Occupancy		10.6			12.0			12.0			12.4			12.2		11.8		11.7		10.6
	11.1			9.5			10.4			10.6	Equipment		2.3			2.7			2.9			2.5			2.8		2.6		2.6		2.6
	8.4			9.6			9.6			5.7	Marketing		2.0			2.6			2.3			2.7			1.4		1.4		1.5		1.4
	19.2			19.0			20.7			21.4	Data Processing		4.9			5.4			5.3			5.1			5.5		5.6		5.1		5.1
	9.3			9.3			10.9			9.8	Communication		2.6			2.9			2.7			2.8			2.7		2.5		2.3		2.3
	7.7			7.2			9.5			8.3	Professional Fees		2.6			2.1			2.1			2.7			1.7		2.2		1.6		2.8
	6.0			6.6			4.3			3.9	Loan Expenses		0.9			1.2			1.2			1.1			0.9		1.1		1.0		0.9
	3.5			3.3			4.3			2.9	Supplies		1.3			1.2			0.9			0.9			0.8		0.7		0.7		0.8
	0.9			1.5			12.4			8.4	FDIC Assessment		2.1			6.3			1.8			2.3			2.4		1.7		2.1		2.2
	21.7			23.9			28.3			26.2	Other Expense		5.5			5.2			6.3			11.3			4.2		7.2		5.7		9.1

	278.0			297.2			339.0			314.3	Total Noninterest Expense		77.5			86.8			84.0			90.8			77.1		77.9		76.1		83.3

	4.1			51.5			63.3			30.8	Provision for Loan Losses		17.3			12.0			12.2			21.8			9.3		8.0		6.4		7.1

	92.2			61.6			(7.4	)		43.5	Income (loss) before Income Taxes		6.7			7.7			(0.7	)		(21.0	)		11.8		12.3		13.6		5.8

	17.3			(0.9	)		(21.1	)		5.3	Total Taxes		(2.7	)		(2.0	)		(4.8	)		(11.6	)		1.7		1.7		1.7		0.1


$	74.9		$	62.5		$	13.7		$	38.2	Net Income (Loss)	$	9.4		$	9.6		$	4.0		$	(9.3	)	$	10.1	$	10.5	$	11.9	$	5.7


											Diluted EPS
$	1.14		$	0.95		$	0.14		$	0.44	Net Income (Loss) Avail to Common	$	0.08		$	0.15		$	0.06		$	(0.11	)	$	0.12	$	0.12	$	0.13	$	0.07

	65,684			65,660			71,314			86,785	Average Basic Common Shares (000’s)		65,793			65,950			66,635			86,701			86,752		86,786		86,795		86,804
	65,750			65,776			71,367			86,928	Average Diluted Common Shares (000’s)		65,882			65,999			66,706			86,701			86,797		86,911		86,931		87,005


(1)		Gains (losses) on sales of securities are net of OTTI.

PAGE 3

Old National Bancorp

Balance Sheet (EOP)

Fourth Quarter 2010

($ in Millions)


																Change from Prior Year
	12/31/2010			9/30/2010			6/30/2010			3/31/2010			12/31/2009			12/31/2010 vs. 12/31/2009						12/31/2008			12/31/2007
																$			%
Assets
Fed Reserve Bank Account	$	141.4		$	18.0		$	283.2		$	235.2		$	317.5		$	(176.1	)		N/M		$	—		$	—
Money Market Investments		2.8			25.1			24.5			23.2			35.6			(32.8	)		-92.1	%		30.1			8.5
Investments:
Treasury & Gov’t Sponsored Agencies		680.9			995.1			1,159.9			1,200.6			1,142.7			(461.8	)		-40.4	%		389.3			688.9
Mortgage-backed Securities		1,188.3			1,232.9			1,015.3			1,048.1			1,048.4			139.9			13.3	%		1,172.6			1,048.8
States & Political Subdivisions		566.3			554.7			510.5			559.7			534.6			31.7			5.9	%		482.2			294.9
Other Securities		194.8			198.0			197.0			197.8			192.7			2.2			1.1	%		221.7			275.9

Total Investments		2,630.4			2,980.7			2,882.6			3,006.2			2,918.3			(287.9	)		-9.9	%		2,265.8			2,308.5

Residential Real Estate Loans Held for Sale		3.8			3.5			5.8			4.0			17.5			(13.7	)		-78.2	%		17.2			13.0
Leases Held for Sale		—			—			—			52.2			55.3			(55.3	)		-100.0	%		—			—
Loans:
Commercial		1,105.3			1,151.6			1,171.8			1,153.5			1,209.3			(104.0	)		-8.6	%		1,510.4			1,360.7
Commercial Leases		106.1			115.3			121.0			72.5			77.9			28.2			36.2	%		387.6			334.0
Commercial & Agriculture Real Estate		942.4			981.5			1,002.5			1,041.4			1,062.9			(120.5	)		-11.3	%		1,154.9			1,270.4
Consumer:
Home Equity		248.3			260.0			264.6			270.2			274.8			(26.5	)		-9.6	%		270.0			250.1
Other Consumer Loans		676.6			711.7			743.3			774.3			807.2			(130.6	)		-16.2	%		941.0			937.6

Subtotal of Commercial & Consumer Loans		3,078.7			3,220.2			3,303.3			3,311.9			3,432.1			(353.3	)		-10.3	%		4,263.8			4,152.9
Residential Real Estate		664.7			483.0			427.8			403.0			403.4			261.3			64.8	%		496.5			533.4

Total Loans		3,743.5			3,703.1			3,731.1			3,714.9			3,835.5			(92.0	)		-2.4	%		4,760.4			4,686.4

Total Earning Assets		6,521.8			6,730.5			6,927.2			7,035.7			7,179.7			(657.9	)		-9.2	%		7,073.4			7,016.3


Allowance for Loan Losses		(72.3	)		(72.1	)		(71.9	)		(72.1	)		(69.5	)		2.8			4.0	%		(67.1	)		(56.5	)
Nonearning Assets:
Cash and Due from Banks		107.4			129.2			119.0			121.8			144.2			(36.8	)		-25.5	%		162.9			255.2
Premises & Equipment		48.8			50.1			51.5			53.9			52.4			(3.6	)		-6.9	%		44.6			48.7
Goodwill & Intangible Assets		194.1			195.6			197.1			198.6			200.2			(6.1	)		-3.1	%		186.8			191.0
Company-owned Life Insurance		226.2			226.0			225.1			224.5			224.7			1.5			0.7	%		223.1			214.5
Other Assets		238.0			247.0			253.2			255.8			273.8			(35.8	)		-13.1	%		250.1			176.9

Total Nonearning Assets		814.4			847.8			845.7			854.6			895.2			(80.8	)		-9.0	%		867.6			886.3

Total Assets	$	7,263.9		$	7,506.1		$	7,701.1		$	7,818.3		$	8,005.3		$	(741.4	)		-9.3	%	$	7,873.9		$	7,846.1


Liabilities & Equity
Noninterest-bearing Demand Deposits	$	1,276.0		$	1,267.4		$	1,170.2		$	1,179.8		$	1,188.3		$	87.7			7.4	%	$	888.6		$	855.4
NOW Accounts		1,297.4			1,163.6			1,295.2			1,232.4			1,354.3			(56.9	)		-4.2	%		1,292.6			1,410.7
Savings Accounts		1,079.4			1,046.0			1,037.7			1,045.2			972.2			107.2			11.0	%		874.6			774.1
Money Market Accounts		334.8			344.3			360.5			381.9			381.1			(46.3	)		-12.1	%		420.8			562.1
Other Time under $100,000		988.7			1,083.1			1,170.1			1,200.2			1,284.3			(295.5	)		-23.0	%		1,224.2			1,283.0
Other Time $100,000 & over		466.3			514.8			567.8			581.9			653.3			(187.1	)		-28.6	%		550.0			562.1

Total Core Deposits		5,442.7			5,419.2			5,601.4			5,621.5			5,833.5			(390.9	)		-6.7	%		5,250.8			5,447.4
Brokered CD’s		20.2			20.3			45.5			69.9			69.9			(49.7	)		-71.1	%		171.5			216.0

Total Deposits		5,462.9			5,439.4			5,647.0			5,691.5			5,903.5			(440.6	)		-7.5	%		5,422.3			5,663.4

Short-term Borrowings		298.2			367.8			331.6			358.0			331.1			(32.9	)		-9.9	%		649.6			638.2
Long-term Borrowings		421.9			578.3			604.4			700.4			699.1			(277.1	)		-39.6	%		834.9			656.7

Total Borrowed Funds		720.1			946.0			935.9			1,058.4			1,030.2			(310.1	)		-30.1	%		1,484.5			1,295.0
Accrued Expenses & Other Liabilities		202.0			224.9			243.4			212.9			227.8			(25.8	)		-11.3	%		236.2			234.9

Total Liabilities		6,385.1			6,610.4			6,826.3			6,962.7			7,161.5			(776.4	)		-10.8	%		7,143.0			7,193.2

Preferred Stock & Surplus		—			—			—			—			—			—			—			97.4			—
Common Stock, Surplus & Retained Earnings		880.1			879.9			873.6			868.3			864.2			15.9			1.8	%		687.0			664.2
Other Comprehensive Income		(1.3	)		15.8			1.2			(12.8	)		(20.4	)		19.1			N/M			(53.5	)		(11.3	)

Total Shareholders Equity		878.8			895.7			874.7			855.5			843.8			35.0			4.1	%		730.9			652.9

Total Liabilities & Shareholders Equity	$	7,263.9		$	7,506.1		$	7,701.1		$	7,818.3		$	8,005.3		$	(741.4	)		-9.3	%	$	7,873.9		$	7,846.1


EOP — End of period actual balances

N/M = Not meaningful

PAGE 4

Old National Bancorp

Balance Sheet Trends

PERIOD AVERAGES

($ in Millions)


2007			2008			2009			2010				2009												2010
													1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
												Assets
$	109.5		$	1.6		$	0.0		$	—		Fed Funds Sold & Resell Agreements	$	0.0		$	—		$	—		$	—		$	—		$	—		$	—		$	—
	—			—			41.2			152.3		Fed Reserve Bank Account		11.7			10.5			25.6			117.0			254.0			174.4			97.9			83.0
	7.7			20.3			38.5			25.4		Money Market Investments		33.2			39.5			42.8			38.4			30.7			30.6			24.3			16.2
												Investments:
	636.8			439.1			916.3			1,057.9		Treasury & Gov’t Sponsored Agencies		551.0			935.8			872.8			1,305.6			1,170.9			1,212.1			1,023.4			825.3
	1,112.9			1,130.7			1,063.3			1,092.6		Mortgage-backed Securities		1,163.5			1,087.0			996.9			1,005.7			1,028.5			1,019.7			1,135.0			1,187.3
	263.7			329.4			506.7			536.3		States & Political Subdivisions		504.9			511.5			498.4			512.0			559.7			530.4			502.7			552.4
	268.6			251.4			214.4			198.7		Other Securities		220.7			212.9			219.7			204.3			197.3			200.3			198.3			199.0

	2,281.9			2,150.6			2,700.7			2,885.6		Total Investments		2,440.1			2,747.3			2,587.7			3,027.6			2,956.5			2,962.6			2,859.4			2,764.0


	9.2			7.2			11.7			4.2		Residential Real Estate Loans Held for Sale		10.3			15.4			12.7			8.2			6.4			3.0			3.7			3.4
	—			—			84.9			24.2		Leases Held for Sale		—			22.2			261.8			55.8			54.1			42.7			—			—
												Loans:
	1,336.3			1,429.6			1,383.6			1,152.0		Commercial		1,454.3			1,427.6			1,364.9			1,287.7			1,172.6			1,137.0			1,160.6			1,137.7
	343.3			349.9			216.1			95.3		Commercial Leases		385.9			363.4			37.5			77.8			73.9			78.0			117.8			111.5
	1,374.7			1,205.1			1,117.3			1,007.6		Commercial & Agriculture Real Estate		1,148.9			1,132.0			1,108.7			1,079.5			1,050.2			1,021.6			992.0			966.8
												Consumer:
	267.1			254.9			273.1			264.7		Home Equity		271.2			271.8			274.1			275.3			273.8			267.7			262.6			254.7
	937.4			935.7			882.3			742.7		Other Consumer Loans		933.4			900.9			867.2			827.7			791.0			757.4			726.7			695.8

	4,258.8			4,175.1			3,872.5			3,262.3		Subtotal of Commercial & Consumer Loans		4,193.7			4,095.7			3,652.5			3,548.0			3,361.5			3,261.8			3,259.7			3,166.4
	546.8			520.9			457.8			460.5		Residential Real Estate		500.1			475.8			437.5			417.7			403.3			418.0			455.2			565.6

	4,805.7			4,696.0			4,330.2			3,722.9		Total Loans		4,693.8			4,571.5			4,090.0			3,965.8			3,764.7			3,679.8			3,714.9			3,732.1

	7,214.0			6,875.7			7,207.2			6,814.6		Total Earning Assets		7,189.2			7,406.3			7,020.6			7,212.8			7,066.5			6,893.0			6,700.2			6,598.7


	(68.2	)		(62.0	)		(70.1	)		(73.9	)	Allowance for Loan Losses		(67.2	)		(72.2	)		(70.1	)		(71.0	)		(71.6	)		(73.7	)		(74.8	)		(75.3	)
	839.2			804.1			852.7			845.7		Nonearning Assets		801.9			877.3			882.4			849.1			855.0			851.9			840.6			835.4

$	7,985.0		$	7,617.8		$	7,989.8		$	7,586.4		Total Assets	$	7,923.9		$	8,211.4		$	7,832.9		$	7,990.9		$	7,850.0		$	7,671.2		$	7,466.0		$	7,358.7


												Liabilities & Equity
$	828.5		$	835.0		$	1,018.4		$	1,182.7		Noninterest-bearing Demand Deposits	$	904.1		$	1,026.8		$	1,046.8		$	1,096.0		$	1,146.5		$	1,151.5		$	1,182.7		$	1,249.9
	1,490.4			1,249.5			1,250.7			1,221.4		NOW Accounts		1,239.0			1,261.6			1,260.0			1,242.5			1,262.4			1,220.4			1,193.7			1,208.8
	622.4			886.4			937.6			1,043.3		Savings Accounts		878.2			933.9			960.6			977.9			1,011.7			1,051.4			1,039.8			1,070.3
	758.6			487.5			436.5			361.2		Money Market Accounts		425.5			483.0			432.7			404.9			379.7			372.1			352.7			340.1
	2,134.9			1,696.4			1,956.9			1,709.2		Other Time		1,854.1			2,011.2			1,991.9			1,970.5			1,882.3			1,757.1			1,661.4			1,536.0

	5,834.7			5,154.7			5,600.2			5,517.7		Total Core Deposits		5,300.8			5,716.5			5,691.9			5,691.7			5,682.7			5,552.5			5,430.4			5,405.1

	291.5			170.7			97.8			44.4		Brokered CD’s		161.4			90.0			69.9			69.9			69.9			64.8			22.5			20.3

	6,126.2			5,325.4			5,698.0			5,562.0		Total Deposits		5,462.2			5,806.5			5,761.8			5,761.6			5,752.6			5,617.3			5,452.8			5,425.3


	461.8			616.9			527.1			328.5		Short-term Borrowings		660.5			721.6			401.0			325.6			330.1			334.7			320.0			329.4
	615.9			810.1			812.1			615.0		Long-term Borrowings		834.6			809.9			808.6			795.2			699.1			650.9			593.4			516.6

	1,077.7			1,427.0			1,339.2			943.5		Total Borrowed Funds		1,495.1			1,531.4			1,209.6			1,120.7			1,029.2			985.6			913.4			846.0

	139.3			205.2			228.6			211.7		Accrued Expenses & Other Liabilities		227.9			233.5			225.9			227.3			219.2			211.1			218.7			197.6

	7,343.1			6,957.7			7,265.9			6,717.2		Total Liabilities		7,185.2			7,571.4			7,197.3			7,109.6			7,001.0			6,814.0			6,584.9			6,468.9


	—			5.2			24.1			—		Preferred Stock & Surplus		96.4			—			—			—			—			—			—			(0.0	)
	666.8			688.7			735.0			869.6		Common Stock, Surplus & Retained Earnings		687.5			680.9			676.0			895.8			863.2			865.9			873.8			875.6
	(25.0	)		(33.7	)		(35.3	)		(0.4	)	Other Comprehensive Income		(45.2	)		(41.0	)		(40.4	)		(14.5	)		(14.2	)		(8.7	)		7.2			14.2

	641.8			660.2			723.9			869.2		Total Shareholders Equity		738.7			640.0			635.6			881.3			848.9			857.2			881.0			889.8

$	7,985.0		$	7,617.8		$	7,989.8		$	7,586.4		Total Liabilities & Shareholders Equity	$	7,923.9		$	8,211.4		$	7,832.9		$	7,990.9		$	7,850.0		$	7,671.2		$	7,466.0		$	7,358.7

PAGE 5

Old National Bancorp

Interest Rate Trends (FTE basis)

PERIOD AVERAGES


2007			2008			2009			2010				2009												2010
													1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
												Earning Assets:
												Fed Funds Sold, Resell Agr, Fed Reserve
	5.35	%		3.40	%		0.17	%		0.24	%	Bank Acct, & Money Mkt		0.56	%		0.29	%		0.16	%		0.02	%		0.26	%		0.22	%		0.23	%		0.24	%
												Investments:
	5.07	%		4.90	%		4.01	%		3.21	%	Treasury & Gov’t Sponsored Agencies		4.80	%		4.52	%		4.15	%		3.21	%		3.46	%		3.26	%		3.11	%		2.93	%
	4.68	%		5.01	%		4.93	%		3.96	%	Mortgage-backed Securities		5.16	%		5.18	%		4.78	%		4.54	%		4.39	%		4.22	%		3.82	%		3.48	%
	7.07	%		6.91	%		6.72	%		6.19	%	States & Political Subdivisions		6.92	%		6.53	%		6.83	%		6.63	%		6.34	%		6.26	%		6.08	%		6.06	%
	5.25	%		5.54	%		4.93	%		4.68	%	Other Securities		5.31	%		4.95	%		4.98	%		4.44	%		4.71	%		4.79	%		4.49	%		4.75	%

	5.41	%		5.38	%		4.96	%		3.93	%	Total Investments		5.47	%		5.19	%		4.98	%		4.31	%		4.44	%		4.25	%		4.02	%		3.93	%

												Loans:
	7.61	%		5.65	%		4.00	%		4.21	%	Commercial		3.93	%		3.99	%		3.99	%		4.13	%		4.06	%		4.23	%		4.16	%		4.14	%
	6.93	%		6.82	%		6.72	%		6.45	%	Commercial Leases (1)		6.72	%		6.61	%		6.94	%		6.65	%		6.73	%		6.02	%		6.51	%		6.52	%
	7.56	%		6.22	%		4.62	%		4.47	%	Commercial & Agriculture Real Estate		4.79	%		4.60	%		4.57	%		4.53	%		4.48	%		4.47	%		4.36	%		4.31	%
												Consumer:
	8.17	%		5.51	%		3.57	%		3.68	%	Home Equity		3.59	%		3.55	%		3.55	%		3.60	%		3.63	%		3.67	%		3.70	%		3.71	%
	7.61	%		7.66	%		7.27	%		7.15	%	Other Consumer Loans		7.30	%		7.24	%		7.28	%		7.28	%		7.32	%		7.19	%		7.10	%		6.99	%

	7.57	%		6.35	%		5.08	%		4.76	%	Subtotal of Commercial & Consumer Loans		5.15	%		5.08	%		5.08	%		5.03	%		5.05	%		5.04	%		4.96	%		4.90	%
	5.86	%		5.87	%		5.63	%		5.64	%	Residential Real Estate Loans (1)		5.68	%		5.61	%		5.65	%		5.56	%		5.60	%		5.76	%		5.76	%		5.49	%


	7.38	%		6.30	%		5.14	%		5.07	%	Total Loans (1)		5.21	%		5.14	%		5.14	%		5.08	%		5.07	%		5.08	%		5.02	%		4.95	%


	6.63	%		5.99	%		5.02	%		4.55	%	Total Earning Assets		5.26	%		5.13	%		5.03	%		4.65	%		4.60	%		4.55	%		4.49	%		4.45	%


												Interest-bearing Liabilities:
	2.12	%		0.51	%		0.04	%		0.03	%	NOW Accounts		0.03	%		0.04	%		0.04	%		0.04	%		0.04	%		0.03	%		0.03	%		0.03	%
	2.43	%		1.46	%		0.38	%		0.30	%	Savings Accounts		0.40	%		0.39	%		0.39	%		0.35	%		0.31	%		0.30	%		0.30	%		0.29	%
	3.11	%		1.12	%		0.10	%		0.10	%	Money Market Accounts		0.11	%		0.10	%		0.10	%		0.10	%		0.10	%		0.10	%		0.10	%		0.10	%
	4.64	%		3.74	%		3.01	%		2.50	%	Other Time		3.29	%		3.10	%		2.92	%		2.75	%		2.62	%		2.49	%		2.43	%		2.43	%

	3.38	%		2.04	%		1.39	%		1.07	%	Total Interest-bearing Deposits		1.49	%		1.43	%		1.35	%		1.27	%		1.18	%		1.08	%		1.04	%		0.99	%
	4.72	%		4.25	%		4.26	%		4.51	%	Brokered CD’s		4.16	%		4.19	%		4.44	%		4.44	%		4.44	%		4.47	%		4.78	%		4.80	%

	3.46	%		2.13	%		1.45	%		1.11	%	Total Interest-bearing Deposits & CD’s		1.58	%		1.48	%		1.40	%		1.32	%		1.23	%		1.13	%		1.06	%		1.01	%


	3.94	%		1.77	%		0.27	%		0.20	%	Short-term Borrowings		0.24	%		0.25	%		0.31	%		0.32	%		0.31	%		0.18	%		0.16	%		0.16	%
	6.64	%		5.29	%		4.96	%		4.74	%	Long-term Borrowings		5.15	%		5.11	%		4.93	%		4.63	%		4.60	%		4.70	%		4.79	%		4.76	%
	5.48	%		3.77	%		3.11	%		3.16	%	Total Borrowed Funds		2.98	%		2.82	%		3.40	%		3.37	%		3.27	%		3.19	%		3.19	%		2.98	%


	3.80	%		2.52	%		1.82	%		1.47	%	Total Interest-bearing Liabilities		1.93	%		1.81	%		1.81	%		1.72	%		1.60	%		1.50	%		1.44	%		1.34	%


	2.83	%		3.47	%		3.20	%		3.08	%	Net Interest Rate Spread		3.34	%		3.32	%		3.22	%		2.93	%		3.00	%		3.05	%		3.05	%		3.12	%

	3.28	%		3.82	%		3.50	%		3.40	%	Net Interest Margin (FTE)		3.62	%		3.58	%		3.51	%		3.28	%		3.33	%		3.40	%		3.42	%		3.46	%

$	17.2		$	19.3		$	20.8		$	13.5		FTE Adjustment ($ in millions)	$	5.9		$	5.6		$	5.3		$	4.1		$	3.7		$	3.5		$	3.2		$	3.1


FTE — Fully taxable equivalent basis

(1)		Includes residential loans and leases held for sale.

PAGE 6

Old National Bancorp

Asset Quality (EOP)

($ in Millions)


2007			2008			2009			2010				2009												2010
													1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr

$	67.8		$	56.5		$	67.1		$	69.5		Beginning Allowance for Loan Losses	$	67.1		$	71.8		$	70.1		$	69.6		$	69.5		$	72.1		$	71.9		$	72.1

	4.1			51.5			63.3			30.8		Provision for Loan Losses		17.3			12.0			12.2			21.8			9.3			8.0			6.4			7.1

	5.7			—			—			—		Acquired from acquisition		—			—			—			—			—			—			—			—

	(26.9	)		(51.2	)		(78.0	)		(41.3	)	Gross Charge-offs		(15.9	)		(16.0	)		(19.1	)		(27.1	)		(10.9	)		(11.8	)		(8.2	)		(10.4	)
	(5.3	)		—			(0.6	)		—		Write-downs from Loans Sold		—			(0.6	)		—			—			—			—			—			—
	11.1			10.4			17.8			13.3		Gross Recoveries		3.3			2.9			6.3			5.3			4.2			3.6			2.1			3.5

	(21.1	)		(40.8	)		(60.8	)		(28.0	)	Net Charge-offs		(12.6	)		(13.6	)		(12.7	)		(21.8	)		(6.7	)		(8.2	)		(6.1	)		(6.9	)


$	56.5		$	67.1		$	69.5		$	72.3		Ending Allowance for Loan Losses	$	71.8		$	70.1		$	69.6		$	69.5		$	72.1		$	71.9		$	72.1		$	72.3


	0.44	%		0.87	%		1.40	%		0.75	%	Net Charge-offs / Average Loans (1)		1.07	%		1.19	%		1.25	%		2.20	%		0.72	%		0.90	%		0.66	%		0.74	%

$	4,805.7		$	4,696.0		$	4,330.2		$	3,722.9		Average Loans Outstanding (1)	$	4,693.8		$	4,571.5		$	4,089.9		$	3,965.8		$	3,764.7		$	3,679.8		$	3,714.9		$	3,732.1

$	4,686.4		$	4,760.4		$	3,835.5		$	3,743.5		EOP Loans Outstanding (1)	$	4,621.5		$	4,151.2		$	4,035.7		$	3,835.5		$	3,714.9		$	3,731.1		$	3,703.1		$	3,743.5

	1.20	%		1.41	%		1.81	%		1.93	%	Allowance for Loan Loss / EOP Loans (1)		1.55	%		1.69	%		1.72	%		1.81	%		1.94	%		1.93	%		1.95	%		1.93	%

												Underperforming Assets:
$	1.5		$	2.9		$	3.5		$	0.6		Loans 90 Days & over (still accruing)	$	2.4		$	2.3		$	2.7		$	3.5		$	1.3		$	0.5		$	1.4		$	0.6

												Non-performing Loans:
	40.8			64.0			67.0			70.9		Nonaccrual Loans (2)		77.4			77.7			73.7			67.0			68.1			68.9			69.8			70.9
	—			—			—			—		Renegotiated Loans		—			—			—			—			—			—			—			—

	40.8			64.0			67.0			70.9		Total Non-performing Loans		77.4			77.7			73.7			67.0			68.1			68.9			69.8			70.9


	2.9			2.9			8.1			5.6		Foreclosed properties		6.9			4.8			4.2			8.1			9.6			7.0			5.9			5.6


$	45.2		$	69.9		$	78.7		$	77.1		Total Underperforming Assets	$	86.7		$	84.8		$	80.6		$	78.7		$	79.1		$	76.3		$	77.1		$	77.1


$	115.1		$	180.1		$	157.1		$	174.3		Classified Loans — “Problem Loans”	$	199.8		$	191.3		$	174.7		$	157.1		$	160.5		$	157.7		$	170.9		$	174.3
	—			34.5			161.2			105.6		Other Classified Assets		96.5			145.3			174.6			161.2			158.5			152.3			148.0		$	105.6
	103.2			124.9			103.5			84.0		Criticized Loans — “Special Mention Loans”		86.6			101.0			94.6			103.5			104.9			100.7			75.0			84.0

$	218.3		$	339.5		$	421.7		$	363.9		Total Classified & Criticized Assets	$	382.9		$	437.6		$	443.9		$	421.7		$	423.8		$	410.7		$	393.9		$	363.9


	0.87	%		1.35	%		1.75	%		1.90	%	Non-performing loans / EOP Loans (1)		1.67	%		1.87	%		1.83	%		1.75	%		1.83	%		1.85	%		1.89	%		1.90	%

	138	%		105	%		104	%		102	%	Allowance to Non-performing Loans		93	%		90	%		94	%		104	%		106	%		104	%		103	%		102	%

	0.96	%		1.47	%		2.05	%		2.06	%	Under-performing Assets / EOP Loans (1)		1.88	%		2.04	%		2.00	%		2.05	%		2.13	%		2.05	%		2.08	%		2.06	%

$	7,846.1		$	7,873.9		$	8,005.3		$	7,263.9		EOP Total Assets	$	8,356.1		$	8,012.2		$	7,973.5		$	8,005.3		$	7,818.3		$	7,701.1		$	7,506.1		$	7,263.9

	0.58	%		0.89	%		0.98	%		1.06	%	Under-performing Assets / EOP Assets		1.04	%		1.06	%		1.01	%		0.98	%		1.01	%		0.99	%		1.03	%		1.06	%


EOP — End of period actual balances

(1)		Excludes residential loans and leases held for sale.

(2)		Includes $4.8 million in 4Q10 of renegotiated loans.

PAGE 7

Old National Bancorp

NON-GAAP MEASURES

Fourth Quarter 2010

($ In Millions except EPS information)


2007			2008			2009			2010				2009												2010
													1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
												Actual EOP Balances
$	652.9		$	730.9		$	843.8		$	878.8		GAAP Shareholders’ Equity	$	631.8		$	634.6		$	865.4		$	843.8		$	855.5		$	874.7		$	895.7		$	878.8

												Deduct:
	159.2			159.2			167.9			167.9		Goodwill		167.8			167.9			167.9			167.9			167.9			167.9			167.9			167.9
	31.8			27.6			32.3			26.2		Intangibles		37.8			36.1			34.5			32.3			30.7			29.2			27.7			26.2

	191.0			186.8			200.2			194.1				205.6			204.0			202.4			200.2			198.6			197.1			195.6			194.1


$	461.9		$	544.0		$	643.6		$	684.7		Tangible Shareholders’ Equity	$	426.2		$	430.6		$	663.0		$	643.6		$	657.0		$	677.7		$	700.1		$	684.7


												Deduct:
	—			97.4			—			—		Preferred Stock, Surplus & Retained Earnings		—			—			—			—			—			—			—			—


$	461.9		$	446.7		$	643.6		$	684.7		Tangible Common Shareholders’ Equity	$	426.2		$	430.6		$	663.0		$	643.6		$	657.0		$	677.7		$	700.1		$	684.7


												Actual EOP Balances
$	7,846.1		$	7,873.9		$	8,005.3		$	7,263.9		GAAP Assets	$	8,356.1		$	8,012.2		$	7,973.5		$	8,005.3		$	7,818.3		$	7,701.1		$	7,506.1		$	7,263.9

												Add:
	1.7			1.0			0.2			0.5		Trust Overdrafts		0.1			0.0			0.4			0.2			0.3			0.1			0.1			0.5

												Deduct:
	159.2			159.2			167.9			167.9		Goodwill		167.8			167.9			167.9			167.9			167.9			167.9			167.9			167.9
	31.8			27.6			32.3			26.2		Intangibles		37.8			36.1			34.5			32.3			30.7			29.2			27.7			26.2

	191.0			186.8			200.2			194.1				205.6			204.0			202.4			200.2			198.6			197.1			195.6			194.1

$	7,656.8		$	7,688.0		$	7,805.4		$	7,070.3		Tangible Assets	$	8,150.5		$	7,808.2		$	7,771.6		$	7,805.4		$	7,620.0		$	7,504.1		$	7,310.6		$	7,070.3


	5,483.0			5,555.2			5,173.1			4,720.9		Risk Weighted Assets		5,680.4			5,529.0			5,410.9			5,173.1			5,038.2			4,847.4			4,803.2			4,720.9

												Actual EOP Balances
$	74.9		$	62.5		$	13.7		$	38.2		GAAP Net Income	$	9.4		$	9.6		$	4.0		$	(9.3	)	$	10.1		$	10.5		$	11.9		$	5.7

												Add:
	3.0			3.6			4.9			4.6		Intangible Amortization (net of tax)		0.8			1.2			1.2			1.6			1.2			1.1			1.1			1.1


$	77.9		$	66.1		$	18.6		$	42.8		Tangible Net Income	$	10.3		$	10.9		$	5.3		$	(7.8	)	$	11.3		$	11.7		$	13.0		$	6.9


												Tangible Ratios
	16.87	%		14.79	%		2.89	%		6.26	%	Return on Tangible Common Equity		9.62	%		10.11	%		3.17	%		-4.83	%		6.87	%		6.88	%		7.44	%		4.01	%
	1.02	%		0.86	%		0.24	%		0.61	%	Return on Tangible Assets		0.50	%		0.56	%		0.27	%		-0.40	%		0.59	%		0.62	%		0.71	%		0.39	%
	6.03	%		5.81	%		8.25	%		9.68	%	Tangible Common Equity to Tangible Assets		5.23	%		5.51	%		8.53	%		8.25	%		8.62	%		9.03	%		9.58	%		9.68	%
	8.42	%		8.04	%		12.44	%		14.50	%	Tangible Common Equity to Risk Wgt Assets		7.50	%		7.79	%		12.25	%		12.44	%		13.04	%		13.98	%		14.58	%		14.50	%
	6.98			6.74			7.38			7.85		Tangible Common Book Value (1)		6.42			6.48			7.61			7.38			7.54			7.77			8.03			7.85


Tangible Common Equity is defined as GAAP Shareholders’ Equity less Preferred Stock, Goodwill and Intangibles.

Tangible Common Equity presentation includes Other Comprehensive Income (OCI) as is common in other company releases.

(1)		Tangible Common Shareholders’ Equity Divided By Common Shares Issued and Outstanding at Period-End.

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Attached files

OLD NATIONAL BANCORP /IN/ Reports

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