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8-K - FORM 8-K - OLD NATIONAL BANCORP /IN/ | c23749e8vk.htm |
EX-99.2 - EXHIBIT 99.2 - OLD NATIONAL BANCORP /IN/ | c23749exv99w2.htm |
Exhibit 99.1
NYSE: ONB | ||
oldnational.com | ||
FOR IMMEDIATE RELEASE | ||
October 31, 2011 | Contacts: |
|
Media: | ||
Kathy A. Schoettlin (812) 465-7269 | ||
Executive Vice President Communications | ||
Financial Community: | ||
Lynell J. Walton (812) 464-1366 | ||
Senior Vice President Investor Relations |
Old National announces strong 3rd quarter earnings
driven by improved credit quality and revenue growth
driven by improved credit quality and revenue growth
First FDIC-assisted acquisition completed during quarter
3rd Quarter Highlights:
| Quarterly net income up 41.2% over 3rd quarter 2010, and revenue up 24.7% over 3rd quarter 2010 | ||
| EPS of $.18 includes $6.8 million of acquisition expenses and a $2.0 million litigation reserve | ||
| Results exceed analysts estimates | ||
| Credit quality remains well controlled and capital position remains strong | ||
| Board of Directors declares cash dividend of $.07 per common share |
Evansville, Ind. (October 31, 2011) Today Old National Bancorp (NYSE: ONB) reported
3rd quarter net income of $16.8 million, or $.18 per share a continuation of the
companys strong, consistent 2011 performance. These results, which exceeded analysts consensus
estimates for the quarter, are consistent with the net income of $17.0 million, or $.18 per share,
that Old National reported in 2nd quarter 2011, and reflect a substantial 41.2% increase
over 3rd quarter 2010.
The FDIC-assisted acquisition of Integra Bank was accretive to the 3rd quarter results
after the absorption of $6.8 million in acquisition-related expenses. If you exclude these
acquisition expenses, and the $2.0 million litigation reserve, Old Nationals 3rd
quarter 2011 earnings would have been $22.7 million, or $.24 per share. Refer to Table 1 for
Non-GAAP reconciliations.
The fact that we increased net income by more than 41% over 3rd quarter 2010, while
continuing to grow revenue, manage noninterest expenses and control credit quality illustrates that
Old National is operating from a position of strength in spite of continuing economic headwinds,
said Bob Jones, Old National Bancorp President and CEO. These results are even more significant
when you consider the nearly $9 million we absorbed in acquisition expenses and the litigation
reserve.
Further, our FDIC-assisted acquisition of Integra Bank continues the positive momentum established
by our successful Monroe Bancorp acquisition, which closed in 1st quarter 2011. While we
continue to focus on organic revenue growth, we also will continue to strategically pursue
additional merger and acquisition opportunities that align well with our strategic imperatives and
enable us to continue our mission as a basic, service-focused community bank.
Old National Bancorps Board of Directors declared a common stock dividend of $.07 per share on the
Companys outstanding shares. This dividend is payable December 15, 2011, to shareholders of record
on December 1, 2011. For purposes of broker trading, the ex-date of the cash dividend is November
29, 2011.
FDIC-Assisted Acquisition of Integra Bank
On July 29, 2011, Old National Bancorp acquired certain assets and assumed substantially all
deposits and certain liabilities of Integra Bank, N.A. (Integra) from the Federal Deposit Insurance
Corporation (FDIC) in an FDIC-assisted transaction.
As part of this transaction, Old National entered into loss sharing agreements with the FDIC that
cover approximately $727.3 million in fair value of loans (covered loans) and $34.1 million in fair
value of other real estate owned (collectively called covered assets). According to the terms of
the loss sharing agreements, the FDIC will reimburse Old National for 80% of the losses up to
$275.0 million, 0% of losses from $275.0 million up to $467.2 million and 80% of losses in excess
of $467.2 million. The loss sharing agreement applicable to single-family residential mortgage
loans remains in effect for 10 years. The loss sharing agreement applicable to other covered
assets is five years for losses and eight years for recoveries.
Old National recorded an indemnification asset of $167.9 million as of July 29, 2011, which
represents the present value of the estimated losses on covered loans to be reimbursed to Old
National by the FDIC.
In accordance with Generally Accepted Accounting Principles (GAAP), Old National accounted for all
of the loans acquired from Integra at fair value with no corresponding allowance for loan losses
brought forward on these acquired loans.
Through October 2011, Old National has consolidated 13 of the 52 former Integra banking centers it
acquired in the transaction, and an additional 20 branches are scheduled for consolidation in
4th quarter 2011. As outlined in a press release dated October 13, 2011, Old National
has announced the intent to sell the deposits of four former Integra branches located in the
Chicago area to First Midwest Bank. First Midwest Bank has agreed to pay Old National 50 basis
points on the transaction deposits of these four locations, estimated to be approximately $.5
million. This sale is anticipated to close in 4th quarter 2011. Old National will
retain all of the Chicago area loans.
A summary of the fair value of all assets and liabilities assumed:
July 29, | ||||
($ in thousands) | 2011 | |||
Cash and cash equivalents |
$ | 314,954 | ||
Investment securities |
468,926 | |||
Loans, covered |
727,330 | |||
Loans, non-covered |
56,828 | |||
Residential loans held for sale |
1,690 | |||
Other real estate owned |
34,055 | |||
FDIC indemnification asset |
167,948 | |||
Goodwill |
29,673 | |||
Other assets |
30,685 | |||
Total assets acquired |
$ | 1,832,089 | ||
Deposits |
$ | 1,443,209 | ||
Borrowings |
200,549 | |||
FDIC settlement payable |
161,520 | |||
Other liabilities |
26,811 | |||
Total liabilities assumed |
$ | 1,832,089 | ||
A portion of the cash and securities acquired were used to pay down acquired borrowings, the FDIC
settlement payable, and fund deposit run-off. The decline in deposit balances to $994.4 million at
September 30, 2011, was partially due to the re-pricing of the acquired deposit portfolio and was
in-line with managements expectations.
Further information on the FDIC-assisted acquisition of Integra Bank can be found in Form 8-K/A
filed by Old National Bancorp with the SEC on October 14, 2011.
Page 2 of 9
Committed to our Strategic Imperatives
Old Nationals strong, consistent 2011 performance can be attributed to our unwavering
commitment to the following strategic imperatives:
1. | Strengthen the risk profile. | ||
2. | Enhance management discipline. | ||
3. | Achieve consistent quality earnings. |
1. Strengthen the Risk Profile
Credit Quality Excluding Covered Assets
Old National recorded essentially no provision expense in the 3rd quarter compared to
the $3.2 million recorded in 2nd quarter 2011 and the $6.4 million recorded in
3rd quarter 2010. Old Nationals net charge-offs for the quarter were $4.9 million, a
decrease of $.9 million from the $5.8 million reported in 2nd quarter 2011 and a $1.2
million decrease from the $6.1 million in net charge-offs reported in 3rd quarter 2010.
Excluding covered loans, Old Nationals allowance for loan losses at September 30, 2011, was $65.2
million, or 1.58% of total loans, compared to an allowance of $70.2 million, or 1.70% of total
loans at June 30, 2011, and $72.1 million, or 1.95% of total loans, at September 30, 2010.
Excluding covered loans, the coverage of allowance to non-performing loans stood at 52% at
September 30, 2011, compared to 59% at June 30, 2011.
Our overall credit metrics, excluding FDIC covered loans but including assets acquired as a part
of the Monroe Bank acquisition, remain solid, as evidenced by declines in accruing Problem as well
as Special Mention loans during the quarter, stated Chief Credit Officer Daryl Moore. While Old
National is performing better than peers in most credit metrics, our clients continue to face
challenges brought forth by this prolonged economic downturn.
The following table presents certain credit quality metrics related to Old Nationals loan
portfolio, excluding covered loans:
($ in millions) | 2009 | 2010 | 1Q11 | 1Q11* | 2Q11 | 2Q11* | 3Q11 | 3Q11* | ||||||||||||||||||||||||
Non-Performing Loans(NPLs) |
$ | 67.0 | $ | 70.9 | $ | 121.4 | $ | 82.4 | $ | 118.4 | $ | 79.7 | $ | 124.8 | $ | 84.2 | ||||||||||||||||
Problem Loans (Including NPLs) |
$ | 157.1 | $ | 174.3 | $ | 223.4 | $ | 165.3 | $ | 229.3 | $ | 178.3 | $ | 226.4 | $ | 174.8 | ||||||||||||||||
Special Mention Loans |
$ | 103.5 | $ | 84.0 | $ | 115.8 | $ | 94.6 | $ | 105.6 | $ | 85.8 | $ | 98.5 | $ | 77.6 | ||||||||||||||||
Net Charge-Off Ratio |
1.40 | % | .75 | % | .27 | % | .30 | % | .56 | % | .53 | % | .50 | % | .54 | % | ||||||||||||||||
Provision for Loan Losses |
$ | 63.3 | $ | 30.8 | $ | 3.3 | $ | 3.3 | $ | 3.2 | $ | -0- | $ | (.1 | ) | $ | .2 |
* | Excludes covered loans and all other acquired loans | |
2. Enhance Management Discipline |
Expense Management
For the 3rd quarter, Old National reported total noninterest expenses of $95.2 million,
compared to 2nd quarter 2011 noninterest expenses of $79.8 million. Noninterest
expenses for 3rd quarter 2011 included $6.8 million of Integra Bank-related acquisition
costs, $3.2 million for incentive accruals and a $2.0 million accrual for the tentative settlement
of a longstanding trust case pending against the Company since 2002. In addition, 3rd
quarter 2011 included $6.3 million in operational expenses related to the newly acquired Integra
operations.
Capital Management
Old Nationals capital position remained well above industry requirements at September 30, 2011,
with regulatory tier 1 and total risk-based capital ratios of 12.2% and 13.7%, respectively,
compared to 13.4% and 14.9% at June 30, 2011, and 15.4% and 17.3% at September 30, 2010.
Page 3 of 9
The ratio of tangible common equity to tangible assets declined to 8.40% at September 30, 2011,
compared to 9.52% at June 30, 2011, and 9.58% at September 30, 2010. Refer to Table 2 for Non-GAAP
reconciliations.
Well | ONB at September 30, | |||||||
Capitalized | 2011 | |||||||
Tier 1 Risk-Based Capital Ratio |
> 6 | % | 12.2 | % | ||||
Total Risk-Based Capital Ratio |
> 10 | % | 13.7 | % | ||||
Tier 1 Leverage Capital Ratio |
> 5 | % | 7.9 | % |
3. ACHIEVE CONSISTENT QUALITY EARNINGS
Balance Sheet and Net Interest Margin
As loan demand continues to remain challenging, Old Nationals balance sheet expansion during the
3rd quarter was primarily driven by the FDIC-assisted acquisition of Integra Bank.
Total loans at September 30, 2011, stood at $4.856 billion
compared to $4.123 billion at June 30,
2011, an increase of $732.6 million. Of this increase, $769.5 million is attributable to the
FDIC-assisted transaction. On average, total loans were $4.600 billion for 3rd quarter
2011 compared to $4.157 billion for the 2nd quarter 2011.
While its true that Old National continues to operate in a very challenging environment for loan
growth, we do continue to enjoy organic growth in our residential real estate portfolio, which
increased $119.9 million during 3rd quarter 2011, of which $51.6 million came from the
acquisition, said Old National Chief Financial Officer Chris Wolking.
Total investments, including money market accounts, amounted to $2.859 billion at September 30,
2011, a decrease of $130.4 million compared to $2.989 billion at June 30, 2011. Average total
investments were $3.027 billion for the 3rd quarter compared to $2.960 billion in the
2nd quarter. Securities gains for the 3rd quarter totaled $2.9 million,
compared to 2nd quarter securities gains (net of $.2 million of other-than-temporary
impairment) of $.5 million.
Total core deposits, including demand and interest-bearing deposits, increased by $888.4 million in
the 3rd quarter to $6.843 billion at September 30, 2011, compared to $5.954 billion at
June 30, 2011. At September 30, 2011, $994.4 million of this increase is attributable to the
Integra transaction. The mix of Old Nationals deposit base continued to improve, with organic
growth of $42.1 million in noninterest-bearing demand deposits and $44.2 million in savings
accounts and a decline in higher priced other time deposits in the legacy portfolio of $144.9
million.
Old National reported net interest income of $72.6 million for 3rd quarter 2011 compared
to $62.3 million in 2nd quarter 2011, and $54.2 million for 3rd quarter 2010.
Included in 3rd quarter 2011 net interest income is $5.5 million associated with the
Monroe acquisition, and $7.5 million associated with the Integra acquisition, related to the
accretion of the purchase accounting marks. Included in 2nd quarter 2011 net interest
income is $6.6 million associated with the Monroe acquisition and accretion of the purchase
accounting marks.
Net interest income on a fully taxable equivalent basis was $75.5 million for 3rd
quarter 2011 and represented a net interest margin on total average earning assets of 3.96%. This
compares to net interest income on a fully taxable equivalent basis of $65.2 million and a margin
of 3.67% in 2nd quarter 2011 and net interest income on a fully taxable equivalent basis
of $57.3 million and a margin of 3.42% for 3rd quarter 2010. Included in
3rd quarter 2011 net interest margin is 29 basis points associated with the Monroe
acquisition, and 39 basis points associated with the Integra acquisition, related to the accretion
of purchase accounting marks. Included in 2nd quarter 2011 net interest margin is 37
basis points associated with the Monroe acquisition and accretion of the purchase accounting marks.
Refer to Tables A and B for Non-GAAP taxable equivalent reconciliations.
Fees, Service Charges and Other Revenue
Total fees, service charges and other revenue were $44.3 million for 3rd quarter 2011
compared to $42.9 million in 2nd quarter 2011 and $38.4 million in 3rd
quarter 2010. The Integra acquisition contributed an additional $3.6 million in fees, service
charges and other revenue during 3rd quarter 2011.
Page 4 of 9
About Old National
Old National Bancorp is the largest financial services holding company headquartered in
Indiana and, with $8.9 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 Old National Insurance which is one of the top 100 largest agencies in the
US and the 10th largest bank-owned insurance agency. For more information and financial data,
please visit Investor Relations at oldnational.com.
Conference Call
Old National will hold a conference call at 10:00 a.m. Central on Monday, October 31, 2011, to
discuss 3rd quarter 2011 financial results, the FDIC-assisted acquisition of Integra
Bank, strategic developments, and the Companys financial outlook. 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 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 October 31 through November 14. To access
the replay, dial 1-855-859-2056, conference code 18112540.
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 Investor Relations at oldnational.com.
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, profitability and statements about the financial benefits and other effects of the
acquisition of certain assets and assumption of certain liabilities of Integra Bank from the FDIC.
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 integration of the acquired Integra Bank assets and liabilities, 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.
Page 5 of 9
Table 1: Non-GAAP Reconciliation-Adjusted Earnings Per Share
($ in millions, except per-share data) | Reported 3Q11 | Adjustments | Adjusted 3Q11 | |||||||||
Total Revenues |
$ | 119.9 | $ | -0- | $ | 119.9 | ||||||
Noninterest Expenses |
95.2 | (8.8 | )* | 86.4 | ||||||||
Provision Expense |
(.1 | ) | -0- | (.1 | ) | |||||||
Income Before Income Taxes |
24.8 | 8.8 | 33.6 | |||||||||
Income Taxes |
8.0 | 2.9 | 10.9 | |||||||||
Net Income |
$ | 16.8 | $ | 5.9 | $ | 22.7 | ||||||
Common Shares Outstanding (in thousands) |
94.8 | 94.8 | 94.8 | |||||||||
Earnings Per Share |
$ | .18 | $ | .06 | $ | .24 |
* | Represents $6.8 million of acquisition expenses as well as a $2.0 million litigation reserve |
Table 2: Non-GAAP Reconciliation-Tangible Equity to Tangible Assets
(end of period balances - $ in millions) | September 30, 2011 | June 30, 2011 | ||||||
Total Shareholders Equity |
$ | 1,027.7 | $ | 1,008.3 | ||||
Deduct: Goodwill and Intangible Assets |
(302.3 | ) | (270.4 | ) | ||||
Tangible Shareholders Equity |
$ | 725.4 | $ | 737.8 | ||||
Total Assets |
$ | 8,932.7 | $ | 8,018.8 | ||||
Add: Trust Overdrafts |
.4 | .4 | ||||||
Deduct: Goodwill and Intangible Assets |
(302.3 | ) | (270.4 | ) | ||||
Tangible Assets |
$ | 8,630.8 | $ | 7,748.8 | ||||
Tangible Equity to Tangible Assets |
8.40 | % | 9.52 | % |
Page 6 of 9
OLD NATIONAL BANCORP
Financial Highlights (Table A)
Financial Highlights (Table A)
Three-Months Ended | ||||||||||||||||
($ in thousands except per-share data) | Sept. 30, | June 30, | ||||||||||||||
(FTE) Fully taxable equivalent basis | 2011 | 2011 | Change | % Change | ||||||||||||
Income Data: |
||||||||||||||||
Net Interest Income |
$ | 72,592 | $ | 62,319 | $ | 10,273 | 16.5 | % | ||||||||
Taxable Equivalent Adjustment |
2,914 | 2,908 | 6 | .2 | ||||||||||||
Net Interest Income (FTE) |
75,506 | 65,227 | 10,279 | 15.8 | ||||||||||||
Fees, Service Charges and Other Revenues |
44,316 | 42,902 | 1,414 | 3.3 | ||||||||||||
Securities Gains (Losses) (a) |
2,861 | 466 | 2,395 | N/M | ||||||||||||
Derivative Gains (Losses) |
149 | 221 | (72 | ) | (32.6 | ) | ||||||||||
Total Revenue (FTE) |
122,832 | 108,816 | 14,016 | 12.9 | ||||||||||||
Provision for Loan Losses |
(82 | ) | 3,207 | (3,289 | ) | N/M | ||||||||||
Noninterest Expense |
95,158 | 79,758 | 15,400 | 19.3 | ||||||||||||
Income before Taxes |
27,756 | 25,851 | 1,905 | 7.4 | ||||||||||||
Provision for Taxes (FTE) |
10,959 | 8,835 | 2,124 | 24.0 | ||||||||||||
Net Income |
16,797 | 17,016 | (219 | ) | (1.3 | ) | ||||||||||
Per Common Share Data: (Diluted) (b) |
||||||||||||||||
Net Income Attributable to Common Shareholders |
.18 | .18 | -0- | -0- | ||||||||||||
Average Diluted Shares Outstanding |
94,785 | 94,701 | 84 | .1 | ||||||||||||
Book Value |
10.85 | 10.64 | .21 | 2.0 | ||||||||||||
Stock Price |
9.32 | 10.80 | (1.48 | ) | (13.7 | ) | ||||||||||
Performance Ratios: |
||||||||||||||||
Return on Average Assets |
.77 | % | .85 | % | (.08 | )% | (9.4 | ) | ||||||||
Return on Average Common Equity (c) |
6.61 | 6.87 | (.26 | ) | (3.8 | ) | ||||||||||
Net Interest Margin (FTE) |
3.96 | 3.67 | .29 | 7.9 | ||||||||||||
Other Expense to Revenue (Efficiency Ratio) (d) |
77.56 | 71.92 | 5.64 | 7.8 | ||||||||||||
Net Charge-offs to Average Loans (e) |
.50 | .56 | (.06 | ) | (10.7 | ) | ||||||||||
Reserve for Loan Losses to Ending Loans (e) |
1.58 | 1.70 | (.12 | ) | (7.1 | ) | ||||||||||
Non-Performing Loans to Ending Loans (e) |
3.01 | 2.88 | .13 | 4.5 | ||||||||||||
Balance Sheet: |
||||||||||||||||
Average Assets |
$ | 8,719,827 | $ | 8,021,350 | $ | 698,477 | 8.7 | |||||||||
End of Period Balances: |
||||||||||||||||
Assets |
8,932,700 | 8,018,848 | 913,852 | 11.4 | ||||||||||||
Investments |
2,784,035 | 2,793,152 | (9,117 | ) | (.3 | ) | ||||||||||
Money Market Investments (f) |
74,623 | 195,796 | (121,173 | ) | (61.9 | ) | ||||||||||
Commercial Loans and Leases |
1,400,540 | 1,269,607 | 130,933 | 10.3 | ||||||||||||
Commercial Real Estate Loans |
1,496,132 | 1,170,401 | 325,731 | 27.8 | ||||||||||||
Consumer Loans |
916,677 | 881,891 | 34,786 | 3.9 | ||||||||||||
Residential Real Estate Loans |
1,037,977 | 795,442 | 242,535 | 30.5 | ||||||||||||
Residential Real Estate Loans Held for Sale |
4,710 | 6,104 | (1,394 | ) | (22.8 | ) | ||||||||||
Earning Assets |
7,714,694 | 7,112,393 | 602,301 | 8.5 | ||||||||||||
Core Deposits (Excluding Brokered CDs) |
6,842,754 | 5,954,376 | 888,378 | 14.9 | ||||||||||||
Borrowed Funds (Including Brokered CDs) |
809,397 | 806,386 | 3,011 | .4 | ||||||||||||
Common Shareholders Equity |
1,027,695 | 1,008,274 | 19,421 | 1.9 |
(a) | Includes $0 and $200, respectively, for other-than-temporary impairment in third quarter 2011 and second quarter 2011. | |
(b) | Assumes conversion of stock options, restricted stock and warrants. | |
(c) | Based on average common shareholders equity of $1,016,053 and $990,673, respectively, for September 30, 2011 and June 30, 2011. | |
(d) | Noninterest expense before amortization of intangibles as a percent of FTE net interest income and noninterest revenues, excluding net gains from securities transactions. | |
(e) | Excludes residential loans held for sale and covered loans. | |
(f) | Includes money market investments and Federal Reserve interest earning accounts. | |
N/M | = Not meaningful. |
Page 7 of 9
OLD NATIONAL BANCORP
Financial Highlights (Table B)
Three-Months Ended | ||||||||||||||||
($ in thousands except per-share data) | September 30, | September 30, | ||||||||||||||
(FTE) Fully taxable equivalent basis | 2011 | 2010 | Change | % Change | ||||||||||||
Income Data: |
||||||||||||||||
Net Interest Income |
$ | 72,592 | $ | 54,168 | $ | 18,424 | 34.0 | % | ||||||||
Taxable Equivalent Adjustment |
2,914 | 3,154 | (240 | ) | (7.6 | ) | ||||||||||
Net Interest Income (FTE) |
75,506 | 57,322 | 18,184 | 31.7 | ||||||||||||
Fees, Service Charges and Other Revenues |
44,316 | 38,367 | 5,949 | 15.5 | ||||||||||||
Securities Gains (Losses) (a) |
2,861 | 3,242 | (381 | ) | (11.8 | ) | ||||||||||
Derivative Gains (Losses) |
149 | 370 | (221 | ) | (59.7 | ) | ||||||||||
Total Revenue (FTE) |
122,832 | 99,301 | 23,531 | 23.7 | ||||||||||||
Provision for Loan Losses |
(82 | ) | 6,400 | (6,482 | ) | N/M | ||||||||||
Noninterest Expense |
95,158 | 76,102 | 19,056 | 25.0 | ||||||||||||
Income before Taxes |
27,756 | 16,799 | 10,957 | 65.2 | ||||||||||||
Provision for Taxes (FTE) |
10,959 | 4,903 | 6,056 | 123.5 | ||||||||||||
Net Income |
16,797 | 11,896 | 4,901 | 41.2 | ||||||||||||
Per Common Share Data: (Diluted) (b) |
||||||||||||||||
Net Income Attributable to Common Shareholders |
.18 | .13 | .05 | 38.5 | ||||||||||||
Average Diluted Shares Outstanding |
94,785 | 86,931 | 7,854 | 9.0 | ||||||||||||
Book Value |
10.85 | 10.27 | .58 | 5.6 | ||||||||||||
Stock Price |
9.32 | 10.50 | (1.18 | ) | (11.2 | ) | ||||||||||
Performance Ratios: |
||||||||||||||||
Return on Average Assets |
.77 | % | .64 | % | .13 | % | 20.3 | |||||||||
Return on Average Common Equity (c) |
6.61 | 5.40 | 1.21 | 22.4 | ||||||||||||
Net Interest Margin (FTE) |
3.96 | 3.42 | .54 | 15.8 | ||||||||||||
Other Expense to Revenue (Efficiency Ratio) (d) |
77.56 | 77.66 | (.10 | ) | (.1 | ) | ||||||||||
Net Charge-offs to Average Loans (e) |
.50 | .66 | (.16 | ) | (24.2 | ) | ||||||||||
Reserve for Loan Losses to Ending Loans (e) |
1.58 | 1.95 | (.37 | ) | (19.0 | ) | ||||||||||
Non-Performing Loans to Ending Loans (e) |
3.01 | 1.89 | 1.12 | 59.3 | ||||||||||||
Balance Sheet: |
||||||||||||||||
Average Assets |
$ | 8,719,827 | $ | 7,465,989 | $ | 1,253,838 | 16.8 | |||||||||
End of Period Balances: |
||||||||||||||||
Assets |
8,932,700 | 7,506,114 | 1,426,586 | 19.0 | ||||||||||||
Investments |
2,784,035 | 2,980,729 | (196,694 | ) | (6.6 | ) | ||||||||||
Money Market Investments (f) |
74,623 | 43,102 | 31,521 | 73.1 | ||||||||||||
Commercial Loans and Leases |
1,400,540 | 1,266,893 | 133,647 | 10.5 | ||||||||||||
Commercial Real Estate Loans |
1,496,132 | 981,524 | 514,608 | 52.4 | ||||||||||||
Consumer Loans |
916,677 | 971,756 | (55,079 | ) | (5.7 | ) | ||||||||||
Residential Real Estate Loans |
1,037,977 | 482,967 | 555,010 | 114.9 | ||||||||||||
Residential Real Estate Loans Held for Sale |
4,710 | 3,512 | 1,198 | 34.1 | ||||||||||||
Earning Assets |
7,714,694 | 6,730,483 | 984,211 | 14.6 | ||||||||||||
Core Deposits (Excluding Brokered CDs) |
6,842,754 | 5,419,159 | 1,423,595 | 26.3 | ||||||||||||
Borrowed Funds (Including Brokered CDs) |
809,397 | 966,321 | (156,924 | ) | (16.2 | ) | ||||||||||
Common Shareholders Equity |
1,027,695 | 895,684 | 132,011 | 14.7 |
(a) | Includes $0 and $39, respectively, for other-than-temporary impairment in third quarter 2011 and third quarter 2010. | |
(b) | Assumes conversion of stock options, restricted stock and warrants. | |
(c) | Based on average common shareholders equity of $1,016,053 and $881,044, respectively, for 2011 and 2010. | |
(d) | Noninterest expense before amortization of intangibles as a percent of FTE net interest income and noninterest revenues, excluding net gains from securities transactions. | |
(e) | Excludes residential loans held for sale and covered loans. | |
(f) | Includes money market investments and Federal Reserve interest earning accounts. | |
N/M | = Not meaningful. |
Page 8 of 9
OLD NATIONAL BANCORP
Financial Highlights
Financial Highlights
Nine-Months Ended | ||||||||||||||||
($ in thousands except per-share data) | September 30, | September 30, | ||||||||||||||
(FTE) Fully taxable equivalent basis | 2011 | 2010 | Change | % Change | ||||||||||||
Income Data: |
||||||||||||||||
Net Interest Income |
$ | 196,278 | $ | 164,439 | $ | 31,839 | 19.4 | % | ||||||||
Taxable Equivalent Adjustment |
8,842 | 10,335 | (1,493 | ) | (14.4 | ) | ||||||||||
Net Interest Income (FTE) |
205,120 | 174,774 | 30,346 | 17.4 | ||||||||||||
Fees, Service Charges and Other Revenues |
128,507 | 117,075 | 11,432 | 9.8 | ||||||||||||
Securities Gains (Losses) (a) |
4,527 | 9,484 | (4,957 | ) | (52.3 | ) | ||||||||||
Derivative Gains (Losses) |
702 | 1,386 | (684 | ) | (49.4 | ) | ||||||||||
Total Revenue (FTE) |
338,856 | 302,719 | 36,137 | 11.9 | ||||||||||||
Provision for Loan Losses |
6,437 | 23,681 | (17,244 | ) | (72.8 | ) | ||||||||||
Noninterest Expense |
254,841 | 231,033 | 23,808 | 10.3 | ||||||||||||
Income before Taxes |
77,578 | 48,005 | 29,573 | 61.6 | ||||||||||||
Provision for Taxes (FTE) |
27,332 | 15,517 | 11,815 | 76.1 | ||||||||||||
Net Income |
50,246 | 32,488 | 17,758 | 54.7 | ||||||||||||
Per Common Share Data: (Diluted) (b) |
||||||||||||||||
Net Income Attributable to Common Shareholders |
.53 | .37 | .16 | 43.2 | ||||||||||||
Average Diluted Shares Outstanding |
94,722 | 86,890 | 7,832 | 9.0 | ||||||||||||
Book Value |
10.85 | 10.27 | .58 | 5.6 | ||||||||||||
Stock Price |
9.32 | 10.50 | (1.18 | ) | (11.2 | ) | ||||||||||
Performance Ratios: |
||||||||||||||||
Return on Average Assets |
.81 | % | .57 | % | .24 | % | 42.1 | |||||||||
Return on Average Common Equity (c) |
6.75 | 5.02 | 1.73 | 34.5 | ||||||||||||
Net Interest Margin (FTE) |
3.75 | 3.38 | .37 | 10.9 | ||||||||||||
Other Expense to Revenue (Efficiency Ratio) (d) |
74.47 | 77.21 | (2.74 | ) | (3.5 | ) | ||||||||||
Net Charge-offs to Average Loans (e) |
.44 | .76 | (.32 | ) | (42.1 | ) | ||||||||||
Reserve for Loan Losses to Ending Loans (e) |
1.58 | 1.95 | (.37 | ) | (19.0 | ) | ||||||||||
Non-Performing Loans to Ending Loans (e) |
3.01 | 1.89 | 1.12 | 59.3 | ||||||||||||
Balance Sheet: |
||||||||||||||||
Average Assets |
$ | 8,259,846 | $ | 7,662,365 | $ | 597,481 | 7.8 | |||||||||
End of Period Balances: |
||||||||||||||||
Assets |
8,932,700 | 7,506,114 | 1,426,586 | 19.0 | ||||||||||||
Investments |
2,784,035 | 2,980,729 | (196,694 | ) | (6.6 | ) | ||||||||||
Money Market Investments (f) |
74,623 | 43,102 | 31,521 | 73.1 | ||||||||||||
Commercial Loans and Leases |
1,400,540 | 1,266,893 | 133,647 | 10.5 | ||||||||||||
Commercial Real Estate Loans |
1,496,132 | 981,524 | 514,608 | 52.4 | ||||||||||||
Consumer Loans |
916,677 | 971,756 | (55,079 | ) | (5.7 | ) | ||||||||||
Residential Real Estate Loans |
1,037,977 | 482,967 | 555,010 | 114.9 | ||||||||||||
Residential Real Estate Loans Held for Sale |
4,710 | 3,512 | 1,198 | 34.1 | ||||||||||||
Earning Assets |
7,714,694 | 6,730,483 | 984,211 | 14.6 | ||||||||||||
Core Deposits (Excluding Brokered CDs) |
6,842,754 | 5,419,159 | 1,423,595 | 26.3 | ||||||||||||
Borrowed Funds (Including Brokered CDs) |
809,397 | 966,321 | (156,924 | ) | (16.2 | ) | ||||||||||
Common Shareholders Equity |
1,027,695 | 895,684 | 132,011 | 14.7 |
(a) | Includes $499 and $3,308, respectively, for other-than-temporary impairment in 2011 and 2010. | |
(b) | Assumes conversion of stock options, restricted stock and warrants. | |
(c) | Based on average common shareholders equity of $992,064 and $862,390, respectively, for 2011 and 2010. | |
(d) | Noninterest expense before amortization of intangibles as a percent of FTE net interest income and noninterest revenues, excluding net gains from securities transactions. | |
(e) | Excludes residential loans held for sale and covered loans. | |
(f) | Includes money market investments and Federal Reserve interest earning accounts. |
N/M = Not meaningful.
Page 9 of 9