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/	c23749e8vk.htm
EX-99.1 - EXHIBIT 99.1 - OLD NATIONAL BANCORP /IN/	c23749exv99w1.htm

Exhibit 99.2


		Old National Bancorp


		Financial Trends
		Third Quarter 2011
		October 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
Third Quarter 2011


										2010												2011
2008			2009			2010				1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
									Profitability (in millions)
$	62.5		$	13.7		$	38.2		Net Income (Loss)	$	10.1		$	10.5		$	11.9		$	5.7		$	16.4		$	17.0		$	16.8
	0.3			3.9			—		Preferred Dividend and Amort on Preferred Stock		—			—			—			—			—			—			—
	62.2			9.8			38.2		Net Income (Loss) Avail. to Common Shareholders		10.1			10.5			11.9			5.7			16.4			17.0			16.8

									Diluted EPS
$	0.95		$	0.14		$	0.44		Net Income (Loss) Avail. to Common Shareholders	$	0.12		$	0.12		$	0.13		$	0.07		$	0.17		$	0.18		$	0.18

									Ratios — Net Income
	9.49	%		1.41	%		4.40	%	Return on Average Common Equity		4.74	%		4.91	%		5.40	%		2.57	%		6.78	%		6.87	%		6.61	%
	0.82	%		0.17	%		0.50	%	Return on Average Assets		0.51	%		0.55	%		0.64	%		0.31	%		0.82	%		0.85	%		0.77	%
	69.39	%		80.45	%		79.25	%	Efficiency Ratio (3)		76.34	%		77.64	%		77.66	%		85.52	%		73.58	%		71.92	%		77.56	%
	3.82	%		3.50	%		3.40	%	Net Interest Margin (FTE)		3.33	%		3.40	%		3.42	%		3.46	%		3.62	%		3.67	%		3.96	%

									Capital Ratios:
									Risk-Based Capital Ratios (EOP):
	12.7	%		14.3	%		13.6	%	Tier 1		14.2	%		15.1	%		15.4	%		13.6	%		12.8	%		13.4	%		12.2	%
	15.1	%		16.1	%		14.8	%	Total		16.1	%		17.0	%		17.3	%		14.8	%		14.3	%		14.9	%		13.7	%
	9.5	%		9.5	%		9.0	%	Leverage Ratio (to Average Assets)		9.4	%		9.8	%		10.2	%		9.0	%		8.4	%		8.7	%		7.9	%

	8.67	%		9.06	%		11.46	%	Total Equity to Assets (Averages)		10.81	%		11.17	%		11.80	%		12.09	%		12.06	%		12.35	%		11.65	%
	5.81	%		8.25	%		9.68	%	Tangible Common Equity to Tangible Assets (2)		8.62	%		9.03	%		9.58	%		9.68	%		9.12	%		9.52	%		8.40	%

									Per Common Share Data:
	0.69			0.44			0.28		Cash Dividends Declared (1)		0.07			0.07			0.07			0.07			0.07			0.07			0.07
	73	%		309	%		64	%	Dividend Payout Ratio (1)		60	%		58	%		51	%		106	%		40	%		39	%		39	%
	9.56			9.68			10.08		Common Book Value (EOP)		9.82			10.03			10.27			10.08			10.39			10.64			10.85
	18.16			12.43			11.89		Market Value (EOP)		11.95			10.36			10.50			11.89			10.72			10.80			9.32
	6.74			7.38			7.85		Tangible Common Book Value (2)		7.54			7.77			8.03			7.85			7.53			7.79			7.66

									Other Statistics
	2,507			2,812			2,491		Full Time Equivalent Employees (4)		2,708			2,646			2,585			2,491			2,618			2,543			2,454


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)		See Non-GAAP Reconciliation on Page 8.

(3)		Efficiency ratio is defined as noninterest expense before amortization of intangibles as a percent of FTE net interest income and noninterest revenues, excluding net gains from securities transactions. This presentation excludes intangible amortization and net securities gains, as is common in other company releases, and better aligns with true operating performance.

(4)		3Q11 excludes 449 full time equivalent contract employees for Integra.

PAGE 1

Old National Bancorp

INCOME STATEMENT
($ In Millions except EPS information)


Nine Months				Change							Third Quarter					Change
2011		2010		$			%				2011			2010		$			%
$	240.4	$	225.9	$	14.5			6.4	%	Interest Income	$	87.2		$	72.9	$	14.2			19.5	%
	44.1		61.4		(17.4	)		-28.3	%	Less: Interest Expense		14.6			18.8		(4.2	)		-22.4	%

	196.3		164.4		31.8			19.4	%	Net Interest Income		72.6			54.2		18.4			34.0	%

	15.5		12.1		3.4			28.3	%	Wealth Management Fees		5.1			3.8		1.2			32.4	%
	38.1		37.5		0.6			1.5	%	Service Charges on Deposit Accounts		14.0			12.4		1.6			13.2	%
	18.7		17.3		1.5			8.4	%	ATM Fees		6.8			5.8		0.9			16.2	%
	2.6		1.8		0.8			45.1	%	Mortgage Banking Revenue		0.7			0.6		0.1			8.5	%
	27.9		27.8		0.1			0.4	%	Insurance Premiums and Commissions		8.3			8.7		(0.4	)		-4.1	%
	8.5		6.6		1.9			28.6	%	Investment Product Fees		3.0			2.3		0.7			28.0	%
	3.9		3.1		0.8			26.3	%	Company-owned Life Insurance		1.4			1.0		0.4			34.7	%
	0.5		—		0.5			N/M		Change in Idemnification Asset		0.5			—		0.5			N/M
	12.8		10.9		1.9			17.0	%	Other Income		4.5			3.6		0.9			24.3	%

	128.5		117.1		11.4			9.8	%	Total Fees, Service Charges & Other Rev.		44.3			38.4		6.0			15.5	%

	4.5		9.5		(5.0	)		-52.3	%	Gains (Losses) Sales of Securities (1)		2.9			3.2		(0.4	)		-11.8	%
	0.7		1.4		(0.7	)		-49.4	%	Gains (Losses) Derivatives		0.1			0.4		(0.2	)		-59.8	%

	133.7		127.9		5.8			4.5	%	Total Noninterest Income		47.3			42.0		5.3			12.7	%

	330.0		292.4		37.6			12.9	%	Total Revenues		119.9			96.1		23.8			24.7	%

	139.9		125.2		14.7			11.8	%	Salaries and Employee Benefits		52.3			41.7		10.6			25.5	%
	37.8		35.8		2.0			5.7	%	Occupancy		13.3			11.7		1.6			13.7	%
	8.7		8.0		0.7			8.3	%	Equipment		2.9			2.6		0.3			9.7	%
	4.2		4.3		(0.1	)		-1.9	%	Marketing		1.3			1.5		(0.2	)		-15.2	%
	17.5		16.3		1.3			7.8	%	Data Processing		5.7			5.1		0.6			11.3	%
	7.5		7.5		0.0			0.2	%	Communication		2.5			2.3		0.2			8.6	%
	10.5		5.5		5.0			91.0	%	Professional Fees		5.9			1.6		4.3			N/M
	3.4		3.0		0.4			11.8	%	Loan Expenses		1.1			1.0		0.2			16.3	%
	2.2		2.2		0.0			0.6	%	Supplies		0.6			0.7		(0.1	)		-8.9	%
	5.6		6.2		(0.6	)		-9.3	%	FDIC Assessment		1.7			2.1		(0.4	)		-20.2	%
	17.5		17.1		0.4			2.4	%	Other Expense		7.8			5.7		2.0			35.7	%

	254.8		231.0		23.8			10.3	%	Total Noninterest Expense		95.2			76.1		19.1			25.0	%

	6.4		23.7		(17.2	)		-72.8	%	Provision for loan losses		(0.1	)		6.4		(6.5	)		N/M

	68.7		37.7		31.1			82.5	%	Income (loss)before Income Taxes		24.8			13.6		11.2			82.1	%

	18.5		5.2		13.3			N/M		Total Taxes		8.0			1.7		6.3			N/M

$	50.2	$	32.5	$	17.8			54.7	%	Net Income (Loss)	$	16.8		$	11.9	$	4.9			41.2	%


										Diluted EPS
$	0.53	$	0.37	$	0.16			43.9	%	Net Income (Loss) Avail to Common	$	0.18		$	0.13	$	0.05			34.1	%

										Average Common Shares Outstanding (000’s)
	94,468		86,778		7,691			8.9	%	Basic		94,492			86,795		7,697			8.9	%
	94,722		86,890		7,832			9.0	%	Diluted		94,785			86,931		7,854			9.0	%

	94,752		87,172		7,580			8.7	%	Common Shares Outstanding (EOP) (000’s)		94,752			87,172		7,580			8.7	%


(1)		Includes $2.9 million of net gains and $0.0 million of OTTI in 3Q11 and $3.2 million of net gains and $39 thousand of OTTI in 3Q10.

		Includes $5.0 million of net gains and $0.5 million of OTTI in YTD 2011 and $12.8 million of net gains and $3.3 million of OTTI in YTD 2010.

OTTI — Other Than Temporary Impairment

EOP — End of period actual balances

N/M = Not meaningful

PAGE 2

Old National Bancorp

NET INCOME TRENDS
Third Quarter 2011
($ In Millions except EPS information)


									2010								2011
2008			2009			2010			1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		1st Qtr		2nd Qtr		3rd Qtr			4th Qtr
$	392.5		$	340.7		$	296.8	Interest Income	$	77.3	$	75.6	$	72.9	$	71.0	$	76.3	$	76.9	$	87.2
	149.2			109.3			78.4	Less: Interest Expense		22.2		20.4		18.8		17.0		15.0		14.6		14.6

	243.3			231.4			218.4	Net Interest Income		55.1		55.2		54.2		54.0		61.4		62.3		72.6

	17.4			16.0			16.1	Wealth Management Fees		4.3		4.0		3.8		4.0		5.1		5.3		5.1
	45.2			55.2			50.0	Service Charges on Deposit Accounts		11.9		13.2		12.4		12.5		11.6		12.5		14.0
	17.2			20.5			23.0	ATM Fees		5.5		5.9		5.8		5.7		5.9		6.1		6.8
	5.1			6.2			2.2	Mortgage Banking Revenue		0.5		0.6		0.6		0.5		1.0		0.9		0.7
	39.2			37.9			36.5	Insurance Premiums and Commissions		10.2		8.9		8.7		8.7		10.6		9.0		8.3
	9.5			8.5			9.2	Investment Product Fees		2.1		2.2		2.3		2.6		2.6		2.9		3.0
	9.2			2.4			4.1	Company-owned Life Insurance		0.8		1.2		1.0		1.0		1.2		1.3		1.4
	—			—			—	Change in Idemnification Asset		—		—		—		—		—		—		0.5
	17.9			13.7			14.4	Other Income		4.0		3.3		3.6		3.5		3.5		4.9		4.5

	160.6			160.3			155.5	Total Fees, Service Charges & Other Rev.		39.4		39.3		38.4		38.4		41.3		42.9		44.3

	7.6			2.5			13.2	Gains (Losses) Sales of Securities (1)		3.0		3.2		3.2		3.7		1.2		0.5		2.9
	(1.1	)		0.7			1.5	Gains (Losses) Derivatives		0.6		0.4		0.4		0.1		0.3		0.2		0.1

	167.0			163.5			170.1	Total Noninterest Income		43.0		43.0		42.0		42.2		42.8		43.6		47.3

	410.3			394.9			388.6	Total Revenues		98.1		98.1		96.1		96.2		104.2		105.9		119.9

	167.8			181.4			170.6	Salaries and Employee Benefits		42.4		41.1		41.7		45.4		44.5		43.1		52.3
	39.7			47.1			46.4	Occupancy		12.2		11.8		11.7		10.6		12.3		12.2		13.3
	9.5			10.4			10.6	Equipment		2.8		2.6		2.6		2.6		3.0		2.8		2.9
	9.6			9.6			5.7	Marketing		1.4		1.4		1.5		1.4		1.3		1.6		1.3
	19.0			20.7			21.4	Data Processing		5.5		5.6		5.1		5.1		6.1		5.8		5.7
	9.3			10.9			9.8	Communication		2.7		2.5		2.3		2.3		2.3		2.6		2.5
	7.2			9.5			8.3	Professional Fees		1.7		2.2		1.6		2.8		2.4		2.1		5.9
	6.6			4.3			3.9	Loan Expenses		0.9		1.1		1.0		0.9		1.1		1.1		1.1
	3.3			4.3			2.9	Supplies		0.8		0.7		0.7		0.8		0.6		0.9		0.6
	1.5			12.4			8.4	FDIC Assessment		2.4		1.7		2.1		2.2		2.2		1.8		1.7
	23.9			28.3			26.2	Other Expense		4.2		7.2		5.7		9.1		4.1		5.7		7.8

	297.2			339.0			314.3	Total Noninterest Expense		77.1		77.9		76.1		83.3		79.9		79.8		95.2

	51.5			63.3			30.8	Provision for Loan Losses		9.3		8.0		6.4		7.1		3.3		3.2		(0.1	)

	61.6			(7.4	)		43.5	Income (loss) before Income Taxes		11.8		12.3		13.6		5.8		21.0		22.9		24.8

	(0.9	)		(21.1	)		5.3	Total Taxes		1.7		1.7		1.7		0.1		4.5		5.9		8.0


$	62.5		$	13.7		$	38.2	Net Income (Loss)	$	10.1	$	10.5	$	11.9	$	5.7	$	16.4	$	17.0	$	16.8


$	0.95		$	0.14		$	0.44	Net Income (Loss) Avail to Common	$	0.12	$	0.12	$	0.13	$	0.07	$	0.17	$	0.18	$	0.18

	65,660			71,314			86,785	Average Basic Common Shares (000’s)		86,752		86,786		86,795		86,804		94,433		94,479		94,492
	65,776			71,367			86,928	Average Diluted Common Shares (000’s)		86,797		86,911		86,931		87,005		94,670		94,701		94,785


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

PAGE 3

Old National Bancorp

Balance Sheet (EOP)
Third Quarter 2011
($ in Millions)


																Change from Prior Year
	9/30/2011			6/30/2011			3/31/2011			12/31/2010			9/30/2010			9/30/2011			vs. 9/30/2010			12/31/2009			12/31/2008
Assets
Fed Reserve Bank Account	$	68.4		$	193.3		$	273.9		$	141.4		$	18.0		$	50.4			N/M		$	317.5		$	—
Money Market Investments		6.2			2.5			11.1			2.8			25.1			(18.9	)		-75.3	%		35.6			30.1
Investments:
Treasury & Gov’t Sponsored Agencies		424.8			695.3			713.0			680.9			995.1			(570.3	)		-57.3	%		1,142.7			389.3
Mortgage-backed Securities		1,533.2			1,306.0			1,208.0			1,188.3			1,232.9			300.3			24.4	%		1,048.4			1,172.6
States & Political Subdivisions		607.8			585.3			559.3			566.3			554.7			53.2			9.6	%		534.6			482.2
Other Securities		218.1			206.6			216.4			194.8			198.0			20.1			10.1	%		192.7			221.7

Total Investments		2,784.0			2,793.2			2,696.7			2,630.4			2,980.7			(196.7	)		-6.6	%		2,918.3			2,265.8

Residential Real Estate Loans Held for Sale		4.7			6.1			3.1			3.8			3.5			1.2			34.2	%		17.5			17.2
Leases Held for Sale		—			—			—			—			—			—			0.0	%		55.3			—
Loans (includes covered loans): (1)
Commercial		1,313.5			1,176.7			1,175.0			1,105.3			1,151.6			161.9			14.1	%		1,209.3			1,510.4
Commercial Leases		87.0			92.9			99.3			106.1			115.3			(28.3	)		-24.5	%		77.9			387.6
Commercial & Agriculture Real Estate		1,496.1			1,170.4			1,218.4			942.4			981.5			514.6			52.4	%		1,062.9			1,154.9
Consumer:
Home Equity		362.7			255.7			259.5			248.3			260.0			102.7			39.5	%		274.8			270.0
Other Consumer Loans		675.2			626.2			658.8			676.6			711.7			(36.5	)		-5.1	%		807.2			941.0

Subtotal of Commercial & Consumer Loans		3,934.6			3,321.9			3,411.0			3,078.7			3,220.2			714.5			22.2	%		3,432.1			4,263.8
Residential Real Estate		916.7			795.4			779.8			664.7			483.0			433.7			89.8	%		403.4			496.5

Total Loans		4,851.3			4,117.3			4,190.8			3,743.5			3,703.1			1,148.2			31.0	%		3,835.5			4,760.4

Total Earning Assets		7,714.7			7,112.4			7,175.6			6,521.8			6,730.5			984.2			14.6	%		7,179.7			7,073.4


Allowance for Loan Losses		(65.5	)		(70.2	)		(72.7	)		(72.3	)		(72.1	)		(6.6	)		-9.2	%		(69.5	)		(67.1	)
Nonearning Assets:
Cash and Due from Banks		194.6			139.8			127.9			107.4			129.2			65.4			50.7	%		144.2			162.9
Premises & Equipment		75.3			65.9			66.7			48.8			50.1			25.2			50.3	%		52.4			44.6
Goodwill & Intangible Assets		302.3			270.4			271.0			194.1			195.6			106.7			54.6	%		200.2			186.8
Company-owned Life Insurance		247.2			245.8			244.5			226.2			226.0			21.2			9.4	%		224.7			223.1
FDIC Indemnification Asset		168.1			—			—			—			—			168.1			N/M			—			—
Other Assets (2)		296.1			254.6			272.2			238.0			247.0			49.1			19.9	%		273.8			250.1

Total Nonearning Assets		1,283.5			976.6			982.4			814.4			847.8			435.7			51.4	%		895.2			867.6

Total Assets	$	8,932.7		$	8,018.8		$	8,085.3		$	7,263.9		$	7,506.1		$	1,426.6			19.0	%	$	8,005.3		$	7,873.9


Liabilities & Equity
Noninterest-bearing Demand Deposits	$	1,728.5		$	1,504.6		$	1,421.4		$	1,276.0		$	1,267.4		$	461.1			36.4	%	$	1,188.3		$	888.6
NOW Accounts		1,517.1			1,333.0			1,448.0			1,297.4			1,163.6			353.5			30.4	%		1,354.3			1,292.6
Savings Accounts		1,624.8			1,304.2			1,192.0			1,079.4			1,046.0			578.8			55.3	%		972.2			874.6
Money Market Accounts		306.1			315.3			353.9			334.8			344.3			(38.2	)		-11.1	%		381.1			420.8
Other Time under $100,000		1,171.6			1,012.9			1,050.8			988.7			1,083.1			88.6			8.2	%		1,284.3			1,224.2
Other Time $100,000 & over		494.6			484.4			519.9			466.3			514.8			(20.2	)		-3.9	%		653.3			550.0

Total Core Deposits		6,842.8			5,954.4			5,986.1			5,442.7			5,419.2			1,423.6			26.3	%		5,833.5			5,250.8
Brokered CD’s		24.5			60.7			73.8			20.2			20.3			4.2			20.9	%		69.9			171.5

Total Deposits		6,867.3			6,015.1			6,059.9			5,462.9			5,439.4			1,427.8			26.2	%		5,903.5			5,422.3

Short-term Borrowings		341.0			305.2			374.3			298.2			367.8			(26.8	)		-7.3	%		331.1			649.6
Long-term Borrowings		443.9			440.5			439.6			421.9			578.3			(134.4	)		-23.2	%		699.1			834.9

Total Borrowed Funds		784.9			745.7			813.8			720.1			946.0			(161.2	)		-17.0	%		1,030.2			1,484.5
Accrued Expenses & Other Liabilities		252.9			249.8			227.5			202.0			224.9			27.9			12.4	%		227.8			236.2

Total Liabilities		7,905.0			7,010.6			7,101.3			6,385.1			6,610.4			1,294.6			19.6	%		7,161.5			7,143.0

Preferred Stock & Surplus		—			—			—			—			—			—			—			—			97.4
Common Stock, Surplus & Retained Earnings		1,003.1			991.9			980.5			880.1			879.9			123.3			14.0	%		864.2			687.0
Other Comprehensive Income		24.6			16.4			3.5			(1.3	)		15.8			8.8			55.3	%		(20.4	)		(53.5	)

Total Shareholders Equity		1,027.7			1,008.3			984.0			878.8			895.7			132.0			14.7	%		843.8			730.9

Total Liabilities & Shareholders Equity	$	8,932.7		$	8,018.8		$	8,085.3		$	7,263.9		$	7,506.1		$	1,426.6			19.0	%	$	8,005.3		$	7,873.9


(1) Includes covered loans:	$	711.3			—			—			—			—			711.3			N/M			—			—
(2) Includes covered ORE:		31.9			—			—			—			—			31.9			N/M			—			—


EOP — End of period actual balances

N/M = Not meaningful

PAGE 4

Old National Bancorp

Balance Sheet Trends
PERIOD AVERAGES
($ in Millions)


2008			2009			2010				2010												2011
										1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
									Assets
$	1.6		$	0.0		$	—		Fed Funds Sold & Resell Agreements	$	—		$	—		$	—		$	—		$	—		$	—		$	—
	—			41.2			152.3		Fed Reserve Bank Account		254.0			174.4			97.9			83.0			159.8			244.4			138.2
	20.3			38.5			25.4		Money Market Investments		30.7			30.6			24.3			16.2			6.7			7.1			3.9
									Investments:
	439.1			916.3			1,057.9		Treasury & Gov’t Sponsored Agencies		1,170.9			1,212.1			1,023.4			825.3			746.4			720.9			563.0
	1,130.7			1,063.3			1,092.6		Mortgage-backed Securities		1,028.5			1,019.7			1,135.0			1,187.3			1,225.2			1,212.8			1,514.8
	329.4			506.7			536.3		States & Political Subdivisions		559.7			530.4			502.7			552.4			561.2			567.8			588.1
	251.4			214.4			198.7		Other Securities		197.3			200.3			198.3			199.0			214.0			206.9			218.6

	2,150.6			2,700.7			2,885.6		Total Investments		2,956.5			2,962.6			2,859.4			2,764.0			2,746.7			2,708.3			2,884.5


	7.2			11.7			4.2		Residential Real Estate Loans Held for Sale		6.4			3.0			3.7			3.4			3.6			3.4			3.9
	—			84.9			24.2		Leases Held for Sale		54.1			42.7			—			—			—			—			—
									Loans (includes covered loans):
	1,429.6			1,383.6			1,152.0		Commercial		1,172.6			1,137.0			1,160.6			1,137.7			1,187.3			1,180.7			1,277.0
	349.9			216.1			95.3		Commercial Leases		73.9			78.0			117.8			111.5			102.0			95.0			90.1
	1,205.1			1,117.3			1,007.6		Commercial & Agriculture Real Estate		1,050.2			1,021.6			992.0			966.8			1,219.6			1,189.1			1,384.4
									Consumer:
	254.9			273.1			264.7		Home Equity		273.8			267.7			262.6			254.7			266.3			257.6			328.0
	935.7			882.3			742.7		Other Consumer Loans		791.0			757.4			726.7			695.8			674.4			642.0			662.4

	4,175.1			3,872.5			3,262.3		Subtotal of Commercial & Consumer Loans		3,361.5			3,261.8			3,259.7			3,166.4			3,449.6			3,364.3			3,741.9
	520.9			457.8			460.5		Residential Real Estate		403.3			418.0			455.2			565.6			752.5			789.4			854.2

	4,696.0			4,330.2			3,722.9		Total Loans		3,764.7			3,679.8			3,714.9			3,732.1			4,202.0			4,153.6			4,596.1

	6,875.7			7,207.2			6,814.6		Total Earning Assets		7,066.5			6,893.0			6,700.2			6,598.7			7,118.9			7,116.9			7,626.7


	(62.0	)		(70.1	)		(73.9	)	Allowance for Loan Losses		(71.6	)		(73.7	)		(74.8	)		(75.3	)		(73.3	)		(73.8	)		(71.7	)
	804.1			852.7			845.7		Nonearning Assets		855.0			851.9			840.6			835.4			992.8			978.2			1,164.9

$	7,617.8		$	7,989.8		$	7,586.4		Total Assets	$	7,850.0		$	7,671.2		$	7,466.0		$	7,358.7		$	8,038.4		$	8,021.3		$	8,719.8


									Liabilities & Equity
$	835.0		$	1,018.4		$	1,182.7		Noninterest-bearing Demand Deposits	$	1,146.5		$	1,151.5		$	1,182.7		$	1,249.9		$	1,395.7		$	1,452.6		$	1,636.5
	1,249.5			1,250.7			1,221.4		NOW Accounts		1,262.4			1,220.4			1,193.7			1,208.8			1,451.5			1,433.4			1,464.4
	886.4			937.6			1,043.3		Savings Accounts		1,011.7			1,051.4			1,039.8			1,070.3			1,159.7			1,252.4			1,513.4
	487.5			436.5			361.2		Money Market Accounts		379.7			372.1			352.7			340.1			352.4			336.6			314.7
	1,696.4			1,956.9			1,709.2		Other Time		1,882.3			1,757.1			1,661.4			1,536.0			1,616.4			1,530.7			1,711.0

	5,154.7			5,600.2			5,517.7		Total Core Deposits		5,682.7			5,552.5			5,430.4			5,405.1			5,975.6			6,005.7			6,640.0

	170.7			97.8			44.4		Brokered CD’s		69.9			64.8			22.5			20.3			79.7			65.1			35.8

	5,325.4			5,698.0			5,562.0		Total Deposits		5,752.6			5,617.3			5,452.8			5,425.3			6,055.3			6,070.8			6,675.7


	616.9			527.1			328.5		Short-term Borrowings		330.1			334.7			320.0			329.4			370.8			325.5			340.6
	810.1			812.1			615.0		Long-term Borrowings		699.1			650.9			593.4			516.6			441.5			439.4			461.0

	1,427.0			1,339.2			943.5		Total Borrowed Funds		1,029.2			985.6			913.4			846.0			812.4			764.9			801.7

	205.2			228.6			211.7		Accrued Expenses & Other Liabilities		219.2			211.1			218.7			197.6			201.2			194.9			226.4

	6,957.7			7,265.9			6,717.2		Total Liabilities		7,001.0			6,814.0			6,584.9			6,468.9			7,068.9			7,030.7			7,703.8


	5.2			24.1			—		Preferred Stock & Surplus		—			—			—			(0.0	)		—			—			—
	688.7			735.0			869.6		Common Stock, Surplus & Retained Earnings		863.2			865.9			873.8			875.6			970.8			983.6			998.5
	(33.7	)		(35.3	)		(0.4	)	Other Comprehensive Income		(14.2	)		(8.7	)		7.2			14.2			(1.3	)		7.1			17.6

	660.2			723.9			869.2		Total Shareholders Equity		848.9			857.2			881.0			889.8			969.5			990.7			1,016.1

$	7,617.8		$	7,989.8		$	7,586.4		Total Liabilities & Shareholders Equity	$	7,850.0		$	7,671.2		$	7,466.0		$	7,358.7		$	8,038.4		$	8,021.3		$	8,719.8

PAGE 5

Old National Bancorp

Interest Rate Trends (FTE basis)
PERIOD AVERAGES


2008			2009			2010				2010												2011
										1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
									Earning Assets:
	3.40	%		0.17	%		0.24	%	Fed Funds Sold, Resell Agr, Fed Reserve Bank Acct, & Money Mkt		0.26	%		0.22	%		0.23	%		0.24	%		0.24	%		0.25	%		0.24	%
									Investments:
	4.90	%		4.01	%		3.21	%	Treasury & Gov’t Sponsored Agencies		3.46	%		3.26	%		3.11	%		2.93	%		2.45	%		2.29	%		2.27	%
	5.01	%		4.93	%		3.96	%	Mortgage-backed Securities		4.39	%		4.22	%		3.82	%		3.48	%		3.24	%		3.07	%		2.59	%
	6.91	%		6.72	%		6.19	%	States & Political Subdivisions		6.34	%		6.26	%		6.08	%		6.06	%		6.14	%		5.91	%		5.73	%
	5.54	%		4.93	%		4.68	%	Other Securities		4.71	%		4.79	%		4.49	%		4.75	%		4.36	%		4.42	%		4.39	%

	5.38	%		4.96	%		3.93	%	Total Investments		4.44	%		4.25	%		4.02	%		3.93	%		3.72	%		3.56	%		3.30	%

									Loans:
	5.65	%		4.00	%		4.21	%	Commercial		4.06	%		4.23	%		4.16	%		4.14	%		4.27	%		4.40	%		4.73	%
	6.82	%		6.72	%		6.45	%	Commercial Leases (1)		6.73	%		6.02	%		6.51	%		6.52	%		6.57	%		6.48	%		6.21	%
	6.22	%		4.62	%		4.47	%	Commercial & Agriculture Real Estate		4.48	%		4.47	%		4.36	%		4.31	%		5.12	%		5.88	%		6.67	%
									Consumer:
	5.51	%		3.57	%		3.68	%	Home Equity		3.63	%		3.67	%		3.70	%		3.71	%		3.79	%		3.80	%		3.81	%
	7.66	%		7.27	%		7.15	%	Other Consumer Loans		7.32	%		7.19	%		7.10	%		6.99	%		7.19	%		6.88	%		7.29	%

	6.35	%		5.08	%		4.76	%	Subtotal of Commercial & Consumer Loans		5.05	%		5.04	%		4.96	%		4.90	%		5.22	%		5.46	%		5.91	%
	5.87	%		5.63	%		5.64	%	Residential Real Estate Loans (1)		5.60	%		5.76	%		5.76	%		5.49	%		4.96	%		4.90	%		4.87	%


	6.30	%		5.14	%		5.07	%	Total Loans (1)		5.07	%		5.08	%		5.02	%		4.95	%		5.13	%		5.31	%		5.67	%


	5.99	%		5.02	%		4.55	%	Total Earning Assets		4.60	%		4.55	%		4.49	%		4.45	%		4.47	%		4.47	%		4.67	%


									Interest-bearing Liabilities:
	0.51	%		0.04	%		0.03	%	NOW Accounts		0.04	%		0.03	%		0.03	%		0.03	%		0.06	%		0.04	%		0.03	%
	1.46	%		0.38	%		0.30	%	Savings Accounts		0.31	%		0.30	%		0.30	%		0.29	%		0.30	%		0.28	%		0.29	%
	1.12	%		0.10	%		0.10	%	Money Market Accounts		0.10	%		0.10	%		0.10	%		0.10	%		0.11	%		0.11	%		0.10	%
	3.74	%		3.01	%		2.50	%	Other Time		2.62	%		2.49	%		2.43	%		2.43	%		2.13	%		2.13	%		1.85	%

	2.04	%		1.39	%		1.07	%	Total Interest-bearing Deposits		1.18	%		1.08	%		1.04	%		0.99	%		0.86	%		0.82	%		0.74	%
	4.25	%		4.26	%		4.51	%	Brokered CD’s		4.44	%		4.47	%		4.78	%		4.80	%		1.75	%		2.01	%		0.98	%

	2.13	%		1.45	%		1.11	%	Total Interest-bearing Deposits & CD’s		1.23	%		1.13	%		1.06	%		1.01	%		0.87	%		0.83	%		0.74	%


	1.77	%		0.27	%		0.20	%	Short-term Borrowings		0.31	%		0.18	%		0.16	%		0.16	%		0.16	%		0.14	%		0.15	%
	5.29	%		4.96	%		4.74	%	Long-term Borrowings		4.60	%		4.70	%		4.79	%		4.76	%		4.35	%		4.39	%		4.33	%

	3.77	%		3.11	%		3.16	%	Total Borrowed Funds		3.27	%		3.19	%		3.19	%		2.98	%		2.47	%		2.60	%		2.56	%


	2.52	%		1.82	%		1.47	%	Total Interest-bearing Liabilities		1.60	%		1.50	%		1.44	%		1.34	%		1.11	%		1.08	%		0.99	%


	3.47	%		3.20	%		3.08	%	Net Interest Rate Spread		3.00	%		3.05	%		3.05	%		3.12	%		3.36	%		3.39	%		3.68	%

	3.82	%		3.50	%		3.40	%	Net Interest Margin (FTE)		3.33	%		3.40	%		3.42	%		3.46	%		3.62	%		3.67	%		3.96	%

$	19.3		$	20.8		$	13.5		FTE Adjustment ($ in millions)	$	3.7		$	3.5		$	3.2		$	3.1		$	3.0		$	2.9		$	2.9


FTE — Fully taxable equivalent basis

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

PAGE 6

Old National Bancorp

Asset Quality (EOP) Excludes Covered Assets (4)
($ in Millions)


2008			2009			2010				2010												2011
										1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr

$	56.5		$	67.1		$	69.5		Beginning Allowance for Loan Losses	$	69.5		$	72.1		$	71.9		$	72.1		$	72.3		$	72.7		$	70.2

	51.5			63.3			30.8		Provision for Loan Losses		9.3			8.0			6.4			7.1			3.3			3.2			(0.1	)

	(51.2	)		(78.0	)		(41.3	)	Gross Charge-offs		(10.9	)		(11.8	)		(8.2	)		(10.4	)		(6.3	)		(8.9	)		(7.5	)
	—			(0.6	)		—		Write-downs from Loans Sold		—			—			—			—			—			—			—
	10.4			17.8			13.3		Gross Recoveries		4.2			3.6			2.1			3.5			3.4			3.1			2.6

	(40.8	)		(60.8	)		(28.0	)	Net Charge-offs		(6.7	)		(8.2	)		(6.1	)		(6.9	)		(2.9	)		(5.8	)		(4.9	)


$	67.1		$	69.5		$	72.3		Ending Allowance for Loan Losses	$	72.1		$	71.9		$	72.1		$	72.3		$	72.7		$	70.2		$	65.2


	0.87	%		1.40	%		0.75	%	Net Charge-offs / Average Loans (1)		0.72	%		0.90	%		0.66	%		0.74	%		0.27	%		0.56	%		0.50	%

$	4,696.0		$	4,330.2		$	3,722.9		Average Loans Outstanding (1)	$	3,764.7		$	3,679.8		$	3,714.9		$	3,732.1		$	4,202.0		$	4,153.6		$	3,876.8

$	4,760.4		$	3,835.5		$	3,743.5		EOP Loans Outstanding (1)	$	3,714.9		$	3,731.1		$	3,703.1		$	3,743.5		$	4,190.8		$	4,117.3		$	4,140.1

	1.41	%		1.81	%		1.93	%	Allowance for Loan Loss / EOP Loans (1)		1.94	%		1.93	%		1.95	%		1.93	%		1.74	%		1.70	%		1.58	%

									Underperforming Assets:
$	2.9		$	3.5		$	0.6		Loans 90 Days & over (still accruing)	$	1.3		$	0.5		$	1.4		$	0.6		$	0.7		$	0.4		$	1.2

									Non-performing Loans:
	64.0			67.0			70.9		Nonaccrual Loans (2)		68.1			68.9			69.8			70.9			121.4			118.4			124.8
	—			—			—		Renegotiated Loans		—			—			—			—			—			—			—

	64.0			67.0			70.9		Total Non-performing Loans		68.1			68.9			69.8			70.9			121.4			118.4			124.8


	2.9			8.1			5.6		Foreclosed properties		9.6			7.0			5.9			5.6			14.1			9.9			9.4


$	69.9		$	78.7		$	77.1		Total Underperforming Assets	$	79.1		$	76.3		$	77.1		$	77.1		$	136.3		$	128.8		$	135.3


$	180.1		$	157.1		$	174.3		Classified Loans — “Problem Loans”	$	160.5		$	157.7		$	170.9		$	174.3		$	223.4		$	229.3		$	226.4
	34.5			161.2			105.6		Other Classified Assets		158.5			152.3			148.0			105.6			92.5			117.3			113.2
	124.9			103.5			84.0		Criticized Loans — “Special Mention Loans”		104.9			100.7			75.0			84.0			115.8			105.6			98.5

$	339.5		$	421.7		$	363.9		Total Classified & Criticized Assets	$	423.8		$	410.7		$	393.9		$	363.9		$	431.7		$	452.2		$	438.1


	1.35	%		1.75	%		1.90	%	Non-performing loans / EOP Loans (1)		1.83	%		1.85	%		1.89	%		1.90	%		2.90	%		2.88	%		3.01	%

	105	%		104	%		102	%	Allowance to Non-performing Loans (3)		106	%		104	%		103	%		102	%		60	%		59	%		52	%

	1.47	%		2.05	%		2.06	%	Under-performing Assets / EOP Loans (1)		2.13	%		2.05	%		2.08	%		2.06	%		3.25	%		3.13	%		3.27	%

$	7,873.9		$	8,005.3		$	7,263.9		EOP Total Assets (includes covered assets)	$	7,818.3		$	7,701.1		$	7,506.1		$	7,263.9		$	8,085.3		$	8,018.8		$	8,932.7

	0.89	%		0.98	%		1.06	%	Under-performing Assets / EOP Assets		1.01	%		0.99	%		1.03	%		1.06	%		1.69	%		1.61	%		1.52	%


EOP - End of period actual balances

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

(2)		Includes $9.4 million in 3Q11 of renegotiated loans.

(3)		In accordance with accounting for business combinations, there was no allowance brought forward on any of the 1/1/11 acquired loans, as the credit losses evident in the loans were included in the determination of the fair value of the loans at the acquisition date and are generally represented by the nonaccretable balance.

(4)		Covered assets were marked to fair value at acquisition, including estimated loan impairments. Covered assets are excluded from these asset quality ratios as arrangements with the FDIC and acquisition discounts are expected to provide substantial protection against losses on these covered assets.

PAGE 7

Old National Bancorp

NON-GAAP MEASURES
Third Quarter 2011
($ In Millions except EPS information)


										2010												2011
2008			2009			2010				1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
									Actual EOP Balances
$	730.9		$	843.8		$	878.8		GAAP Shareholders’ Equity	$	855.5		$	874.7		$	895.7		$	878.8		$	984.0		$	1,008.3		$	1,027.7

									Deduct:
	159.2			167.9			167.9		Goodwill		167.9			167.9			167.9			167.9			236.3			236.3			266.0
	27.6			32.3			26.2		Intangibles		30.7			29.2			27.7			26.2			34.7			34.1			36.3

	186.8			200.2			194.1				198.6			197.1			195.6			194.1			271.0			270.4			302.3


$	544.0		$	643.6		$	684.7		Tangible Shareholders’ Equity	$	657.0		$	677.7		$	700.1		$	684.7		$	713.0		$	737.8		$	725.4


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


$	446.7		$	643.6		$	684.7		Tangible Common Shareholders’ Equity	$	657.0		$	677.7		$	700.1		$	684.7		$	713.0		$	737.8		$	725.4


									Actual EOP Balances
$	7,873.9		$	8,005.3		$	7,263.9		GAAP Assets	$	7,818.3		$	7,701.1		$	7,506.1		$	7,263.9		$	8,085.3		$	8,018.8		$	8,932.7

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

									Deduct:
	159.2			167.9			167.9		Goodwill		167.9			167.9			167.9			167.9			236.3			236.3			266.0
	27.6			32.3			26.2		Intangibles		30.7			29.2			27.7			26.2			34.7			34.1			36.3

	186.8			200.2			194.1				198.6			197.1			195.6			194.1			271.0			270.4			302.3


$	7,688.0		$	7,805.4		$	7,070.3		Tangible Assets	$	7,620.0		$	7,504.1		$	7,310.6		$	7,070.3		$	7,814.4		$	7,748.8		$	8,630.8


	5,555.2			5,173.1			4,720.9		Risk Weighted Assets		5,038.2			4,847.4			4,803.2			4,720.9			5,062.8			4,978.4			5,406.5

									Actual EOP Balances
$	62.5		$	13.7		$	38.2		GAAP Net Income	$	10.1		$	10.5		$	11.9		$	5.7		$	16.4		$	17.0		$	16.8

									Add:
	3.6			4.9			4.6		Intangible Amortization (net of tax)		1.2			1.1			1.1			1.1			1.6			1.5			1.7


$	66.1		$	18.6		$	42.8		Tangible Net Income	$	11.3		$	11.7		$	13.0		$	6.9		$	18.0		$	18.5		$	18.5


									Tangible Ratios
	14.79	%		2.89	%		6.26	%	Return on Tangible Common Equity		6.87	%		6.88	%		7.44	%		4.01	%		10.10	%		10.05	%		10.20	%
	0.86	%		0.24	%		0.61	%	Return on Tangible Assets		0.59	%		0.62	%		0.71	%		0.39	%		0.92	%		0.96	%		0.86	%
	5.81	%		8.25	%		9.68	%	Tangible Common Equity to Tangible Assets		8.62	%		9.03	%		9.58	%		9.68	%		9.12	%		9.52	%		8.40	%
	8.04	%		12.44	%		14.50	%	Tangible Common Equity to Risk Wgt Assets		13.04	%		13.98	%		14.58	%		14.50	%		14.08	%		14.82	%		13.42	%
	6.74			7.38			7.85		Tangible Common Book Value (1)		7.54			7.77			8.03			7.85			7.53			7.79			7.66


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.

PAGE 8

Attached files

OLD NATIONAL BANCORP /IN/ Reports

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