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/	d385562d8k.htm
EX-99.1 - EXHIBIT 99.1 - OLD NATIONAL BANCORP /IN/	d385562dex991.htm

Exhibit 99.2


		Old National Bancorp Financial Trends Second Quarter 2012 July 30, 2012

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

Second Quarter 2012


										2011												2012
2009			2010			2011				1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr	4th Qtr
									Profitability (in millions)
$	13.7		$	38.2		$	72.5		Net Income (Loss)	$	16.4		$	17.0		$	16.8		$	22.2		$	21.7		$	27.2
	3.9			—			—		Preferred Dividend and Amort on Preferred Stock		—			—			—			—			—			—
	9.8			38.2			72.5		Net Income (Loss) Avail. to Common Shareholders		16.4			17.0			16.8			22.2			21.7			27.2

									Diluted EPS
$	0.14		$	0.44		$	0.76		Net Income (Loss) Avail. to Common Shareholders	$	0.17		$	0.18		$	0.18		$	0.23		$	0.23		$	0.29

									Ratios - Net Income
	1.41%			4.40	%		7.24	%	Return on Average Common Equity		6.78	%		6.87	%		6.61	%		8.64	%		8.34	%		10.25	%
	0.17%			0.50	%		0.86	%	Return on Average Assets		0.82	%		0.85	%		0.77	%		1.01	%		1.02	%		1.27	%
	80.45%			79.25	%		73.80	%	Efficiency Ratio (2)		73.58	%		71.92	%		77.56	%		72.02	%		70.88	%		69.20	%
	3.50%			3.40	%		3.87	%	Net Interest Margin (FTE)		3.62	%		3.67	%		3.96	%		4.20	%		4.20	%		4.26	%

									Capital Ratios:
									Risk-Based Capital Ratios (EOP):
	14.3%			13.6	%		13.5	%	Tier 1		12.8	%		13.4	%		12.2	%		13.5	%		14.0	%		14.6	%
	16.1%			14.8	%		15.0	%	Total		14.3	%		14.9	%		13.7	%		15.0	%		15.4	%		15.7	%
	9.5%			9.0	%		8.3	%	Leverage Ratio (to Average Assets)		8.4	%		8.7	%		7.9	%		8.3	%		8.8	%		9.0	%
	9.06%			11.46	%		11.94	%	Total Equity to Assets (Averages)		12.06	%		12.35	%		11.65	%		11.74	%		12.22	%		12.38	%
	8.25%			9.68	%		8.97	%	Tangible Common Equity to Tangible Assets (1)		9.12	%		9.52	%		8.40	%		8.97	%		9.23	%		9.40	%

									Per Common Share Data:
	0.44			0.28			0.28		Cash Dividends Declared		0.07			0.07			0.07			0.07			0.09			0.09
	309	%		64	%		37	%	Dividend Payout Ratio		40	%		39	%		39	%		30	%		39	%		31	%
	9.68			10.08			10.92		Common Book Value (EOP)		10.39			10.64			10.85			10.92			11.10			11.34
	12.43			11.89			11.65		Market Value (EOP)		10.72			10.80			9.32			11.65			13.14			12.01
	7.38			7.85			7.89		Tangible Common Book Value (1)		7.53			7.79			7.66			7.89			8.09			8.35

									Other Statistics
	2,812			2,491			2,551		Full Time Equivalent Employees		2,618			2,543			2,454			2,551			2,530			2,613

FTE - Fully taxable equivalent basis

EOP - End of period actual balances

(1)	See Non-GAAP Reconciliation on Page 9.

(2)

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.

PAGE 1

Old National Bancorp

INCOME STATEMENT

($ In Millions except EPS information)


Six Months				Change							Second Quarter					Change
2012		2011		$			%				2012			2011		$			%
$	169.5	$	153.2	$	16.3			10.7	%	Interest Income	$	85.3		$	76.9	$	8.4			10.9	%
	19.3		29.5		(10.2	)		-34.6	%	Less: Interest Expense		9.3			14.6		(5.3	)		-36.2	%

	150.2		123.7		26.6			21.5	%	Net Interest Income		76.0			62.3		13.7			21.9	%
	10.9		10.4		0.5			4.9	%	Wealth Management Fees		5.8			5.3		0.5			9.7	%
	25.8		24.0		1.8			7.3	%	Service Charges on Deposit Accounts		12.9			12.5		0.4			3.5	%
	12.2		12.0		0.3			2.2	%	ATM Fees		5.9			6.1		(0.2	)		-3.0	%
	1.3		1.9		(0.5	)		-28.4	%	Mortgage Banking Revenue		0.8			0.9		(0.1	)		-15.0	%
	18.9		19.6		(0.7	)		-3.4	%	Insurance Premiums and Commissions		9.3			9.0		0.3			3.3	%
	6.1		5.5		0.6			10.3	%	Investment Product Fees		3.2			2.9		0.2			7.8	%
	3.0		2.5		0.5			21.8	%	Company-owned Life Insurance		1.5			1.3		0.2			16.5	%
	0.8		—		0.8			N/M		Change in Indemnification Asset		(4.0	)		—		(4.0	)		N/M
	11.5		8.3		3.1			37.3	%	Other Income		6.7			4.9		1.8			36.9	%

	90.5		84.2		6.3			7.5	%	Total Fees, Service Charges & Other Rev.		42.1			42.9		(0.8	)		-1.9	%
	6.7		1.7		5.1			N/M		Gains (Losses) Sales of Securities (1)		6.2			0.5		5.7			N/M
	0.4		0.6		(0.1	)		-22.0	%	Gains (Losses) Derivatives		0.2			0.2		0.0			13.0	%

	97.7		86.4		11.3			13.0	%	Total Noninterest Income		48.5			43.6		5.0			11.4	%
	247.9		210.1		37.8			18.0	%	Total Revenues		124.5			105.9		18.6			17.6	%
	92.8		87.6		5.2			5.9	%	Salaries and Employee Benefits		46.8			43.1		3.7			8.5	%
	25.7		24.5		1.2			5.0	%	Occupancy		13.3			12.2		1.1			8.7	%
	5.8		5.8		(0.0	)		-0.3	%	Equipment		3.0			2.8		0.1			4.2	%
	2.9		2.9		0.0			1.3	%	Marketing		1.5			1.6		(0.1	)		-5.5	%
	11.4		11.8		(0.4	)		-3.7	%	Data Processing		5.9			5.8		0.2			2.8	%
	5.4		5.0		0.4			9.0	%	Communication		2.6			2.6		(0.0	)		-1.6	%
	5.4		4.6		0.8			17.5	%	Professional Fees		2.6			2.1		0.5			23.2	%
	3.1		2.2		0.9			41.8	%	Loan Expenses		1.5			1.1		0.4			35.9	%
	1.4		1.5		(0.2	)		-11.5	%	Supplies		0.6			0.9		(0.3	)		-34.6	%
	2.8		4.0		(1.2	)		-30.0	%	FDIC Assessment		1.4			1.8		(0.4	)		-22.3	%
	11.4		1.1		10.3			N/M		Other Real Estate Owned Expense		1.6			0.8		0.8			N/M
	9.2		8.6		0.6			6.4	%	Other Expense		5.3			4.9		0.4			8.0	%

	177.3		159.7		17.6			11.0	%	Total Noninterest Expense		86.0			79.8		6.3			7.9	%
	2.4		6.5		(4.1	)		-62.4	%	Provision for loan losses		0.4			3.2		(2.8	)		-87.8	%

	68.2		43.9		24.3			55.3	%	Income (loss) before Income Taxes		38.1			22.9		15.2			66.0	%

	19.2		10.4		8.8			84.1	%	Total Taxes		10.9			5.9		5.0			83.7	%

$	48.9	$	33.4	$	15.5			46.3	%	Net Income (Loss)	$	27.2		$	17.0	$	10.2			59.9	%


										Diluted EPS
$	0.52	$	0.35	$	0.16			45.8	%	Net Income (Loss) Avail to Common	$	0.29		$	0.18	$	0.11			59.4	%

										Average Common Shares Outstanding (000’s)
	94,479		94,456		23			0.0	%	Basic		94,514			94,479		34			0.0	%
	94,847		94,674		174			0.2	%	Diluted		94,871			94,701		170			0.2	%
	94,687		94,752		(64	)		-0.1	%	Common Shares Outstanding (EOP) (000’s)		94,687			94,752		(64	)		-0.1	%

(1)	Includes $7.0 million of net gains and $0.8 million of OTTI in 2Q12 and $0.7 million of net gains and $0.2 million of OTTI in 2Q11.

Includes $7.6 million of net gains and $0.9 million of OTTI in YTD 2012 and $2.2 million of net gains and $0.5 million of OTTI in YTD 2011.

EOP	- End of period actual balances N/M = Not meaningful OTTI - Other Than Temporary Impairment

PAGE 2

Old National Bancorp

NET INCOME TRENDS

Second Quarter 2012

($ In Millions except EPS information)


								2011										2012
2009			2010		2011			1st Qtr		2nd Qtr		3rd Qtr			4th Qtr			1st Qtr		2nd Qtr			3rd Qtr	4th Qtr
$	340.7		$	296.8	$	326.6	Interest Income	$	76.3	$	76.9	$	87.2		$	86.2		$	84.3	$	85.3
	109.3			78.4		53.7	Less: Interest Expense		15.0		14.6		14.6			9.6			10.0		9.3

	231.4			218.4		272.9	Net Interest Income		61.4		62.3		72.6			76.6			74.3		76.0
	16.0			16.1		20.5	Wealth Management Fees		5.1		5.3		5.1			4.9			5.1		5.8
	55.2			50.0		51.9	Service Charges on Deposit Accounts		11.6		12.5		14.0			13.8			12.9		12.9
	20.5			23.0		25.2	ATM Fees		5.9		6.1		6.8			6.5			6.3		5.9
	6.2			2.2		3.3	Mortgage Banking Revenue		1.0		0.9		0.7			0.7			0.6		0.8
	37.9			36.5		37.0	Insurance Premiums and Commissions		10.6		9.0		8.3			9.0			9.6		9.3
	8.5			9.2		11.1	Investment Product Fees		2.6		2.9		3.0			2.6			2.9		3.2
	2.4			4.1		5.3	Company-owned Life Insurance		1.2		1.3		1.4			1.5			1.5		1.5
	—			—		0.4	Change in Indemnification Asset		—		—		0.5			(0.1	)		4.8		(4.0	)
	13.7			14.4		20.1	Other Income		3.5		4.9		4.5			7.3			4.8		6.7

	160.3			155.5		174.6	Total Fees, Service Charges & Other Rev.		41.3		42.9		44.3			46.1			48.4		42.1
	2.5			13.2		7.3	Gains (Losses) Sales of Securities (1)		1.2		0.5		2.9			2.8			0.5		6.2
	0.7			1.5		1.0	Gains (Losses) Derivatives		0.3		0.2		0.1			0.3			0.2		0.2

	163.5			170.1		182.9	Total Noninterest Income		42.8		43.6		47.3			49.1			49.1		48.5
	394.9			388.6		455.8	Total Revenues		104.2		105.9		119.9			125.7			123.4		124.5
	181.4			170.6		189.5	Salaries and Employee Benefits		44.5		43.1		52.3			49.6			46.0		46.8
	47.1			46.4		51.1	Occupancy		12.3		12.2		13.3			13.2			12.5		13.3
	10.4			10.6		11.7	Equipment		3.0		2.8		2.9			3.0			2.9		3.0
	9.6			5.7		6.0	Marketing		1.3		1.6		1.3			1.8			1.4		1.5
	20.7			21.4		23.0	Data Processing		6.1		5.8		5.7			5.4			5.5		5.9
	10.9			9.8		10.4	Communication		2.3		2.6		2.5			2.9			2.8		2.6
	9.5			8.3		15.0	Professional Fees		2.4		2.1		5.9			4.5			2.7		2.6
	4.3			3.9		4.7	Loan Expenses		1.1		1.1		1.1			1.4			1.6		1.5
	4.3			2.9		3.8	Supplies		0.6		0.9		0.6			1.6			0.8		0.6
	12.4			8.4		7.5	FDIC Assessment		2.2		1.8		1.7			1.9			1.4		1.4
	1.5			2.6		2.0	Other Real Estate Owned Expense		0.3		0.8		0.6			0.3			9.8		1.6
	26.8			23.6		23.9	Other Expense		3.7		4.9		7.2			8.1			3.9		5.3

	339.0			314.3		348.5	Total Noninterest Expense		79.9		79.8		95.2			93.7			91.3		86.0
	63.3			30.8		7.5	Provision for Loan Losses		3.3		3.2		(0.1	)		1.0			2.1		0.4

	(7.4	)		43.5		99.8	Income (loss) before Income Taxes		21.0		22.9		24.8			31.0			30.1		38.1

	(21.1	)		5.3		27.3	Total Taxes		4.5		5.9		8.0			8.8			8.3		10.9

$	13.7		$	38.2	$	72.5	Net Income (Loss)	$	16.4	$	17.0	$	16.8		$	22.2		$	21.7	$	27.2

$	0.14		$	0.44	$	0.76	Net Income (Loss) Avail to Common	$	0.17	$	0.18	$	0.18		$	0.23		$	0.23	$	0.29
	71,314			86,785		94,467	Average Basic Common Shares (000’s)		94,433		94,479		94,492			94,463			94,445		94,514
	71,367			86,928		94,772	Average Diluted Common Shares (000’s)		94,670		94,701		94,785			94,866			94,833		94,871

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

PAGE 3

Old National Bancorp

Balance Sheet (EOP)

Second Quarter 2012

($ in Millions)


																Change from Prior Year
	6/30/2012			3/31/2012			12/31/2011			9/30/2011			6/30/2011			6/30/2012 vs. 6/30/2011					12/31/2010			12/31/2009
Assets
Fed Reserve Bank Account	$	94.1		$	13.4		$	26.4		$	68.4		$	193.3		$	(99.2	)	-51.3	%	$	141.4		$	317.5
Money Market Investments		3.9			3.4			4.8			6.2			2.5			1.3		52.3	%		2.8			35.6
Investments:
Treasury & Gov’t Sponsored Agencies		538.5			517.9			416.1			424.8			695.3			(156.8	)	-22.6	%		680.9			1,142.7
Mortgage-backed Securities		1,284.2			1,372.7			1,352.2			1,533.2			1,306.0			(21.8	)	-1.7	%		1,188.3			1,048.4
States & Political Subdivisions		677.9			665.2			619.2			607.8			585.3			92.6		15.8	%		566.3			534.6
Other Securities		205.4			202.6			202.0			218.1			206.6			(1.2	)	-0.6	%		194.8			192.7

Total Investments		2,705.9			2,758.4			2,589.5			2,784.0			2,793.2			(87.2	)	-3.1	%		2,630.4			2,918.3

Residential Real Estate Loans Held for Sale		4.4			3.9			4.5			4.7			6.1			(1.7	)	-28.5	%		3.8			17.5
Leases Held for Sale		—			—			—			—			—			—		N/M			—			55.3
Loans:
Commercial		1,136.7			1,107.0			1,137.0			1,159.2			1,176.7			(40.1	)	-3.4	%		1,105.3			1,209.3
Commercial Leases		68.9			73.5			79.6			87.0			92.9			(24.0	)	-25.8	%		106.1			77.9
Commercial & Agriculture Real Estate		1,042.6			1,026.9			1,067.4			1,128.4			1,170.4			(127.8	)	-10.9	%		942.4			1,062.9
Consumer:
Home Equity		206.0			207.6			216.2			224.2			255.7			(49.7	)	-19.4	%		248.3			274.8
Other Consumer Loans		649.3			639.7			645.2			675.2			626.2			23.1		3.7	%		676.6			807.2

Subtotal of Commercial & Consumer Loans		3,103.5			3,054.7			3,145.4			3,274.1			3,321.9			(218.4	)	-6.6	%		3,078.7			3,432.1
Residential Real Estate		1,122.8			1,060.0			995.5			866.0			795.4			327.4		41.2	%		664.7			403.4
Covered Loans		489.3			548.6			626.4			711.3			—			489.3		N/M			—			—

Total Loans		4,715.6			4,663.2			4,767.2			4,851.3			4,117.3			598.3		14.5	%		3,743.5			3,835.5

Total Earning Assets		7,523.9			7,442.3			7,392.5			7,714.7			7,112.4			411.5		5.8	%		6,521.8			7,179.7

Allowance for Loan Losses		(54.8	)		(55.9	)		(58.1	)		(65.5	)		(70.2	)		(15.4	)	-22.0	%		(72.3	)		(69.5	)
Nonearning Assets:
Cash and Due from Banks		165.1			143.6			191.6			194.6			139.8			25.3		18.1	%		107.4			144.2
Premises & Equipment		71.8			73.1			71.9			75.3			65.9			5.9		9.0	%		48.8			52.4
Goodwill & Intangible Assets		283.4			284.8			286.8			302.3			270.4			13.0		4.8	%		194.1			200.2
Company-owned Life Insurance		251.7			250.2			248.7			247.2			245.8			5.8		2.4	%		226.2			224.7
FDIC Indemnification Asset		127.7			136.9			147.6			168.1			—			127.7		N/M			—			—
Covered ORE		22.2			24.7			30.4			31.9			—			22.2		N/M			—			—
Other Assets		298.6			281.4			298.2			264.1			254.6			43.9		17.2	%		238.0			273.8

Total Nonearning Assets		1,220.4			1,194.6			1,275.2			1,283.5			976.6			243.8		25.0	%		814.4			895.2

Total Assets	$	8,689.6		$	8,581.1		$	8,609.7		$	8,932.7		$	8,018.8		$	670.7		8.4	%	$	7,263.9		$	8,005.3

Liabilities & Equity
Noninterest-bearing Demand Deposits	$	1,847.9		$	1,768.0		$	1,728.5		$	1,728.5		$	1,504.6		$	343.3		22.8	%	$	1,276.0		$	1,188.3
NOW Accounts		1,603.7			1,558.0			1,569.1			1,517.1			1,333.0			270.7		20.3	%		1,297.4			1,354.3
Savings Accounts		1,683.8			1,672.2			1,570.4			1,624.8			1,304.2			379.6		29.1	%		1,079.4			972.2
Money Market Accounts		283.1			295.3			295.8			306.1			315.3			(32.3	)	-10.2	%		334.8			381.1
Other Time under $100,000		885.0			951.0			1,004.0			1,171.6			1,012.9			(127.9	)	-12.6	%		988.7			1,284.3
Other Time $100,000 & over		356.7			402.0			421.9			494.6			484.4			(127.7	)	-26.4	%		466.3			653.3

Total Core Deposits		6,660.1			6,646.5			6,589.8			6,842.8			5,954.4			705.8		11.9	%		5,442.7			5,833.5
Brokered CD's		10.1			21.3			21.7			24.5			60.7			(50.6	)	-83.3	%		20.2			69.9

Total Deposits		6,670.3			6,667.8			6,611.6			6,867.3			6,015.1			655.2		10.9	%		5,462.9			5,903.5
Short-term Borrowings		346.0			352.8			424.8			341.0			305.2			40.8		13.4	%		298.2			331.1
Long-term Borrowings		273.7			289.5			290.8			443.9			440.5			(166.8	)	-37.9	%		421.9			699.1

Total Borrowed Funds		619.7			642.2			715.6			784.9			745.7			(126.0	)	-16.9	%		720.1			1,030.2
Accrued Expenses & Other Liabilities		325.8			220.6			248.9			252.9			249.8			76.0		30.4	%		202.0			227.8

Total Liabilities		7,615.8			7,530.6			7,576.1			7,905.0			7,010.6			605.3		8.6	%		6,385.1			7,161.5
Preferred Stock & Surplus		—			—			—			—			—			—		—			—			—
Common Stock, Surplus & Retained Earnings		1,051.4			1,031.7			1,018.6			1,003.1			991.9			59.5		6.0	%		880.1			864.2
Other Comprehensive Income		22.3			18.7			15.0			24.6			16.4			5.9		N/M			(1.3	)		(20.4	)

Total Shareholders Equity		1,073.7			1,050.4			1,033.6			1,027.7			1,008.3			65.5		6.5	%		878.8			843.8

Total Liabilities & Shareholders Equity	$	8,689.6		$	8,581.1		$	8,609.7		$	8,932.7		$	8,018.8		$	670.7		8.4	%	$	7,263.9		$	8,005.3

EOP—End of period actual balances N/M = Not meaningful

PAGE 4

Old National Bancorp

Balance Sheet Trends

PERIOD AVERAGES

($ in Millions)


2009			2010			2011				2011												2012
										1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr	4th Qtr
									Assets
$	41.2		$	152.3		$	146.0		Fed Reserve Bank Account	$	159.8		$	244.4		$	138.2		$	41.5		$	19.7			29.2
	38.5			25.4			6.8		Money Market Investments		6.7			7.1			3.9			9.6			5.8			4.7
									Investments:
	916.3			1,057.9			613.2		Treasury & Gov't Sponsored Agencies		746.4			720.9			563.0			422.4			456.6			515.8
	1,063.3			1,092.6			1,356.4		Mortgage-backed Securities		1,225.2			1,212.8			1,514.8			1,472.9			1,323.2			1,320.8
	506.7			536.3			580.9		States & Political Subdivisions		561.2			567.8			588.1			606.4			639.6			680.9
	214.4			198.7			211.9		Other Securities		214.0			206.9			218.6			207.9			205.8			205.8

	2,700.7			2,885.6			2,762.3		Total Investments		2,746.7			2,708.3			2,884.5			2,709.7			2,625.2			2,723.2

	11.7			4.2			3.5		Residential Real Estate Loans Held for Sale		3.6			3.4			3.9			3.1			3.0			3.3
	84.9			24.2			—		Leases Held for Sale		—			—			—			—			—			—
									Loans:
	1,383.6			1,152.0			1,169.5		Commercial		1,187.3			1,180.7			1,165.9			1,146.0			1,116.9			1,121.9
	216.1			95.3			92.5		Commercial Leases		102.0			95.0			90.1			82.9			76.4			71.1
	1,117.3			1,007.6			1,152.8		Commercial & Agriculture Real Estate		1,219.6			1,189.1			1,126.2			1,081.4			1,037.2			1,016.1
									Consumer:
	273.1			264.7			258.9		Home Equity		266.3			257.6			257.2			256.0			244.8			235.6
	882.3			742.7			643.3		Other Consumer Loans		674.4			642.0			634.9			622.6			608.3			614.6

	3,872.5			3,262.3			3,317.0		Subtotal of Commercial & Consumer Loans		3,449.6			3,364.3			3,274.3			3,189.0			3,083.6			3,059.3
	457.8			460.5			822.5		Residential Real Estate		752.5			789.4			817.7			931.3			1,025.5			1,091.9
	—			—			301.0		Covered Loans		—			—			504.2			689.8			599.2			529.0

	4,330.2			3,722.9			4,440.5		Total Loans		4,202.0			4,153.6			4,596.1			4,810.0			4,708.4			4,680.2

	7,207.2			6,814.6			7,359.1		Total Earning Assets		7,118.9			7,116.9			7,626.7			7,573.9			7,362.1			7,440.6

	(70.1	)		(73.9	)		(70.8	)	Allowance for Loan Losses		(73.3	)		(73.8	)		(71.7	)		(64.2	)		(56.6	)		(57.4	)
	852.7			845.7			1,096.3		Nonearning Assets		992.8			978.2			1,164.9			1,249.5			1,218.9			1,189.0

$	7,989.8		$	7,586.4		$	8,384.7		Total Assets	$	8,038.4		$	8,021.3		$	8,719.8		$	8,759.2		$	8,524.4		$	8,572.2

									Liabilities & Equity
$	1,018.4		$	1,182.7		$	1,555.9		Noninterest-bearing Demand Deposits	$	1,395.7		$	1,452.6		$	1,636.5		$	1,739.0		$	1,734.0		$	1,764.0
	1,250.7			1,221.4			1,472.7		NOW Accounts		1,451.5			1,433.4			1,464.4			1,541.6			1,535.8			1,604.9
	937.6			1,043.3			1,384.3		Savings Accounts		1,159.7			1,252.4			1,513.4			1,611.8			1,612.4			1,668.4
	436.5			361.2			328.6		Money Market Accounts		352.4			336.6			314.7			310.5			292.5			292.7
	1,956.9			1,709.2			1,596.8		Other Time		1,616.4			1,530.7			1,711.0			1,529.0			1,392.9			1,295.2

	5,600.2			5,517.7			6,338.3		Total Core Deposits		5,975.6			6,005.7			6,640.0			6,731.9			6,567.6			6,625.2

	97.8			44.4			51.0		Brokered CD’s		79.7			65.1			35.8			23.2			21.5			13.6

	5,698.0			5,562.0			6,389.2		Total Deposits		6,055.3			6,070.8			6,675.7			6,755.0			6,589.1			6,638.8

	527.1			328.5			363.6		Short-term Borrowings		370.8			325.5			340.6			417.6			366.1			356.7
	812.1			615.0			414.9		Long-term Borrowings		441.5			439.4			461.0			317.6			290.7			289.0

	1,339.2			943.5			778.5		Total Borrowed Funds		812.4			764.9			801.7			735.1			656.8			645.7
	228.6			211.7			215.7		Accrued Expenses & Other Liabilities		201.2			194.9			226.4			240.4			236.4			226.4

	7,265.9			6,717.2			7,383.5		Total Liabilities		7,068.9			7,030.7			7,703.8			7,730.6			7,482.4			7,510.9

	24.1			—			—		Preferred Stock & Surplus		—			—			—			—			—			—
	735.0			869.6			990.3		Common Stock, Surplus & Retained Earnings		970.8			983.6			998.5			1,008.5			1,022.7			1,037.6
	(35.3)			(0.4	)		10.9		Other Comprehensive Income		(1.3	)		7.1			17.6			20.1			19.4			23.7

	723.9			869.2			1,001.2		Total Shareholders Equity		969.5			990.7			1,016.1			1,028.6			1,042.0			1,061.3

$	7,989.8		$	7,586.4		$	8,384.7		Total Liabilities & Shareholders Equity	$	8,038.4		$	8,021.3		$	8,719.8		$	8,759.2		$	8,524.4		$	8,572.2

PAGE 5

Old National Bancorp

Interest Rate Trends (FTE basis)

PERIOD AVERAGES


2009			2010			2011				2011												2012
										1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr	4th Qtr
									Earning Assets:
	0.17	%		0.24	%		0.33	%	Fed Funds Sold, Resell Agr, Fed Reserve Bank Acct, & Money Mkt		0.24	%		0.25	%		0.24	%		0.16	%		0.24	%		0.13	%
									Investments:
	4.01	%		3.21	%		2.35	%	Treasury & Gov’t Sponsored Agencies		2.45	%		2.29	%		2.27	%		2.39	%		2.31	%		2.37	%
	4.93	%		3.96	%		2.80	%	Mortgage-backed Securities		3.24	%		3.07	%		2.59	%		2.42	%		2.45	%		2.34	%
	6.72	%		6.19	%		5.88	%	States & Political Subdivisions		6.14	%		5.91	%		5.73	%		5.74	%		5.61	%		5.57	%
	4.93	%		4.68	%		4.23	%	Other Securities		4.36	%		4.42	%		4.39	%		4.01	%		4.20	%		3.86	%

	4.96	%		3.93	%		3.30	%	Total Investments		3.72	%		3.56	%		3.30	%		3.28	%		3.33	%		3.27	%

									Loans:
	4.00	%		4.21	%		4.70	%	Commercial		4.27	%		4.40	%		4.73	%		5.07	%		4.63	%		4.62	%
	6.72	%		6.45	%		6.46	%	Commercial Leases (1)		6.57	%		6.48	%		6.21	%		6.59	%		6.30	%		6.72	%
	4.62	%		4.47	%		6.03	%	Commercial & Agriculture Real Estate		5.12	%		5.88	%		6.67	%		6.12	%		6.92	%		7.51	%
									Consumer:
	3.57	%		3.68	%		3.81	%	Home Equity		3.79	%		3.80	%		3.81	%		3.82	%		3.83	%		3.76	%
	7.27	%		7.15	%		7.10	%	Other Consumer Loans		7.19	%		6.88	%		7.29	%		6.75	%		6.68	%		6.26	%

	5.08	%		4.76	%		5.43	%	Subtotal of Commercial & Consumer Loans		5.22	%		5.46	%		5.91	%		5.72	%		5.87	%		6.01	%
	5.63	%		5.64	%		4.87	%	Residential Real Estate Loans (1)		4.96	%		4.90	%		4.87	%		4.77	%		4.59	%		4.65	%

	5.14	%		5.07	%		5.46	%	Total Loans (1)		5.13	%		5.31	%		5.67	%		5.49	%		5.53	%		5.63	%

	5.02	%		4.55	%		4.60	%	Total Earning Assets		4.47	%		4.47	%		4.67	%		4.65	%		4.73	%		4.75	%

									Interest-bearing Liabilities:
	0.04	%		0.03	%		0.04	%	NOW Accounts		0.06	%		0.04	%		0.03	%		0.03	%		0.03	%		0.03	%
	0.38	%		0.30	%		0.29	%	Savings Accounts		0.30	%		0.28	%		0.29	%		0.27	%		0.25	%		0.23	%
	0.10	%		0.10	%		0.10	%	Money Market Accounts		0.11	%		0.11	%		0.10	%		0.10	%		0.10	%		0.10	%
	3.01	%		2.50	%		1.87	%	Other Time		2.13	%		2.13	%		1.85	%		1.45	%		1.86	%		1.82	%

	1.39	%		1.07	%		0.73	%	Total Interest-bearing Deposits		0.86	%		0.82	%		0.74	%		0.55	%		0.64	%		0.58	%
	4.26	%		4.51	%		1.59	%	Brokered CD’s		1.75	%		2.01	%		0.98	%		0.85	%		0.86	%		0.82	%

	1.45	%		1.11	%		0.74	%	Total Interest-bearing Deposits & CD’s		0.87	%		0.83	%		0.74	%		0.55	%		0.64	%		0.58	%

	0.27	%		0.20	%		0.15	%	Short-term Borrowings		0.16	%		0.14	%		0.15	%		0.15	%		0.14	%		0.13	%
	4.96	%		4.74	%		4.16	%	Long-term Borrowings		4.35	%		4.39	%		4.33	%		3.19	%		2.97	%		2.93	%

	3.11	%		3.16	%		2.29	%	Total Borrowed Funds		2.47	%		2.60	%		2.56	%		1.47	%		1.41	%		1.40	%

	1.82	%		1.47	%		0.96	%	Total Interest-bearing Liabilities		1.11	%		1.08	%		0.99	%		0.66	%		0.73	%		0.68	%

	3.20	%		3.08	%		3.64	%	Net Interest Rate Spread		3.36	%		3.39	%		3.68	%		4.00	%		4.00	%		4.07	%
	3.50	%		3.40	%		3.87	%	Net Interest Margin (FTE)		3.62	%		3.67	%		3.96	%		4.20	%		4.20	%		4.26	%
$	20.8		$	13.5		$	11.8		FTE Adjustment ($ in millions)	$	3.0		$	2.9		$	2.9		$	3.0		$	3.1		$	3.3
									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)


2009			2010			2011				2011												2012
										1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr	4th Qtr
$	67.1		$	69.5		$	72.3		Beginning Allowance for Loan Losses	$	72.3		$	72.7		$	70.2		$	65.2		$	57.1		$	54.7
	63.3			30.8			6.5		Provision for Loan Losses		3.3			3.2			(0.1	)		0.1			1.0			(3.4	)
	(78.0	)		(41.3	)		(34.1	)	Gross Charge-offs		(6.3	)		(8.9	)		(7.5	)		(11.4	)		(6.5	)		(4.4	)
	(0.6	)		—			—		Write-downs from Loans Sold		—			—			—			—			—			—
	17.8			13.3			12.4		Gross Recoveries		3.4			3.1			2.6			3.2			3.1			3.5

	(60.8	)		(28.0	)		(21.7	)	Net Charge-offs		(2.9	)		(5.8	)		(4.9	)		(8.2	)		(3.4	)		(0.9	)

$	69.5		$	72.3		$	57.1		Ending Allowance for Loan Losses	$	72.7		$	70.2		$	65.2		$	57.1		$	54.7		$	50.4

	1.40	%		0.75	%		0.53	%	Net Charge-offs / Average Loans (1)		0.27	%		0.56	%		0.48	%		0.80	%		0.33	%		0.09	%
$	4,330.2		$	3,722.9		$	4,139.5		Average Loans Outstanding (1)	$	4,202.0		$	4,153.6		$	4,091.9		$	4,120.2		$	4,109.2		$	4,151.2
$	3,835.5		$	3,743.5		$	4,140.8		EOP Loans Outstanding (1)	$	4,190.8		$	4,117.3		$	4,140.1		$	4,140.8		$	4,114.7		$	4,226.3
	1.81	%		1.93	%		1.38	%	Allowance for Loan Loss / EOP Loans (1)		1.74	%		1.70	%		1.58	%		1.38	%		1.33	%		1.19	%

									Underperforming Assets:
$	3.5		$	0.6		$	1.1		Loans 90 Days & over (still accruing)	$	0.7		$	0.4		$	1.2		$	1.1		$	0.4		$	0.3
									Non-performing Loans:
	67.0			70.9			115.3		Nonaccrual Loans (2)		121.4			118.4			124.8			115.3			113.0			99.5
	—			—			1.3		Renegotiated Loans		—			—			—			1.3			1.1			1.2

	67.0			70.9			116.7		Total Non-performing Loans		121.4			118.4			124.8			116.7			114.1			100.7

	8.1			5.6			7.1		Foreclosed properties		14.1			9.9			9.4			7.1			6.5			10.8

$	78.7		$	77.1		$	124.9		Total Underperforming Assets	$	136.3		$	128.8		$	135.3		$	124.9		$	121.0		$	111.7

$	157.1		$	174.3		$	204.1		Classified Loans - “Problem Loans”	$	223.4		$	229.3		$	226.4		$	204.1		$	184.0		$	146.3
	161.2			105.6			106.9		Other Classified Assets		92.5			117.3			113.2			106.9			106.4			102.4
	103.5			84.0			80.1		Criticized Loans - “Special Mention Loans”		115.8			105.6			98.5			80.1			77.1			103.1

$	421.7		$	363.9		$	391.1		Total Classified & Criticized Assets	$	431.7		$	452.2		$	438.1		$	391.1		$	367.4		$	351.9

	1.75	%		1.90	%		2.82	%	Non-performing loans / EOP Loans (1)		2.90	%		2.88	%		3.01	%		2.82	%		2.77	%		2.38	%
	104	%		102	%		49	%	Allowance to Non-performing Loans (3)		60	%		59	%		52	%		49	%		48	%		50	%
	2.05	%		2.06	%		3.02	%	Under-performing Assets / EOP Loans (1)		3.25	%		3.13	%		3.27	%		3.02	%		2.94	%		2.64	%
$	8,005.3		$	7,263.9		$	8,609.7		EOP Total Assets (includes covered assets)	$	8,085.3		$	8,018.8		$	8,932.7		$	8,609.7		$	8,581.1		$	8,689.6
	0.98	%		1.06	%		1.45	%	Under-performing Assets / EOP Assets		1.69	%		1.61	%		1.52	%		1.45	%		1.41	%		1.29	%

EOP – End of period actual balances

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

(2)	Includes $16.9 million in 2Q12 of renegotiated loans.

(3)	Because the acquired loans from both Monroe and Integra were recorded at fair value in accordance with ASC 805 at the date of acquisition, the credit risk is incorporated in the fair value recorded. No allowance for loan losses is recorded on the acquisition date.

(4)

The Company entered into separate loss sharing agreements with the FDIC providing for specified credit loss protection for substantially all acquired single family residential loans, commercial loans, and other real estate owned. At June 30, 2012, approximately $489.3 million of loans and $22.2 million of other real estate owned are covered by the loss sharing agreements. As such, eighty percent of losses incurred on these covered assets will be reimbursed to Old National by the FDIC.

PAGE 7

Old National Bancorp

Asset Quality (EOP) Including Covered Assets (4)

($ in Millions)


2009			2010			2011				2011												2012
										1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr	4th Qtr
$	67.1		$	69.5		$	72.3		Beginning Allowance for Loan Losses	$	72.3		$	72.7		$	70.2		$	65.5		$	58.1		$	55.9
	63.3			30.8			7.5		Provision for Loan Losses		3.3			3.2			(0.1	)		1.0			2.1			0.4
	(78.0	)		(41.3	)		(34.9	)	Gross Charge-offs		(6.3	)		(8.9	)		(7.4	)		(12.3	)		(7.6	)		(5.2	)
	(0.6	)		—			—		Write-downs from Loans Sold		—			—			—			—			—			—
	17.8			13.3			13.2		Gross Recoveries		3.4			3.1			2.9			3.8			3.4			3.6

	(60.8	)		(28.0	)		(21.7	)	Net Charge-offs		(2.9	)		(5.8	)		(4.6	)		(8.5	)		(4.2	)		(1.5	)

$	69.5		$	72.3		$	58.1		Ending Allowance for Loan Losses	$	72.7		$	70.2		$	65.5		$	58.1		$	55.9		$	54.8

	1.40	%		0.75	%		0.49	%	Net Charge-offs / Average Loans (1)		0.27	%		0.56	%		0.40	%		0.71	%		0.36	%		0.13	%
$	4,330.2		$	3,722.9		$	4,440.5		Average Loans Outstanding (1)	$	4,202.0		$	4,153.6		$	4,596.1		$	4,810.0		$	4,708.4		$	4,680.2
$	3,835.5		$	3,743.5		$	4,767.2		EOP Loans Outstanding (1)	$	4,190.8		$	4,117.3		$	4,851.3		$	4,767.2		$	4,663.2		$	4,715.6
	1.81	%		1.93	%		1.22	%	Allowance for Loan Loss / EOP Loans (1)		1.74	%		1.70	%		1.35	%		1.22	%		1.20	%		1.16	%

									Underperforming Assets:
$	3.5		$	0.6		$	3.4		Loans 90 Days & over (still accruing)	$	0.7		$	0.4		$	1.9		$	3.4		$	1.3		$	0.9
									Non-performing Loans:
	67.0			70.9			298.2		Nonaccrual Loans (2)		121.4			118.4			323.8			298.2			271.5			240.5
	—			—			1.3		Renegotiated Loans		—			—			—			1.3			1.1			1.2

	67.0			70.9			299.5		Total Non-performing Loans		121.4			118.4			323.8			299.5			272.6			241.7

	8.1			5.6			37.6		Foreclosed properties		14.1			9.9			41.3			37.6			31.2			32.9

$	78.7		$	77.1		$	340.5		Total Underperforming Assets	$	136.3		$	128.8		$	367.0		$	340.5		$	305.0		$	275.5

$	157.1		$	174.3		$	404.3		Classified Loans - “Problem Loans”	$	223.4		$	229.3		$	442.6		$	404.3		$	370.0		$	310.9
	161.2			105.6			106.9		Other Classified Assets		92.5			117.3			113.2			106.9			106.4			102.4
	103.5			84.0			103.2		Criticized Loans - “Special Mention Loans”		115.8			105.6			125.4			103.2			97.2			119.3

$	421.7		$	363.9		$	614.4		Total Classified & Criticized Assets	$	431.7		$	452.2		$	681.2		$	614.4		$	573.6		$	532.7

	1.75	%		1.90	%		6.28	%	Non-performing loans / EOP Loans (1)		2.90	%		2.88	%		6.67	%		6.28	%		5.85	%		5.13	%
	104	%		102	%		19	%	Allowance to Non-performing Loans (3)		60	%		59	%		20	%		19	%		21	%		23	%
	2.05	%		2.06	%		7.14	%	Under-performing Assets / EOP Loans (1)		3.25	%		3.13	%		7.56	%		7.14	%		6.54	%		5.84	%
$	8,005.3		$	7,263.9		$	8,609.7		EOP Total Assets (includes covered assets)	$	8,085.3		$	8,018.8		$	8,932.7		$	8,609.7		$	8,581.1		$	8,689.6
	0.98	%		1.06	%		3.96	%	Under-performing Assets / EOP Assets		1.69	%		1.61	%		4.11	%		3.96	%		3.55	%		3.17	%

EOP – End of period actual balances

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

(2)	Includes $16.9 million in 2Q12 of renegotiated loans.

(3)	Because the acquired loans from both Monroe and Integra were recorded at fair value in accordance with ASC 805 at the date of acquisition, the credit risk is incorporated in the fair value recorded. No allowance for loan losses is recorded on the acquisition date.

(4)

PAGE 8

Old National Bancorp

NON-GAAP MEASURES

Second Quarter 2012

($ In Millions except EPS information)


										2011												2012
2009			2010			2011				1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr	4th Qtr
									Actual EOP Balances
$	843.8		$	878.8		$	1,033.6		GAAP Shareholders’ Equity	$	984.0		$	1,008.3		$	1,027.7		$	1,033.6		$	1,050.4		$	1,073.7

									Deduct:
	167.9			167.9			253.2		Goodwill		236.3			236.3			266.0			253.2			253.2			253.2
	32.3			26.2			33.6		Intangibles		34.7			34.1			36.3			33.6			31.6			30.2

	200.2			194.1			286.8				271.0			270.4			302.3			286.8			284.8			283.4

$	643.6		$	684.7		$	746.8		Tangible Shareholders’ Equity	$	713.0		$	737.8		$	725.4		$	746.8		$	765.6		$	790.3

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

$	643.6		$	684.7		$	746.8		Tangible Common Shareholders’ Equity	$	713.0		$	737.8		$	725.4		$	746.8		$	765.6		$	790.3

									Actual EOP Balances
$	8,005.3		$	7,263.9		$	8,609.7		GAAP Assets	$	8,085.3		$	8,018.8		$	8,932.7		$	8,609.7		$	8,581.1		$	8,689.6
									Add:
	0.2			0.5			0.6		Trust Overdrafts		0.1			0.4			0.4			0.6			0.1			0.1
									Deduct:
	167.9			167.9			253.2		Goodwill		236.3			236.3			266.0			253.2			253.2			253.2
	32.3			26.2			33.6		Intangibles		34.7			34.1			36.3			33.6			31.6			30.2

	200.2			194.1			286.8				271.0			270.4			302.3			286.8			284.8			283.4

$	7,805.4		$	7,070.3		$	8,323.5		Tangible Assets	$	7,814.4		$	7,748.8		$	8,630.8		$	8,323.5		$	8,296.4		$	8,406.2

	5,173.1			4,720.9			5,163.5		Risk Weighted Assets		5,062.8			4,978.4			5,406.5			5,163.5			5,147.0			5,099.8

									Actual EOP Balances
$	13.7		$	38.2		$	72.5		GAAP Net Income	$	16.4		$	17.0		$	16.8		$	22.2		$	21.7		$	27.2
									Add:
	4.9			4.6			7.0		Intangible Amortization (net of tax)		1.6			1.5			1.7			2.2			1.6			1.5

$	18.6		$	42.8		$	79.4		Tangible Net Income	$	18.0		$	18.5		$	18.5		$	24.4		$	23.3		$	28.8

									Tangible Ratios
	2.89	%		6.26	%		10.64	%	Return on Tangible Common Equity		10.10	%		10.05	%		10.20	%		13.08	%		12.19	%		14.55	%
	0.24	%		0.61	%		0.95	%	Return on Tangible Assets		0.92	%		0.96	%		0.86	%		1.17	%		1.13	%		1.37	%
	8.25	%		9.68	%		8.97	%	Tangible Common Equity to Tangible Assets		9.12	%		9.52	%		8.40	%		8.97	%		9.23	%		9.40	%
	12.44	%		14.50	%		14.46	%	Tangible Common Equity to Risk Wgt Assets		14.08	%		14.82	%		13.42	%		14.46	%		14.88	%		15.50	%
	7.38			7.85			7.89		Tangible Common Book Value (1)		7.53			7.79			7.66			7.89			8.09			8.35

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 9

Attached files

OLD NATIONAL BANCORP /IN/ Reports

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