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/	c16124e8vk.htm
EX-99.1 - EXHIBIT 99.1 - OLD NATIONAL BANCORP /IN/	c16124exv99w1.htm

Exhibit 99.2


		Old National Bancorp

Financial Trends
First Quarter 2011
May 2, 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
First 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
	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

									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
									Ratios — Net Income
	9.49	%		1.41	%		4.40	%	Return on Average Common Equity		4.74	%		4.91	%		5.40	%		2.57	%		6.78	%
	0.82	%		0.17	%		0.50	%	Return on Average Assets		0.51	%		0.55	%		0.64	%		0.31	%		0.82	%
	69.18	%		81.54	%		78.18	%	Efficiency Ratio		75.68	%		76.65	%		76.64	%		83.83	%		74.55	%
	3.82	%		3.50	%		3.40	%	Net Interest Margin (FTE)		3.33	%		3.40	%		3.42	%		3.46	%		3.62	%

									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	%
	15.1	%		16.1	%		14.8	%	Total		16.1	%		17.0	%		17.3	%		14.8	%		14.3	%
	9.5	%		9.5	%		9.0	%	Leverage Ratio (to Average Assets)		9.4	%		9.8	%		10.2	%		9.0	%		8.4	%

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

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

									Other Statistics
	2,507			2,812			2,491		Full Time Equivalent Employees		2,708			2,646			2,585			2,491			2,618


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.

PAGE 1

Old National Bancorp

INCOME STATEMENT
($ In Millions except EPS information)


Three Months				Change							First Quarter				Change
2011		2010		$			%				2011		2010		$			%
$	76.3	$	77.3	$	(1.0	)		-1.3	%	Interest Income	$	76.3	$	77.3	$	(1.0	)		-1.3	%
	15.0		22.2		(7.3	)		-32.7	%	Less: Interest Expense		15.0		22.2		(7.3	)		-32.7	%

	61.4		55.1		6.2			11.3	%	Net Interest Income		61.4		55.1		6.2			11.3	%

	5.1		4.3		0.8			19.0	%	Wealth Management Fees		5.1		4.3		0.8			19.0	%
	11.6		11.9		(0.4	)		-3.3	%	Service Charges on Deposit Accounts		11.6		11.9		(0.4	)		-3.3	%
	5.9		5.5		0.4			6.6	%	ATM Fees		5.9		5.5		0.4			6.6	%
	1.0		0.5		0.5			94.6	%	Mortgage Banking Revenue		1.0		0.5		0.5			94.6	%
	10.6		10.2		0.4			3.6	%	Insurance Premiums and Commissions		10.6		10.2		0.4			3.6	%
	2.6		2.1		0.5			26.3	%	Investment Product Fees		2.6		2.1		0.5			26.3	%
	1.2		0.8		0.3			38.7	%	Company-owned Life Insurance		1.2		0.8		0.3			38.7	%
	3.5		4.0		(0.6	)		-13.9	%	Other Income		3.5		4.0		(0.6	)		-13.9	%

	41.3		39.4		1.9			4.9	%	Total Fees, Service Charges & Other Rev.		41.3		39.4		1.9			4.9	%

	1.2		3.0		(1.8	)		-60.0	%	Gains (Losses) Sales of Securities (1)		1.2		3.0		(1.8	)		-60.0	%
	0.3		0.6		(0.3	)		-46.6	%	Gains (Losses) Derivatives		0.3		0.6		(0.3	)		-46.6	%

	42.8		43.0		(0.2	)		-0.4	%	Total Noninterest Income		42.8		43.0		(0.2	)		-0.4	%

	104.2		98.1		6.1			6.2	%	Total Revenues		104.2		98.1		6.1			6.2	%

	44.5		42.4		2.1			4.9	%	Salaries and Employee Benefits		44.5		42.4		2.1			4.9	%
	12.3		12.2		0.1			0.5	%	Occupancy		12.3		12.2		0.1			0.5	%
	3.0		2.8		0.2			7.2	%	Equipment		3.0		2.8		0.2			7.2	%
	1.3		1.4		(0.0	)		-3.3	%	Marketing		1.3		1.4		(0.0	)		-3.3	%
	6.1		5.5		0.6			10.0	%	Data Processing		6.1		5.5		0.6			10.0	%
	2.3		2.7		(0.4	)		-13.1	%	Communication		2.3		2.7		(0.4	)		-13.1	%
	2.4		1.7		0.7			42.5	%	Professional Fees		2.4		1.7		0.7			42.5	%
	1.1		0.9		0.2			19.7	%	Loan Expenses		1.1		0.9		0.2			19.7	%
	0.6		0.8		(0.2	)		-21.4	%	Supplies		0.6		0.8		(0.2	)		-21.4	%
	2.2		2.4		(0.3	)		-10.5	%	FDIC Assessment		2.2		2.4		(0.3	)		-10.5	%
	4.1		4.2		(0.1	)		-2.5	%	Other Expense		4.1		4.2		(0.1	)		-2.5	%

	79.9		77.1		2.9			3.7	%	Total Noninterest Expense		79.9		77.1		2.9			3.7	%

	3.3		9.3		(6.0	)		-64.3	%	Provision for loan losses		3.3		9.3		(6.0	)		-64.3	%

	21.0		11.8		9.2			78.0	%	Income (loss) before Income Taxes		21.0		11.8		9.2			78.0	%

	4.5		1.7		2.8			N/M		Total Taxes		4.5		1.7		2.8			N/M

$	16.4	$	10.1	$	6.4			63.2	%	Net Income (Loss)	$	16.4	$	10.1	$	6.4			63.2	%

										Diluted EPS
$	0.17	$	0.12	$	0.06			50.0	%	Net Income (Loss) Avail to Common	$	0.17	$	0.12	$	0.06			50.0	%

										Average Common Shares Outstanding (000’s)
	94,433		86,752		7,681			8.9	%	Basic		94,433		86,752		7,681			8.9	%
	94,670		86,797		7,874			9.1	%	Diluted		94,670		86,797		7,874			9.1	%

	94,734		87,161		7,573			8.7	%	Common Shares Outstanding (EOP) (000’s)		94,734		87,161		7,573			8.7	%


(1)		Includes $1.5 million of net gains and $0.3 million of OTTI in 1Q11 and $3.5 million of net gains and $0.5 million of OTTI in 1Q10.

OTTI — Other Than Temporary Impairment

EOP — End of period actual balances

N/M = Not meaningful

PAGE 2

Old National Bancorp
NET INCOME TRENDS
First 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
	149.2			109.3			78.4	Less: Interest Expense		22.2		20.4		18.8		17.0		15.0

	243.3			231.4			218.4	Net Interest Income		55.1		55.2		54.2		54.0		61.4
	17.4			16.0			16.1	Wealth Management Fees		4.3		4.0		3.8		4.0		5.1
	45.2			55.2			50.0	Service Charges on Deposit Accounts		11.9		13.2		12.4		12.5		11.6
	17.2			20.5			23.0	ATM Fees		5.5		5.9		5.8		5.7		5.9
	5.1			6.2			2.2	Mortgage Banking Revenue		0.5		0.6		0.6		0.5		1.0
	39.2			37.9			36.5	Insurance Premiums and Commissions		10.2		8.9		8.7		8.7		10.6
	9.5			8.5			9.2	Investment Product Fees		2.1		2.2		2.3		2.6		2.6
	9.2			2.4			4.1	Company-owned Life Insurance		0.8		1.2		1.0		1.0		1.2
	17.9			13.7			14.4	Other Income		4.0		3.3		3.6		3.5		3.5

	160.6			160.3			155.5	Total Fees, Service Charges & Other Rev.		39.4		39.3		38.4		38.4		41.3
	7.6			2.5			13.2	Gains (Losses) Sales of Securities (1)		3.0		3.2		3.2		3.7		1.2
	(1.1	)		0.7			1.5	Gains (Losses) Derivatives		0.6		0.4		0.4		0.1		0.3

	167.0			163.5			170.1	Total Noninterest Income		43.0		43.0		42.0		42.2		42.8
	410.3			394.9			388.6	Total Revenues		98.1		98.1		96.1		96.2		104.2
	167.8			181.4			170.6	Salaries and Employee Benefits		42.4		41.1		41.7		45.4		44.5
	39.7			47.1			46.4	Occupancy		12.2		11.8		11.7		10.6		12.3
	9.5			10.4			10.6	Equipment		2.8		2.6		2.6		2.6		3.0
	9.6			9.6			5.7	Marketing		1.4		1.4		1.5		1.4		1.3
	19.0			20.7			21.4	Data Processing		5.5		5.6		5.1		5.1		6.1
	9.3			10.9			9.8	Communication		2.7		2.5		2.3		2.3		2.3
	7.2			9.5			8.3	Professional Fees		1.7		2.2		1.6		2.8		2.4
	6.6			4.3			3.9	Loan Expenses		0.9		1.1		1.0		0.9		1.1
	3.3			4.3			2.9	Supplies		0.8		0.7		0.7		0.8		0.6
	1.5			12.4			8.4	FDIC Assessment		2.4		1.7		2.1		2.2		2.2
	23.9			28.3			26.2	Other Expense		4.2		7.2		5.7		9.1		4.1

	297.2			339.0			314.3	Total Noninterest Expense		77.1		77.9		76.1		83.3		79.9
	51.5			63.3			30.8	Provision for Loan Losses		9.3		8.0		6.4		7.1		3.3

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

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

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

$	0.95		$	0.14		$	0.44	Net Income (Loss) Avail to Common	$	0.12	$	0.12	$	0.13	$	0.07	$	0.17
	65,660			71,314			86,785	Average Basic Common Shares (000’s)		86,752		86,786		86,795		86,804		94,433
	65,776			71,367			86,928	Average Diluted Common Shares (000’s)		86,797		86,911		86,931		87,005		94,670


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

PAGE 3

Old National Bancorp

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


																Change from Prior Year
																3/31/2011 vs. 3/31/2010
	3/31/2011			12/31/2010			9/30/2010			6/30/2010			3/31/2010			$			%			12/31/2009			12/31/2008
Assets
Fed Reserve Bank Account	$	273.9		$	141.4		$	18.0		$	283.2		$	235.2		$	38.7			16.4	%	$	317.5		$	—
Money Market Investments		11.1			2.8			25.1			24.5			23.2			(12.0	)		-52.0	%		35.6			30.1
Investments:
Treasury & Gov’t Sponsored Agencies		713.0			680.9			995.1			1,159.9			1,200.6			(487.5	)		-40.6	%		1,142.7			389.3
Mortgage-backed Securities		1,208.0			1,188.3			1,232.9			1,015.3			1,048.1			159.9			15.3	%		1,048.4			1,172.6
States & Political Subdivisions		559.3			566.3			554.7			510.5			559.7			(0.4	)		-0.1	%		534.6			482.2
Other Securities		216.4			194.8			198.0			197.0			197.8			18.6			9.4	%		192.7			221.7

Total Investments		2,696.7			2,630.4			2,980.7			2,882.6			3,006.2			(309.5	)		-10.3	%		2,918.3			2,265.8

Residential Real Estate Loans Held for Sale		3.1			3.8			3.5			5.8			4.0			(0.9	)		-21.6	%		17.5			17.2
Leases Held for Sale		—			—			—			—			52.2			(52.2	)		-100.0	%		55.3			—
Loans:
Commercial		1,175.0			1,105.3			1,151.6			1,171.8			1,153.5			21.5			1.9	%		1,209.3			1,510.4
Commercial Leases		99.3			106.1			115.3			121.0			72.5			26.8			37.0	%		77.9			387.6
Commercial & Agriculture Real Estate		1,218.4			942.4			981.5			1,002.5			1,041.4			177.0			17.0	%		1,062.9			1,154.9
Consumer:
Home Equity		259.5			248.3			260.0			264.6			270.2			(10.7	)		-4.0	%		274.8			270.0
Other Consumer Loans		658.8			676.6			711.7			743.3			774.3			(115.5	)		-14.9	%		807.2			941.0

Subtotal of Commercial & Consumer Loans		3,411.0			3,078.7			3,220.2			3,303.3			3,311.9			99.1			3.0	%		3,432.1			4,263.8
Residential Real Estate		779.8			664.7			483.0			427.8			403.0			376.8			93.5	%		403.4			496.5

Total Loans		4,190.8			3,743.5			3,703.1			3,731.1			3,714.9			475.8			12.8	%		3,835.5			4,760.4

Total Earning Assets		7,175.6			6,521.8			6,730.5			6,927.2			7,035.7			139.9			2.0	%		7,179.7			7,073.4

Allowance for Loan Losses		(72.7	)		(72.3	)		(72.1	)		(71.9	)		(72.1	)		0.7			0.9	%		(69.5	)		(67.1	)
Nonearning Assets:
Cash and Due from Banks		127.9			107.4			129.2			119.0			121.8			6.2			5.1	%		144.2			162.9
Premises & Equipment		66.7			48.8			50.1			51.5			53.9			12.8			23.7	%		52.4			44.6
Goodwill & Intangible Assets		271.0			194.1			195.6			197.1			198.6			72.5			36.5	%		200.2			186.8
Company-owned Life Insurance		244.5			226.2			226.0			225.1			224.5			20.0			8.9	%		224.7			223.1
Other Assets		272.2			238.0			247.0			253.2			255.8			16.3			6.4	%		273.8			250.1

Total Nonearning Assets		982.4			814.4			847.8			845.7			854.6			127.8			15.0	%		895.2			867.6

Total Assets	$	8,085.3		$	7,263.9		$	7,506.1		$	7,701.1		$	7,818.3		$	267.1			3.4	%	$	8,005.3		$	7,873.9

Liabilities & Equity
Noninterest-bearing Demand Deposits	$	1,421.4		$	1,276.0		$	1,267.4		$	1,170.2		$	1,179.8		$	241.6			20.5	%	$	1,188.3		$	888.6
NOW Accounts		1,448.0			1,297.4			1,163.6			1,295.2			1,232.4			215.6			17.5	%		1,354.3			1,292.6
Savings Accounts		1,192.0			1,079.4			1,046.0			1,037.7			1,045.2			146.8			14.0	%		972.2			874.6
Money Market Accounts		353.9			334.8			344.3			360.5			381.9			(28.0	)		-7.3	%		381.1			420.8
Other Time under $100,000		1,050.8			988.7			1,083.1			1,170.1			1,200.2			(149.5	)		-12.5	%		1,284.3			1,224.2
Other Time $100,000 & over		519.9			466.3			514.8			567.8			581.9			(62.0	)		-10.6	%		653.3			550.0

Total Core Deposits		5,986.1			5,442.7			5,419.2			5,601.4			5,621.5			364.6			6.5	%		5,833.5			5,250.8
Brokered CD’s		73.8			20.2			20.3			45.5			69.9			3.8			5.5	%		69.9			171.5

Total Deposits		6,059.9			5,462.9			5,439.4			5,647.0			5,691.5			368.4			6.5	%		5,903.5			5,422.3
Short-term Borrowings		374.3			298.2			367.8			331.6			358.0			16.3			4.5	%		331.1			649.6
Long-term Borrowings		439.6			421.9			578.3			604.4			700.4			(260.8	)		-37.2	%		699.1			834.9

Total Borrowed Funds		813.8			720.1			946.0			935.9			1,058.4			(244.5	)		-23.1	%		1,030.2			1,484.5
Accrued Expenses & Other Liabilities		227.5			202.0			224.9			243.4			212.9			14.7			6.9	%		227.8			236.2

Total Liabilities		7,101.3			6,385.1			6,610.4			6,826.3			6,962.7			138.6			2.0	%		7,161.5			7,143.0
Preferred Stock & Surplus		—			—			—			—			—			—			—			—			97.4
Common Stock, Surplus & Retained Earnings		980.5			880.1			879.9			873.6			868.3			112.2			12.9	%		864.2			687.0
Other Comprehensive Income		3.5			(1.3	)		15.8			1.2			(12.8	)		16.2			N/M			(20.4	)		(53.5	)

Total Shareholders Equity		984.0			878.8			895.7			874.7			855.5			128.5			15.0	%		843.8			730.9

Total Liabilities & Shareholders Equity	$	8,085.3		$	7,263.9		$	7,506.1		$	7,701.1		$	7,818.3		$	267.1			3.4	%	$	8,005.3		$	7,873.9


EOP — End of period actual balances

N/M = Not meaningful

PAGE 4

Old National Bancorp
Balance Sheet Trends
PERIOD AVERAGES
($ in Millions)


										2010												2011
2008			2009			2010				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
	20.3			38.5			25.4		Money Market Investments		30.7			30.6			24.3			16.2			6.7
									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
	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
	329.4			506.7			536.3		States & Political Subdivisions		559.7			530.4			502.7			552.4			561.2
	251.4			214.4			198.7		Other Securities		197.3			200.3			198.3			199.0			214.0

	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

	7.2			11.7			4.2		Residential Real Estate Loans Held for Sale		6.4			3.0			3.7			3.4			3.6
	—			84.9			24.2		Leases Held for Sale		54.1			42.7			—			—			—
									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
	349.9			216.1			95.3		Commercial Leases		73.9			78.0			117.8			111.5			102.0
	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
									Consumer:
	254.9			273.1			264.7		Home Equity		273.8			267.7			262.6			254.7			266.3
	935.7			882.3			742.7		Other Consumer Loans		791.0			757.4			726.7			695.8			674.4

	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
	520.9			457.8			460.5		Residential Real Estate		403.3			418.0			455.2			565.6			752.5

	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

	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

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

$	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


									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
	1,249.5			1,250.7			1,221.4		NOW Accounts		1,262.4			1,220.4			1,193.7			1,208.8			1,451.5
	886.4			937.6			1,043.3		Savings Accounts		1,011.7			1,051.4			1,039.8			1,070.3			1,159.7
	487.5			436.5			361.2		Money Market Accounts		379.7			372.1			352.7			340.1			352.4
	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

	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

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

	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

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

	1,427.0			1,339.2			943.5		Total Borrowed Funds		1,029.2			985.6			913.4			846.0			812.4
	205.2			228.6			211.7		Accrued Expenses & Other Liabilities		219.2			211.1			218.7			197.6			201.2

	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


	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
	(33.7	)		(35.3	)		(0.4	)	Other Comprehensive Income		(14.2	)		(8.7	)		7.2			14.2			(1.3	)

	660.2			723.9			869.2		Total Shareholders Equity		848.9			857.2			881.0			889.8			969.5

$	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

PAGE 5

Old National Bancorp
Interest Rate Trends (FTE basis)
PERIOD AVERAGES


										2010												2011
2008			2009			2010				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	%
									Investments:
	4.90	%		4.01	%		3.21	%	Treasury & Gov’t Sponsored Agencies		3.46	%		3.26	%		3.11	%		2.93	%		2.45	%
	5.01	%		4.93	%		3.96	%	Mortgage-backed Securities		4.39	%		4.22	%		3.82	%		3.48	%		3.24	%
	6.91	%		6.72	%		6.19	%	States & Political Subdivisions		6.34	%		6.26	%		6.08	%		6.06	%		6.14	%
	5.54	%		4.93	%		4.68	%	Other Securities		4.71	%		4.79	%		4.49	%		4.75	%		4.36	%

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

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

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

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

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


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

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

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

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

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

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

	3.47	%		3.20	%		3.08	%	Net Interest Rate Spread		3.00	%		3.05	%		3.05	%		3.12	%		3.36	%
	3.82	%		3.50	%		3.40	%	Net Interest Margin (FTE)		3.33	%		3.40	%		3.42	%		3.46	%		3.62	%
$	19.3		$	20.8		$	13.5		FTE Adjustment ($ in millions)	$	3.7		$	3.5		$	3.2		$	3.1		$	3.0


FTE — Fully taxable equivalent basis

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

PAGE 6

Old National Bancorp
Asset Quality (EOP)
($ in Millions)


										2010												2011
2008			2009			2010				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
	51.5			63.3			30.8		Provision for Loan Losses		9.3			8.0			6.4			7.1			3.3
	—			—			—		Acquired from acquisition		—			—			—			—			—
	(51.2	)		(78.0	)		(41.3	)	Gross Charge-offs		(10.9	)		(11.8	)		(8.2	)		(10.4	)		(6.3	)
	—			(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

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

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

	0.87	%		1.40	%		0.75	%	Net Charge-offs / Average Loans (1)		0.72	%		0.90	%		0.66	%		0.74	%		0.27	%
$	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
$	4,760.4		$	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
	1.41	%		1.81	%		1.93	%	Allowance for Loan Loss / EOP Loans (1)		1.94	%		1.93	%		1.95	%		1.93	%		1.74	%

									Underperforming Assets:
$	2.9		$	3.5		$	0.6		Loans 90 Days & over (still accruing)	$	1.3		$	0.5		$	1.4		$	0.6		$	0.7
									Non-performing Loans:
	64.0			67.0			70.9		Nonaccrual Loans (2)		68.1			68.9			69.8			70.9			121.4
	—			—			—		Renegotiated Loans		—			—			—			—			—

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

	2.9			8.1			5.6		Foreclosed properties		9.6			7.0			5.9			5.6			14.1

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


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

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


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

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

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

$	7,873.9		$	8,005.3		$	7,263.9		EOP Total Assets	$	7,818.3		$	7,701.1		$	7,506.1		$	7,263.9		$	8,085.3

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


EOP — End of period actual balances

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

(2)		Includes $4.8 million in 1Q11 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.

PAGE 7

Old National Bancorp
NON-GAAP MEASURES
First 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

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

	186.8			200.2			194.1				198.6			197.1			195.6			194.1			271.0


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


									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


									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

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

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

	186.8			200.2			194.1				198.6			197.1			195.6			194.1			271.0


$	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


	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

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

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


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


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

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

OLD NATIONAL BANCORP /IN/ - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - May 2, 2011

Attached files

OLD NATIONAL BANCORP /IN/ Reports