e8vk

-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, GoHzBU6rbR/+m5iYSzLY/PX0E81gN0CL3f6yUTXSTUbwwvh8TgKJLhxKoA5DEkOE IVpjQH51xyrzqIOE5i8B7g== 0000950137-06-008156.txt : 20060727 0000950137-06-008156.hdr.sgml : 20060727 20060727092342 ACCESSION NUMBER: 0000950137-06-008156 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 20060727 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060727 DATE AS OF CHANGE: 20060727 FILER: COMPANY DATA: COMPANY CONFORMED NAME: OLD NATIONAL BANCORP /IN/ CENTRAL INDEX KEY: 0000707179 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 351539838 STATE OF INCORPORATION: IN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-15817 FILM NUMBER: 06983118 BUSINESS ADDRESS: STREET 1: ONE MAIN ST CITY: EVANSVILLE STATE: IN ZIP: 47708 BUSINESS PHONE: 8124641434 MAIL ADDRESS: STREET 1: ONE MAIN ST CITY: EVANSVILLE STATE: IN ZIP: 47708 FORMER COMPANY: FORMER CONFORMED NAME: O DATE OF NAME CHANGE: 19950822 8-K 1 c07079e8vk.htm CURRENT REPORT e8vk

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of report (Date of earliest event reported): July 27, 2006

OLD NATIONAL BANCORP

(Exact name of Registrant as specified in its charter)


Indiana (State or other jurisdiction of incorporation)		001-15817 (Commission File Number)		35-1539838 (IRS Employer Identification No.)

One Main Street
Evansville, Indiana 47708
(Address of Principal Executive Offices, including Zip Code)

(812) 464-1294
(Registrant’s Telephone Number, Including Area Code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

o		Written communications pursuant to Rule 425 under the Securities Act

o		Soliciting material pursuant to Rule 14a-12 under the Exchange Act

o		Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act

o		Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act

TABLE OF CONTENTS


Item 2.02 Results of Operations and Financial Condition
Item 9.01 Financial Statements and Exhibits
SIGNATURE
Press Release
Financial Trends

Item 2.02 Results of Operations and Financial Condition

On July 27, 2006, Old National Bancorp reported its results for the second quarter of 2006. The press release is included as Exhibit 99.1 hereto and is incorporated herein by reference. Old National Bancorp also released the financial trends including second-quarter 2006 results. The financial trends are included as Exhibit 99.2 hereto and are incorporated herein by reference. In connection therewith, a slide presentation outlining second-quarter 2006 earnings, recent strategic developments and the company’s financial outlook will be available on Old National’s website to compliment the conference call to be held on July 27, 2006, at 2:30 p.m. CST and will be accessible at http://www.oldnational.com before the conference call begins.

Item 9.01 Financial Statements and Exhibits

(c) Exhibits. The following exhibits are furnished herewith:

The following exhibits are furnished herewith and this list constitutes the exhibit index:


99.1		Press Release issued by Old National Bancorp on July 27, 2006
99.2		Financial Trends issued by Old National Bancorp on July 27, 2006

* * * * * * *

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: July 27, 2006



		OLD NATIONAL BANCORP

		By:		/s/ Christopher A. Wolking

				Christopher A. Wolking
				Executive Vice President and
				Chief Financial Officer

EX-99.1 2 c07079exv99w1.htm PRESS RELEASE exv99w1

Exhibit: 99.1

NYSE: ONB
www.oldnational.com

FINANCIAL NEWS

July 27, 2006

OLD NATIONAL REPORTS SECOND-QUARTER EARNINGS OF $20.2
MILLION, OR $.30 PER SHARE; YEAR-TO-DATE EARNINGS PER SHARE
INCREASE 3.4% OVER 2005

Contacts:


		*Financial Community:*		*Media:*
		Lynell J. Walton – (812) 464-1366		Kathy A. Schoettlin – (812) 465-7269
		Vice President – Investor Relations		Vice President – Public Relations

Second-Quarter vs. First-Quarter Highlights:

	Ø		*End of period loans increase $44.5 million*

	Ø		*Net interest margin remains constant*

	Ø		*Classified and criticized loans decrease 8.4%*

Old National Bancorp (NYSE: ONB) today reported earnings of $20.2 million, or $.30 per share, for the second quarter of 2006, down $.01 from the $.31 per share earned in the first quarter of the year. Old National had no discontinued operations to report for the second quarter. Earnings from continuing operations and net income for the second quarter of 2005 were $24.7 million, or $.37 per share, and $25.2 million, or $.37 per share, respectively.

Both earnings from continuing operations and net income for the first six months of 2006 were $40.9 million, or $.61 per share. These results compare favorably to the $40.3 million, or $.59 per share, from continuing operations and net income of $39.8 million, or $.58 per share, for the first half of 2005.

In 2005, Old National restated financial statements due to an error in the Company’s interpretation of SFAS No. 133 resulting in a disallowance of hedge accounting treatment for certain derivatives. As these derivatives were redesignated as hedges in January 2006, management believes it to be more meaningful to analyze current comparisons and future earnings as if hedge accounting treatment had been allowed for the restated periods. The following table reflects the second quarter and first six months of 2005 as if hedge accounting had been allowed:


	2Q05						2Q06				YTD 6-30-05				YTD 6-30-06
($ in millions, except per-share data)	$			EPS			$		EPS		$		EPS		$		EPS
Income From Continuing Operations As Reported	$	24.7		$	.37		$	20.2	$	.30	$	40.3	$	.59	$	40.9	$	.61
Adjustment for Accounting Treatment of Derivatives, Net of Tax		(3.5	)		(.06	)		—		—		.3		—		—		—
Adjusted Income From Continuing Operations	$	21.2		$	.31		$	20.2	$	.30	$	40.6	$	.59	$	40.9	$	.61

Page 1 of 8

“Overall, we are pleased with second-quarter results and believe that there are good underlying performance trends developing in many areas of the Company,” stated President and CEO, Bob Jones. “Positive items during the quarter included a continued improvement in our overall credit quality metrics and a net interest margin that remained unchanged in difficult interest rate and competitive environments. And although not yet at internal expectations, I am pleased with the growth we experienced in our commercial lending portfolio. An area of disappointment would be noninterest demand deposit growth. While we are pleased with the excitement and momentum building around our Unbeatable Checking promotion and the 1,017 in net new checking accounts during the second quarter, we have yet to fully realize the corresponding increase on the balance sheet.

“In addition, we have recently entered into a strategic partnership with SunTrust Mortgage, Inc., a subsidiary of SunTrust Bank,” continued Jones. “This partnership will allow Old National to bring a more diverse set of mortgage products at more competitive prices to our client base while providing enhanced sales support and training to our mortgage line of business.”

Strategic Imperatives

Old National continues to be guided by three strategic imperatives that are critical in establishing the Company’s presence as a high-performing financial institution:

	1.		Strengthen the risk profile.

	2.		Enhance management discipline.

	3.		Achieve consistent quality earnings.

Strengthen the Risk Profile

Non-performing loans at June 30, 2006, were $51.8 million, basically unchanged from the $51.4 million at March 31, 2006. While non-performers remained constant, the total portfolio of loans identified by the Company as problem credits continues to decline. Total classified and criticized loans at June 30, 2006, were $202.7 million, down $18.7 million, or 8.4% from the $221.4 million at March 31, 2006.

The provision for loan losses during the second quarter was $3.5 million and results in a year-to-date provision expense of $7.0 million. This provisioning compares favorably to the $6.0 million recorded for the second quarter of 2005 and the $11.1 million reported for the first half of last year.

Net charge-offs for the second quarter of 2006 were $4.0 million, down significantly from the $5.5 million in the first quarter of 2006 and the $11.7 million taken in the second quarter of 2005. Net charge-offs for the second quarter of 2006 represented only .33% of average loans on an annualized basis compared to .46% for the first quarter of this year and .93% for the second quarter of 2005.

The reserve for loan losses at June 30, 2006, was $76.4 million, compared to $76.8 million at the end of the first quarter. As a percentage of total loans, the reserve at June 30, 2006, stood at 1.57% relatively unchanged from the 1.59% at the end of the prior quarter.

“We are extremely pleased with the reduction in problem credits during the quarter while at the same time returning our charge-offs to historically low levels,” stated Daryl Moore, Chief Credit Officer. “As we continue to make steady improvements in our credit quality statistics, we remain optimistic that we can ultimately achieve measures that are at peer average levels or better.”

Page 2 of 8

Enhance Management Discipline

Capital Management

For the second quarter of the year, Old National repurchased .9 million shares of common stock. This brings the year-to-date total to 1.3 million shares repurchased by the Company. The board of directors has approved the repurchase of up to 6.0 million shares of stock over a three-year period ending December 31, 2008.

Expense Management

Noninterest expenses for the second quarter of 2006 were $63.7 million, compared to the $68.5 million and $63.9 million reported for the first quarter of 2006 and the second quarter of 2005, respectively. On a year-to-date basis, noninterest expenses totaled $132.2 million, compared to $130.3 million for the same period last year.

Achieve Consistent Quality Earnings

Balance Sheet & Margin

Total loans at June 30, 2006, were $4.876 billion and represent an increase of $44.5 million over the $4.831 billion at March 31, 2006. Commercial and commercial real estate loans rose $52.9 million during the quarter while consumer loans increased $1.8 million.

Average total loans for the second quarter were $4.861 billion and represented a decrease of $6.9 million from the first-quarter average. Excluding the impact of the O’Fallon, Illinois branch that was divested in March of this year, average total loans increased $17.5 million.

Total investments at June 30, 2006, were $2.590 billion, down from $2.604 billion at March 31, 2006. The investment portfolio declined to 31.2% of total assets from 31.6% of total assets at March 31, 2006.

Total core deposits were $5.872 billion at June 30, 2006, down $8.5 million from the $5.881 billion at March 31, 2006. Noninterest-bearing demand deposits at June 30, 2006, were up $13.1 million compared to the end of the first quarter. NOW, savings, and money market account balances declined $94.0 million compared to March 31, 2006. Importantly, the average interest rate on savings account balances declined from 1.33% during the first quarter to 1.16% in the second quarter and the average rate on money market accounts declined from 3.23% to 3.19% during the same period. The average rate on NOW accounts increased seven basis points from the first quarter to the second quarter compared to an increase of 15 basis points from the fourth quarter of 2005 to the first quarter of 2006.

Total borrowed funds increased $98.0 million during the second quarter, up to $1.690 billion at June 30, 2006, from $1.592 billion at March 31, 2006. Long-term borrowings declined $129.9 million from March 31, 2006, due primarily to maturities of Federal Home Loan Bank advances and senior bank notes. Federal funds purchased replaced the maturing long-term borrowings, thus contributing to the $232.1 million increase in short-term borrowings from $359.3 million at March 31, 2006, to $591.4 million at June 30, 2006.

Page 3 of 8

The net interest margin for the second quarter was 3.18%, unchanged from the margin for the first quarter of the year.

“We remain committed to a strategy of improving our earning asset mix by increasing high quality loans and reducing our investment portfolio,” stated Chief Financial Officer Christopher Wolking. “We expect that cash flows from the investment portfolio will continue to be used to reduce our short-term borrowed funds.

“The effort to reduce our high priced core deposits, largely from our public sector customers, continued during the second quarter and resulted in lower average interest rates in savings and money market accounts as well as a NOW account rate that did not increase as quickly as it did in the first quarter,” continued Wolking. “This effort contributed to our unchanged net interest margin during the quarter in the face of a difficult interest rate environment.”

Fees, Service Charges and Other Revenue

Old National reported total fees, service charges and other revenue of $36.3 million for the second quarter of 2006, a $5.1 million decrease from the first quarter of the year and a $1.0 million decrease from the second quarter of last year. The first quarter of this year contained a pre-tax gain of $3.0 million from the sale of a financial center in O’Fallon, Illinois and an additional $2.4 million in seasonal commission adjustments for the insurance line of business. The $1.0 million variance from the second quarter of last year is primarily attributable to a decline in service charges on deposit accounts.

With $8.3 billion in assets, Old National Bancorp is the largest financial services holding company headquartered in Indiana and 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 relationships with clients in its primary footprint of Indiana, Illinois and Kentucky. Focused on exceeding client expectations, the Old National team of financial professionals provides a broad range of services including retail and commercial banking, wealth management, insurance, and brokerage. For more information and financial trend data, please visit the company’s website at www.oldnational.com.

Page 4 of 8

Conference Call

Old National will hold a conference call at 2:30 p.m. (CDT) on Thursday, July 27, 2006, to discuss second-quarter 2006 financial results, strategic developments, and the company’s outlook for the remainder of the year. The live audio web cast of the call, along with the corresponding presentation slides, will be available on the company’s Shareholder Relations web page at www.oldnational.com and will be archived there for 12 months. A replay of the call will also be available from 5:30 p.m. (CDT) on July 27 through August 10. To access the replay, dial 1-800-642-1687, conference code 2142198.

Non-GAAP Financial Measures

This release contains non-GAAP financial measures. For purposes of Regulation G, a non-GAAP financial measure is a numerical measure of the registrant’s historical or future financial performance, financial position or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of income, balance sheet or statement of cash flows (or equivalent statements) of the issuer; or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. In this regard, GAAP refers to generally accepted accounting principles in the United States. Pursuant to the requirements of Regulation G, Old National Bancorp has provided reconciliations within this release, as necessary, of the non-GAAP financial measure to the most directly comparable GAAP financial measure.

Forward-Looking Statement

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include expressions such as “expect,” “intend,” “believe,” “anticipate,” “could,” and “should,” which are statements of belief as to the expected outcomes of future events. Actual results could materially differ from those contained in or implied by such statements. Internal and external 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 National’s business, competition, government legislation and policies, ability of Old National to execute its business plans and other matters discussed in this news release, changes in the economy which could materially impact credit quality trends and the ability to generate loans and gather deposits, significant changes in accounting, tax or regulatory practices or requirements, and other factors identified in the company’s form 10-K and other periodic filings with the Securities and Exchange Commission. Old National undertakes no obligation to release revisions to these forward-looking statements or reflect events or conditions after the date of this release.

Page 5 of 8

OLD NATIONAL BANCORP

Financial Highlights


	Three-Months Ended
($ in thousands except per-share data)	June 30
(FTE) Fully taxable equivalent basis.	2006			2005			Change			% Change
Income Data:
Net Interest Income (FTE)	$	59,620		$	60,223		$	(603	)		(1.0	)%
Fees, Service Charges and Other Revenues		36,347			37,326			(979	)		(2.6	)
Securities Gains (Losses)		55			1,043			(988	)		(94.7	)
Derivative Gains (Losses)		405			8,149			(7,744	)		(95.0	)
Total Revenue (FTE)		96,427			106,741			(10,314	)		(9.7	)
Provision for Loan Losses		3,500			6,000			(2,500	)		(41.7	)
Noninterest Expense		63,690			63,901			(211	)		(.3	)
Income before Taxes and Discontinued Operations		29,237			36,840			(7,603	)		(20.6	)
Provision for Taxes (FTE)		9,050			12,143			(3,093	)		(25.5	)
Income from Continuing Operations		20,187			24,697			(4,510	)		(18.3	)
Income (Loss) from Discontinued Operations Net of Tax		—			542			(542	)		(100.0	)
Net Income		20,187			25,239			(5,052	)		(20.0	)

Per Share Data: (Diluted) (a)
Net Income from Continuing Operations		.30			.37			(.07	)		(18.9	)
Net Income (Loss) from Discontinued Operations		—			—			—			N/M
Net Income		.30			.37			(.07	)		(18.9	)
Average Diluted Shares Outstanding		66,353			68,488			(2,135	)		(3.1	)
Book Value		9.24			10.18			(.94	)		(9.2	)
Stock Price		19.97			21.40			(1.43	)		(6.7	)

Performance Ratios:
Return on Average Assets		.97	%		1.16	%		(.19	)%		(16.4	)%
Return on Average Assets (b)		.97			1.13			(.16	)		(14.2	)
Return on Average Equity (c)		12.82			14.56			(1.74	)		(12.0	)
Return on Average Equity (b) (c)		12.82			14.24			(1.42	)		(10.0	)
Net Interest Margin (FTE)		3.18			3.07			.11			3.6
Other Expense to Revenue (Efficiency Ratio) (b)		66.05			59.87			6.18			10.3
Net Charge-offs to Average Loans (d)		.33			.93			(.60	)		(64.5	)
Reserve for Loan Losses to Ending Loans (d)		1.57			1.59			(.02	)		(1.3	)
Non-Performing Loans to Ending Loans (d)		1.06			.97			.09			9.3

Balance Sheet:
Average Assets	$	8,296,947		$	8,721,000		$	(424,053	)		(4.9	)
End of Period Balances:
Assets		8,306,497			8,648,508			(342,011	)		(4.0	)
Commercial and Commercial Real Estate Loans		3,102,949			3,242,731			(139,782	)		(4.3	)
Consumer Loans		1,248,898			1,231,170			17,728			1.4
Residential Real Estate Loans		500,002			551,059			(51,057	)		(9.3	)
Residential Real Estate Loans Held for Sale		24,083			46,809			(22,726	)		(48.6	)
Core Deposits (Excluding Brokered CDs)		5,872,250			5,944,561			(72,311	)		(1.2	)
Shareholders’ Equity		614,664			701,590			(86,926	)		(12.4	)


(a)		Assumes conversion of stock options and restricted stock.

(b)		Based on income from continuing operations.

(c)		Based on average shareholders’ equity of $629,991 and $693,554, respectively, for 2006 and 2005.

(d)		Includes residential loans held for sale.

N/M		Not meaningful.

Page 6 of 8

OLD NATIONAL BANCORP

Financial Highlights


	Three-Months Ended
($ in thousands except per-share data)	June 30,			March 31,
(FTE) Fully taxable equivalent basis.	2006			2006			Change			% Change
Income Data:
Net Interest Income (FTE)	$	59,620		$	59,488		$	132			.2	%
Fees, Service Charges and Other Revenues		36,347			41,401			(5,054	)		(12.2	)
Securities Gains (Losses)		55			(147	)		202			(137.4	)
Derivative Gains (Losses)		405			1,615			(1,210	)		(74.9	)
Total Revenue (FTE)		96,427			102,357			(5,930	)		(5.8	)
Provision for Loan Losses		3,500			3,500			—			—
Noninterest Expense		63,690			68,487			(4,797	)		(7.0	)
Income before Taxes and Discontinued Operations		29,237			30,370			(1,133	)		(3.7	)
Provision for Taxes (FTE)		9,050			9,701			(651	)		(6.7	)
Income from Continuing Operations		20,187			20,669			(482	)		(2.3	)
Income (Loss) from Discontinued Operations Net of Tax		—			—			—			N/M
Net Income		20,187			20,669			(482	)		(2.3	)

Per Share Data: (Diluted) (a)
Net Income from Continuing Operations		.30			.31			(.01	)		(3.2	)
Net Income (Loss) from Discontinued Operations		—			—			—			N/M
Net Income		.30			.31			(.01	)		(3.2	)
Average Diluted Shares Outstanding		66,353			67,317			(964	)		(1.4	)
Book Value		9.24			9.53			(.29	)		(3.0	)
Stock Price		19.97			21.64			(1.67	)		(7.7	)

Performance Ratios:
Return on Average Assets		.97	%		1.00	%		(.03	)%		(3.0	)%
Return on Average Assets (b)		.97			1.00			(.03	)		(3.0	)
Return on Average Equity (c)		12.82			12.68			.14			1.1
Return on Average Equity (b) (c)		12.82			12.68			.14			1.1
Net Interest Margin (FTE)		3.18			3.18			—			—
Other Expense to Revenue (Efficiency Ratio) (b)		66.05			66.91			(.86	)		(1.3	)
Net Charge-offs to Average Loans (d)		.33			.46			(.13	)		(28.3	)
Reserve for Loan Losses to Ending Loans (d)		1.57			1.59			(.02	)		(1.3	)
Non-Performing Loans to Ending Loans (d)		1.06			1.06			—			—

Balance Sheet:
Average Assets	$	8,296,947		$	8,289,711		$	7,236			.1
End of Period Balances:
Assets		8,306,497			8,244,921			61,576			.7
Commercial and Commercial Real Estate Loans		3,102,949			3,050,084			52,865			1.7
Consumer Loans		1,248,898			1,247,077			1,821			.1
Residential Real Estate Loans		500,002			512,342			(12,340	)		(2.4	)
Residential Real Estate Loans Held for Sale		24,083			21,965			2,118			9.6
Core Deposits (Excluding Brokered CDs)		5,872,250			5,880,784			(8,534	)		(.1	)
Shareholders’ Equity		614,664			642,373			(27,709	)		(4.3	)


(a)		Assumes conversion of stock options and restricted stock.

(b)		Based on income from continuing operations.

(c)		Based on average shareholders’ equity of $629,991 and $651,785, respectively, for June 30, 2006, and March 31, 2006.

(d)		Includes residential loans held for sale.

N/M		Not meaningful.

Page 7 of 8

OLD NATIONAL BANCORP

Financial Highlights


	Six-Months Ended
($ in thousands except per-share data)	June 30
(FTE) Fully taxable equivalent basis.	2006			2005			Change			% Change
Income Data:
Net Interest Income (FTE)	$	119,108		$	120,982		$	(1,874	)		(1.5	)%
Fees, Service Charges and Other Revenues		77,748			73,976			3,772			5.1
Securities Gains (Losses)		(92	)		523			(615	)		(117.6	)
Derivative Gains (Losses)		2,020			5,277			(3,257	)		(61.7	)
Total Revenue (FTE)		198,784			200,758			(1,974	)		(1.0	)
Provision for Loan Losses		7,000			11,100			(4,100	)		(36.9	)
Noninterest Expense		132,177			130,257			1,920			1.5
Income before Taxes and Discontinued Operations		59,607			59,401			206			.3
Provision for Taxes (FTE)		18,751			19,148			(397	)		(2.1	)
Income from Continuing Operations		40,856			40,253			603			1.5
Income (Loss) from Discontinued Operations Net of Tax		—			(442	)		442			100.0
Net Income		40,856			39,811			1,045			2.6

Per Share Data: (Diluted) (a)
Net Income from Continuing Operations		.61			.59			.02			3.4
Net Income (Loss) from Discontinued Operations		—			(.01	)		.01			100.0
Net Income		.61			.58			.03			5.2
Average Diluted Shares Outstanding		66,719			68,572			(1,853	)		(2.7	)
Book Value		9.24			10.18			(.94	)		(9.2	)
Stock Price		19.97			21.40			(1.43	)		(6.7	)

Performance Ratios:
Return on Average Assets		.99	%		.91	%		.08	%		8.8	%
Return on Average Assets (b)		.99			.92			.07			7.6
Return on Average Equity (c)		12.75			11.39			1.36			11.9
Return on Average Equity (b) (c)		12.75			11.51			1.24			10.8
Net Interest Margin (FTE)		3.18			3.06			.12			3.9
Other Expense to Revenue (Efficiency Ratio) (b)		66.49			64.88			1.61			2.5
Net Charge-offs to Average Loans (d)		.39			.65			(.26	)		(40.0	)
Reserve for Loan Losses to Ending Loans (d)		1.57			1.59			(.02	)		(1.3	)
Non-Performing Loans to Ending Loans (d)		1.06			.97			.09			9.3

Balance Sheet:
Average Assets	$	8,293,329		$	8,769,104		$	(475,775	)		(5.4	)
End of Period Balances:
Assets		8,306,497			8,648,508			(342,011	)		(4.0	)
Commercial and Commercial Real Estate Loans		3,102,949			3,242,731			(139,782	)		(4.3	)
Consumer Loans		1,248,898			1,231,170			17,728			1.4
Residential Real Estate Loans		500,002			551,059			(51,057	)		(9.3	)
Residential Real Estate Loans Held for Sale		24,083			46,809			(22,726	)		(48.6	)
Core Deposits (Excluding Brokered CDs)		5,872,250			5,944,561			(72,311	)		(1.2	)
Shareholders’ Equity		614,664			701,590			(86,926	)		(12.4	)


(a)		Assumes conversion of stock options and restricted stock.

(b)		Based on income from continuing operations.

(c)		Based on average shareholders’ equity of $640,888 and $699,239, respectively, for 2006 and 2005.

(d)		Includes residential loans held for sale.

N/M		Not meaningful.

Page 8 of 8

EX-99.2 3 c07079exv99w2.htm FINANCIAL TRENDS exv99w2

Exhibit: 99.2


		Old National Bancorp Financial Trends Second Quarter 2006

		July 27, 2006

		Please direct inquiries to:

		Christopher A. Wolking, Executive Vice President & Chief Financial Officer (812) 464-1322 or Candice Rickard, Senior Vice President & Corporate Controller (812) 461-9769


Notes:-		Disclosures based on operating earnings, which exclude gains on branch divestitures and restructuring charges, are included to provide comparable data between years.

-		All share and per share data have been adjusted for stock dividends.

-		Summations may not equal due to rounding.

-		In connection with certain derivative transactions related to interest rate swap agreements, the Company restated the years ended December 31, 2002, 2003, 2004, and the quarterly results for the periods ended March 31, June 30, and September 30, 2004 and 2005. For additional information regarding this restatement, see Form 8-K filed on January 31, 2006.

Old National Bancorp
Financial Summary
Second Quarter 2006


													2005												2006
2002			2003			2004			2005				1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr	4th Qtr
												Profitability (in millions)
$	128.1		$	65.5		$	63.1		$	63.8		NET INCOME	$	14.6		$	25.2		$	4.5		$	19.5		$	20.7		$	20.2
	0.6			2.5			2.8			(14.8	)	INCOME from Discontinued Operations (net of tax)		(1.0	)		0.5			(14.4	)		—			—			—
	127.5			63.1			60.3			78.6		INCOME from Continuing Operations (net of tax)		15.6			24.7			18.9			19.5			20.7			20.2



												Diluted EPS
$	1.81		$	0.93		$	0.90		$	0.93		Net Income	$	0.21		$	0.37		$	0.07		$	0.28		$	0.31		$	0.30
	0.01			0.03			0.04			(0.22	)	Income from Discontinued Operations		(0.01	)		—			(0.21	)		—			—			—
	1.80			0.90			0.86			1.15		Income from Continuing Operations		0.22			0.37			0.28			0.28			0.31			0.30



												Ratios — Net Income
	18.43	%		8.72	%		8.83	%		9.31	%	Return on Average Common Equity		8.27	%		14.56	%		2.66	%		11.69	%		12.68	%		12.82	%
	1.38	%		0.69	%		0.69	%		0.74	%	Return on Average Assets		0.66	%		1.16	%		0.21	%		0.92	%		1.00	%		0.97	%

												Ratios — Income from Continuing Operations
	18.34	%		8.40	%		8.44	%		11.47	%	Return on Average Common Equity		8.83	%		14.24	%		11.16	%		11.69	%		12.68	%		12.82	%
	1.38	%		0.66	%		0.66	%		0.91	%	Return on Average Assets		0.71	%		1.13	%		0.88	%		0.92	%		1.00	%		0.97	%
	52.73	%		60.84	%		73.92	%		65.43	%	Efficiency Ratio		70.58	%		59.87	%		65.02	%		66.87	%		66.91	%		66.05	%
	3.54	%		3.18	%		3.08	%		3.09	%	Net Interest Margin (FTE)		3.05	%		3.07	%		3.16	%		3.09	%		3.18	%		3.18	%



												Capital Ratios:
												Risk-Based Capital Ratios (EOP):
	11.3	%		11.1	%		11.2	%		10.6	%	Tier 1		11.0	%		10.1	%		10.4	%		10.6	%		10.7	%		10.4	%
	14.9	%		14.7	%		14.9	%		14.4	%	Total		14.7	%		13.8	%		14.1	%		14.4	%		14.5	%		14.1	%
	7.6	%		7.4	%		7.7	%		7.7	%	Leverage Ratio (to Average Assets)		7.7	%		7.2	%		7.6	%		7.7	%		7.8	%		7.6	%

	7.50	%		7.86	%		7.83	%		7.94	%	Total Equity to Assets (Averages)		7.99	%		7.95	%		7.91	%		7.91	%		7.86	%		7.59	%



												Per Common Share Data:
	0.63			0.69			0.72			0.76		Cash Dividends Declared		0.19			0.19			0.19			0.19			0.21			0.21
	35	%		74	%		80	%		81	%	Dividend Payout Ratio		90	%		51	%		288	%		66	%		68	%		69	%
	10.67			10.31			10.16			9.61		Book Value (EOP)		9.72			10.18			9.84			9.61			9.53			9.24
	20.99			20.72			24.63			21.64		Market Value (EOP)		20.30			21.40			21.22			21.64			21.64			19.97



												Other Statistics
	2,752			2,842			2,565			2,572		Full Time Equivalent Employees (1)		2,549			2,616			2,599			2,572			2,542			2,527


		FTE — Fully taxable equivalent basis

		EOP — End of period actual balances

(1)		Based on the number of employees associated with continuing operations.

PAGE 1

Old National Bancorp
INCOME STATEMENT
($ In Millions except EPS information)


Six Months						Change							Second Quarter				Change
2006			2005			$			%				2006		2005		$			%
$	233.7		$	218.9		$	14.8			6.8	%	Interest Income (FTE)	$	118.9	$	110.5	$	8.4			7.6	%
	114.6			97.9			16.7			17.0	%	Less: Interest Expense		59.3		50.3		9.0			17.9	%

	119.1			121.0			(1.9	)		-1.5	%	Net Interest Income (FTE)		59.6		60.2		(0.6	)		-1.0	%

	10.1			10.5			(0.4	)		-3.4	%	Wealth Management Fees		5.0		5.6		(0.7	)		-11.8	%
	20.6			23.2			(2.6	)		-11.1	%	Service Charges on Deposit Accounts		10.7		12.1		(1.4	)		-11.4	%
	20.4			18.1			2.3			12.7	%	Insurance Premiums and Commissions		9.5		9.1		0.4			4.2	%
	4.3			4.9			(0.6	)		-12.6	%	Investment Product Fees		2.0		2.3		(0.3	)		-12.6	%
	1.8			2.6			(0.9	)		-32.3	%	Mortgage Banking Revenue		0.6		1.3		(0.7	)		-54.0	%
	20.5			14.6			5.9			40.2	%	Other Income		8.6		6.9		1.7			23.8	%

	77.7			74.0			3.8			5.1	%	Total Fees, Service Charges & Other Rev.		36.3		37.3		(1.0	)		-2.6	%

	(0.1	)		0.5			(0.6	)		-117.7	%	Gains (Losses) Sales of Securities		0.1		1.0		(1.0	)		-94.8	%
	2.0			5.3			(3.3	)		-61.7	%	Gains (Losses) Derivatives		0.4		8.1		(7.7	)		-95.0	%

	79.7			79.8			(0.1	)		-0.1	%	Total Noninterest Income		36.8		46.5		(9.7	)		-20.9	%

	198.8			200.8			(2.0	)		-1.0	%	Total Revenues (FTE)		96.4		106.7		(10.3	)		-9.7	%

	79.0			77.8			1.3			1.6	%	Salaries and Employee Benefits		37.7		38.7		(1.0	)		-2.7	%
	10.1			10.2			(0.0	)		-0.4	%	Occupancy		4.9		5.1		(0.2	)		-4.4	%
	6.6			7.4			(0.8	)		-10.4	%	Equipment		3.2		3.9		(0.6	)		-16.4	%
	9.1			10.7			(1.6	)		-15.1	%	Data Processing		4.5		5.3		(0.8	)		-15.5	%
	9.5			9.2			0.3			3.6	%	Marketing & Communication		4.9		4.8		0.2			3.2	%
	3.8			4.1			(0.3	)		-7.5	%	Professional Fees		1.9		2.0		(0.2	)		-8.1	%
	13.9			10.9			3.1			28.3	%	Other Expense		6.5		4.0		2.5			62.7	%

	132.2			130.3			1.9			1.5	%	Total Noninterest Expense		63.7		63.9		(0.2	)		-0.3	%

	7.0			11.1			(4.1	)		-36.9	%	Provision for loan losses		3.5		6.0		(2.5	)		-41.7	%

												Income before Income Taxes and
	59.6			59.4			0.2			0.3	%	Discontinued Operations (FTE)		29.2		36.8		(7.6	)		-20.6	%

	8.4			8.0			0.3			4.2	%	Income Taxes on Continuing Ops.		3.8		6.6		(2.8	)		-42.0	%
	10.4			11.1			(0.7	)		-6.6	%	FTE Adjustment		5.2		5.5		(0.3	)		-5.8	%

	18.8			19.1			(0.4	)		-2.1	%	Total Taxes (FTE)		9.1		12.1		(3.1	)		-25.5	%

	40.9			40.3			0.6			1.5	%	Income from Continuing Operations		20.2		24.7		(4.5	)		-18.3	%
	—			(0.4	)		0.4			N/M		Income from Discontinued Ops., (net of tax)		—		0.5		(0.5	)		N/M

$	40.9		$	39.8		$	1.0			2.6	%	Net Income	$	20.2	$	25.2	$	(5.1	)		-20.0	%


												Diluted EPS
$	0.61		$	0.59		$	0.02			4.1	%	Income from Continuing Operations	$	0.30	$	0.37	$	(0.07	)		-18.1	%
	—			(0.01	)		0.01			N/M		Income from Discontinued Operations		—		—		—			N/M

$	0.61		$	0.58		$	0.04			6.0	%	Net Income	$	0.30	$	0.37	$	(0.07	)		-17.6	%


												Average Common Shares Outstanding (000’s)
	66,648			68,530			(1,882	)		-2.7	%	Basic		66,283		68,471		(2,188	)		-3.2	%
	66,719			68,572			(1,853	)		-2.7	%	Diluted		66,353		68,488		(2,135	)		-3.1	%

	66,535			68,950			(2,415	)		-3.5	%	Common Shares Outstanding (EOP) (000’s)		66,535		68,950		(2,415	)		-3.5	%


FTE — Fully taxable equivalent basis

EOP — End of period actual balances

N/M = Not meaningful

PAGE 2

Old National Bancorp
NET INCOME TRENDS
Second Quarter 2006
($ In Millions except EPS information)


										2005											2006
2002		2003		2004		2005				1st Qtr			2nd Qtr		3rd Qtr			4th Qtr			1st Qtr			2nd Qtr		3rd Qtr	4th Qtr
$	572.6	$	494.8	$	441.0	$	446.8		Interest Income (FTE)	$	108.3		$	110.5	$	113.1		$	114.7		$	114.7		$	118.9
	267.9		214.4		185.4		206.1		Less: Interest Expense		47.6			50.3		52.2			55.9			55.3			59.3

	304.7		280.4		255.7		240.7		Net Interest Income (FTE)		60.8			60.2		60.9			58.8			59.5			59.6

	19.4		20.4		20.4		20.3		Wealth Management Fees		4.9			5.6		5.0			4.7			5.2			5.0
	42.0		44.9		48.5		47.2		Service Charges on Deposit Accounts		11.1			12.1		12.5			11.5			9.9			10.7
	15.2		22.4		32.8		35.2		Insurance Premiums and Commissions		9.1			9.1		8.5			8.6			11.0			9.5
	9.0		10.6		12.0		9.0		Investment Product Fees		2.6			2.3		2.2			1.8			2.3			2.0
	14.5		19.1		8.5		4.9		Mortgage Banking Revenue		1.4			1.3		1.8			0.5			1.2			0.6
	35.4		23.1		27.0		45.9		Other Income		7.7			6.9		8.4			22.9			11.9			8.6

	135.4		140.5		149.2		162.4		Total Fees, Service Charges & Other Rev.		36.7			37.3		38.4			50.0			41.4			36.3

	12.4		23.6		2.9		0.9		Gains (Losses) Sales of Securities		(0.5	)		1.0		0.7			(0.3	)		(0.1	)		0.1
	26.0		8.9		10.8		(3.4	)	Gains (Losses) Derivatives		(2.9	)		8.1		(4.6	)		(4.1	)		1.6			0.4

	173.8		172.9		162.9		159.9		Total Noninterest Income		33.3			46.5		34.5			45.7			42.9			36.8

	478.5		453.4		418.5		400.6		Total Revenues (FTE)		94.0			106.7		95.4			104.5			102.4			96.4

	144.5		151.4		171.9		147.8		Salaries and Employee Benefits		39.0			38.7		35.9			34.1			41.3			37.7
	16.0		17.0		19.3		20.4		Occupancy		5.0			5.1		4.6			5.6			5.2			4.9
	15.0		13.8		14.2		14.4		Equipment		3.5			3.9		3.6			3.4			3.4			3.2
	13.6		18.9		21.6		21.2		Data Processing		5.4			5.3		5.1			5.4			4.6			4.5
	22.6		22.0		20.5		18.2		Marketing & Communication		4.4			4.8		4.2			4.7			4.6			4.9
	8.8		8.8		25.9		9.3		Professional Fees		2.1			2.0		2.3			2.9			2.0			1.9
	31.8		44.0		36.0		30.9		Other Expense		6.8			4.0		6.3			13.7			7.4			6.5

	252.3		275.8		309.4		262.1		Total Noninterest Expense		66.4			63.9		62.0			69.8			68.5			63.7

	33.5		85.0		22.4		23.1		Provision for Loan Losses		5.1			6.0		6.0			6.0			3.5			3.5

	192.7		92.6		86.7		115.4		Income before Taxes and Disco. Ops. (FTE)		22.6			36.8		27.4			28.6			30.4			29.2

	40.1		4.4		2.5		15.3		Income Taxes on Continuing Ops.		1.4			6.6		3.2			4.0			4.6			3.8
	25.2		25.1		23.9		21.5		FTE Adjustment		5.6			5.5		5.2			5.2			5.1			5.2

	65.2		29.5		26.4		36.8		Total Taxes (FTE)		7.0			12.1		8.5			9.1			9.7			9.1

	127.5		63.1		60.3		78.6		Income from Continuing Operations		15.6			24.7		18.9			19.5			20.7			20.2
	0.6		2.5		2.8		(14.8	)	Income from Discontinued Ops., (net of tax)		(1.0	)		0.5		(14.4	)		—			—			—

$	128.1	$	65.5	$	63.1	$	63.8		Net Income	$	14.6		$	25.2	$	4.5		$	19.5		$	20.7		$	20.2


									Diluted EPS
$	1.80	$	0.90	$	0.86	$	1.15		Income from Continuing Operations	$	0.22		$	0.37	$	0.28		$	0.28		$	0.31		$	0.30
	0.01		0.03		0.04		(0.22	)	Income from Discontinued Operations		(0.01	)		—		(0.21	)		—			—			—

$	1.81	$	0.93	$	0.90	$	0.93		Net Income	$	0.21		$	0.37	$	0.07		$	0.28		$	0.31		$	0.30


	70,536		70,118		69,452		68,095		Average Basic Common Shares (000’s)		68,589			68,471		68,011			67,323			67,016			66,283
	70,673		70,174		70,024		68,256		Average Diluted Common Shares (000’s)		68,787			68,488		68,331			67,591			67,317			66,353

FTE — Fully taxable equivalent basis

PAGE 3

Old National Bancorp
Balance Sheet (EOP)
Second Quarter 2006
($ in Millions)


	6/30/2006			3/31/2006			6/30/2005			Change from Prior Year
										$			%
Assets
Securities:
Treasury & Government Sponsored Agencies	$	652.2		$	581.5		$	511.0		$	141.2			27.6	%
Municipals		459.6			486.6			515.4			(55.8	)		-10.8	%
Mortgage Backed		1,210.9			1,243.7			1,320.6			(109.7	)		-8.3	%
Fed Funds Sold		5.6			3.1			2.4			3.1			129.2	%
Other (1)		261.8			289.1			307.1			(45.3	)		-14.7	%

Total Investments (1)		2,590.1			2,604.0			2,656.5			(66.4	)		-2.5	%

Residential Real Estate Loans Held for Sale		24.1			22.0			46.8			(22.7	)		-48.6	%
Loans:
Commercial Loans & Leases		1,634.5			1,550.0			1,643.6			(9.2	)		-0.6	%
Commercial & Agriculture Real Estate		1,468.5			1,500.1			1,599.1			(130.6	)		-8.2	%
Consumer:
Home Equity		306.5			315.3			359.7			(53.2	)		-14.8	%
Other Consumer Loans		942.4			931.8			871.4			70.9			8.1	%

Subtotal		4,351.8			4,297.2			4,473.9			(122.1	)		-2.7	%
Residential Real Estate		500.0			512.3			551.1			(51.1	)		-9.3	%

Total Loans		4,851.8			4,809.5			5,025.0			(173.1	)		-3.4	%

Total Earning Assets		7,466.0			7,435.5			7,728.3			(262.3	)		-3.4	%


Allowance for Loan Losses		(76.4	)		(76.8	)		(80.6	)		4.3			5.3	%
Nonearning Assets:
Cash and Due from Banks		186.5			165.0			216.9			(30.4	)		-14.0	%
Premises & Equipment		193.3			195.1			211.4			(18.1	)		-8.5	%
Goodwill & Intangible Assets		135.2			135.8			137.5			(2.3	)		-1.7	%
Other Assets		401.9			390.3			435.1			(33.3	)		-7.6	%

Total Nonearning Assets		916.9			886.3			1,000.9			(84.0	)		-8.4	%

Total Assets	$	8,306.5		$	8,244.9		$	8,648.5		$	(342.0	)		-4.0	%


Liabilities & Equity
Noninterest-bearing Demand Deposits	$	833.2		$	820.1		$	857.1		$	(23.8	)		-2.8	%
NOW Accounts		1,440.7			1,458.4			1,749.1			(308.4	)		-17.6	%
Savings Accounts		427.7			486.5			481.1			(53.4	)		-11.1	%
Money Market Accounts		884.3			901.6			662.6			221.6			33.4	%
Other Time under $100,000		1,387.4			1,391.4			1,457.4			(70.0	)		-4.8	%
Other Time $100,000 & over		899.0			822.7			737.3			161.7			21.9	%

Total Core Deposits		5,872.2			5,880.8			5,944.6			(72.3	)		-1.2	%


Borrowed Funds:
Short-term Borrowings		591.4			359.3			468.0			123.3			26.3	%
Brokered CD’s		333.2			337.3			379.5			(46.3	)		-12.2	%
Long-term Borrowings		765.9			895.8			1,047.3			(281.4	)		-26.9	%

Total Borrowed Funds		1,690.4			1,592.4			1,894.9			(204.5	)		-10.8	%


Accrued Expenses & Other Liabilities		129.2			129.4			107.5			21.7			20.2	%

Total Liabilities		7,691.8			7,602.5			7,946.9			(255.1	)		-3.2	%


Common Stock, Capital Surplus & Retained Earnings		659.4			670.0			702.1			(42.6	)		-6.1	%
Other Comprehensive Income		(44.8	)		(27.6	)		(0.5	)		(44.3	)		N/M

Total Shareholders Equity		614.7			642.4			701.6			(86.9	)		-12.4	%

Total Liabilities & Shareholders Equity	$	8,306.5		$	8,244.9		$	8,648.5		$	(342.0	)		-4.0	%


		EOP — End of period actual balances

		N/M = Not meaningful

(1)		Includes money market investments.

PAGE 4

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


2002			2003			2004			2005				2005												2006
													1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr	4th Qtr
												Assets
												Securities:
$	593.0		$	629.0		$	640.4		$	574.1		Treasury & Gov’t Sponsored Agencies	$	693.2		$	610.6		$	508.9		$	483.9		$	539.6		$	635.0
	656.1			667.5			638.4			536.9		Municipals		592.5			566.2			507.0			481.9			487.2			477.4
	1,341.7			1,709.9			1,422.5			1,346.9		Mortgage Backed		1,447.8			1,356.8			1,288.1			1,294.9			1,251.4			1,238.2
	5.1			4.9			68.0			12.6		Fed Funds Sold		0.6			0.3			4.0			45.7			49.3			4.2
	141.2			143.8			180.4			298.4		Other (1)		289.4			300.9			302.3			300.9			293.1			274.5

	2,737.1			3,155.1			2,949.7			2,769.0		Total Investments (1)		3,023.5			2,834.8			2,610.3			2,607.3			2,620.5			2,629.3

	44.4			60.3			22.3			36.2		Residential Real Estate Loans Held for Sale		22.3			35.6			43.7			43.2			30.5			17.2
												Loans:
	1,690.4			1,686.7			1,611.1			1,578.2		Commercial Loans & Leases		1,503.9			1,580.3			1,623.8			1,605.0			1,535.9			1,591.0
	1,844.5			1,866.1			1,767.5			1,604.2		Commercial & Agriculture Real Estate		1,636.0			1,619.4			1,613.0			1,548.4			1,519.7			1,491.9
												Consumer:
	229.4			295.8			348.9			357.6		Home Equity		362.7			360.1			361.4			346.3			327.1			311.3
	827.3			799.8			847.6			889.9		Other Consumer Loans		861.2			861.1			910.9			926.3			927.0			938.9

	4,591.6			4,648.3			4,575.1			4,429.9		Subtotal		4,363.7			4,420.9			4,509.1			4,426.0			4,309.7			4,333.2
	1,242.2			942.8			743.2			548.5		Residential Real Estate		554.4			549.4			550.5			539.8			527.4			510.3

	5,833.8			5,591.1			5,318.4			4,978.5		Total Loans		4,918.1			4,970.3			5,059.6			4,965.8			4,837.1			4,843.5

	8,615.3			8,806.6			8,290.4			7,783.6		Total Earning Assets		7,963.9			7,840.8			7,713.6			7,616.3			7,488.1			7,490.0


	(81.4	)		(89.1	)		(97.8	)		(82.9	)	Allowance for Loan Losses		(86.6	)		(84.3	)		(81.1	)		(79.8	)		(79.1	)		(77.9	)
	730.0			838.5			930.9			925.8		Nonearning Assets		939.9			964.5			919.1			879.6			880.7			884.9

$	9,263.9		$	9,556.0		$	9,123.5		$	8,626.5		Total Assets	$	8,817.2		$	8,721.0		$	8,551.6		$	8,416.2		$	8,289.7		$	8,296.9


												Liabilities & Equity
$	712.3		$	752.8		$	803.1		$	837.6		Noninterest-bearing Demand Deposits	$	836.7		$	834.3		$	843.9		$	835.4		$	811.3		$	795.5
	1,215.9			1,504.7			1,735.6			1,754.9		NOW Accounts		1,883.7			1,832.4			1,687.7			1,615.8			1,506.9			1,437.7
	462.6			479.3			471.3			485.3		Savings Accounts		484.0			487.7			491.6			478.0			489.5			444.8
	644.0			612.0			587.0			695.0		Money Market Accounts		579.7			643.3			724.7			832.2			883.2			895.8
	3,146.4			2,766.7			2,449.3			2,202.4		Other Time		2,201.5			2,205.7			2,222.7			2,179.6			2,233.9			2,232.9

	6,181.3			6,115.5			6,046.3			5,975.2		Total Core Deposits		5,985.7			6,003.4			5,970.6			5,941.0			5,924.8			5,806.8


												Borrowed Funds:
	689.0			687.6			406.1			388.2		Short-term Borrowings		415.4			437.2			388.6			311.4			298.6			530.9
	321.4			296.0			375.3			376.2		Brokered CD’s		384.6			380.3			372.4			367.4			352.8			335.7
	1,278.7			1,577.1			1,463.5			1,094.6		Long-term Borrowings		1,218.5			1,102.1			1,044.0			1,013.9			938.0			860.6

	2,289.0			2,560.7			2,244.9			1,858.9		Total Borrowed Funds		2,018.5			1,919.6			1,805.0			1,692.6			1,589.4			1,727.1


	98.6			128.8			117.8			107.1		Accrued Expenses & Other Liabilities		108.1			104.4			99.4			116.6			123.8			133.0

	8,568.8			8,805.0			8,408.9			7,941.2		Total Liabilities		8,112.3			8,027.4			7,875.1			7,750.2			7,637.9			7,667.0


	662.7			717.4			708.0			690.9		Common Stock, Surplus & Retained Earnings		699.5			701.6			681.3			681.2			671.1			663.8
	32.4			33.6			6.6			(5.6	)	Other Comprehensive Income		5.5			(8.0	)		(4.8	)		(15.2	)		(19.3	)		(33.8	)

	695.1			751.0			714.6			685.3		Total Shareholders Equity		704.9			693.6			676.5			666.0			651.8			630.0

$	9,263.9		$	9,556.0		$	9,123.5		$	8,626.5		Total Liabilities & Shareholders Equity	$	8,817.2		$	8,721.0		$	8,551.6		$	8,416.2		$	8,289.7		$	8,296.9

(1) Includes money market investments.

PAGE 5

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


2002			2003			2004			2005				2005												2006
													1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr	4th Qtr
												Earning Assets:
												Securities:
	4.55	%		3.83	%		3.18	%		3.44	%	Treasury & Gov’t Sponsored Agencies		3.10	%		3.28	%		3.64	%		3.89	%		4.26	%		4.49	%
	7.13	%		7.02	%		6.92	%		6.88	%	Municipals		6.87	%		6.90	%		6.86	%		6.91	%		6.85	%		6.89	%
	5.45	%		4.12	%		4.18	%		4.24	%	Mortgage Backed		4.15	%		4.21	%		4.26	%		4.36	%		4.45	%		4.57	%
	1.64	%		1.15	%		1.56	%		4.19	%	Fed Funds Sold		2.49	%		3.78	%		3.74	%		4.25	%		4.34	%		5.14	%
	5.26	%		4.28	%		3.62	%		4.50	%	Other (1)		4.18	%		4.40	%		4.69	%		4.73	%		5.05	%		5.31	%

	5.64	%		4.68	%		4.46	%		4.61	%	Total Investments (1)		4.44	%		4.57	%		4.69	%		4.78	%		4.92	%		5.05	%

												Loans:
	6.58	%		5.61	%		5.41	%		6.39	%	Commercial Loans & Leases		6.02	%		6.32	%		6.45	%		6.75	%		7.06	%		7.30	%
	6.93	%		5.87	%		5.70	%		6.36	%	Commercial & Agriculture Real Estate		6.13	%		6.16	%		6.42	%		6.74	%		7.00	%		7.22	%
												Consumer:
	5.21	%		5.12	%		5.17	%		6.28	%	Home Equity		5.84	%		6.13	%		6.35	%		6.82	%		7.60	%		8.02	%
	8.83	%		8.00	%		7.16	%		6.93	%	Other Consumer Loans		6.91	%		6.95	%		7.01	%		6.85	%		6.96	%		7.05	%

	7.06	%		6.10	%		5.83	%		6.48	%	Subtotal		6.22	%		6.36	%		6.54	%		6.77	%		7.05	%		7.27	%
	7.32	%		6.37	%		5.60	%		5.47	%	Residential Real Estate (2)		5.40	%		5.48	%		5.50	%		5.49	%		5.41	%		5.45	%

	7.11	%		6.14	%		5.79	%		6.36	%	Total Loans (2)		6.12	%		6.26	%		6.42	%		6.62	%		6.86	%		7.07	%

	6.65	%		5.62	%		5.32	%		5.74	%	Total Earning Assets		5.48	%		5.65	%		5.84	%		6.00	%		6.18	%		6.36	%


												Interest-bearing Liabilities:
	1.24	%		0.90	%		0.94	%		1.44	%	NOW Accounts		1.27	%		1.39	%		1.48	%		1.65	%		1.80	%		1.87	%
	1.18	%		0.73	%		0.47	%		0.87	%	Savings Accounts		0.61	%		0.74	%		0.98	%		1.13	%		1.33	%		1.16	%
	1.55	%		0.94	%		1.10	%		2.71	%	Money Market Accounts		1.99	%		2.37	%		2.88	%		3.30	%		3.23	%		3.19	%
	4.58	%		3.96	%		3.25	%		3.32	%	Other Time		3.14	%		3.23	%		3.34	%		3.57	%		3.78	%		3.99	%

	3.19	%		2.47	%		1.99	%		2.36	%	Total Interest-bearing Deposits		2.09	%		2.24	%		2.44	%		2.69	%		2.87	%		2.99	%

												Borrowed Funds:
	1.59	%		1.06	%		0.96	%		2.48	%	Short-term Borrowings		1.97	%		2.45	%		2.71	%		2.92	%		3.25	%		4.18	%
	4.98	%		4.92	%		4.71	%		4.64	%	Brokered CD’s		4.56	%		4.67	%		4.66	%		4.65	%		4.35	%		4.50	%
	5.18	%		3.81	%		4.05	%		5.26	%	Long-term Borrowings		4.89	%		5.25	%		5.22	%		5.77	%		5.58	%		5.91	%

	4.07	%		3.20	%		3.60	%		4.55	%	Total Borrowed Funds		4.23	%		4.49	%		4.57	%		5.00	%		4.87	%		5.10	%


	3.45	%		2.71	%		2.48	%		2.95	%	Total Interest-bearing Liabilities		2.69	%		2.85	%		2.99	%		3.26	%		3.34	%		3.53	%


	3.19	%		2.91	%		2.84	%		2.79	%	Net Interest Rate Spread		2.79	%		2.80	%		2.85	%		2.73	%		2.83	%		2.83	%

	3.54	%		3.18	%		3.08	%		3.09	%	Net Interest Margin		3.05	%		3.07	%		3.16	%		3.09	%		3.18	%		3.18	%


	FTE — Fully taxable equivalent basis

(1)	Includes money market investments.

(2)	Includes residential loans held for sale.	PAGE 6

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


2002			2003			2004			2005				2005												2006
													1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr	4th Qtr
$	74.2		$	87.7		$	95.2		$	85.7		Beginning Allowance for Loan Losses	$	85.7		$	86.3		$	80.6		$	81.4		$	78.8		$	76.8

	33.5			85.0			22.4			23.1		Provision for Loan Losses		5.1			6.0			6.0			6.0			3.5			3.5

	—			(9.3	)		0.7			—		Transfer to Allow. Unfunded Commitments		—			—			—			—			—			—

	(27.6	)		(61.6	)		(41.2	)		(36.1	)	Gross Charge-offs		(6.3	)		(8.7	)		(9.4	)		(11.6	)		(7.4	)		(6.4	)
	—			(14.7	)		(4.6	)		(5.3	)	Write-downs from Loans Sold		—			(5.3	)		—			—			—			—
	7.6			8.2			13.2			11.5		Gross Recoveries		1.8			2.4			4.1			3.1			1.9			2.4

	(20.0	)		(68.1	)		(32.6	)		(30.0	)	Net Charge-offs		(4.5	)		(11.7	)		(5.3	)		(8.5	)		(5.5	)		(4.0	)


$	87.7		$	95.2		$	85.7		$	78.8		Ending Allowance for Loan Losses	$	86.3		$	80.6		$	81.4		$	78.8		$	76.8		$	76.4


	0.34	%		1.21	%		0.61	%		0.60	%	Net Charge-offs / Average Loans (1)		0.37	%		0.93	%		0.41	%		0.68	%		0.46	%		0.33	%

	5,878.3			5,651.4			5,340.7			5,014.7		Average Loans Outstanding (1)		4,940.4			5,005.9			5,103.2			5,009.0			4,867.6			4,860.7

	5,769.6			5,586.5			4,987.3			4,937.6		EOP Loans Outstanding (1)		4,972.0			5,071.8			5,158.5			4,937.6			4,831.5			4,875.9

	1.52	%		1.70	%		1.72	%		1.60	%	Allowance for Loan Loss / EOP Loans(1)		1.74	%		1.59	%		1.58	%		1.60	%		1.59	%		1.57	%

												Underperforming Assets:
$	9.5		$	5.1		$	2.4		$	1.8		Loans 90 Days & over (still accruing)	$	1.8		$	2.4		$	1.9		$	1.8		$	1.4		$	1.3

												Non-performing Loans:
	100.3			104.6			54.9			55.6		Nonaccrual Loans		55.2			49.0			58.8			55.6			51.4			51.7
	—			—			—			—		Renegotiated Loans		—			—			—			—			—			0.1

	100.3			104.6			54.9			55.6		Total Non-performing Loans		55.2			49.0			58.8			55.6			51.4			51.8


	7.9			8.8			8.3			3.6		Foreclosed properties		5.1			4.3			3.4			3.6			2.3			2.9

$	117.7		$	118.5		$	65.6		$	61.0		Total Underperforming Assets	$	62.0		$	55.8		$	64.1		$	61.0		$	55.1		$	56.1


	1.74	%		1.87	%		1.10	%		1.13	%	Non-performing loans / EOP Loans (1)		1.11	%		0.97	%		1.14	%		1.13	%		1.06	%		1.06	%

	87	%		91	%		156	%		142	%	Allowance to Non-performing Loans		156	%		165	%		138	%		142	%		150	%		147	%

	2.04	%		2.12	%		1.32	%		1.24	%	Under-performing Assets / EOP Loans (1)		1.25	%		1.10	%		1.24	%		1.24	%		1.14	%		1.15	%

	9,612.6			9,363.2			8,898.3			8,492.0		EOP Total Assets		8,793.0			8,648.5			8,535.3			8,492.0			8,244.9			8,306.5

	1.22	%		1.27	%		0.74	%		0.72	%	Under-performing Assets / EOP Assets		0.71	%		0.64	%		0.75	%		0.72	%		0.67	%		0.67	%


	EOP — End of period actual balances

(1)	Includes residential loans held for sale.	PAGE 7

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