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Finance Receivables And Allowance For Credit Losses (Tables)
 6 Months Ended
Jun. 30, 2012
Finance Receivables And Allowance For Credit Losses [Abstract]  
Schedule Of Composition Of Loans
    June 30,     December 31,  
(dollars in thousands)   2012     2011  
Commercial (1) $ 1,205,532   $ 1,216,654  
Commercial real estate:            
Construction   64,910     46,141  
Other   977,671     1,021,229  
Residential real estate   1,122,800     995,458  
Consumer credit:            
Heloc   220,565     235,603  
Auto   511,706     483,575  
Other   123,115     142,183  
Covered loans   489,331     626,360  
Total loans   4,715,630     4,767,203  
Allowance for loan losses   (50,424 )   (57,117 )
Allowance for loan losses - covered loans   (4,336 )   (943 )
Net loans $ 4,660,870   $ 4,709,143  

 

(1) Includes direct finance leases of $68.9 million at June 30, 2012 and $79.6 million at December 31, 2011.
Schedule Of Activity In The Allowance For Loan Losses

Old National's activity in the allowance for loan losses for the three months ended June 30, 2012 and 2011 is as follows:

          Commercial                        
(dollars in thousands)   Commercial     Real Estate     Consumer     Residential     Unallocated   Total  
2012                                  
 
Allowance for loan losses:                                  
Beginning balance $ 18,094   $ 27,818   $ 5,646   $ 4,358   $ 0 $ 55,916  
Charge-offs   (1,972 )   (718 )   (2,125 )   (360 )   0   (5,175 )
Recoveries   849     1,553     1,188     36     0   3,626  
Provision   879     (32 )   (27 )   (427 )   0   393  
Ending balance $ 17,850   $ 28,621   $ 4,682   $ 3,607   $ 0 $ 54,760  

 

          Commercial                        
(dollars in thousands)   Commercial     Real Estate     Consumer     Residential     Unallocated   Total  
2011                                  
 
Allowance for loan losses:                                  
Beginning balance $ 27,190   $ 32,550   $ 10,280   $ 2,729   $ 0 $ 72,749  
Charge-offs   (3,838 )   (2,274 )   (2,465 )   (325 )   0   (8,902 )
Recoveries   1,302     316     1,468     49     0   3,135  
Provision   1,375     1,898     (725 )   659     0   3,207  
Ending balance $ 26,029   $ 32,490   $ 8,558   $ 3,112   $ 0 $ 70,189  

 

 

Old National's activity in the allowance for loan losses for the six months ended June 30, 2012 and 2011 is as follows:

          Commercial                        
(dollars in thousands)   Commercial     Real Estate     Consumer     Residential     Unallocated   Total  
2012                                  
 
Allowance for loan losses:                                  
Beginning balance $ 19,964   $ 26,993   $ 6,954   $ 4,149   $ 0 $ 58,060  
Charge-offs   (3,240 )   (4,093 )   (4,550 )   (920 )   0   (12,803 )
Recoveries   2,293     2,121     2,525     115     0   7,054  
Provision   (1,167 )   3,600     (247 )   263     0   2,449  
Ending balance $ 17,850   $ 28,621   $ 4,682   $ 3,607   $ 0 $ 54,760  

 

          Commercial                        
(dollars in thousands)   Commercial     Real Estate     Consumer     Residential     Unallocated   Total  
2011                                  
 
Allowance for loan losses:                                  
Beginning balance $ 26,204   $ 32,654   $ 11,142   $ 2,309   $ 0 $ 72,309  
Charge-offs   (5,169 )   (2,981 )   (5,853 )   (1,173 )   0   (15,176 )
Recoveries   2,135     984     3,326     92     0   6,537  
Provision   2,859     1,833     (57 )   1,884     0   6,519  
Ending balance $ 26,029   $ 32,490   $ 8,558   $ 3,112   $ 0 $ 70,189  
Schedule Of Recorded Investment In Financing Receivables

The following tables provide Old National's recorded investment in financing receivables by portfolio segment at June 30, 2012 and December 31, 2011 and other information regarding the allowance:

        Commercial              
(dollars in thousands)   Commercial     Real Estate   Consumer   Residential Unallocated   Total
June 30, 2012                      
Allowance for loan losses:                      
Ending balance: individually                      
evaluated for impairment $ 6,546 $ 4,841 $ 5 $ 3 0 $ 11,395
Ending balance: collectively                      
evaluated for impairment $ 10,495 $ 16,476 $ 3,597 $ 2,703 0 $ 33,271
Ending balance: loans acquired                      
with deteriorated credit quality $ 453 $ 4,250   224 $ 831 0 $ 5,758
Ending balance: covered loans                      
acquired with deteriorated                      
credit quality $ 356 $ 3,054 $ 856 $ 70 0 $ 4,336
Total allowance for credit losses $ 17,850 $ 28,621 $ 4,682 $ 3,607 0 $ 54,760
Loans and leases outstanding:                      
Ending balance: individually                      
evaluated for impairment $ 28,840 $ 34,422 $ 0 $ 0 0 $ 63,262
Ending balance: collectively                      
evaluated for impairment $ 1,176,229 $ 992,534 $ 855,386 $ 1,122,800 0 $ 4,146,949
Ending balance: loans acquired                      
with deteriorated credit quality $ 463 $ 15,625 $ 0 $ 0 0 $ 16,088
Ending balance: covered loans                      
acquired with deteriorated                      
credit quality $ 75,925 $ 261,720 $ 111,285 $ 40,401 0 $ 489,331
Total loans and leases outstanding $ 1,281,457 $ 1,304,301 $ 966,671 $ 1,163,201 0 $ 4,715,630

 

 

        Commercial                
(dollars in thousands)   Commercial Real Estate   Consumer   Residential   Unallocated   Total
December 31, 2011                        
Allowance for loan losses:                        
Ending balance: individually                        
evaluated for impairment $ 7,015 $ 4,177 $ 0 $ 0 $ 0 $ 11,192
Ending balance: collectively                        
evaluated for impairment $ 12,816 $ 21,397 $ 6,335 $ 2,752 $ 0 $ 43,300
Ending balance: loans acquired                        
with deteriorated credit quality $ 128 $ 1,288 $ 445 $ 764 $ 0 $ 2,625
Ending balance: covered loans                        
acquired with deteriorated                        
credit quality $ 5 $ 131 $ 174 $ 633 $ 0 $ 943
Total allowance for credit losses $ 19,964 $ 26,993 $ 6,954 $ 4,149 $ 0 $ 58,060
Loans and leases outstanding:                        
Ending balance: individually                        
evaluated for impairment $ 31,838 $ 43,225 $ 0 $ 0 $ 0 $ 75,063
Ending balance: collectively                        
evaluated for impairment $ 1,183,675 $ 1,002,105 $ 861,361 $ 995,458 $ 0 $ 4,042,599
Ending balance: loans acquired                        
with deteriorated credit quality $ 1,141 $ 22,040 $ 0 $ 0 $ 0 $ 23,181
Ending balance: covered loans                        
acquired with deteriorated                        
credit quality $ 124,755 $ 325,934 $ 128,700 $ 46,971 $ 0 $ 626,360
Total loans and leases outstanding $ 1,341,409 $ 1,393,304 $ 990,061 $ 1,042,429 $ 0 $ 4,767,203
Schedule Of Risk Category Of Loans
(dollars in thousands)                        
Corporate Credit           Commercial Real Estate-   Commercial Real Estate-
Exposure   Commercial   Construction   Other
by Internally   June 30,   December 31,   June 30,   December 31,   June 30,   December 31,
Assigned Grade   2012   2011   2012   2011   2012   2011
Grade:                        
Pass $ 1,113,539 $ 1,103,556 $ 43,096 $ 16,841 $ 855,632 $ 895,543
Criticized   46,057   36,212   13,437   13,605   43,586   30,331
Classified - substandard   16,202   41,695   3,503   10,147   25,264   34,478
Classified - doubtful   29,734   35,191   4,874   5,548   53,189   60,877
Total $ 1,205,532 $ 1,216,654 $ 64,910 $ 46,141 $ 977,671 $ 1,021,229
Schedule Of Recorded Investment On Payment Activity
June 30, 2012       Consumer       Residential
(dollars in                
thousands)   Heloc   Auto   Other    
Performing $ 219,537 $ 510,251 $ 121,600 $ 1,113,928
Nonperforming   1,028   1,455   1,515   8,872
  $ 220,565 $ 511,706 $ 123,115 $ 1,122,800
December 31, 2011       Consumer       Residential
(dollars in                
thousands)   Heloc   Auto   Other    
Performing $ 234,334 $ 481,632 $ 140,605 $ 985,211
Nonperforming   1,269   1,943   1,578   10,247
  $ 235,603 $ 483,575 $ 142,183 $ 995,458
Schedule Of Impaired Loans That Are Individually Evaluated

The following table shows Old National's impaired loans, excluding covered loans, that are individually evaluated as of June 30, 2012 and December 31, 2011. Of the loans purchased during 2011 without FDIC loss share coverage, only those that have experienced subsequent impairment since the date acquired are included in the table below. Purchased loans of $3.8 million migrated to classified-doubtful during the second quarter of 2012. Purchased loans of $24.0 million migrated to classified-doubtful during the year ended December 31, 2011.

 

        Unpaid    
    Recorded   Principal   Related
(dollars in thousands)   Investment   Balance   Allowance
June 30, 2012            
With no related allowance recorded:            
Commercial $ 6,691 $ 8,605 $ 0
Commercial Real Estate - Construction   1,662   2,750   0
Commercial Real Estate - Other   13,324   19,337   0
With an allowance recorded:            
Commercial   20,985   24,912   6,569
Commercial Real Estate - Construction   807   915   53
Commercial Real Estate - Other   25,542   29,296   5,970
Total Commercial $ 69,011 $ 85,815 $ 12,592
 
December 31, 2011            
With no related allowance recorded:            
Commercial $ 10,094 $ 13,047 $ 0
Commercial Real Estate - Construction   610   610   0
Commercial Real Estate - Other   18,136   27,372   0
With an allowance recorded:            
Commercial   21,744   24,928   7,143
Commercial Real Estate - Construction   2,256   3,327   12
Commercial Real Estate - Other   22,223   24,792   5,453
Total Commercial $ 75,063 $ 94,076 $ 12,608
Schedule Of Average Balance And Interest Income Recognized On Impaired Loans

The average balance of impaired loans, excluding covered loans, and interest income recognized on impaired loans during the three months ended June 30, 2012 and 2011 are included in the tables below.

    Average   Interest  
    Recorded   Income  
(dollars in thousands)   Investment   Recognized (1)  
June 30, 2012          
With no related allowance recorded:          
Commercial $ 7,525 $ (4 )
Commercial Real Estate - Construction   987   0  
Commercial Real Estate - Other   14,241   33  
With an allowance recorded:          
Commercial   20,831   39  
Commercial Real Estate - Construction   1,593   0  
Commercial Real Estate - Other   26,544   44  
Total Commercial $ 71,721 $ 112  

(1)

The Company does not record interest on nonaccrual loans until principal is recovered.
    Average   Interest
    Recorded   Income
(dollars in thousands)   Investment   Recognized (1)
June 30, 2011        
With no related allowance recorded:        
Commercial $ 8,893 $ 46
Commercial Real Estate - Construction   1,395   0
Commercial Real Estate - Other   25,443   53
With an allowance recorded:        
Commercial   24,838   88
Commercial Real Estate - Construction   221   3
Commercial Real Estate - Other   28,226   159
Total Commercial $ 89,016 $ 349

(1) The Company does not record interest on nonaccrual loans
until principal is recovered.

The average balance of impaired loans, excluding covered loans, and interest income recognized on impaired loans during the six months ended June 30, 2012 and 2011 are included in the tables below.

    Average   Interest
    Recorded   Income
(dollars in thousands)   Investment   Recognized (1)
June 30, 2012        
With no related allowance recorded:        
Commercial $ 8,393 $ 0
Commercial Real Estate - Construction   1,136   0
Commercial Real Estate - Other   15,730   43
With an allowance recorded:        
Commercial   21,365   68
Commercial Real Estate - Construction   1,532   2
Commercial Real Estate - Other   23,883   55
Total Commercial $ 72,039 $ 168

(1) The Company does not record interest on nonaccrual loans
until principal is recovered.

    Average   Interest
    Recorded   Income
(dollars in thousands)   Investment   Recognized (1)
June 30, 2011        
With no related allowance recorded:        
Commercial $ 5,529 $ 90
Commercial Real Estate - Construction   0   0
Commercial Real Estate - Other   8,821   105
With an allowance recorded:        
Commercial   21,756   86
Commercial Real Estate - Construction   0   0
Commercial Real Estate - Other   25,872   134
Total Commercial $ 61,978 $ 415

 

(1) The Company does not record interest on nonaccrual loans
until principal is recovered.
Schedule Of Past Due Financing Receivables

Old National's past due financing receivables as of June 30, 2012 and December 31, 2011 are as follows:

          Recorded            
            Investment >            
    30-59 Days   60-89 Days   90 Days and       Total    
(dollars in thousands)   Past Due   Past Due   Accruing   Nonaccrual   Past Due   Current
June 30, 2012                        
Commercial $ 2,560 $ 262 $ 100 $ 28,822 $ 31,744 $ 1,173,788
Commercial Real Estate:                        
Construction   0   0   0   4,580   4,580   60,330
Other   1,660   232   51   53,189   55,132   922,539
Consumer:                        
Heloc   450   167   0   1,028   1,645   218,920
Auto   3,566   678   112   1,455   5,811   505,895
Other   1,577   513   15   1,515   3,620   119,495
Residential   6,543   1,671   0   8,872   17,086   1,105,714
Covered loans   2,247   802   588   141,080   144,717   344,614
Total loans $ 18,603 $ 4,325 $ 866 $ 240,541 $ 264,335 $ 4,451,295
December 31, 2011                        
Commercial $ 2,755 $ 357 $ 358 $ 34,104 $ 37,574 $ 1,179,080
Commercial Real Estate:                        
Construction   0   164   0   5,425   5,589   40,552
Other   7,466   413   279   60,762   68,920   952,309
Consumer:                        
Heloc   706   186   151   1,269   2,312   233,291
Auto   5,745   1,276   246   1,943   9,210   474,365
Other   2,002   463   76   1,578   4,119   138,064
Residential   7,950   1,839   0   10,247   20,036   975,422
Covered loans   5,446   2,033   2,338   182,880   192,697   433,663
Total loans $ 32,070 $ 6,731 $ 3,448 $ 298,208 $ 340,457 $ 4,426,746
Loans By Class Modified As Troubled Debt Restructuring

The following table presents loans by class modified as troubled debt restructurings that occurred during the six months ended June 30, 2012:

      Pre-modification   Post-modification
  Number of   Outstanding Recorded   Outstanding Recorded
(dollars in thousands) Loans   Investment   Investment
Troubled Debt Restructuring:          
Commercial 19 $ 2,921 $ 2,921
Commercial Real Estate - construction 1   294   294
Commercial Real Estate - other 17   6,466   6,466
Consumer - other 8   378   378
Total 45 $ 10,059 $ 10,059

The troubled debt restructurings described above increased the allowance for loan losses by $0.4 million and resulted in charge-offs of $0.8 million during the six months ended June 30, 2012.

The following table presents loans by class modified as troubled debt restructurings that occurred during the twelve months ended December 31, 2011:

      Pre-modification   Post-modification
  Number of   Outstanding Recorded   Outstanding Recorded
(dollars in thousands) Loans   Investment   Investment
Troubled Debt Restructuring:          
Commercial 25 $ 7,086 $ 7,086
Commercial Real Estate - construction 1   1,422   1,422
Commercial Real Estate - other 46   5,956   4,429
Consumer - other 1   53   53
Total 73 $ 14,517 $ 12,990
Troubled Debt Restructurings For Which There Was A Payment Default

The following table presents loans by class modified as troubled debt restructuring within the last twelve months for which there was a payment default during the six months ended June 30, 2012.

  Number of   Recorded
(dollars in thousands) Contracts   Investment
Troubled Debt Restructuring      
That Subsequently Defaulted:      
Commercial Real Estate  2 $ 322
Total  2 $ 322

 

 

The following table presents loans by class modified as troubled debt restructurings for which there was a payment default within twelve months following the modification during the twelve months ended December 31, 2011:

  Number of   Recorded
(dollars in thousands) Contracts   Investment
Troubled Debt Restructuring      
That Subsequently Defaulted:      
Commercial  3 $ 1,647
Commercial Real Estate  6   1,587
Total  9 $ 3,234
Schedule Of Activity Of Purchased Impaired Loans
    June 30,   December 31,
(dollars in thousands)   2012   2011
Commercial $ 529 $ 1,143
Commercial real estate   18,886   23,059
Consumer   29,896   41,064
Residential   168   418
Carrying amount $ 49,479 $ 65,684
Carrying amount, net of allowance $ 47,713 $ 63,982
Allowance for loan losses $ 1,766 $ 1,702
Schedule Of Accretable Difference On Purchased Loans
          Integra        
(dollars in thousands)   Monroe     Noncovered     Total  
Balance at January 1, 2012 $ 15,508   $ 5,871   $ 21,379  
New loans purchased   0     0     0  
Accretion of income   (4,843 )   (1,171 )   (6,014 )
Reclassifications from (to) nonaccretable difference   4,894     (120 )   4,774  
Disposals/other adjustments   415     (108 )   307  
Balance at June 30, 2012 $ 15,974   $ 4,472   $ 20,446  
Schedule Of Payments Receivable Of Loans Purchased
    Monroe     Integra  
(dollars in thousands)   Bancorp     Bank  
Contractually required payments $ 94,714   $ 921,856  
Nonaccretable difference   (45,157 )   (226,426 )
 
Cash flows expected to be collected at acquisition   49,557     695,430  
Accretable yield   (6,971 )   (98,487 )
Fair value of acquired loans at acquisition $ 42,586   $ 596,943