Investment Securities (Tables)

12 Months Ended

Dec. 31, 2012

Amortized Cost And Fair Value Of Available-For-Sale And Held-To-Maturity Investment Securities Portfolio


		Amortized		Unrealized		Unrealized			Fair
(dollars in thousands)		Cost		Gains		Losses			Value
2012
Available-for-Sale
U.S. Treasury	$	11,437	$	404	$	0		$	11,841
U.S. Government-sponsored entities and agencies		515,469		2,794		(938	)		517,325
Mortgage-backed securities - Agency		1,130,991		33,244		(447	)		1,163,788
Mortgage-backed securities - Non-agency		29,359		1,175		(338	)		30,196
States and political subdivisions		542,559		35,805		(1,040	)		577,324
Pooled trust prefered securities		24,884		0		(15,525	)		9,359
Other securities		182,070		10,473		(1,592	)		190,951
Total available-for-sale securities	$	2,436,769	$	83,895	$	(19,880	)	$	2,500,784

Held-to-Maturity
U.S. Government-sponsored entities and agencies	$	173,936	$	14,327	$	0		$	188,263
Mortgage-backed securities - Agency		56,612		2,307		0			58,919
States and political subdivisions		169,282		13,739		0			183,021
Other securities		2,998		0		0			2,998
Total held-to-maturity securities	$	402,828	$	30,373	$	0		$	433,201

2011
Available-for-Sale
U.S. Treasury	$	65,221	$	548	$	0		$	65,769
U.S. Government-sponsored entities and agencies		171,629		1,621		(65	)		173,185
Mortgage-backed securities - Agency		1,153,629		28,687		(61	)		1,182,255
Mortgage-backed securities - Non-agency		90,355		418		(4,873	)		85,900
States and political subdivisions		376,609		26,428		(193	)		402,844
Pooled trust preferred securities		25,461		0		(18,134	)		7,327
Other securities		147,897		8,365		(2,266	)		153,996
Total available-for-sale securities	$	2,030,801	$	66,067	$	(25,592	)	$	2,071,276

Held-to-Maturity
U.S. Government-sponsored entities and agencies	$	177,159	$	11,434	$	0		$	188,593
Mortgage-backed securities - Agency		84,075		3,305		0			87,380
States and political subdivisions		216,345		8,548		(176	)		224,717
Other securities		7,011		0		(2	)		7,009
Total held-to-maturity securities	$	484,590	$	23,287	$	(178	)	$	507,699

Expected Maturities Of Investment Securities Portfolio


		2012			Weighted			2011			Weighted
(dollars in thousands)		Amortized		Fair	Average			Amortized		Fair	Average
Maturity		Cost		Value	Yield			Cost		Value	Yield
Available-for-sale
Within one year	$	30,284	$	30,544	3.19	%	$	79,212	$	79,668	1.61	%
One to five years		111,294		116,982	3.33			123,174		127,761	3.38
Five to ten years		651,094		665,199	2.48			240,215		252,434	3.86
Beyond ten years		1,644,097		1,688,059	3.17			1,588,200		1,611,413	3.32
Total	$	2,436,769	$	2,500,784	2.99	%	$	2,030,801	$	2,071,276	3.32	%

Held-to-maturity
Within one year	$	3,066	$	3,066	2.25	%	$	4,075	$	4,073	1.48	%
One to five years		2,355		2,427	3.35			4,819		4,861	2.60
Five to ten years		144,701		153,882	2.94			151,395		158,366	2.97
Beyond ten years		252,706		273,826	4.48			324,301		340,399	4.47
Total	$	402,828	$	433,201	3.90	%	$	484,590	$	507,699	3.96	%

Investment Securities With Unrealized Losses By Aggregated Major Security Type And Length Of Time In A Continuous Unrealized Loss Position


		Less than 12 months					12 months or longer				Total
		Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
(dollars in thousands)		Value		Losses			Value		Losses			Value		Losses
2012
Available-for-Sale
U.S. Government-sponsored entities
and agencies	$	201,151	$	(938	)	$	0	$	0		$	201,151	$	(938	)
Mortgage-backed securities - Agency		64,213		(447	)		0		0			64,213		(447	)
Mortgage-backed securities - Non-agency		0		0			5,696		(338	)		5,696		(338	)
States and political subdivisions		63,311		(1,040	)		0		0			63,311		(1,040	)
Pooled trust preferrred securities		0		0			9,359		(15,525	)		9,359		(15,525	)
Other securities		23,617		(162	)		6,658		(1,430	)		30,275		(1,592	)
Total available-for-sale	$	352,292	$	(2,587	)	$	21,713	$	(17,293	)	$	374,005	$	(19,880	)

2011
Available-for-Sale
U.S. Government-sponsored entities
and agencies	$	24,935	$	(65	)	$	0	$	0		$	24,935	$	(65	)
Mortgage-backed securities - Agency		49,016		(61	)		3		0			49,019		(61	)
Mortgage-backed securities - Non-agency		10,053		(353	)		59,203		(4,520	)		69,256		(4,873	)
States and political subdivisions		9,281		(114	)		1,345		(79	)		10,626		(193	)
Pooled trust preferrred securities		0		0			7,327		(18,134	)		7,327		(18,134	)
Other securities		4,516		(141	)		6,218		(2,125	)		10,734		(2,266	)
Total available-for-sale	$	97,801	$	(734	)	$	74,096	$	(24,858	)	$	171,897	$	(25,592	)

Held-to-Maturity
States and political subdivisions	$	1,613	$	(1	)	$	13,180	$	(175	)	$	14,793	$	(176	)
Other securities		22		(2	)		0		0			22		(2	)
Total held-to-maturity	$	1,635	$	(3	)	$	13,180	$	(175	)	$	14,815	$	(178	)

Pooled Trust Preferred Securities

Old National Bancorp
Trust preferred securities															Actual		Expected		Excess
December 31, 2012															Deferrals and		Defaults as		Subordination
(Dollars in Thousands)														# of Issuers	Defaults as a		a % of		as a %
				Lowest						Unrealized			Realized	Currently	Percent of		Remaining		of Current
				Credit		Amortized		Fair		Gain/			Losses	Performing/	Original		Performing		Performing
	Class			Rating (1)		Cost		Value		(Loss)			2012	Remaining	Collateral		Collateral		Collateral
Pooled trust preferred securities:
MM Community Funding IX	B	-2		CC	$	2,067	$	796	$	(1,271	)	$	0	17/29	31.0	%	7.1	%	0.0	%
Reg Div Funding 2004	B	-2		D		4,012		501		(3,511	)		165	24/44	42.8	%	6.2	%	0.0	%
Pretsl XII	B	-1		C		2,799		1,308		(1,491	)		0	46/72	28.3	%	8.1	%	0.0	%
Pretsl XV	B	-1		C		1,695		1,256		(439	)		0	49/69	30.3	%	6.1	%	0.0	%
Pretsl XXVII LTD		B		CC		4,904		1,110		(3,794	)		0	33/48	26.6	%	22.3	%	29.3	%
Trapeza Ser 13A		A2	A	B		9,407		4,388		(5,019	)		0	43/53	27.7	%	17.7	%	38.4	%
						24,884		9,359		(15,525	)		165

Single Issuer trust preferred securities:
First Empire Cap (M&T)				BB+		957		1,002		45			0
First Empire Cap (M&T)				BB+		2,909		3,006		97			0
Fleet Cap Tr V (BOA)				BB		3,366		2,660		(706	)		0
JP Morgan Chase Cap XIII				BBB		4,723		3,999		(724	)		0
NB-Global				BB		719		760		41			0
						12,674		11,427		(1,247	)		0

Total					$	37,558	$	20,786	$	(16,772	)	$	165

(1) Lowest rating for the security provided by any nationally recognized credit rating agency.

Securities With Other-Than-Temporary-Impairment


								Amount of other-than-temporary
		Lowest						impairment recognized in earnings
		Credit		Amortized		Twelve Months ended December 31,								Life-to
	Vintage	Rating (1)		Cost		2012		2011		2010		2009		date
Non-agency mortgage-backed securities:
BAFC Ser 4	2007	CCC	$	11,985	$	299	$	0	$	79	$	63	$	441
CWALT Ser 73CB	2005	D		2,473		151		0		207		83		441
CWALT Ser 73CB	2005	D		3,561		35		0		427		182		644
CWHL 2006-10 (2)	2006					0		0		309		762		1,071
CWHL 2005-20	2005	C		333		0		0		39		72		111
FHASI Ser 4 (2)	2007					0		340		629		223		1,192
HALO Ser 1R (2)	2006					133		16		0		0		149
RFMSI Ser S9 (2)	2006					0		0		923		1,880		2,803
RFMSI Ser S10	2006	D		3,148		178		165		76		249		668
RALI QS2 (2)	2006					0		0		278		739		1,017
RAST A9	2004					142		0		0		0		142
RFMSI S1 (2)	2006					0		0		30		176		206
				21,500		938		521		2,997		4,429		8,885
Pooled trust preferred securities:
TROPC (2)	2003					311		888		444		3,517		5,160
MM Community Funding IX	2003	CC		2,067		0		0		165		2,612		2,777
Reg Div Funding	2004	D		4,012		165		0		321		5,199		5,685
Pretsl XII	2003	C		2,799		0		0		0		1,897		1,897
Pretsl XV	2004	C		1,695		0		0		0		3,374		3,374
Reg Div Funding (3)	2005			-		0		0		0		3,767		3,767
				10,573		476		888		930		20,366		22,660
Total other-than-temporary-
impairment recognized in earnings					$	1,414	$	1,409	$	3,927	$	24,795	$	31,545

(1) Lowest rating for the security provided by any nationally recognized credit rating agency. (2) Securities sold.

(3) Security written down to zero.