FORM 8-K

0001193125-13-306184.txt : 20130729 0001193125-13-306184.hdr.sgml : 20130729 20130729090454 ACCESSION NUMBER: 0001193125-13-306184 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 20130729 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20130729 DATE AS OF CHANGE: 20130729 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: 13991176 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 d573493d8k.htm FORM 8-K FORM 8-K

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 29, 2013

OLD NATIONAL BANCORP

(Exact name of Registrant as specified in its charter)

Indiana

001-15817

35-1539838

(State or other jurisdiction

of incorporation)

(Commission

File Number)

(IRS Employer

Identification No.)

One Main Street

Evansville, Indiana

47708

(Address of Principal Executive Offices)

(Zip Code)

Registrant’s telephone number, including area code: (812) 464-1294

(Former name or former address if changed since last report.)

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:

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02

Results of Operations and Financial Condition

On July 29, 2013, Old National Bancorp reported its results for the second quarter and full year of 2013. 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 its second-quarter and full-year 2013 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 and full-year 2013 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 29, 2013, at 10:00 a.m. CST and will be accessible at http://www.oldnational.com before the conference call begins.

Item 9.01

Financial Statements and Exhibits

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


Exhibit No.		Description

99.1		Press Release issued by Old National Bancorp on July 29, 2013

99.2		Financial Trends issued by Old National Bancorp on July 29, 2013

* * * * * * *

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 29, 2013


OLD NATIONAL BANCORP

By:		/s/ Christopher A. Wolking
		Christopher A. Wolking
		Senior Executive Vice President and
		Chief Financial Officer

Exhibit Index


Exhibit No.		Description

99.1		Press Release issued by Old National Bancorp on July 29, 2013

99.2		Financial Trends issued by Old National Bancorp on July 29, 2013

EX-99.1 2 d573493dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

LOGO


FOR IMMEDIATE RELEASE		Contacts:
July 29, 2013
		Media: Kathy A. Schoettlin – (812) 465-7269 Executive Vice President – Communications

		Financial Community: Lynell J. Walton – (812) 464-1366 Senior Vice President – Investor Relations

Strong commercial loan growth and credit quality drive Old National’s 2^nd quarter earnings

2^ND QUARTER HIGHLIGHTS:

•

Quarterly net income of $28.5 million increases 4.7% over 2^nd quarter 2012

•

Earnings per share of $.28

•

Growth in noncovered commercial loans of $94.4 million, or 7.2%, over 1^st quarter 2013

Evansville, Ind. (July 29, 2013) – Today Old National Bancorp (NYSE: ONB) reported 2^nd quarter 2013 net income of $28.5 million, or $.28 per share. These 2^nd quarter results compare favorably to the net income of $23.9 million, or $.24 per share, that Old National reported in 1^st quarter 2013, and net income of $27.2 million, or $.29 per share, that Old National reported in 2^nd quarter 2012. Earnings per share comparisons are impacted by the 6.6 million shares Old National issued in the 3^rd quarter of 2012 for the Indiana Community Bancorp acquisition.

“These results represent a continuation of the positive momentum we have experienced over the past several quarters,” said Bob Jones, Old National Bancorp President and CEO. “Not only were we able to increase our net income over the previous quarter while growing loan volume, we did so while continuing to control noninterest expenses and credit quality. These positive indicators, coupled with our July 12, 2013, expansion in Northern Indiana and into Southwestern Michigan through the acquisition of 24 Bank of America branches, indicate that Old National remains a strong, secure and growing community bank.”

Old National Bancorp’s Board of Directors also declared a quarterly cash dividend of $.10 per share on the Company’s outstanding shares. This dividend is payable September 17, 2013, to shareholders of record on September 3, 2013. For purposes of broker trading, the ex-date of the cash dividend is August 29, 2013.

Committed to our Strategic Imperatives

Old National’s strong performance through the most recent economic downturn, as well as its strong credit and capital positions, can be attributed to its unwavering commitment to the following strategic imperatives:

Strengthen the risk profile.

Enhance management discipline.

Achieve consistent quality earnings.

Page 1 of 8

1. STRENGTHEN THE RISK PROFILE

Credit Quality

Old National continued the trend of improvement in overall credit quality metrics as the company reported decreases in non-performing and problem loans and lower net charge-offs in the 2^nd quarter of 2013. Provision expense in the 2^nd quarter of 2013 was a recapture of $3.7 million, compared to expense of $.8 million in the 1^st quarter of 2013 and $.4 million in the 2^nd quarter of 2012. Net charge-offs for 2^nd quarter 2013 were $.5 million, or .04% of average total loans on an annualized basis, below the $2.1 million, or .17% of average total loans in 1^st quarter 2013 and the $1.5 million, or .13% of average total loans, in 2^nd quarter 2012.

Old National’s net charge-offs for the 2^nd quarter, excluding covered loans, were $.1 million and were below the $1.1 million reported in 1^st quarter 2013 and the $.9 million in net charge-offs reported in 2^nd quarter 2012. Continued positive trends in credit quality allowed Old National to recapture $3.3 million of provision expense in the 2^nd quarter of 2013, excluding covered loans, compared to recaptures of $.6 million and $3.4 million in the 1^st quarter of 2013 and the 2^nd quarter of 2012, respectively.

Old National’s allowance for loan losses at June 30, 2013, excluding covered loans, was $43.9 million, or .90% of total loans, compared to an allowance of $47.3 million, or .99% of total loans at March 31, 2013, and $50.4 million, or 1.19% of total loans, at June 30, 2012. The coverage of allowance to non-performing loans, excluding covered loans, stood at 32% at June 30, 2013, compared to the 31% at March 31, 2013, and 50% at June 30, 2012.

“Managing credit risk continues to be a constant focal point of our community banking strategy,” said Daryl Moore, Old National’s Chief Credit Officer. “We are particularly pleased with the lower levels of non-performing and problem loans in the quarter as well as the relatively low levels of net charge-offs.”

The following table presents certain credit quality metrics related to Old National’s loan portfolio:


($ in millions)	2009			2010			2011			2012			1Q13			1Q13*			2Q13			2Q13*
Non-Performing Loans(NPLs)	$	67.0		$	70.9		$	299.5		$	263.5		$	219.6		$	154.4		$	198.8		$	138.5
Problem Loans (Including NPLs)	$	157.1		$	174.3		$	404.3		$	355.4		$	303.1		$	221.7		$	265.9		$	198.4
Special Mention Loans	$	103.5		$	84.0		$	103.2		$	122.6		$	141.5		$	127.3		$	166.8		$	152.8
Net Charge-Off Ratio		1.40	%		.75	%		.49	%		.16	%		.17	%		.10	%		.04	%		.01	%
Provision for Loan Losses	$	63.3		$	30.8		$	7.5		$	5.0		$	.8			($.6	)		($3.7	)		($3.3	)

*	Excludes covered loans.

2. ENHANCE MANAGEMENT DISCIPLINE

Expense Management

Total noninterest expenses for the 2^nd quarter of 2013 totaled $86.9 million and represented an efficiency ratio of 66.52%. This performance compares favorably to the $90.2 million and $86.0 million reported in 1^st quarter 2013 and 2^nd quarter 2012, respectively. These results also represent improvements over the efficiency ratios of 68.34% and 69.20% reported in the 1^st quarter of 2013 and 2^nd quarter of 2012, respectively, and represent continued progress toward Old National’s efficiency ratio target of 65%. Included in noninterest expenses in the 1^st quarter of 2013 were $.6 million in branch optimization expense, $1.7 million in BSA/AML project expenses, and $.7 million in debt extinguishment charges.

Page 2 of 8

Included in Old National’s 2^nd quarter 2013 noninterest expenses were the following items:


($ in millions)	Positives		Negatives
Reversal of provision for unfunded commitments	$	2.1
Refund of FDIC assessment		1.3
Impairment on property held for sale			$	1.3
Merger and integration charges				.9
BSA/AML project expenses				.6
Litigation settlement				.5
Incentive expense adjustment				.5

Capital Management

Maintaining a strong capital position is a top priority for Old National, as it remained above industry requirements at June 30, 2013, with regulatory tier 1 and total risk-based capital ratios of 14.4% and 15.4%, respectively, compared to 14.1% and 15.1% at March 31, 2013, and 14.6% and 15.7% at June 30, 2012. Old National repurchased 500,000 shares of stock in the open market during the 2^nd quarter of 2013 compared to no open market purchases made in the 1^st quarter of the current year.

The following table presents Old National’s risk-based and leverage ratios compared to industry requirements:


	Well Capitalized			ONB at June 30, 2013
Tier 1 Risk-Based Capital Ratio		> 6	%		14.4	%
Total Risk-Based Capital Ratio		> 10	%		15.4	%
Tier 1 Leverage Capital Ratio		> 5	%		8.8	%

At June 30, 2013, Old National’s ratio of tangible common equity to tangible assets was 8.65%, compared to 8.96% at March 31, 2013, and 9.40% at June 30, 2012. Refer to Table 1 for Non-GAAP reconciliations.

3. ACHIEVE CONSISTENT QUALITY EARNINGS

Balance Sheet and Net Interest Margin

Total period-end loans stood at $5.201 billion at June 30, 2013, an increase of $74.8 million from the $5.127 billion Old National reported at March 31, 2013. The commercial loans and leases segment (excluding covered loans) experienced its strongest quarterly performance since the 4^th quarter of 2008, growing by $94.4 million in the 2^nd quarter. The residential real estate portfolio also continued its positive momentum, growing $45.9 million in the current quarter. These segments of growth were partially offset by the $32.3 million decline in commercial real estate and the $37.8 million decline in Old National’s covered loan portfolio.

Total investments, including money market accounts, decreased $136.2 million to $3.166 billion, from $3.302 billion at March 31, 2013. Average total investments increased $159.8 million to $3.223 billion at June 30, 2013, from $3.063 billion at March 31, 2013. During 2^nd quarter 2013, Old National sold $145.4 million of securities and had $26.9 million of securities called, resulting in securities gains of $1.8 million compared to $1.0 million of securities gains in the 1^st quarter of 2013. Old National has not incurred any other-than-temporary impairment related to its securities portfolio in 2013.

At June 30, 2013, total core deposits, including demand and interest-bearing deposits, declined to $6.840 billion, a decrease of $226.2 million, from the $7.066 billion at March 31, 2013. On average, total core deposits decreased to $6.952 billion during 2^nd quarter 2013 compared to $7.067 billion during 1^st quarter 2013.

Old National reported net interest income of $79.2 million for 2^nd quarter 2013 compared to $79.0 million in 1^st quarter 2013, and $76.0 million for 2^nd quarter 2012. Net interest income on a fully taxable equivalent basis was $83.4 million for 2^nd quarter 2013 and represented a net interest margin on total average earning assets of 3.97%. These results compare to net interest income on a fully taxable equivalent basis of $83.0 million and a margin of 4.04% in 1^st quarter 2013 and net interest income on a fully taxable equivalent basis of $79.2 million and a margin of 4.26% for 2^nd quarter 2012. Refer to Tables A and B for Non-GAAP taxable equivalent reconciliations.

Page 3 of 8

The following table presents amounts and basis points related to the accretion of purchase accounting discounts recorded in net interest income during the periods presented from various Old National acquisitions:


($ in millions)	2Q12		2Q12*		1Q13		1Q13*		2Q13		2Q13*
Monroe Bancorp	$	4.0		21bps	$	1.9		9 bps	$	1.4		7 bps
Integra Bank	$	10.1		55 bps	$	8.0		39 bps	$	6.8		32 bps
Indiana Community Bancorp		N/A		N/A	$	5.1		25 bps	$	6.1		29 bps

N/A = Not Applicable

*	Represents basis points.

Fees, Service Charges and Other Revenue

Total fees, service charges and other revenue totaled $44.3 million for the 2^nd quarter 2013 compared to $45.3 million in 1^st quarter 2013 and $42.1 million in 2^nd quarter 2012. The 2^nd quarter of 2013 included an expense of $1.5 million in the change in indemnification asset related to the acquisition of Integra Bank and no seasonal insurance contingency income. The 1^st quarter of 2013 included a $2.4 million gain on the sale of nine banking centers, $1.9 million in seasonal insurance contingency income, and an expense of $2.3 million in the change in indemnification asset related to the acquisition of Integra Bank. Old National has been accounting for the indemnification asset relating to the July 29, 2011, FDIC-assisted acquisition of Integra Bank under Accounting Standards Update No. 2012-06 since inception.

Income Taxes

The state of Indiana passed legislation in the 2nd quarter which lowers the corporate tax rate 2% over a period of four years. While Old National will benefit from this statutory tax rate change in future periods, the immediate effect was additional tax expense of $1.3 million in the 2nd quarter of 2013 related to the resulting adjustment to the Company’s deferred tax asset.

About Old National

Old National Bancorp (NYSE: ONB) is the largest financial services holding company headquartered in Indiana and, with $9.6 billion in assets, ranks among the top 100 banking companies in the U.S. Since its founding in Evansville in 1834, Old National has focused on community banking by building long-term, highly valued partnerships with clients in its primary footprint of Indiana, Illinois, Kentucky and Michigan. In addition to providing extensive services in retail and commercial banking, wealth management, investments and brokerage, Old National also owns Old National Insurance, one of the 100 largest brokers in the U.S. For more information and financial data, please visit Investor Relations at oldnational.com.

Conference Call

Old National will hold a conference call at 10:00 a.m. CT on Monday, July 29, 2013, to discuss 2^nd quarter 2013 financial results, strategic developments, and the Company’s financial outlook. The live audio web cast of the call, along with the corresponding presentation slides, will be available on the Company’s Investor Relations web page at oldnational.com and will be archived there for 12 months. A replay of the call will also be available from 1:00 p.m. Central Time on July 29 through August 12. To access the replay, dial 1-855-859-2056, conference code 15091293.

Use of Non-GAAP Financial Measures

This earnings release contains GAAP financial measures and non-GAAP financial measures where management believes it to be helpful in understanding Old National’s results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in this release or the Quarterly Financial Trends supplement to this earnings release, which can be found on Investor Relations at oldnational.com.

Page 4 of 8

Table 1: Non-GAAP Reconciliation-Tangible Equity to Tangible Assets


(end of period balances - $ in millions)	March 31, 2013			June 30, 2013
Total Shareholders’ Equity	$	1,199.7		$	1,167.0
Deduct: Goodwill and Intangible Assets		(365.5	)		(364.4	)
Tangible Shareholders’ Equity	$	834.2		$	802.6
Total Assets	$	9,673.7		$	9,641.1
Add: Trust Overdrafts		.2			.1
Deduct: Goodwill and Intangible Assets		(365.5	)		(364.4	)
Tangible Assets	$	9,308.4		$	9,276.7
Tangible Equity to Tangible Assets		8.96	%		8.65	%

Forward-Looking Statement

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, descriptions of Old National’s financial condition, results of operations, asset and credit quality trends and profitability. Forward-looking statements can be identified by the use of the words “anticipate,” “believe,” “expect,” “intend,” “could” and “should,” and other words of similar meaning. These forward-looking statements express management’s current expectations or forecasts of future events and, by their nature, are subject to risks and uncertainties and there are a number of factors that could cause actual results to differ materially from those in such statements. 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 (including the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act and its related regulations), ability of Old National to execute its business plan and satisfy the items addressed in Old National’s Consent Order with the Office of the Comptroller of the Currency, changes in the economy which could materially impact credit quality trends and the ability to generate loans and gather deposits, failure or circumvention of Old National’s internal controls, failure or disruption of our information systems, failure to adhere to or significant changes in accounting, tax or regulatory practices or requirements, new legal obligations or liabilities or unfavorable resolutions of litigations, other matters discussed in this press release and other factors identified in the Company’s Annual Report on Form 10-K and other periodic filings with the Securities and Exchange Commission. These forward-looking statements are made only as of the date of this press release, and Old National undertakes no obligation to release revisions to these forward-looking statements to reflect events or conditions after the date of this release.

Page 5 of 8

OLD NATIONAL BANCORP

Financial Highlights (Table A)


	Three-Months Ended
($ in thousands except per-share data) (FTE) Fully taxable equivalent basis.	June 30, 2013			Mar. 31, 2013			Change			% Change
Income Data:
Net Interest Income	$	79,191		$	79,050		$	141			0.2
Taxable Equivalent Adjustment		4,243			3,912			331			8.5
Net Interest Income (FTE)		83,434			82,962			472			0.6
Fees, Service Charges and Other Revenues		44,311			45,308			(997	)		(2.2	)
Securities Gains (Losses) (a)		1,789			1,019			770			75.6
Derivative Gains (Losses)		144			(12	)		156			N/M
Total Revenue (FTE)		129,678			129,277			401			0.3
Provision for Loan Losses		(3,693	)		845			(4,538	)		N/M
Noninterest Expense		86,916			90,183			(3,267	)		(3.6	)
Income before Taxes		46,455			38,249			8,206			21.5
Provision for Taxes (FTE)		17,977			14,304			3,673			25.7
Net Income		28,478			23,945			4,533			18.9
Per Common Share Data: (Diluted) (b)
Net Income		.28			.24			.04			16.7
Average Diluted Shares Outstanding		101,352			101,547			(195	)		(0.2	)
Book Value		11.57			11.83			(0.26	)		(2.2	)
Stock Price		13.83			13.75			0.08			0.6
Performance Ratios:
Return on Average Assets		1.18	%		1.01	%		0.17	%		16.8
Return on Average Common Equity (c)		9.51			8.00			1.51			18.9
Net Interest Margin (FTE)		3.97			4.04			(0.07	)		(1.7	)
Other Expense to Revenue (Efficiency Ratio) (d)		66.52			68.34			(1.82	)		(2.7	)
Net Charge-offs to Average Loans (e)		0.01			0.10			(0.09	)		(90.0	)
Reserve for Loan Losses to Ending Loans (e)		0.90			0.99			(0.09	)		(9.1	)
Non-Performing Loans to Ending Loans (e)		2.83			3.23			(0.40	)		(12.4	)
Balance Sheet:
Average Assets	$	9,661,408		$	9,476,561		$	184,847			2.0
End of Period Balances:
Assets		9,641,071			9,673,691			(32,620	)		(0.3	)
Investments		3,104,065			3,281,933			(177,868	)		(5.4	)
Money Market Investments (f)		61,690			19,964			41,726			N/M
Commercial Loans and Leases		1,437,203			1,361,216			75,987			5.6
Commercial Real Estate Loans		1,328,680			1,384,232			(55,552	)		(4.0	)
Consumer Loans		978,691			979,779			(1,088	)		(0.1	)
Residential Real Estate Loans		1,431,648			1,386,815			44,833			3.2
Residential Real Estate Loans Held for Sale		13,572			14,583			(1,011	)		(6.9	)
Finance Leases Held for Sale		11,553			—			11,553			N/M
Earning Assets		8,367,102			8,428,522			(61,420	)		(0.7	)
Core Deposits (Excluding Brokered CDs)		6,840,093			7,066,319			(226,226	)		(3.2	)
Borrowed Funds (Including Brokered CDs)		1,414,728			1,180,819			233,909			19.8
Common Shareholders’ Equity		1,166,978			1,199,665			(32,687	)		(2.7	)

(a)	Includes $0 and $0, respectively, for other-than-temporary impairment in 2^nd quarter 2013 and 1^st quarter 2013.

(b)	Assumes conversion of stock options, restricted stock, and warrants.

(c)	Based on average common shareholders’ equity of $1,197,861 and $1,197,747, respectively, for June 30, 2013 and March 31, 2013.

(d)	Noninterest expense before amortization of intangibles as a percent of FTE net interest income and noninterest revenues, excluding net gains from securities transactions.

(e)	Excludes residential loans and leases held for sale and covered loans.

(f)	Includes money market investments and Federal Reserve interest earning accounts.

N/M = Not meaningful.

Page 6 of 8

OLD NATIONAL BANCORP

Financial Highlights (Table B)


	Three-Months Ended
($ in thousands except per-share data) (FTE) Fully taxable equivalent basis.	June 30, 2013			June 30, 2012			Change			% Change
Income Data:
Net Interest Income	$	79,191		$	75,973		$	3,218			4.2
Taxable Equivalent Adjustment		4,243			3,252			991			30.5
Net Interest Income (FTE)		83,434			79,225			4,209			5.3
Fees, Service Charges and Other Revenues		44,311			42,081			2,230			5.3
Securities Gains (Losses) (a)		1,789			6,212			(4,423	)		(71.2	)
Derivative Gains (Losses)		144			249			(105	)		(42.2	)
Total Revenue (FTE)		129,678			127,767			1,911			1.5
Provision for Loan Losses		(3,693	)		393			(4,086	)		N/M
Noninterest Expense		86,916			86,027			889			1.0
Income before Taxes		46,455			41,347			5,108			12.4
Provision for Taxes (FTE)		17,977			14,141			3,836			27.1
Net Income		28,478			27,206			1,272			4.7
Per Common Share Data: (Diluted) (b)
Net Income		.28			.29			(0.01	)		(3.4	)
Average Diluted Shares Outstanding		101,352			94,871			6,481			6.8
Book Value		11.57			11.34			0.23			2.0
Stock Price		13.83			12.01			1.82			15.2
Performance Ratios:
Return on Average Assets		1.18	%		1.27	%		(0.09	)%		(7.1	)
Return on Average Common Equity (c)		9.51			10.25			(0.74	)		(7.2	)
Net Interest Margin (FTE)		3.97			4.26			(0.29	)		(6.8	)
Other Expense to Revenue (Efficiency Ratio) (d)		66.52			69.20			(2.68	)		(3.9	)
Net Charge-offs to Average Loans (e)		0.01			.09			(0.08	)		(88.9	)
Reserve for Loan Losses to Ending Loans (e)		0.90			1.19			(0.29	)		(24.4	)
Non-Performing Loans to Ending Loans (e)		2.83			2.38			0.45			18.9
Balance Sheet:
Average Assets	$	9,661,408		$	8,572,206		$	1,089,202			12.7
End of Period Balances:
Assets		9,641,071			8,689,556			951,515			11.0
Investments		3,104,065			2,705,950			398,115			14.7
Money Market Investments (f)		61,690			97,953			(36,263	)		(37.0	)
Commercial Loans and Leases		1,437,203			1,281,457			155,746			12.2
Commercial Real Estate Loans		1,328,680			1,304,301			24,379			1.9
Consumer Loans		978,691			966,671			12,020			1.2
Residential Real Estate Loans		1,431,648			1,163,201			268,447			23.1
Residential Real Estate Loans Held for Sale		13,572			4,366			9,206			N/M
Finance Leases Held for Sale		11,553			—			11,553			N/M
Earning Assets		8,367,102			7,523,899			843,203			11.2
Core Deposits (Excluding Brokered CDs)		6,840,093			6,660,127			179,966			2.7
Borrowed Funds (Including Brokered CDs)		1,414,728			629,860			784,868			124.6
Common Shareholders’ Equity		1,166,978			1,073,727			93,251			8.7

(a)	Includes $0 and $780, respectively, for other-than-temporary impairment in 2^nd quarter 2013 and 2^nd quarter 2012.

(b)	Assumes conversion of stock options, restricted stock, and warrants.

(c)	Based on average common shareholders’ equity of $1,197,861 and $1,061,301 respectively, for 2013 and 2012.

(d)	Noninterest expense before amortization of intangibles as a percent of FTE net interest income and noninterest revenues, excluding net gains from securities transactions.

(e)	Excludes residential loans and leases held for sale and covered loans.

(f)	Includes money market investments and Federal Reserve interest earning accounts.

N/M = Not meaningful.

Page 7 of 8

OLD NATIONAL BANCORP

Financial Highlights


	Six-Months Ended
($ in thousands except per-share data) (FTE) Fully taxable equivalent basis.	June 30, 2013			June 30, 2012			Change			% Change
Income Data:
Net Interest Income	$	158,241		$	150,246		$	7,995			5.3
Taxable Equivalent Adjustment		8,155			6,303			1,852			29.4
Net Interest Income (FTE)		166,396			156,549			9,847			6.3
Fees, Service Charges and Other Revenues		89,619			90,509			(890	)		(1.0	)
Securities Gains (Losses) (a)		2,808			6,735			(3,927	)		(58.3	)
Derivative Gains (Losses)		132			431			(299	)		(69.4	)
Total Revenue (FTE)		258,955			254,224			4,731			1.9
Provision for Loan Losses		(2,848	)		2,449			(5,297	)		N/M
Noninterest Expense		177,099			177,314			(215	)		(0.1	)
Income before Taxes		84,704			74,461			10,243			13.8
Provision for Taxes (FTE)		32,281			25,532			6,749			26.4
Net Income		52,423			48,929			3,494			7.1
Per Common Share Data: (Diluted) (b)
Net Income Attributable to Common Shareholders		0.52			0.52			0.00			—
Average Diluted Shares Outstanding		101,448			94,847			6,601			7.0
Book Value		11.57			11.34			0.23			2.0
Stock Price		13.83			12.01			1.82			15.2
Performance Ratios:
Return on Average Assets		1.10	%		1.14	%		(0.04	)%		(3.5	)
Return on Average Common Equity (c)		8.75			9.31			(0.56	)		(6.0	)
Net Interest Margin (FTE)		4.01			4.23			(0.22	)		(5.2	)
Other Expense to Revenue (Efficiency Ratio) (d)		67.44			70.06			(2.62	)		(3.7	)
Net Charge-offs to Average Loans (e)		0.05			0.21			(0.16	)		(76.2	)
Reserve for Loan Losses to Ending Loans (e)		0.90			1.19			(0.29	)		(24.4	)
Non-Performing Loans to Ending Loans (e)		2.83			2.38			0.45			18.9
Balance Sheet:
Average Assets	$	9,568,984		$	8,548.302		$	1,020,682			11.9
End of Period Balances:
Assets		9,641,071			8,689,556			951,515			11.0
Investments		3,104,065			2,705,950			398,115			14.7
Money Market Investments (f)		61,690			97,953			(36,263	)		(37.0	)
Commercial Loans and Leases		1,437,203			1,281,457			155,746			12.2
Commercial Real Estate Loans		1,328,680			1,304,301			24,379			1.9
Consumer Loans		978,691			966,671			12,020			1.2
Residential Real Estate Loans		1,431,648			1,163,201			268,447			23.1
Residential Real Estate Loans Held for Sale		13,572			4,366			9,206			N/M
Finance Leases Held for Sale		11,553			—			11,553			N/M
Earning Assets		8,367,102			7,523,899			843,203			11.2
Core Deposits (Excluding Brokered CDs)		6,840,093			6,660,127			179,966			2.7
Borrowed Funds (Including Brokered CDs)		1,414,728			629,860			784,868			124.6
Common Shareholders’ Equity		1,166,978			1,073,727			93,251			8.7

(a)	Includes $0 and $876, respectively, for other-than-temporary impairment in 2013 and 2012.

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

(c)	Based on average common shareholders’ equity of $1,197,804 and $1,051,658, respectively, for 2013 and 2012.

(d)	Noninterest expense before amortization of intangibles as a percent of FTE net interest income and noninterest revenues, excluding net gains from securities transactions.

(e)	Excludes residential loans and leases held for sale and covered loans.

(f)	Includes money market investments and Federal Reserve interest earning accounts.

N/M = Not meaningful.

Page 8 of 8

EX-99.2 3 d573493dex992.htm EX-99.2 EX-99.2

Exhibit 99.2

Old National Bancorp

Financial Trends

Second Quarter 2013

July 29, 2013

Please direct inquiries to:

Christopher A. Wolking, Senior Executive Vice President & Chief Financial Officer (812) 464-1322 or Joan M. Kissel, Senior Vice President & Corporate Controller (812) 465-7290

Notes: -Summations may not equal due to rounding.

Old National Bancorp

Financial Summary

Second Quarter 2013


										2012												2013
2010			2011			2012				1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr	4th Qtr
									Profitability (in millions)
$	38.2		$	72.5		$	91.7		Net Income (Loss)	$	21.7		$	27.2		$	19.7		$	23.0		$	23.9		$	28.5
	38.2			72.5			91.7		Net Income (Loss) Avail. to Common Shareholders		21.7			27.2			19.7			23.0			23.9			28.5
									Diluted EPS
$	0.44		$	0.76		$	0.95		Net Income (Loss) Avail. to Common Shareholders	$	0.23		$	0.29		$	0.20		$	0.23		$	0.24		$	0.28
									Ratios—Net Income
	4.40	%		7.24	%		8.34	%	Return on Average Common Equity		8.34	%		10.25	%		7.17	%		7.73	%		8.00	%		9.51	%
	0.50	%		0.86	%		1.04	%	Return on Average Assets		1.02	%		1.27	%		0.91	%		0.98	%		1.01	%		1.18	%
	79.25	%		73.80	%		71.83	%	Efficiency Ratio (2)		70.88	%		69.20	%		75.26	%		72.15	%		68.34	%		66.52	%
	3.40	%		3.87	%		4.23	%	Net Interest Margin (FTE)		4.20	%		4.26	%		4.09	%		4.34	%		4.04	%		3.97	%
									Capital Ratios:
									Risk-Based Capital Ratios (EOP):
	13.6	%		13.5	%		13.6	%	Tier 1		14.0	%		14.6	%		12.9	%		13.6	%		14.1	%		14.4	%
	14.8	%		15.0	%		14.7	%	Total		15.4	%		15.7	%		14.1	%		14.7	%		15.1	%		15.4	%
	9.0	%		8.3	%		8.5	%	Leverage Ratio (to Average Assets)		8.8	%		9.0	%		8.8	%		8.5	%		8.7	%		8.8	%
	11.46	%		11.94	%		12.49	%	Total Equity to Assets (Averages)		12.22	%		12.38	%		12.64	%		12.68	%		12.64	%		12.40	%
	9.68	%		8.97	%		9.01	%	Tangible Common Equity to Tangible Assets (1)		9.23	%		9.40	%		9.05	%		9.01	%		8.96	%		8.65	%
									Per Common Share Data:
	0.28			0.28			0.36		Cash Dividends Declared		0.09			0.09			0.09			0.09			0.10			0.10
	64	%		37	%		38	%	Dividend Payout Ratio		39	%		31	%		44	%		39	%		42	%		35	%
	10.08			10.92			11.81		Common Book Value (EOP)		11.10			11.34			11.70			11.81			11.83			11.57
	11.89			11.65			11.87		Market Value (EOP)		13.14			12.01			13.61			11.87			13.75			13.83
	7.85			7.89			8.17		Tangible Common Book Value (1)		8.09			8.35			8.04			8.17			8.23			7.96
									Other Statistics
	2,491			2,551			2,684		Full Time Equivalent Employees		2,530			2,613			2,703			2,684			2,589			2,578

FTE	— Fully taxable equivalent basis

EOP	— End of period actual balances

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

(2)

Efficiency ratio is defined as noninterest expense before amortization of intangibles as a percent of FTE net interest income and noninterest revenues, excluding net gains from securities transactions. This presentation excludes intangible amortization and net securities gains, as is common in other company releases, and better aligns with true operating performance.

PAGE 1

Old National Bancorp

INCOME STATEMENT

($ In Millions except EPS information)


Six Months					Change							Second Quarter						Change
2013			2012		$			%				2013			2012			$			%
$	171.8		$	169.5	$	2.3			1.3	%	Interest Income	$	85.7		$	85.3		$	0.4			0.5	%
	13.5			19.3		(5.7	)		-29.8	%	Less: Interest Expense		6.5			9.3			(2.8	)		-30.1	%

	158.2			150.2		8.0			5.3	%	Net Interest Income		79.2			76.0			3.2			4.2	%
	12.1			10.9		1.1			10.3	%	Wealth Management Fees		6.4			5.8			0.6			9.7	%
	22.9			25.8		(2.9	)		-11.3	%	Service Charges on Deposit Accounts		11.8			12.9			(1.1	)		-8.8	%
	11.7			12.2		(0.5	)		-4.0	%	ATM Fees		5.9			5.9			0.0			0.8	%
	2.9			1.3		1.5			115.2	%	Mortgage Banking Revenue		1.6			0.8			0.8			106.2	%
	20.3			18.9		1.3			7.1	%	Insurance Premiums and Commissions		9.3			9.3			0.0			0.1	%
	7.7			6.1		1.6			25.6	%	Investment Product Fees		4.1			3.2			0.9			28.8	%
	3.3			3.0		0.3			8.3	%	Company-owned Life Insurance		1.6			1.5			0.1			6.7	%
	(3.8	)		0.8		(4.5	)		N/M		Change in Indemnification Asset		(1.5	)		(4.0	)		2.5			N/M
	12.7			11.5		1.2			10.7	%	Other Income		5.1			6.7			(1.6	)		-24.2	%

	89.6			90.5		(0.9	)		-1.0	%	Total Fees, Service Charges & Other Rev.		44.3			42.1			2.2			5.3	%
	2.8			6.7		(3.9	)		-58.3	%	Gains (Losses) Sales of Securities (1)		1.8			6.2			(4.4	)		-71.2	%
	0.1			0.4		(0.3	)		-69.4	%	Gains (Losses) Derivatives		0.1			0.2			(0.1	)		-42.3	%

	92.6			97.7		(5.1	)		-5.2	%	Total Noninterest Income		46.2			48.5			(2.3	)		-4.7	%
	250.8			247.9		2.9			1.2	%	Total Revenues		125.4			124.5			0.9			0.7	%
	99.7			92.8		6.9			7.4	%	Salaries and Employee Benefits		48.7			46.8			2.0			4.2	%
	24.1			25.7		(1.6	)		-6.2	%	Occupancy		12.0			13.3			(1.2	)		-9.3	%
	5.7			5.8		(0.2	)		-2.6	%	Equipment		2.8			3.0			(0.2	)		-6.5	%
	3.1			2.9		0.2			6.9	%	Marketing		1.9			1.5			0.4			29.3	%
	10.9			11.4		(0.5	)		-4.5	%	Data Processing		5.7			5.9			(0.3	)		-4.6	%
	5.3			5.4		(0.2	)		-2.9	%	Communication		2.7			2.6			0.1			3.9	%
	6.5			5.4		1.1			21.5	%	Professional Fees		2.8			2.6			0.2			7.7	%
	3.6			3.1		0.4			14.3	%	Loan Expenses		2.0			1.5			0.4			28.9	%
	1.2			1.4		(0.1	)		-10.9	%	Supplies		0.6			0.6			0.0			6.5	%
	1.8			2.8		(1.0	)		-36.2	%	FDIC Assessment		0.1			1.4			(1.3	)		-91.5	%
	2.6			11.4		(8.8	)		-77.6	%	Other Real Estate Owned Expense		1.5			1.6			(0.0	)		-2.5	%
	12.7			9.2		3.5			38.1	%	Other Expense		6.0			5.3			0.7			12.9	%

	177.1			177.3		(0.2	)		-0.1	%	Total Noninterest Expense		86.9			86.0			0.9			1.0	%
	(2.8	)		2.4		(5.3	)		N/M		Provision for loan losses		(3.7	)		0.4			(4.1	)		N/M

	76.5			68.2		8.4			12.3	%	Income (loss) before Income Taxes		42.2			38.1			4.1			10.8	%

	24.1			19.2		4.9			25.5	%	Total Taxes		13.7			10.9			2.8			26.1	%

$	52.4		$	48.9	$	3.5			7.1	%	Net Income (Loss)	$	28.5		$	27.2		$	1.3			4.7	%

											Diluted EPS
$	0.52		$	0.52	$	0.00			0.2	%	Net Income (Loss) Avail to Common	$	0.28		$	0.29		$	(0.01	)		-2.1	%
											Average Common Shares Outstanding (000’s)
	101,031			94,479		6,551			6.9	%	Basic		100,981			94,514			6,467			6.8	%
	101,448			94,847		6,600			7.0	%	Diluted		101,352			94,871			6,482			6.8	%
	100,881			94,687		6,194			6.5	%	Common Shares Outstanding (EOP) (000’s)		100,881			94,687			6,194			6.5	%

(1)	Includes $1.8 million of net gains and $0.0 million of OTTI in 2Q13 and $7.0 million of net gains and $0.8 million of OTTI in 2Q12. Includes $2.8 million of net gains and $0.0 million of OTTI in YTD 2013 and $7.6 million of net gains and $0.9 million of OTTI in YTD 2012.

EOP	— End of period actual balances

N/M	= Not meaningful

OTTI	— Other Than Temporary Impairment

PAGE 2

Old National Bancorp

NET INCOME TRENDS

Second Quarter 2013

($ In Millions except EPS information)


								2012										2013
2010		2011		2012				1st Qtr		2nd Qtr			3rd Qtr			4th Qtr		1st Qtr			2nd Qtr			3rd Qtr	4th Qtr
$	296.8	$	326.6	$	344.7		Interest Income	$	84.3	$	85.3		$	82.8		$	92.4	$	86.1		$	85.7
	78.4		53.7		35.9		Less: Interest Expense		10.0		9.3			8.6			8.0		7.1			6.5

	218.4		272.9		308.8		Net Interest Income		74.3		76.0			74.1			84.4		79.0			79.2
	16.1		20.5		21.5		Wealth Management Fees		5.1		5.8			5.2			5.4		5.7			6.4
	50.0		51.9		51.5		Service Charges on Deposit Accounts		12.9		12.9			12.8			12.9		11.1			11.8
	23.0		25.2		24.0		ATM Fees		6.3		5.9			5.7			6.1		5.8			5.9
	2.2		3.3		3.7		Mortgage Banking Revenue		0.6		0.8			0.8			1.6		1.3			1.6
	36.5		37.0		37.1		Insurance Premiums and Commissions		9.6		9.3			8.7			9.5		10.9			9.3
	9.2		11.1		12.7		Investment Product Fees		2.9		3.2			3.4			3.3		3.6			4.1
	4.1		5.3		6.5		Company-owned Life Insurance		1.5		1.5			1.7			1.7		1.6			1.6
	—		0.4		(3.4	)	Change in Indemnification Asset		4.8		(4.0	)		(4.9	)		0.7		(2.3	)		(1.5	)
	14.4		20.1		21.7		Other Income		4.8		6.7			4.5			5.7		7.6			5.1

	155.5		174.6		175.4		Total Fees, Service Charges & Other Rev.		48.4		42.1			38.0			46.9		45.3			44.3
	13.2		7.3		13.6		Gains (Losses) Sales of Securities (1)		0.5		6.2			2.7			4.2		1.0			1.8
	1.5		1.0		0.8		Gains (Losses) Derivatives		0.2		0.2			0.2			0.2		(0.0	)		0.1

	170.1		182.9		189.8		Total Noninterest Income		49.1		48.5			40.9			51.3		46.3			46.2
	388.6		455.8		498.6		Total Revenues		123.4		124.5			115.0			135.6		125.4			125.4
	170.6		189.5		193.9		Salaries and Employee Benefits		46.0		46.8			49.9			51.2		51.0			48.7
	46.4		51.1		50.9		Occupancy		12.5		13.3			13.5			11.8		12.1			12.0
	10.6		11.7		11.7		Equipment		2.9		3.0			2.9			3.0		2.9			2.8
	5.7		6.0		7.5		Marketing		1.4		1.5			1.5			3.0		1.2			1.9
	21.4		23.0		22.0		Data Processing		5.5		5.9			5.4			5.2		5.2			5.7
	9.8		10.4		10.9		Communication		2.8		2.6			2.6			2.9		2.6			2.7
	8.3		15.0		12.0		Professional Fees		2.7		2.6			3.8			2.9		3.7			2.8
	3.9		4.7		7.0		Loan Expenses		1.6		1.5			1.8			2.1		1.6			2.0
	2.9		3.8		2.7		Supplies		0.8		0.6			0.7			0.6		0.6			0.6
	8.4		7.5		6.0		FDIC Assessment		1.4		1.4			1.3			1.9		1.7			0.1
	2.6		2.0		17.1		Other Real Estate Owned Expense		9.8		1.6			0.4			5.4		1.0			1.5
	23.6		23.9		23.9		Other Expense		3.9		5.3			5.2			9.5		6.7			6.0

	314.3		348.5		365.8		Total Noninterest Expense		91.3		86.0			89.0			99.4		90.2			86.9
	30.8		7.5		5.0		Provision for Loan Losses		2.1		0.4			0.4			2.2		0.8			(3.7	)

	43.5		99.8		127.8		Income (loss) before Income Taxes		30.1		38.1			25.6			34.0		34.3			42.2

	5.3		27.3		36.1		Total Taxes		8.3		10.9			5.9			11.0		10.4			13.7

$	38.2	$	72.5	$	91.7		Net Income (Loss)	$	21.7	$	27.2		$	19.7		$	23.0	$	23.9		$	28.5

$	0.44	$	0.76	$	0.95		Net Income (Loss) Avail to Common	$	0.23	$	0.29		$	0.20		$	0.23	$	0.24		$	0.28
	86,785		94,467		96,440		Average Basic Common Shares (000’s)		94,445		94,514			95,690			101,069		101,081			100,981
	86,928		94,772		96,833		Average Diluted Common Shares (000’s)		94,833		94,871			96,125			101,550		101,547			101,352

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

PAGE 3

Old National Bancorp

Balance Sheet (EOP)

Second Quarter 2013

($ in Millions)


																Change from Prior Year
	6/30/2013			3/31/2013			12/31/2012			9/30/2012			6/30/2012			6/30/2013 vs.			6/30/2012			12/31/2011			12/31/2010
Assets
Fed Reserve Bank Account	$	58.1		$	15.2		$	41.9		$	26.9		$	94.1		$	(35.9	)		-38.2	%	$	26.4		$	141.4
Money Market Investments		3.5			4.8			3.9			10.2			3.9			(0.3	)		-8.3	%		4.8			2.8
Investments:
Treasury & Gov’t Sponsored Agencies		561.6			589.4			703.1			577.5			538.5			23.2			4.3	%		416.1			680.9
Mortgage-backed Securities		1,457.2			1,598.2			1,250.6			1,235.9			1,284.2			172.9			13.5	%		1,352.2			1,188.3
States & Political Subdivisions		828.4			834.4			746.6			727.4			677.9			150.5			22.2	%		619.2			566.3
Other Securities		256.9			259.9			244.3			223.5			205.4			51.6			25.1	%		202.0			194.8

Total Investments		3,104.1			3,281.9			2,944.6			2,764.3			2,705.9			398.1			14.7	%		2,589.5			2,630.4

Residential Real Estate Loans Held for Sale		13.6			14.6			12.6			9.9			4.4			9.2			210.8	%		4.5			3.8
Leases Held for Sale		11.6			—			—			—			—			11.6			N/M			—			—
Loans:
Commercial		1,363.1			1,262.7			1,279.2			1,231.4			1,136.7			226.4			19.9	%		1,137.0			1,105.3
Commercial Leases		34.8			52.4			57.7			62.6			68.9			(34.1	)		-49.5	%		79.6			106.1
Commercial & Agriculture Real Estate		1,198.0			1,230.3			1,255.9			1,291.1			1,042.6			155.4			14.9	%		1,067.4			942.4
Consumer:
Home Equity		242.0			244.3			253.6			263.8			206.0			36.0			17.5	%		216.2			248.3
Other Consumer Loans		650.1			643.1			653.3			666.3			649.3			0.7			0.1	%		645.2			676.6

Subtotal of Commercial & Consumer Loans		3,488.0			3,432.9			3,499.6			3,515.1			3,103.5			384.5			12.4	%		3,145.4			3,078.7
Residential Real Estate		1,399.6			1,352.7			1,324.7			1,279.2			1,122.8			276.9			24.7	%		995.5			664.7
Covered Loans		288.6			326.4			372.3			448.8			489.3			(200.7	)		-41.0	%		626.4			—

Total Loans		5,176.2			5,112.0			5,196.6			5,243.2			4,715.6			460.6			9.8	%		4,767.2			3,743.5

Total Earning Assets		8,367.1			8,428.5			8,199.6			8,054.4			7,523.9			843.2			11.2	%		7,392.5			6,521.8

Allowance for Loan Losses		(49.3	)		(53.5	)		(54.8	)		(54.8	)		(54.8	)		(5.4	)		-9.9	%		(58.1	)		(72.3	)
Nonearning Assets:
Cash and Due from Banks		155.1			133.9			218.3			180.5			165.1			(10.0	)		-6.0	%		191.6			107.4
Premises & Equipment		91.4			89.8			89.9			83.3			71.8			19.6			27.3	%		71.9			48.8
Goodwill & Intangible Assets		364.4			365.5			368.0			371.2			283.4			81.0			28.6	%		286.8			194.1
Company-owned Life Insurance		273.9			272.3			270.6			268.9			251.7			22.2			8.8	%		248.7			226.2
FDIC Indemnification Asset		100.4			109.9			116.6			127.8			137.0			(36.6	)		-26.7	%		168.9			—
Covered ORE		23.1			26.1			26.1			28.8			22.2			0.9			4.2	%		30.4			—
Other Assets		315.0			301.1			309.2			323.0			289.3			25.7			8.9	%		276.9			238.0

Total Nonearning Assets		1,323.3			1,298.7			1,398.8			1,383.4			1,220.4			102.9			8.4	%		1,275.2			814.4

Total Assets	$	9,641.1		$	9,673.7		$	9,543.6		$	9,383.0		$	8,689.6		$	951.5			11.0	%	$	8,609.7		$	7,263.9

Liabilities & Equity
Noninterest-bearing Demand Deposits	$	1,881.4		$	1,973.3		$	2,007.8		$	1,943.5		$	1,847.9		$	33.5			1.8	%	$	1,728.5		$	1,276.0
NOW Accounts		1,652.8			1,691.2			1,827.7			1,694.8			1,603.7			49.1			3.1	%		1,569.1			1,297.4
Savings Accounts		1,900.1			1,916.9			1,869.4			1,939.7			1,683.8			216.4			12.9	%		1,570.4			1,079.4
Money Market Accounts		283.7			294.7			292.9			282.3			283.1			0.6			0.2	%		295.8			334.8
Other Time under $100,000		805.5			848.1			915.7			966.0			885.0			(79.6	)		-9.0	%		1,004.0			988.7
Other Time $100,000 & over		316.5			342.1			365.5			392.0			356.7			(40.1	)		-11.2	%		421.9			466.3

Total Core Deposits		6,840.1			7,066.3			7,278.9			7,218.2			6,660.1			180.0			2.7	%		6,589.8			5,442.7
Brokered CD’s		—			—			0.1			3.1			10.1			(10.1	)		-100.0	%		21.7			20.2

Total Deposits		6,840.1			7,066.3			7,279.0			7,221.4			6,670.3			169.8			2.5	%		6,611.6			5,462.9
Short-term Borrowings		530.4			644.0			589.8			452.1			346.0			184.4			53.3	%		424.8			298.2
Other Borrowings		884.3			536.8			237.5			288.5			273.7			610.6			223.1	%		290.8			421.9

Total Borrowed Funds		1,414.7			1,180.8			827.3			740.6			619.7			795.0			128.3	%		715.6			720.1
Accrued Expenses & Other Liabilities		219.3			226.9			242.8			234.3			325.8			(106.6	)		-32.7	%		248.9			202.0

Total Liabilities		8,474.1			8,474.0			8,349.1			8,196.3			7,615.8			858.3			11.3	%		7,576.1			6,385.1
Common Stock, Surplus & Retained Earnings		1,192.0			1,178.8			1,164.8			1,152.5			1,051.4			140.6			13.4	%		1,018.6			880.1
Other Comprehensive Income		(25.0	)		20.8			29.8			34.3			22.3			(47.4	)		-212.0	%		15.0			(1.3	)

Total Shareholders Equity		1,167.0			1,199.7			1,194.6			1,186.8			1,073.7			93.3			8.7	%		1,033.6			878.8
Total Liabilities & Shareholders Equity	$	9,641.1		$	9,673.7		$	9,543.6		$	9,383.0		$	8,689.6		$	951.5			11.0	%	$	8,609.7		$	7,263.9

EOP	—End of period actual balances

N/M	= meaningful

PAGE 4

Old National Bancorp

Balance Sheet Trends

PERIOD AVERAGES

($ in Millions)


2010		2011			2012				2012												2013
									1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr	4th Qtr
								Assets
$	152.3	$	146.0		$	23.5		Fed Reserve Bank Account	$	19.7		$	29.2		$	21.8		$	23.4		$	18.4			12.7
	25.4		6.8			5.6		Money Market Investments		5.8			4.7			4.7			7.3			5.8			6.2
								Investments:
	1,057.9		613.2			538.2		Treasury & Gov’t Sponsored Agencies		456.6			515.8			557.1			623.4			661.0			582.1
	1,092.6		1,356.4			1,288.1		Mortgage-backed Securities		1,323.2			1,320.8			1,256.8			1,251.5			1,327.5			1,514.0
	536.3		580.9			684.6		States & Political Subdivisions		639.6			680.9			690.5			727.6			794.0			849.2
	198.7		211.9			214.6		Other Securities		205.8			205.8			213.4			233.2			256.3			258.6

	2,885.6		2,762.3			2,725.5		Total Investments		2,625.2			2,723.2			2,717.9			2,835.7			3,038.8			3,203.9

	4.2		3.5			4.9		Residential Real Estate Loans Held for Sale		3.0			3.3			4.5			8.7			10.7			10.7
	24.2		—			—		Leases Held for Sale		—			—			—			—			—			0.1
								Loans:
	1,152.0		1,169.5			1,156.0		Commercial		1,116.9			1,121.9			1,150.1			1,235.3			1,256.2			1,339.1
	95.3		92.5			68.3		Commercial Leases		76.4			71.1			65.5			60.0			54.5			48.4
	1,007.6		1,152.8			1,100.9		Commercial & Agriculture Real Estate		1,037.2			1,016.1			1,086.8			1,263.4			1,235.6			1,208.9
								Consumer:
	264.7		258.9			250.7		Home Equity		244.8			235.6			240.4			282.0			270.1			260.9
	742.7		643.3			621.8		Other Consumer Loans		608.3			614.6			627.2			637.3			626.5			626.2

	3,262.3		3,317.0			3,197.7		Subtotal of Commercial & Consumer Loans		3,083.6			3,059.3			3,170.0			3,478.0			3,442.9			3,483.4
	460.5		822.5			1,150.9		Residential Real Estate		1,025.5			1,091.9			1,176.5			1,309.7			1,338.8			1,377.7
	—		301.0			508.9		Covered Loans		599.2			529.0			476.8			430.4			355.1			312.0

	3,722.9		4,440.5			4,857.5		Total Loans		4,708.4			4,680.2			4,823.4			5,218.1			5,136.8			5,173.1

	6,814.6		7,359.1			7,617.1		Total Earning Assets		7,362.1			7,440.6			7,572.3			8,093.3			8,210.5			8,406.6

	(73.9)		(70.8	)		(56.1	)	Allowance for Loan Losses		(56.6	)		(57.4	)		(54.6	)		(56.0	)		(53.2	)		(52.9	)
	845.7		1,096.3			1,239.6		Nonearning Assets		1,218.9			1,189.0			1,197.6			1,353.0			1,319.2			1,307.6

$	7,586.4	$	8,384.7		$	8,800.5		Total Assets	$	8,524.4		$	8,572.2		$	8,715.3		$	9,390.3		$	9,476.6		$	9,661.4

								Liabilities & Equity
$	1,182.7	$	1,555.9		$	1,828.8		Noninterest-bearing Demand Deposits	$	1,734.0		$	1,764.0		$	1,859.9		$	1,957.1		$	1,942.1		$	1,914.6
	1,221.4		1,472.7			1,608.6		NOW Accounts		1,535.8			1,604.9			1,573.1			1,720.7			1,726.4			1,707.3
	1,043.3		1,384.3			1,728.9		Savings Accounts		1,612.4			1,668.4			1,734.6			1,900.1			1,870.6			1,892.2
	361.2		328.6			289.0		Money Market Accounts		292.5			292.7			283.9			286.8			295.4			289.7
	1,709.2		1,596.8			1,309.5		Other Time		1,392.9			1,295.2			1,227.6			1,322.2			1,232.1			1,147.9

	5,517.7		6,338.3			6,764.7		Total Core Deposits		6,567.6			6,625.2			6,679.1			7,187.0			7,066.6			6,951.7

	44.4		51.0			10.5		Brokered CD’s		21.5			13.6			5.2			1.7			0.1			—

	5,562.0		6,389.2			6,775.2		Total Deposits		6,589.1			6,638.8			6,684.3			7,188.7			7,066.6			6,951.7

	328.5		363.6			413.9		Short-term Borrowings		366.1			356.7			424.3			508.6			684.5			557.9
	615.0		414.9			280.2		Other Borrowings		290.7			289.0			276.3			264.9			294.6			731.0

	943.5		778.5			694.1		Total Borrowed Funds		656.8			645.7			700.5			773.5			979.1			1,288.9
	211.7		215.7			232.2		Accrued Expenses & Other Liabilities		236.4			226.4			228.7			237.4			233.0			222.9

	6,717.2		7,383.5			7,701.6		Total Liabilities		7,482.4			7,510.9			7,613.5			8,199.6			8,278.8			8,463.5

	869.6		990.3			1,072.1		Common Stock, Surplus & Retained Earnings		1,022.7			1,037.6			1,072.8			1,155.2			1,168.8			1,176.1
	(0.4)		10.9			26.9		Other Comprehensive Income		19.4			23.7			29.0			35.6			29.0			21.7

	869.2		1,001.2			1,099.0		Total Shareholders Equity		1,042.0			1,061.3			1,101.8			1,190.7			1,197.7			1,197.9

$	7,586.4	$	8,384.7		$	8,800.5		Total Liabilities & Shareholders Equity	$	8,524.4		$	8,572.2		$	8,715.3		$	9,390.3		$	9,476.6		$	9,661.4

PAGE 5

Old National Bancorp

Interest Rate Trends (FTE basis)

PERIOD AVERAGES


2010	2011			2012				2012												2013
								1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr	4th Qtr
							Earning Assets:
0.24%		0.33	%		0.51	%	Fed Funds Sold, Resell Agr, Fed Reserve Bank Acct, & Money Mkt		0.24	%		0.13	%		0.25	%		0.15	%		0.22	%		0.15	%
							Investments:
3.21%		2.35	%		2.35	%	Treasury & Gov’t Sponsored Agencies		2.31	%		2.37	%		2.40	%		2.31	%		2.24	%		2.24	%
3.96%		2.80	%		2.26	%	Mortgage-backed Securities		2.45	%		2.34	%		2.27	%		1.98	%		1.92	%		1.78	%
6.19%		5.88	%		5.47	%	States & Political Subdivisions		5.61	%		5.57	%		5.45	%		5.29	%		5.19	%		5.18	%
4.68%		4.23	%		3.76	%	Other Securities		4.20	%		3.86	%		3.83	%		3.39	%		3.31	%		3.34	%

3.93%		3.30	%		3.18	%	Total Investments		3.33	%		3.27	%		3.22	%		3.02	%		2.96	%		2.89	%

							Loans:
4.21%		4.70	%		4.87	%	Commercial		4.63	%		4.62	%		4.39	%		5.46	%		4.44	%		4.63	%
6.45%		6.46	%		6.36	%	Commercial Leases (1)		6.30	%		6.72	%		6.28	%		6.08	%		6.08	%		5.97	%
4.47%		6.03	%		7.22	%	Commercial & Agriculture Real Estate		6.92	%		7.51	%		6.74	%		7.22	%		7.17	%		6.77	%
							Consumer:
3.68%		3.81	%		3.78	%	Home Equity		3.83	%		3.76	%		3.79	%		3.75	%		3.71	%		3.71	%
7.15%		7.10	%		6.19	%	Other Consumer Loans		6.68	%		6.26	%		5.89	%		5.94	%		5.88	%		5.59	%

4.76%		5.43	%		5.79	%	Subtotal of Commercial & Consumer Loans		5.87	%		6.01	%		5.59	%		6.14	%		5.73	%		5.56	%
5.64%		4.87	%		4.50	%	Residential Real Estate Loans (1)		4.59	%		4.65	%		4.44	%		4.35	%		4.15	%		4.12	%

5.07%		5.46	%		5.56	%	Total Loans (1)		5.53	%		5.63	%		5.25	%		5.63	%		5.26	%		5.12	%

4.55%		4.60	%		4.70	%	Total Earning Assets		4.73	%		4.75	%		4.51	%		4.69	%		4.39	%		4.26	%

							Interest-bearing Liabilities:
0.03%		0.04	%		0.03	%	NOW Accounts		0.03	%		0.03	%		0.03	%		0.03	%		0.03	%		0.03	%
0.30%		0.29	%		0.22	%	Savings Accounts		0.25	%		0.23	%		0.20	%		0.19	%		0.17	%		0.15	%
0.10%		0.10	%		0.10	%	Money Market Accounts		0.10	%		0.10	%		0.10	%		0.10	%		0.08	%		0.06	%
2.50%		1.87	%		1.70	%	Other Time		1.86	%		1.82	%		1.73	%		1.44	%		1.42	%		1.44	%

1.07%		0.73	%		0.54	%	Total Interest-bearing Deposits		0.64	%		0.58	%		0.53	%		0.45	%		0.42	%		0.40	%
4.51%		1.59	%		0.78	%	Brokered CD’s		0.86	%		0.82	%		0.48	%		0.53	%		2.27	%		0.00	%

1.11%		0.74	%		0.55	%	Total Interest-bearing Deposits & CD’s		0.64	%		0.58	%		0.53	%		0.45	%		0.42	%		0.40	%

0.20%		0.15	%		0.13	%	Short-term Borrowings		0.14	%		0.13	%		0.12	%		0.13	%		0.16	%		0.15	%
4.74%		4.16	%		2.98	%	Other Borrowings		2.97	%		2.93	%		2.98	%		2.93	%		2.06	%		0.69	%

3.16%		2.29	%		1.28	%	Total Borrowed Funds		1.41	%		1.40	%		1.25	%		1.10	%		0.74	%		0.46	%

1.47%		0.96	%		0.64	%	Total Interest-bearing Liabilities		0.73	%		0.68	%		0.62	%		0.53	%		0.47	%		0.41	%

3.08%		3.64	%		4.06	%	Net Interest Rate Spread		4.00	%		4.07	%		3.89	%		4.15	%		3.92	%		3.85	%
3.40%		3.87	%		4.23	%	Net Interest Margin (FTE)		4.20	%		4.26	%		4.09	%		4.34	%		4.04	%		3.97	%
$13.5	$	11.8		$	13.2		FTE Adjustment ($ in millions)	$	3.1		$	3.3		$	3.3		$	3.5		$	3.9		$	4.2

FTE	—Fully taxable equivalent basis

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

PAGE 6

Old National Bancorp

Asset Quality (EOP) Excludes Covered Assets (4)

($ in Millions)


2010			2011			2012				2012												2013
										1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr	4th Qtr
$	69.5		$	72.3		$	57.1		Beginning Allowance for Loan Losses	$	57.1		$	54.7		$	50.4		$	50.4		$	49.0		$	47.3
	30.8			6.5			(1.0	)	Provision for Loan Losses		1.0			(3.4	)		(0.3	)		1.8			(0.6	)		(3.3	)
	(41.3	)		(34.1	)		(21.4	)	Gross Charge-offs		(6.5	)		(4.4	)		(4.4	)		(6.1	)		(4.0	)		(3.4	)
	—			—			—		Write-downs from Loans Sold		—			—			—			—			—			—
	13.3			12.4			14.3		Gross Recoveries		3.1			3.5			4.8			2.9			2.9			3.3

	(28.0	)		(21.7	)		(7.1	)	Net Charge-offs		(3.4	)		(0.9	)		0.4			(3.2	)		(1.1	)		(0.1	)

$	72.3		$	57.1		$	49.0		Ending Allowance for Loan Losses	$	54.7		$	50.4		$	50.4		$	49.0		$	47.3		$	43.9

	0.75	%		0.53	%		0.16	%	Net Charge-offs / Average Loans (1)		0.33	%		0.09	%		-0.03	%		0.26	%		0.10	%		0.01	%
$	3,722.9		$	4,139.5		$	4,348.7		Average Loans Outstanding (1)	$	4,109.2		$	4,151.2		$	4,346.6		$	4,787.7		$	4,781.7		$	4,861.1
$	3,743.5		$	4,140.8		$	4,824.3		EOP Loans Outstanding (1)	$	4,114.7		$	4,226.3		$	4,794.4		$	4,824.3		$	4,785.6		$	4,887.6
	1.93	%		1.38	%		1.02	%	Allowance for Loan Loss / EOP Loans (1)		1.33	%		1.19	%		1.05	%		1.02	%		0.99	%		0.90	%
									Underperforming Assets:
$	0.6		$	1.1		$	1.1		Loans 90 Days & over (still accruing)	$	0.4		$	0.3		$	0.6		$	1.1		$	2.0		$	1.2
									Non-performing Loans:
	70.9			115.3			150.4		Nonaccrual Loans (2)		113.0			99.5			161.6			150.4			145.3			129.5
	—			1.3			9.2		Renegotiated Loans		1.1			1.2			10.4			9.2			9.1			9.0

	70.9			116.7			159.5		Total Non-performing Loans		114.1			100.7			172.0			159.5			154.4			138.5

	5.6			7.1			11.2		Foreclosed properties		6.5			10.8			14.3			11.2			9.1			7.7

$	77.1		$	124.9		$	171.8		Total Underperforming Assets	$	121.0		$	111.7		$	186.8		$	171.8		$	165.5		$	147.4

$	174.3		$	204.1		$	233.4		Classified Loans—“Problem Loans”	$	184.0		$	146.3		$	260.0		$	233.4		$	221.7		$	198.4
	105.6			106.9			59.2		Other Classified Assets		106.4			102.4			56.4			59.2			57.0			49.6
	84.0			80.1			113.3		Criticized Loans—“Special Mention Loans”		77.1			103.1			135.3			113.3			127.3			152.8

$	363.9		$	391.1		$	405.9		Total Classified & Criticized Assets	$	367.4		$	351.9		$	451.7		$	405.9		$	406.0		$	400.9

	1.90	%		2.82	%		3.31	%	Non-performing loans / EOP Loans (1)		2.77	%		2.38	%		3.59	%		3.31	%		3.23	%		2.83	%
	102	%		49	%		31	%	Allowance to Non-performing Loans (3)		48	%		50	%		29	%		31	%		31	%		32	%
	2.06	%		3.02	%		3.56	%	Under-performing Assets / EOP Loans (1)		2.94	%		2.64	%		3.90	%		3.56	%		3.46	%		3.02	%
$	7,263.9		$	8,609.7		$	9,543.6		EOP Total Assets (includes covered assets)	$	8,581.1		$	8,689.6		$	9,383.0		$	9,543.6		$	9,673.7		$	9,641.1
	1.06	%		1.45	%		1.80	%	Under-performing Assets / EOP Assets		1.41	%		1.29	%		1.99	%		1.80	%		1.71	%		1.53	%

EOP	—End of period actual balances

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

(2)	Includes $21.5 million in 2Q13 of renegotiated loans.

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

(4)

The Company entered into separate loss sharing agreements with the FDIC providing for specified credit loss protection for substantially all acquired single family residential loans, commercial loans, and other real estate owned. At June 30, 2013, approximately $288.6 million of loans and $23.1 million of other real estate owned are covered by the loss sharing agreements. As such, eighty percent of losses incurred on these covered assets will be reimbursed to Old National by the FDIC.

PAGE 7

Old National Bancorp

Asset Quality (EOP) Including Covered Assets (4)

($ in Millions)


2010			2011			2012				2012												2013
										1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr	4th Qtr
$	69.5		$	72.3		$	58.1		Beginning Allowance for Loan Losses	$	58.1		$	55.9		$	54.8		$	54.8		$	54.8		$	53.5
	30.8			7.5			5.0		Provision for Loan Losses		2.1			0.4			0.4			2.2			0.8			(3.7	)
	(41.3	)		(34.9	)		(22.3	)	Gross Charge-offs		(7.6	)		(5.2	)		(5.2	)		(4.3	)		(5.0	)		(4.0	)
	—			—			—		Write-downs from Loans Sold		—			—			—			—			—			—
	13.3			13.2			14.0		Gross Recoveries		3.4			3.6			4.8			2.1			2.9			3.5

	(28.0	)		(21.7	)		(8.3	)	Net Charge-offs		(4.2	)		(1.5	)		(0.4	)		(2.2	)		(2.1	)		(0.5	)

$	72.3		$	58.1		$	54.8		Ending Allowance for Loan Losses	$	55.9		$	54.8		$	54.8		$	54.8		$	53.5		$	49.3

	0.75	%		0.49	%		0.17	%	Net Charge-offs / Average Loans (1)		0.36	%		0.13	%		0.03	%		0.17	%		0.17	%		0.04	%
$	3,722.9		$	4,440.5		$	4,857.5		Average Loans Outstanding (1)	$	4,708.4		$	4,680.2		$	4,823.4		$	5,218.1		$	5,136.8		$	5,173.1
$	3,743.5		$	4,767.2		$	5,196.6		EOP Loans Outstanding (1)	$	4,663.2		$	4,715.6		$	5,243.2		$	5,196.6		$	5,112.0		$	5,176.2
	1.93	%		1.22	%		1.05	%	Allowance for Loan Loss / EOP Loans (1)		1.20	%		1.16	%		1.04	%		1.05	%		1.05	%		0.95	%
									Underperforming Assets:
$	0.6		$	3.4		$	1.1		Loans 90 Days & over (still accruing)	$	1.3		$	0.9		$	0.6		$	1.1		$	2.0		$	1.2
									Non-performing Loans:
	70.9			298.2			254.3		Nonaccrual Loans (2)		271.5			240.5			285.3			254.3			210.5			189.8
	—			1.3			9.2		Renegotiated Loans		1.1			1.2			10.4			9.2			9.1			9.0

	70.9			299.5			263.5		Total Non-performing Loans		272.6			241.7			295.7			263.5			219.6			198.8

	5.6			37.6			37.3		Foreclosed properties		31.2			32.9			43.1			37.3			35.2			30.9

$	77.1		$	340.5		$	301.9		Total Underperforming Assets	$	305.0		$	275.5		$	339.4		$	301.9		$	256.8		$	230.9

$	174.3		$	404.3		$	355.4		Classified Loans—“Problem Loans”	$	370.0		$	310.9		$	408.7		$	355.4		$	303.1		$	265.9
	105.6			106.9			59.2		Other Classified Assets		106.4			102.4			56.4			59.2			57.0			49.6
	84.0			103.2			122.6		Criticized Loans—“Special Mention Loans”		97.2			119.3			149.6			122.6			141.5			166.8

$	363.9		$	614.4		$	537.2		Total Classified & Criticized Assets	$	573.6		$	532.7		$	614.7		$	537.2		$	501.7		$	482.4

	1.90	%		6.28	%		5.07	%	Non-performing loans / EOP Loans (1)		5.85	%		5.13	%		5.64	%		5.07	%		4.30	%		3.84	%
	102	%		19	%		21	%	Allowance to Non-performing Loans (3)		21	%		23	%		19	%		21	%		24	%		25	%
	2.06	%		7.14	%		5.81	%	Under-performing Assets / EOP Loans (1)		6.54	%		5.84	%		6.47	%		5.81	%		5.02	%		4.46	%
$	7,263.9		$	8,609.7		$	9,543.6		EOP Total Assets (includes covered assets)	$	8,581.1		$	8,689.6		$	9,383.0		$	9,543.6		$	9,673.7		$	9,641.1
	1.06	%		3.96	%		3.16	%	Under-performing Assets / EOP Assets		3.55	%		3.17	%		3.62	%		3.16	%		2.65	%		2.39	%

EOP	— End of period actual balances

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

(2)	Includes $21.5 million in 2Q13 of renegotiated loans.

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

(4)

PAGE 8

Old National Bancorp

NON-GAAP MEASURES

Second Quarter 2013

($ In Millions except EPS information)


										2012												2013
2010			2011			2012				1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr	4th Qtr
									Actual EOP Balances
$	878.8		$	1,033.6		$	1,194.6		GAAP Shareholders’ Equity	$	1,050.4		$	1,073.7		$	1,186.8		$	1,194.6		$	1,199.7		$	1,167.0
									Deduct:
	167.9			253.2			338.8		Goodwill		253.2			253.2			339.9			338.8			338.8			339.4
	26.2			33.6			29.2		Intangibles		31.6			30.2			31.3			29.2			26.7			25.0

	194.1			286.8			368.0				284.8			283.4			371.2			368.0			365.5			364.4

$	684.7		$	746.8		$	826.5		Tangible Shareholders’ Equity	$	765.6		$	790.3		$	815.6		$	826.5		$	834.2		$	802.6

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

$	684.7		$	746.8		$	826.5		Tangible Common Shareholders’ Equity	$	765.6		$	790.3		$	815.6		$	826.5		$	834.2		$	802.6

									Actual EOP Balances
$	7,263.9		$	8,609.7		$	9,543.6		GAAP Assets	$	8,581.1		$	8,689.6		$	9,383.0		$	9,543.6		$	9,673.7		$	9,641.1
									Add:
	0.5			0.6			0.1		Trust Overdrafts		0.1			0.1			1.7			0.1			0.2			0.1
									Deduct:
	167.9			253.2			338.8		Goodwill		253.2			253.2			339.9			338.8			338.8			339.4
	26.2			33.6			29.2		Intangibles		31.6			30.2			31.3			29.2			26.7			25.0

	194.1			286.8			368.0				284.8			283.4			371.2			368.0			365.5			364.4

$	7,070.3		$	8,323.5		$	9,175.7		Tangible Assets	$	8,296.4		$	8,406.2		$	9,013.6		$	9,175.7		$	9,308.4		$	9,276.7

	4,720.9			5,163.5			5,604.9		Risk Weighted Assets		5,147.0			5,099.8			5,604.7			5,604.9			5,595.2			5,640.7
									Actual EOP Balances
$	38.2		$	72.5		$	91.7		GAAP Net Income	$	21.7		$	27.2		$	19.7		$	23.0		$	23.9		$	28.5
									Add:
	4.6			7.0			6.4		Intangible Amortization (net of tax)		1.6			1.5			1.6			1.7			1.9			1.5

$	42.8		$	79.4		$	98.1		Tangible Net Income	$	23.3		$	28.8		$	21.3		$	24.7		$	25.9		$	30.0

									Tangible Ratios
	6.26	%		10.64	%		11.87	%	Return on Tangible Common Equity		12.19	%		14.55	%		10.46	%		11.95	%		12.42	%		14.95	%
	0.61	%		0.95	%		1.07	%	Return on Tangible Assets		1.13	%		1.37	%		0.95	%		1.08	%		1.11	%		1.29	%
	9.68	%		8.97	%		9.01	%	Tangible Common Equity to Tangible Assets		9.23	%		9.40	%		9.05	%		9.01	%		8.96	%		8.65	%
	14.50	%		14.46	%		14.75	%	Tangible Common Equity to Risk Wgt Assets		14.88	%		15.50	%		14.55	%		14.75	%		14.91	%		14.23	%
	7.85			7.89			8.17		Tangible Common Book Value (1)		8.09			8.35			8.04			8.17			8.23			7.96

Tangible Common Equity is defined as GAAP Shareholders’ Equity less Preferred Stock, Goodwill and Intangibles.

Tangible Common Equity presentation includes Other Comprehensive Income (OCI) as is common in other company releases.

(1)	Tangible Common Shareholders’ Equity Divided By Common Shares Issued and Outstanding at Period-End.

PAGE 9