Segment Information

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Segment Information

NOTE 21—SEGMENT INFORMATION

Our business segments are defined as Banking, Insurance, and Other and are described below:

Banking

The banking segment provides a wide range of financial products and services to consumers and businesses. Loan products include commercial, commercial real estate, mortgage and other consumer loans. Deposit products include checking, savings, and time deposit accounts. This segment also provides cash management, private banking, brokerage, trust and investment advisory services. Products and services are delivered to customers in the states of Indiana, Kentucky, Illinois and Michigan through our branch locations, ATMs, on-line banking services, 24-hour telephone banking, client care call center, and a mobile banking service.

Insurance

The insurance segment offers full-service insurance brokerage services including commercial property and casualty, surety, loss control services, employee benefits consulting and administration, and personal insurance. Our agencies offer products that are issued and underwritten by various insurance companies not affiliated with us. In addition, we have two affiliated third party claims management companies that do fee for service claims handling for self-insured clients.

Other

Other Corporate Administrative units such as Human Resources or Finance, provide a wide-range of support to our other income earning segments. Expenses incurred by these support units are charged to the business segments through an internal cost allocation process, which may not be comparative to that of other companies. The other segment includes the unallocated portion of other corporate support functions, the elimination of intercompany transactions and our Corporate Treasury unit. Corporate Treasury activities consist of corporate asset and liability management. This unit’s assets and liabilities (and related interest income and expense) consist of investment securities, corporate-owned life insurance, and certain borrowings.

During the third quarter of 2014, Old National merged American National Trust & Investment Management Corp. into Old National Bank. As part of the merger, Old National re-evaluated its business segments and, as of September 30, 2014, Old National changed the composition of its reportable segments to those described above and restated all prior period information. The Wealth Management segment has been aggregated into the banking segment as this business has never been quantitatively significant. In addition, wealth management and banking have the same customers and distribution channels, similar products and services as well as similar economic performance. Selected business segment financial information is shown in the following table for the three and nine months ended September 30:

(dollars in thousands)	Banking			Insurance		Other			Total
Three months ended September 30, 2014
Net interest income	$	109,620		$	2	$	(1,255	)	$	108,367
Noninterest income		24,265			9,721		432			34,418
Noncash items:
Depreciation and software amortization		3,561			34		138			3,733
Provision for loan losses		2,591			—		—			2,591
Amortization of intangibles		2,102			417		—			2,519
Income tax expense (benefit)		15,925			216		(5,046	)		11,095
Segment profit		27,326			261		1,547			29,134
Segment assets		11,035,009			62,956		81,787			11,179,752
Three months ended September 30, 2013
Net interest income	$	78,126		$	3	$	(133	)	$	77,996
Noninterest income		38,410			8,852		493			47,755
Noncash items:
Depreciation and software amortization		3,390			36		73			3,499
Provision for loan losses		(1,724	)		—		—			(1,724	)
Amortization of intangibles		1,496			363		—			1,859
Income tax expense (benefit)		8,472			62		(1,665	)		6,869
Segment profit		25,385			80		(1,517	)		23,948
Segment assets		9,515,092			61,382		75,605			9,652,079

Nine months ended September 30, 2014
Net interest income	$	277,910		$	8	$	(1,591	)	$	276,327
Noninterest income		81,953			31,485		1,196			114,634
Noncash items:
Depreciation and software amortization		10,148			104		394			10,646
Provision for loan losses		2,228			—		—			2,228
Amortization of intangibles		5,122			1,237		—			6,359
Income tax expense (benefit)		34,111			1,184		(7,300	)		27,995
Segment profit		73,149			2,374		(1,106	)		74,417
Segment assets		11,035,009			62,956		81,787			11,179,752
Nine months ended September 30, 2013
Net interest income	$	236,640		$	13	$	(416	)	$	236,237
Noninterest income		109,656			29,189		1,469			140,314
Noncash items:
Depreciation and software amortization		8,839			107		209			9,155
Provision for loan losses		(4,572	)		—		—			(4,572	)
Amortization of intangibles		4,933			1,291		—			6,224
Income tax expense (benefit)		33,591			767		(3,363	)		30,995
Segment profit		78,570			1,501		(3,700	)		76,371
Segment assets		9,515,092			61,382		75,605			9,652,079