Exhibit: 99.2
[LOGO OF OLD NATIONAL BANCORP]
Old National Bancorp
Financial Trends
Third Quarter 2004
October 28, 2004
Please direct inquiries to:
John Poelker, Executive Vice President & Chief Financial Officer
(812) 461-9099 or Candice Jenkins, Vice President & Corporate
Controller (812) 461-9769
Note: -Disclosures based on operating earnings, which exclude gains on branch
divestitures and restructuring charges, are included to provide comparable
data between years.
-Certain prior year amounts may have been restated to conform with the
2004 presentation. Such reclassifications had no effect on net income.
-All share and per share data have been adjusted for stock dividends and
stock splits.
Old National Bancorp
Financial Summary
-----------------
Third Quarter 2004
2003 2004
------------------------------- -------------------------------
2000 2001 2002 2003 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
---- ---- ---- ---- ------- ------- ------- ------- ------- ------- ------- -------
Profitability (in millions)
---------------------------
61.7 93.0 117.9 70.4 NET INCOME from Continuing Operations 26.3 27.1 11.8 5.3 19.5 11.3 18.2
(25.7) (5.9) 8.3 - NON-OPERATING Income (Expense) - - - - - - -
87.4 99.0 109.6 70.4 OPERATING EARNINGS (2) 26.3 27.1 11.8 5.3 19.5 11.3 18.2
91.5 105.1 110.7 72.5 OPERATING CASH EARNINGS (1) 26.7 27.5 12.4 5.9 20.1 11.9 18.8
- ------------------------------------------------------------------------------------------------------------------------------------
Diluted EPS
-----------
0.90 1.36 1.75 1.05 Net Income from Continuing Operations 0.39 0.41 0.17 0.08 0.29 0.17 0.27
(0.35) (0.09) 0.12 - Non-Operating - - - - - - -
1.25 1.44 1.63 1.05 Operating (2) 0.39 0.41 0.17 0.08 0.29 0.17 0.27
1.32 1.53 1.64 1.08 Operating Cash (1) 0.40 0.41 0.18 0.09 0.30 0.18 0.28
- ------------------------------------------------------------------------------------------------------------------------------------
Net Income Ratios
-----------------
10.55% 14.45% 17.05% 9.48% Return on Common Equity 14.03% 14.28% 6.37% 2.92% 10.68% 6.34% 10.58%
0.73% 1.05% 1.27% 0.74% Return on Assets 1.11% 1.12% 0.49% 0.22% 0.84% 0.49% 0.81%
Operating Ratios
-----------------
1.03% 1.12% 1.18% 0.74% Return on Assets (2) 1.11% 1.12% 0.49% 0.22% 0.84% 0.49% 0.81%
58.3% 57.6% 56.5% 61.3% Efficiency Ratio (2) 58.9% 53.7% 63.2% 70.9% 68.9% 80.7% 69.1%
3.65% 3.77% 3.65% 3.37% Net Interest Margin 3.46% 3.35% 3.32% 3.37% 3.37% 3.38% 3.30%
0.39% 0.45% 0.34% 1.21% Net Charge-offs / Average Loans (3) 0.89% 0.60% 1.85% 1.48% 0.25% 0.89% 0.48%
- ------------------------------------------------------------------------------------------------------------------------------------
Capital Ratios:
---------------
Risk-Based Capital Ratios
(end of period):
9.2% 9.3% 11.1% 11.0% Tier 1 11.3% 11.4% 11.1% 11.0% 11.1% 11.3% 11.5%
10.4% 12.8% 14.8% 14.7% Total 15.0% 15.1% 14.7% 14.7% 14.8% 15.1% 15.3%
6.7% 6.6% 7.5% 7.3% Leverage Ratio (to average assets) 7.6% 7.5% 7.3% 7.3% 7.5% 7.5% 7.7%
6.92% 7.27% 7.47% 7.78% Total equity to assets (averages) 7.88% 7.85% 7.69% 7.69% 7.89% 7.69% 7.66%
- ------------------------------------------------------------------------------------------------------------------------------------
Stock Price/ Dividend Ratios:
-----------------------------
0.56 0.59 0.66 0.72 Per Share Dividend 0.18 0.18 0.18 0.18 0.19 0.19 0.19
44% 41% 41% 69% Dividend Payout Ratio 46% 44% 100% 226% 66% 112% 70%
24.63 21.81 22.04 21.76 Stock Price at EOP 20.38 21.90 21.29 21.76 22.60 24.83 24.84
8.98 9.48 11.05 10.75 Book Value Per Share 11.13 11.48 10.80 10.75 11.15 10.16 10.80
(1) Excludes after-tax impact of amortization of intangible assets.
(2) Operating earnings exclude gains on branch divestitures and restructuring charges.
(3) Net charge-offs include $1.2 million, $12.5 million and $2.2 million of write-downs on
loans transferred to held for sale for the second quarter of 2004 and the third quarter
and second quarter of 2003, respectively. PAGE 1
Old National Bancorp
INCOME STATEMENT
----------------
($ In Millions except EPS information)
Nine Months Change Third Quarter Change
- --------------- ------------- ----------------- --------------
2004 2003 $ % 2004 2003 $ %
- ------- ------- ------- ---- ------- ------- ------- ----
$ 333.1 $ 377.5 $ (44.4) -12% Interest Income - FTE $ 107.4 $ 120.9 $ (13.5) -11%
123.8 152.8 (29.1) -19% Less: Interest Expense 40.5 47.3 (6.8) -14%
- ------- ------- ------- ---- ------- ------- ------- ----
209.4 224.6 (15.3) -7% Net Interest Income - FTE 67.0 73.6 (6.7) -9%
23.3 22.7 0.6 3% Trust and asset management fees 7.7 7.6 0.1 2%
35.8 33.8 1.9 6% Service charges on deposit accounts 12.6 11.5 1.2 10%
40.5 27.4 13.2 48% Insurance premiums and commissions 11.7 10.1 1.6 16%
9.5 8.0 1.5 19% Investment product fees 2.5 2.6 (0.1) -3%
7.1 17.3 (10.2) -59% Mortgage banking revenue 0.2 8.0 (7.8) -97%
20.4 18.9 1.5 8% Other income 7.0 5.9 1.1 19%
- ------- ------- ------- ---- ------- ------- ------- ----
136.5 128.1 8.5 7% Total Fees and Service Charges 41.8 45.7 (3.9) -8%
2.3 23.6 (21.2) -90% Gains (Losses) Sales of Securities 0.3 0.1 0.2 N/M
138.8 151.6 (12.8) -8% Total Noninterest Income 42.1 45.8 (3.6) -8%
348.2 376.2 (28.1) -7% Total Revenues (FTE) 109.1 119.4 (10.3) -9%
146.1 129.2 16.9 13% Salaries and employee benefits 43.3 43.4 (0.1) 0%
108.5 90.4 18.1 20% Other expense 32.1 32.1 0.1 0%
- ------- ------- ------- ---- ------- ------- ------- ----
254.6 219.6 35.0 16% Total Noninterest Expense 75.4 75.5 (0.0) 0%
22.4 59.0 (36.6) -62% Provision for loan losses 7.4 27.5 (20.1) -73%
71.2 97.7 (26.4) -27% Pre-Tax Income (FTE) 26.3 16.4 9.8 60%
4.2 13.6 (9.5) -69% Income Taxes 2.1 (1.5) 3.7 N/M
18.1 18.9 (0.8) -4% FTE Adjustment 6.0 6.2 (0.2) -3%
- ------- ------- ------- ---- ------- ------- ------- ----
22.2 32.5 (10.3) -32% Total Taxes (FTE) 8.1 4.6 3.4 74%
49.0 65.1 (16.2) -25% Operating Earnings (1) 18.2 11.8 6.4 54%
- - - - Non-Operating Income (Expense) - - - -
- ------------------------------ ------------------------------------
$ 49.0 $ 65.1 $ (16.2) -25% Net Income from Cont. Ops. $ 18.2 $ 11.8 $ 6.4 54%
============================== ====================================
0.73 0.97 (0.24) -25% EPS - Diluted Net Income from Cont. Ops. 0.27 0.17 0.10 59%
- - - - EPS - Non-Operating - - - -
0.73 0.97 (0.24) -25% EPS - Diluted Operating (1) 0.27 0.17 0.10 59%
0.76 0.99 (0.23) -23% EPS - Diluted Operating Cash (2) 0.28 0.18 0.10 56%
65,960 66,811 (851) -1% EOP Shares Outstanding (000s) 65,960 66,811 (851) -1%
66,247 66,813 (566) -1% Average Basic Shares (000s) 66,051 66,904 (853) -1%
66,692 66,880 (188) 0% Average Diluted Shares (000s) 66,731 67,071 (341) -1%
FTE - Fully taxable equivalent basis
(1) Operating earnings exclude gains on branch divestitures and restructuring charges.
(2) Excludes after-tax impact of amortization of intangible assets. PAGE 2
Old National Bancorp
NET INCOME TRENDS
Third Quarter 2004
($ In Millions except EPS information)
2003 2004
------------------------------- -------------------------------
2000 2001 2002 2003 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
---- ---- ---- ---- ------- ------- ------- ------- ------- ------- ------- -------
657.9 651.0 572.6 494.9 Interest Income - FTE 130.0 126.6 120.9 117.4 114.2 111.5 107.4
368.4 338.4 258.0 197.7 Less: Interest Expense 53.8 51.8 47.3 44.9 43.0 40.3 40.5
- ------------------------------ ------------------------------- -------------------------------
289.5 312.6 314.6 297.1 Net Interest Income - FTE 76.2 74.8 73.6 72.5 71.2 71.2 67.0
22.6 20.7 24.4 30.5 Trust and asset management fees 7.4 7.7 7.6 7.8 7.5 8.0 7.7
34.3 40.5 42.0 44.9 Service charges on deposit accounts 10.8 11.6 11.5 11.0 10.8 12.4 12.6
11.5 13.3 16.7 39.2 Insurance premiums and commissions 8.2 9.1 10.1 11.9 14.5 14.4 11.7
7.1 6.8 9.0 10.6 Investment product fees 2.7 2.7 2.6 2.6 3.2 3.8 2.5
2.6 9.7 14.5 19.1 Mortgage banking revenue 4.4 4.9 8.0 1.8 (0.3) 7.1 0.2
23.7 17.2 23.0 24.3 Other income 6.7 6.2 5.9 5.5 8.0 5.3 7.0
101.8 108.2 129.6 168.6 Total Fees and Service Charges 40.2 42.2 45.7 40.5 43.6 51.1 41.8
(0.1) 4.8 12.4 23.6 Gains (Losses) Sales of Securities 2.7 20.8 0.1 - 2.0 - 0.3
101.7 113.0 142.0 192.1 Total Noninterest Income 42.9 62.9 45.8 40.5 45.6 51.1 42.1
391.2 425.6 456.6 489.3 Total Revenues (FTE) 119.1 137.7 119.4 113.0 116.8 122.3 109.1
130.2 138.2 148.4 169.0 Salaries and employee benefits 41.7 44.1 43.4 39.8 49.3 53.5 43.3
97.8 106.9 109.4 130.7 Other expense 28.5 29.8 32.1 40.3 31.2 45.2 32.1
228.0 245.1 257.8 299.7 Total Noninterest Expense 70.2 74.0 75.5 80.1 80.5 98.7 75.4
26.0 28.7 33.5 85.0 Provision for loan losses 9.0 22.5 27.5 26.0 7.5 7.5 7.4
137.2 151.8 165.3 104.6 Pre-Tax Income (FTE) 39.9 41.3 16.4 6.9 28.9 16.1 26.3
30.1 31.5 30.5 9.0 Income Taxes 7.3 7.9 (1.5) (4.6) 3.3 (1.2) 2.1
19.6 21.3 25.2 25.1 FTE Adjustment 6.4 6.4 6.2 6.2 6.1 6.0 6.0
49.8 52.8 55.6 34.1 Total Taxes (FTE) 13.7 14.2 4.6 1.6 9.4 4.8 8.1
87.4 99.0 109.6 70.4 Operating Earnings (1) 26.3 27.1 11.8 5.3 19.5 11.3 18.2
(25.7) (5.9) 8.3 - Non-Operating Income (Expense) - - - - - - -
61.7 93.0 117.9 70.4 Net Income from Cont. Ops. 26.3 27.1 11.8 5.3 19.5 11.3 18.2
EPS - Diluted Net Income from
0.90 1.36 1.75 1.05 Cont. Ops. 0.39 0.41 0.17 0.08 0.29 0.17 0.27
(0.35) (0.09) 0.12 - EPS - Non-Operating - - - - - - -
1.25 1.44 1.63 1.05 EPS - Diluted Operating (1) 0.39 0.41 0.17 0.08 0.29 0.17 0.27
1.32 1.53 1.64 1.08 EPS - Diluted Operating Cash (2) 0.40 0.41 0.18 0.09 0.30 0.18 0.28
69,689 68,608 67,308 66,832 Average Diluted Shares (000s) 66,945 66,699 67,071 66,728 66,460 66,819 66,731
FTE - Fully taxable equivalent basis
(1) Operating earnings exclude gains on branch divestitures and restructuring charges.
(2) Excludes after-tax impact of amortization of intangible assets. PAGE 3
Old National Bancorp
Balance Sheet (EOP)
-------------------
Third Quarter 2004
($ in Millions)
9/30/04 6/30/04 9/30/03 Change from Prior Year
------- ------- ------- ----------------------
Assets $ %
Securities
Government and Agencies $ 700.9 $ 623.0 $ 615.9 $ 85.0 14%
Municipals 631.9 639.0 653.5 (21.6) - 3%
Mortgage Backed 1,377.1 1,362.5 1,644.5 (267.4) - 16%
Other (1) 309.1 416.7 213.2 95.9 45%
---------- ---------- ---------- -------- ----
Total Investments (1) 3,019.1 3,041.1 3,127.0 (108.0) - 3%
---------- ---------- ---------- -------- ----
Residential Loans Held for Sale 22.1 26.8 16.9 5.1 30%
Loans
Commercial 1,586.6 1,618.7 1,684.8 (98.2) - 6%
Commercial and Agriculture Real Estate 1,713.8 1,758.7 1,832.5 (118.7) - 6%
Consumer 1,227.2 1,195.1 1,134.8 92.4 8%
---------- ---------- ---------- -------- ----
Subtotal 4,527.6 4,572.5 4,652.1 (124.5) - 3%
Residential Real Estate 554.1 534.7 934.2 (380.1) - 41%
---------- ---------- ---------- -------- ----
Total Loans 5,081.7 5,107.2 5,586.3 (504.6) - 9%
---------- ---------- ---------- -------- ----
Total Earning Assets 8,122.8 8,175.2 8,730.2 (607.4) - 7%
---------- ---------- ---------- -------- ----
Allowance for loan losses (96.3) (95.1) (92.6) (3.7) 4%
Nonearning assets
Goodwill and Intangible assets 169.4 169.6 172.2 (2.8) - 2%
Other assets 785.8 791.7 714.8 71.0 10%
---------- ---------- ---------- -------- ----
Total Nonearning assets 955.2 961.3 887.0 68.3 8%
---------- ---------- ---------- -------- ----
---------- ---------- ---------- -------- ----
Total Assets $ 8,981.7 $ 9,041.5 $ 9,524.5 $ (542.8) - 6%
========== ========== ========== ======== ====
Liabilities and Equity
Noninterest-bearing demand deposits $ 825.7 $ 784.5 $ 756.4 $ 69.4 9%
NOW and Savings accounts 2,294.3 2,205.2 1,937.6 356.7 18%
Money market accounts 581.8 579.5 644.8 (63.0) - 10%
Other time 2,333.0 2,404.0 2,667.0 (334.0) - 13%
---------- ---------- ---------- -------- ----
Total Core Deposits 6,034.9 5,973.2 6,005.8 29.1 0%
---------- ---------- ---------- -------- ----
Borrowed Funds (includes Brokered CD's) 2,117.3 2,256.0 2,679.4 (562.1) - 21%
Accrued expenses and other liabilities 117.2 139.0 117.6 (0.4) 0%
---------- ---------- ---------- -------- ----
Total Liabilities 8,269.4 8,368.2 8,802.7 (533.4) - 6%
---------- ---------- ---------- -------- ----
Shareholders' equity 712.3 673.3 721.8 (9.4) - 1%
---------- ---------- ---------- -------- ----
Total Liabilities and Shareholders Equity $ 8,981.7 $ 9,041.5 $ 9,524.5 $ (542.8) - 6%
========== ========== ========== ======== ====
(1) Includes money market investments. PAGE 4
Old National Bancorp
Balance Sheet Trends
--------------------
PERIOD AVERAGES
($ in Millions)
2000 2001 2002 2003 2003 2004
---- ---- ---- ---- ------------------------------- -------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
------- ------- ------- ------- ------- ------- ------- -------
Assets
Securities
$ 513 $ 482 $ 593 $ 629 Government and Agencies $ 708 $ 614 $ 589 $ 605 $ 587 $ 602 $ 659
542 582 656 667 Municipals 689 676 654 650 652 641 635
666 773 1,342 1,710 Mortgage Backed 1,573 1,886 1,814 1,567 1,484 1,430 1,348
122 181 146 149 Other (1) 128 132 168 167 176 178 343
- ------------------------------ ------------------------------- -------------------------------
1,842 2,018 2,737 3,155 Total Investments (1) 3,098 3,308 3,225 2,989 2,898 2,852 2,985
- ------------------------------ ------------------------------- -------------------------------
Loans
1,476 1,692 1,690 1,687 Commercial 1,677 1,706 1,698 1,665 1,601 1,636 1,604
Commercial and Agriculture
1,538 1,855 1,844 1,866 Real Estate 1,876 1,872 1,869 1,847 1,838 1,804 1,749
986 1,052 1,057 1,096 Consumer 1,054 1,069 1,110 1,149 1,168 1,183 1,211
- ------------------------------ ------------------------------- -------------------------------
4,000 4,599 4,592 4,648 Subtotal 4,607 4,647 4,678 4,661 4,608 4,623 4,564
2,088 1,682 1,287 1,003 Residential Real Estate (2) 1,091 984 977 960 955 960 568
- ------------------------------ ------------------------------- -------------------------------
6,088 6,281 5,878 5,651 Total Loans (2) 5,698 5,631 5,655 5,621 5,563 5,583 5,132
- ------------------------------ ------------------------------- -------------------------------
7,930 8,299 8,615 8,807 Total Earning Assets 8,796 8,940 8,880 8,611 8,461 8,435 8,117
- ------------------------------ ------------------------------- -------------------------------
(71) (74) (81) (89)Allowance for loan losses (89) (87) (91) (90) (98) (101) (96)
592 640 730 839 Nonearning assets 794 811 858 891 898 920 956
- ------------------------------ ------------------------------- -------------------------------
$8,451 $8,864 $9,264 $9,556 Total Assets $9,501 $9,665 $9,646 $9,412 $9,261 $9,254 $8,977
============================== =============================== ===============================
Liabilities and Equity
$ 637 $ 664 $ 712 $ 753 Noninterest-bearing demand deposits $ 730 $ 744 $ 761 $ 776 $ 771 $ 798 $ 814
1,299 1,339 1,678 1,984 NOW and Savings accounts 1,871 2,058 1,996 2,011 2,054 2,166 2,248
712 778 644 612 Money market accounts 590 587 629 642 603 586 582
2,713 3,065 3,146 2,767 Other time 2,900 2,813 2,694 2,659 2,602 2,500 2,394
- ------------------------------ ------------------------------- -------------------------------
5,361 5,847 6,181 6,115 Total Core Deposits 6,091 6,202 6,080 6,089 6,031 6,050 6,039
- ------------------------------ ------------------------------- -------------------------------
Borrowed Funds (includes Brokered
2,417 2,287 2,294 2,573 CD's) 2,541 2,594 2,683 2,474 2,387 2,380 2,133
Accrued expenses and other
89 86 97 124 liabilities 121 110 141 125 112 111 118
- ------------------------------ ------------------------------- -------------------------------
7,866 8,220 8,572 8,813 Total Liabilities 8,753 8,906 8,904 8,688 8,531 8,542 8,289
- ------------------------------ ------------------------------- -------------------------------
585 644 692 743 Shareholders' equity 749 758 742 724 731 712 688
- ------------------------------ ------------------------------- -------------------------------
$8,451 $8,864 $9,264 $9,556 Total Liabilities and Equity $9,501 $9,665 $9,646 $9,412 $9,261 $9,254 $8,977
============================== =============================== ===============================
(1) Includes money market investments.
(2) Includes residential loans held for sale. PAGE 5
Old National Bancorp
Interest Rate Trends (FTE basis)
--------------------------------
PERIOD AVERAGES
2000 2001 2002 2003 2003 2004
- ---- ---- ---- ---- ------------------------------- -------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
------- ------- ------- ------- ------- ------- ------- -------
Earning Assets
Securities
6.80% 6.17% 4.55% 3.83% Government and Agencies 3.99% 3.92% 3.77% 3.59% 3.39% 3.20% 3.16%
7.49% 7.07% 7.13% 7.02% Municipals 7.08% 7.03% 6.97% 6.99% 6.87% 6.97% 6.98%
6.84% 6.46% 5.45% 4.12% Mortgage Backed 4.50% 4.02% 3.81% 4.21% 4.19% 4.13% 4.24%
7.52% 6.05% 5.14% 4.21% Other (1) 4.83% 4.91% 3.64% 3.77% 3.37% 3.34% 2.58%
- ------------------------- ------------------------------- -------------------------------
7.07% 6.53% 5.64% 4.68% Total Investments (1) 4.97% 4.65% 4.43% 4.66% 4.58% 4.52% 4.39%
- ------------------------- ------------------------------- -------------------------------
Loans
9.28% 8.18% 6.58% 5.61% Commercial 5.95% 5.66% 5.50% 5.35% 5.44% 5.26% 5.37%
Commercial and Agriculture Real
8.63% 8.22% 6.93% 5.87% Estate 6.25% 6.05% 5.62% 5.55% 5.67% 5.59% 5.79%
9.38% 9.28% 8.04% 7.22% Consumer 7.55% 7.43% 7.10% 6.85% 6.72% 6.57% 6.51%
- ------------------------- ------------------------------- -------------------------------
9.05% 8.45% 7.06% 6.10% Subtotal 6.44% 6.22% 5.93% 5.80% 5.85% 5.72% 5.83%
7.93% 7.77% 7.32% 6.37% Residential Real Estate (2) 6.72% 6.50% 6.23% 6.00% 5.84% 5.61% 5.42%
- ------------------------- ------------------------------- -------------------------------
8.67% 8.27% 7.11% 6.14% Total Loans (2) 6.49% 6.27% 5.98% 5.83% 5.85% 5.70% 5.79%
- ------------------------- ------------------------------- -------------------------------
- ------------------------- ------------------------------- -------------------------------
8.30% 7.84% 6.65% 5.62% Total Earning Assets 5.95% 5.67% 5.42% 5.43% 5.42% 5.30% 5.28%
========================= =============================== ===============================
Interest-bearing Liabilities
1.94% 1.68% 1.22% 0.86% NOW and Savings accounts 0.99% 1.04% 0.73% 0.68% 0.68% 0.75% 0.89%
4.88% 3.32% 1.55% 0.94% Money market accounts 1.11% 1.00% 0.82% 0.83% 0.83% 0.86% 1.17%
5.64% 5.52% 4.58% 3.96% Other time 4.24% 4.03% 3.86% 3.72% 3.58% 3.25% 3.07%
- ------------------------- ------------------------------- -------------------------------
4.51% 4.20% 3.19% 2.47% Total Interest-Bearing Deposits 2.77% 2.57% 2.33% 2.22% 2.13% 1.95% 1.92%
- ------------------------- ------------------------------- -------------------------------
6.43% 5.29% 3.63% 2.54% Borrowed Funds (includes Brokered CD's) 2.75% 2.59% 2.38% 2.43% 2.55% 2.49% 2.85%
- ------------------------- ------------------------------- -------------------------------
5.16% 4.53% 3.32% 2.49% Total Interest-Bearing Liabilities 2.76% 2.58% 2.34% 2.29% 2.26% 2.12% 2.19%
========================= =============================== ===============================
3.14% 3.31% 3.32% 3.13% Net Interest Rate Spread 3.19% 3.09% 3.08% 3.14% 3.15% 3.18% 3.09%
3.65% 3.77% 3.65% 3.37% Net Interest Margin 3.46% 3.35% 3.32% 3.37% 3.37% 3.38% 3.30%
(1) Includes money market investments.
(2) Includes residential loans held for sale. PAGE 6
Old National Bancorp
Asset Quality
-------------
End of Period
($ in Millions)
2000 2001 2002 2003 2003 2004
---- ---- ---- ---- ------------------------------- -------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
------- ------- ------- ------- ------- ------- ------- -------
65.7 73.8 74.2 87.7 Beginning allowance for loan losses 87.7 84.0 98.0 99.4 104.6 108.6 103.6
26.0 28.7 33.5 85.0 Provision for loan losses 9.0 22.5 27.5 26.0 7.5 7.5 7.4
6.0 - - - Acquired from acquisition - - - - - - -
Transfer to Allow. Unfunded
- - - (9.3) Commitments - - (6.8) (9.3) (8.0) (8.6) (8.6)
(29.3) (36.2) (27.6) (61.6) Gross charge-offs (14.3) (8.0) (17.1) (22.2) (5.7) (12.7) (11.0)
- - - (14.7) Write-downs from loans sold - (2.2) (12.5) - - (1.2) -
5.5 7.9 7.6 8.2 Gross recoveries 1.6 1.7 3.5 1.4 2.2 1.4 4.9
- ------------------------------- ------------------------------- -------------------------------
(23.9) (28.3) (20.0) (68.1) Net Charge-offs (12.7) (8.5) (26.1) (20.8) (3.5) (12.5) (6.1)
- ------------------------------- ------------------------------- -------------------------------
- ------------------------------- ------------------------------- -------------------------------
73.8 74.2 87.7 95.2 Ending allowance for loan losses 84.0 98.0 92.7 95.2 100.6 95.1 96.3
=============================== =============================== ===============================
0.39% 0.45% 0.34% 1.21% Net Charge-offs / Average Loans (1) 0.89% 0.60% 1.85% 1.48% 0.25% 0.89% 0.48%
6,087.9 6,281.0 5,878.3 5,651.4 Average Loans Outstanding (1) 5,698.0 5,631.5 5,655.0 5,621.2 5,563.0 5,583.2 5,132.3
6,348.3 6,132.9 5,769.6 5,586.5 EOP Loans Outstanding (1) 5,639.9 5,627.6 5,603.2 5,586.5 5,577.5 5,134.0 5,103.7
Allowance for Loan Loss /
1.16% 1.21% 1.52% 1.70% EOP Loans(1) 1.49% 1.74% 1.65% 1.70% 1.80% 1.85% 1.89%
Underperforming Assets
Loans 90 days and over
6.6 12.6 9.5 5.1 (still accruing) 14.1 5.6 11.4 5.1 2.3 1.4 6.7
Non-performing loans:
22.7 37.9 100.3 104.6 Nonaccrual loans 116.5 146.4 110.2 104.6 107.1 97.6 106.0
0.2 25.9 - - Renegotiated loans - - - - - - -
- ------------------------------- ------------------------------- -------------------------------
23.0 63.8 100.3 104.6 Total non-performing loans 116.5 146.4 110.2 104.6 107.1 97.6 106.0
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3.6 9.2 7.9 8.8 Foreclosed properties 9.0 8.9 9.8 8.8 5.3 3.9 3.8
0.36% 1.04% 1.74% 1.87% Non-performing loans / Loans (1) 2.07% 2.60% 1.97% 1.87% 1.92% 1.90% 2.08%
321% 116% 87% 91% Allowance to Non-performing 72% 67% 84% 91% 94% 97% 91%
(1) Includes residential loans held for sale. PAGE 7