3. Forward-Looking Statement
This presentation 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, profitability and projected earnings.
Forward-looking statements can be identified by the use of words quot;anticipate,quot;
quot;believe,quot; quot;expect,quot; quot;intend,quot; quot;could,quot; and quot;should,quot; 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, ability of Old National to execute its business
plan, including acquisition plans, changes in the economy which could materially
impact credit quality trends and the ability to generate loans and gather deposits,
failure or circumvention of our internal controls, failure or disruption of our
information systems, significant changes in accounting, tax or regulatory practices or
requirements, new legal obligations or liabilities or unfavorable resolution of
litigation, other matters discussed in this presentation and other factors identified in
the Company’s 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 presentation, and Old National undertakes no obligation to release
revisions to these forward-looking statements to reflect events or conditions after the
date of this presentation.
First-Quarter 2009 Review 3
4. Non-GAAP Financial Measures
These slides contain non-GAAP financial measures. For purposes
of Regulation G, a non-GAAP financial measure is a numerical
measure of the registrant's historical or future financial
performance, financial position or cash flows that excludes
amounts, or is subject to adjustments that have the effect of
excluding amounts, that are included in the most directly
comparable measure calculated and presented in accordance
with GAAP in the statement of income, balance sheet or
statement of cash flows (or equivalent statements) of the issuer;
or includes amounts, or is subject to adjustments that have the
effect of including amounts, that are excluded from the most
directly comparable measure so calculated and presented. In
this regard, GAAP refers to generally accepted accounting
principles in the United States. Pursuant to the requirements of
Regulation G, Old National Bancorp has provided
reconciliations within the slides, as necessary, of the non-GAAP
financial measure to the most directly comparable GAAP
financial measure.
First-Quarter 2009 Review 4
7. Significant Events
• Repurchase $100 million TARP
• 2Q09 cash dividend reduction will
contribute $10 million to $11 million to
total capital
• Charter One Indiana branch
acquisition complete
– Adds 65 locations, deposits of $428 million
and loans of $5.9 million to March 31,
2009, balances
First-Quarter 2009 Review 7
8. First-Quarter 2009 Earnings
• Net income of $9.4 million, or $.08 per
common share
1Q09 net income $9,405
Preferred stock dividends ($1,242)
Accretion charge for preferred stock repurchase ($2,650)
1Q09 net income available to common shareholders $5,513
Average common shares outstanding 65,882
1Q09 earnings per common share $.08
• Tier 1 and total risk-based capital remain
well above ‘well capitalized’ regulatory
guidelines First-Quarter 2009 Review 8
9. First-Quarter 2009 Highlights
• Allowance to total loans increases to
1.55%
• Organic demand deposit growth of almost
$61 million
• Net securities gains of $3.2 million
– Includes other-than-temporary-
impairment of $2.4 million
• Incurred one-time expenses of $3.0 million
related to Charter One acquisition
First-Quarter 2009 Review 9
10. Adjusted Earnings Per Common Share
Non-GAAP Financial Measures
1Q09 net income available to common shareholders $5,513
Add: Preferred stock dividends ($1,242)
Add: Accretion charge for preferred stock repurchase ($2,650)
Adjusted 1Q09 net income available to common $9,405
shareholders
Average common shares outstanding 65,882
Adjusted 1Q09 earnings per common share $.14
$ in thousands except per-share data
First-Quarter 2009 Review 10
17. Credit Metrics
Classified Loans (includes nonaccrual loans)
(As a % of End of Period Total Loans)
Peak of 7.90% at 4Q02
4.50%
4.30%
4.25%
4.00% 3.77%
3.75% 3.70%
3.50% 3.40% 3.28%
3.25%
3.25%
2.89%2.83%
3.00% 3.16%
2.73%
2.75%
2.77% 2.70% 2.70%
2.50%
2.45%
2.25%
05
06
06
06
06
07
07
07
07
08
08
08
08
09
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
Classified loans are loans with a well-defined weakness that jeopardizes the liquidation of the debt and characterized
by the distinct “possibility” that the bank will sustain some loss if the deficiencies are not corrected.
First-Quarter 2009 Review 17
18. Credit Metrics
Criticized Loans
(As a % of End of Period Total Loans)
Peak of 6.26% at 1Q02
3.00%
2.75% 2.61%
2.52% 2.54% 2.44%
2.50%
2.20% 2.21%
2.25%
2.00%
2.00% 2.06% 1.87%
1.69% 1.69%
1.75%
1.84% 1.66%
1.50%
1.33%
1.25%
1.00%
05
06
06
06
06
07
07
07
07
08
08
08
08
09
4Q
3Q
4Q
1Q
1Q
2Q
3Q
4Q
1Q
2Q
4Q
1Q
2Q
3Q
Criticized loans are loans exhibiting a potential weakness that deserves management’s close attention.
First-Quarter 2009 Review 18
19. Credit Metrics
30+ Day Delinquent Loans
(As a % of End of Period Total Loans)
1.20%
1.01%
1.00%
0.96% 0.84%
0.80%
0.69% 0.67% 0.68% 0.67% 0.69%
0.69%
0.65% 0.73%
0.60% 0.66%
0.59%
0.49%
0.40%
0.20%
09
06
07
07
07
07
08
08
08
06
08
06
05
06
1Q
1Q
2Q
3Q
4Q
1Q
3Q
4Q
4Q
2Q
3Q
1Q
2Q
4Q
First-Quarter 2009 Review 19
20. Credit Metrics
30+ Day Delinquent Loans
Specific Segment Overview
(As a % of End of Period Total Loans)
1Q08 2Q08 3Q08 4Q08 1Q09
30+ Day Delinquent Loans
.50% .45% .39% .58% .48%
Commercial
.64% .58% .34% .48% .47%
Commercial Real Estate
1.39% 1.34% 1.43% 1.81% 1.56%
First Mortgage Residential Real Estate
.60% .82% .77% .83% .66%
Home Equity Lines Of Credit
.63% .83% 1.12% 1.30% 1.09%
All Other Consumer Loans
2Q08 1Q09
3Q08 4Q08
1Q08
Loan Type as a % of Total Loans
38.5% 38.4% 39.7% 39.0%
37.1%
Commercial
25.2% 24.4%
24.9% 24.2%
26.3%
Commercial Real Estate
11.5% 11.2% 11.1% 10.8% 10.9%
First Mortgage Residential Real Estate
5.2% 5.3% 5.6% 5.7% 5.8%
Home Equity Lines of Credit
19.8% 19.9%
19.9% 20.0% 19.6%
All Other Consumer Loans
First-Quarter 2009 Review 20
21. Credit Metrics
Home Equity Lines of Credit
Loan-To-Value Overview
Approximated
% of Total
Average Credit
Portfolio
% of Total
LTV Bureau Score
Outstanding
Portfolio (Face)
>= 90% 739
15% 20%
>= 80% to 89.9% 18% 20% 760
<80% 771
67% 60%
First-Quarter 2009 Review 21
22. Credit Metrics
Home Equity Lines of Credit
Large Dollar Exposure Overview
Approximated
% of Total
Average Credit
Portfolio
% of Total
Commitment Bureau Score
Outstanding
Portfolio (Face)
>= $500,000 762
4% 3%
>$100,000 to $499,999 23% 24% 763
First-Quarter 2009 Review 22
23. CRE as a % of Capital
Community Banks Mid-Sized Banks Large Banks ONB
225% 220%
204%
212%
200%
200%
175%
161%
150% 154%
125%
100%
75% 66%
62%
50%
95
96
97
98
99
00
01
02
03
04
05
06
07
07
07
07
08
08
08
08
4Q
4Q
4Q
4Q
4Q
4Q
4Q
4Q
4Q
4Q
4Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
Source: OCC per Bank Call Reports. CRE: Construction & Land Development + Multifamily RE + Nonfarm Nonresidential + Unsecured C&I for RE;
Capital: Total RBC.
*Effective 1Q07, the Call Reports segregated owner and non-owner occupied non-farm non-residential loans, and the proportion was applied
retroactively to adjust historical data in order to conform to OCC 2006-46 (Concentrations in Commercial Real Estate Lending, Sound Risk
Management Practices: Interagency Guidance on CRE Concentration Risk Management).
First-Quarter 2009 Review 23
24. Construction & Land Loans
(As a % of end of period loans)
14.00% 12.98% 13.15% 13.06%13.19% 12.82%
12.00% 12.73% 12.60% 12.39%
12.13%
10.00%
8.00%
6.00%
4.00% 4.60% 4.64% 4.15% 4.30% 4.26% 3.88% 3.60%
3.65% 3.21%
2.00%
4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08
ONB Peer Group Average (refer to appendix)
Per SNL Financial-Call Report Data
First-Quarter 2009 Review 24
26. Net Interest Margin
• Net interest margin of 3.63% for 1Q09
– Decline of 33bps from 4Q08
– Yield on average loans decline 76 bps
– Average earning assets increase $308.5
million
– Average investments increase $322.7 million
– Average core deposits increase $135.4 million
– Net interest income decline of $2.9 million
First-Quarter 2009 Review 26
27. Net Interest Margin Analysis
4Q08 Net Interest Margin 3.96%
Asset Yields (.56)%
Interest-Bearing Liability Costs .23%
Mix/Volume/Other .03%
# of Days (.03)%
1Q09 Net Interest Margin 3.63%
First-Quarter 2009 Review 27
30. Tangible Equity Ratios
7.50%
7.08%
7.00%
6.44%
6.50%
6.21%
6.03% 6.06%
6.44%
5.96%
6.00% 6.21%
6.06%
5.96% 6.03%
5.48%5.55% 5.81%
5.50%
5.55%
5.48% 5.23%
5.23%
5.00%
4.50%
1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09
Tangible Equity
Tangible Common Equity (excludes preferred stock)
The Company’s targeted range for these ratios is 5% to 6%
The Company’s calculation of tangible common equity and corresponding targeted range have been adjusted to
include other comprehensive income.
First-Quarter 2009 Review 30
31. Liquidity Considerations
• Old National Bank
– Strong organic deposit growth
– Charter One branch acquisition closed 3/20
– Capacity at the Federal Reserve for TAF or discount
window borrowing of $846 million
– Investment portfolio projected to generate cash flow of $750
million over 12 months
• Old National Bancorp
– Cash on hand of $15 million at 3/31/09
– 2Q09 dividend reduction will add $10 million to $11 million
to cash balances
– New line of credit (SunTrust/Wells Fargo) of $30 million
First-Quarter 2009 Review 31
32. Long-Term Debt Ratings
Holding
Bank Outlook Company Outlook
(At 4-24-09)
A1 Negative Negative
Moody’s A2
BBB+ Stable Stable
S&P BBB
Fitch BBB+ Stable BBB Stable
DBRS A (low) Stable BBB (high) Stable
First-Quarter 2009 Review 32
33. Investment Portfolio
Book Value Market Value Credit Impairment
Other Classified Assets Mar. 31, 2009 Mar. 31, 2009 Mar. 31, 2009
Corporate Bonds $4.8 $2.3 $-0-
Pooled Trust Preferred
Securities $45.2 $10.2 $2.4
Non-Agency Mortgage
Backed Securities $46.5 $35.1 $-0-
Totals $96.5 $47.6 $2.4
$ in millions
First-Quarter 2009 Review 33
34. Investment Portfolio
Market
Book Value Market Value Market Value Value
($ in millions) Mar. 31, 2009 Mar. 31, 2009 Dec. 31, 2008 $ Change
U.S. Government Agencies-Senior Debentures
Federal National Mortgage Association $725.5 $189.7
Federal Home Loan Mortgage Corporation 187.1 105.5
Federal Home Loan Bank 82.0 59.0
Federal Farm Credit Bank 24.9 35.1
Subtotal $1,012.6 $1,019.5 $389.3 $630.2
Mortgage Backed Securities
Issued or guaranteed by FNMA, FHLMC, GNMA $900.3 $924.8 $957.2
Nonagency guaranteed 268.5 209.2 216.9
Subtotal $1,168.8 $1,134.0 $1,174.1 $(40.1)
Corporate Securities
Trust Preferred $58.3 $17.3 $28.6
Other Corporate 119.3 113.9 115.8
Subtotal $177.6 $131.2 $144.4 $(13.2)
Municipal Securities $465.5 $485.1 $482.2 $2.9
Other Securities $76.9 $76.9 $76.9 -0-
Totals $2,901.4 $2,846.7 $2,266.9 $579.8
First-Quarter 2009 Review 34
35. Charter One
• One-time 1Q09 acquisition expenses of $3.0
million
• Additional one-time expenses anticipated
during the remainder of 2009
– 8 branch closures planned for 2009
• Charter One negative impact for 2009 of $8
million to $10 million (pre-tax) including:
– Higher net investment spread
– Accelerated CDI amortization (7 years)
• More clarity on operating expenses on 2Q09
conference call
First-Quarter 2009 Review 35
43. Noninterest Income
• Fees, service charges and other revenue
totaled $38.6 million for 1Q09
– Represents a $2.0 million increase from 4Q08
• Primarily relates to $2.4 million in seasonal
contingency revenue from the insurance business
– Represents a $4.4 million decrease from
1Q08
• 1Q08 contained a $1.5 million gain for the
redemption of Class B VISA shares as well as
$2.1 million in additional company-owned life
insurance revenue
First-Quarter 2009 Review 43
44. Noninterest Expenses
• Noninterest expenses totaled $77.5 million
for 1Q09 and include $3.0 million of non-
recurring conversion costs associated with
the acquisition of Charter One’s Indiana
franchise as well as increased FDIC
insurance expense
– Represents a $1.5 million decrease from
4Q08
• 4Q08 includes a $6.3 million check fraud charge
– Represents a $6.6 million increase from 1Q08
First-Quarter 2009 Review 44
45. Peer Group
Name Ticker Name Ticker
1st Source Corp. SRCE Irwin Financial Corp. IFC
AMCORE Financial, Inc. AMFI MB Financial, Inc. MBFI
BancorpSouth, Inc. BXS National Penn Bancshares, Inc. NPBC
Bank of Hawaii Corp. BOH Park National Corp. PRK
Citizens Republic Bancorp, Inc. CRBC Provident Bankshares Corp. PBKS
Cullen/Frost Bankers, Inc. CFR Republic Bancorp, Inc. RBCAA
F.N.B. Corp. FNB S.Y. Bancorp, Inc. SYBT
First Busey Corp. BUSE South Financial Group, Inc. TSFG
First Commonwealth Financial Corp. FCF Susquehanna Bancshares, Inc. SUSQ
First Merchants Corp. FRME Trustmark Corp. TRMK
First Midwest Bancorp, Inc. FMBI UMB Financial Corp. UMBF
FirstMerit Corp. FMER United Bankshares, Inc. UBSI
Fulton Financial Corp. FULT Valley National Bancorp VLY
Hancock Holding Company HBHC WesBanco, Inc. WSBC
Integra Bank Corp IBNK Whitney Holding Corp WTNY
International Bancshares Corp. IBOC
First-Quarter 2009 Review 45
