Old National Bancorp · NASDAQ:ONB
Old National Bancorp — Investor Presentation (May 2014)
50 slides from Old National Bancorp's investor presentation, May 12, 2014
Slide 1: Old National Bancorp Investment Thesis
Dated: May 12, 2014 Old National Bancorp Investment Thesis Financial Data as of 3-31-14
Slide 2: Executive Summary
Dated: May 12, 2014 Old National Bancorp Investment Thesis Executive SummarySlides 2 to 16Financial Data as of 3-31-14
Slide 3: Additional Information for Shareholders of United Bancorp, Inc.
Additional Information for Shareholders of United Bancorp, Inc. Communication in this presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. In connection with the proposed merger, Old National has filed with
Slide 4: Forward-Looking Statement
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 Bancorp's financial condition, results of operations, ass
Slide 5: Non-GAAP Financial Measures
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 adj
Slide 6: Snapshot of Old National
Snapshot of Old National Source: SNL Financial, Company filings, FactSet Estimates Note: Market data as of May 5, 2014; financial information as of March 31, 2014. 1 Pro forma for pending UBMI acquisitions. Summary Overview Company Description Asset Mix Liability Breakdown Headquarters Evansville, I
Slide 7: Investment Thesis
Attractive footprint that offers both leading share in mature markets and room to expand in higher growth marketsConsistent financial performance with distinct revenue streams and improving efficiencyDiverse loan portfolio with growth accelerating while maintaining strong credit metricsDisciplined a
Slide 8: Growth of the Old National franchise
Growth of the Old National franchise Mature, Stable Markets & Dominant Share Branch Map 1 Higher Growth Markets Source: SNL Financial, Company Filings, June 30, 2013 FDIC Summary of Deposits Note: Green shading indicates metric that exceeds the national average. Unemployment as of March, 2014. 1 Pro
Slide 9: Commitment to Excellence
Commitment to Excellence Commitment to Excellence
Slide 10: Our Indiana Footprint Economic Vital Signs
Our Indiana Footprint Economic Vital Signs Economic Vital Signs Strong Stable or Mixed Decline Sources: US Bureau of Labor Statistics, US Dept. of Labor, Stats Indiana, Indiana Association of Realtors, Yahoo Finance, IN Dept. of Revenue
Slide 11: Indiana's Economic Achievements
Indiana's Economic Achievements "AAA" Credit Rating - Fitch, Moody's and Standard and Poor2nd Most Competitive State - Site Selection Magazine3rd Best U.S. State for Manufacturing Jobs - CNBC 5th Best State for Business - CEO Magazine8th Fastest Growing State Economy - USA Today280 new manufacturing
Slide 12: Our Michigan Footprint
Our Michigan Footprint Projected 2018 Median Household Income Ann Arbor, MichiganHighest median household income MSA in MichiganMarch unemployment rate of 5.2%, compared to the national rate of 6.7%Listed in Forbes' 2013 "Best Places for Business and Careers" and was Livability.com's 13th "Best Plac
Slide 13: Executing the Plan - 1Q14
$ in millions except diluted earnings per common share Executing the Plan - 1Q14 Highlights Non-covered loans include all loans except FDIC-covered loans 1 Non-GAAP financial measure which Management believes is useful in evaluating the financial results of the Company - see Appendix for Non-GAAP re
Slide 14: Loan Growth
Loan Growth $ in millions Acquired 3Q13 Acquired 3Q12 Acquired 1Q11 Period-end gross loans
Slide 15: Fee-Based Business Revenue
Fee-Based Business Revenue $ in millions 1 Contingency revenue 1 1
Slide 16: Asset Quality
Asset Quality Net Charge-Offs ALLL / Non-Performing Assets1 1 Nonaccrual, restructured & OREO Credit Quality (Excluding Covered Loans)
Slide 17: Old National Bancorp Investment Thesis - Financials
Dated: May 12, 2014 Old National Bancorp Investment Thesis Financial Data as of 3-31-14
Slide 18: Strategic Imperatives Scorecard
Strategic Imperatives Scorecard 1 2 3 Executing the Plan 2013E Financials
Slide 19: Pre-Tax, Pre-Provision Income
Pre-Tax, Pre-Provision Income1 $ in millions 1 Non-GAAP financial measure management believes is useful in evaluating the financial results of the Company - see Appendix for Non-GAAP reconciliation
Slide 20: Net Interest Margin
Net Interest Margin1 1 Fully taxable equivalent basis 2 ONB Core includes contractual interest income of Monroe, Integra and IN Community loans 2
Slide 21: Average Total Loan Trends
Average Total Loan Trends $ in millions 1 Includes both covered and non-covered loans 1
Slide 22: Commercial Loans
Commercial Loans $ in millions 2007-2008 Average 23.9%
Slide 23: Loan Concentrations - Excluding Covered Loans
Loan Concentrations - Excluding Covered Loans At 3-31-14 Commercial Commercial Real Estate Diversified Commercial Loan Portfolio Diversified Commercial Loan Portfolio (CHART)
Slide 24: Net Charge-Offs / Provision
Net Charge-Offs / Provision $ in millions 1 Excludes FDIC-covered loans
Slide 25: Credit Quality - Excluding Covered Loans
Credit Quality - Excluding Covered Loans See Appendix for definition of Peer Group 1As a % of end of period total loans Peer Group data per SNL Financial
Slide 26: Credit Quality - ALLL and Mark Summary
Credit Quality - ALLL and Mark Summary $ in millions 1 Non-GAAP financial measure which Management believes useful to demonstrate that the remaining discount considers credit risk and should be included as part of total coverage N/A = not applicable
Slide 27: Conservative Lending Limits/Risk Grades
Conservative Lending Limits/Risk Grades Conservative Lending Limits/Risk Grades In-house lending limits conservative relative to ONB's legal lending limit at 3-31-14 of $114.0 million per borrower 1Includes entire relationship with borrower Borrower1 Asset Quality Rating (Risk Grades) 8 - Classified
Slide 28: Investment Portfolio Purchases 1Q14
Investment Portfolio Purchases 1Q141 1 Data as of March 31, 2014, for purchases made throughout 1Q14
Slide 29: CD Maturity Schedule
CD Maturity Schedule Represents CD maturities at March 31, 2014
Slide 30: Tangible Common Book Value
Tangible Common Book Value1 Acquired Monroe Bancorp 1-1-11 FDIC acquisition of Integra Bank 7-29-11 1 Non-GAAP financial measure management believes is useful in evaluating the financial results of the Company - see Appendix for Non-GAAP reconciliation Acquired IN Community Bancorp 9-15-12 Acquired
Slide 31: Capital Ratios
Capital Ratios See Appendix for definition of Peer Group Peer Group data per SNL Financial $ in millions 1See Appendix for Non-GAAP reconciliation
Slide 32: Interest Rate Curves
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Slide 33: Interest Rate Sensitivity
Interest Rate Sensitivity Change in Net Interest Income1 Interest Rate Sensitivity 1 Comparisons from flat rates, which assume stable rates and a stable balance sheet. These scenarios do not take into account changes in customer behavior that could result in changes to mix and/or volumes in the bala
Slide 34: Total Revenue
Total Revenue 4qis Accretion income Revenue Less Securities Gains, Accretion Income and Amortization of Indemnification Asset D Amortization of Indemnification Asset Sinmions
Slide 35: Efficiency Ratio
Efficiency Ratio1 1 Calculation excludes net securities gains and intangible amortization Incentive basis calculation excludes merger and integration charges and impact for current year partnerships Non-GAAP financial measure which Management believes is useful in evaluating the financial results of
Slide 36: Total Assets Increase with Decrease in FTE
22.1% increase in total assets with a corresponding 5.1% decrease in FTE FTE and Asset Change $ in millions 1,2 3 4
Slide 37: Returned to community bank model
Returned to community bank model 2004 2005 Sold non- strategic market - Clarksville, TN - 5 branches 2006 Sold non- strategic market - O'Fallon, IL - 1 branch 2007 2008 2009 2010 2011 2012 2013 Acquired St. Joseph Capital - Entry into Northern IN market February, 2007 Acquired 65 Charter One branche
Slide 38: M&A - Partnerships Strategy, Process and Emerging Trends
Represents MSAs with more than 15,000 households in IN,KY,IL, southern MI, Cincinnati and St. Louis. MSA quartile rankings weighted as follows: 25% number of households, 20% median HH income, 10% unemployment, 10% median HH income 5-year growth, 10% population 5-year growth, 10% deposits/branch rati
Slide 39: Transforming Old National's Landscape
Shifting to higher-growth markets from lower-growth marketsEntry and fill-in of existing higher-growth markets through strategic acquisitions Acquired 182 branches +18 pendingSale or consolidations in lower-growth, non-core marketsConsolidated 128 branches Sold 22 branches 2004 2014 39 Pending Unite
Slide 40: Disciplined Partnerships
$ in millions1 Anticipated closing early 3Q14 Disciplined Partnerships
Slide 41: Committed to Strong Corporate Governance
Committed to Strong Corporate Governance Stock ownership guidelines have been established for named executive officers as follows:As of March 31, 2014, each named executive officer has met their stock ownership requirement requirement requirement requirement requirement requirement requirement requi
Slide 42: Executive Compensation
Executive Compensation Tied to long term shareholder value: Long Term Incentive Plan (CFO,CBA, CCO, Chief Legal Counsel) Long Term Incentive Plan (CFO,CBA, CCO, Chief Legal Counsel) Performance Measure Weight Performance-based 75% Service-based 25% Short Term Incentive Plan (CBA, CCO) Short Term Inc
Slide 43: Old National Bancorp Appendix
Old National Bancorp Appendix
Slide 44: Non-GAAP Reconciliations
Non-GAAP Reconciliations $ in millions
Slide 45: Non-GAAP Reconciliations
Non-GAAP Reconciliations $ in millions
Slide 46: Non-GAAP Reconciliations
Non-GAAP Reconciliations $ in millions
Slide 47: Non-GAAP Reconciliations
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Slide 48: Non-GAAP Reconciliations
Non-GAAP Reconciliations $ in thousands
Slide 49: Non-GAAP Reconciliations
Non-GAAP Reconciliations $ in thousands
Slide 50: Investor Contact
Investor Contact Additional information can be found on theInvestor Relations web pages atwww.oldnational.comInvestor Inquiries:Lynell J. Walton, CPASVP - Director of Investor Relations812-464-1366lynell.walton@oldnational.com
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