Old National Bancorp · NASDAQ:ONB
Old National Bancorp — Merger or Acquisition (January 2013)
21 slides from Old National Bancorp's merger presentation, Jan 9, 2013
Slide 1: Acquisition of Bank of America Branches
Old National Bancorp Acquisition of Bank of America Branches January 9, 2013
Slide 2: Lynell Walton, Investor Relations Officer
Lynell Walton Senior Vice President Investor Relations Officer Old National Bancorp
Slide 3: 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's financial condition, results of operations, asset and c
Slide 4: 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 5: ONB Acquiring BofA Branches
ONB Acquiring 24 BofA Branches 24 full-service branches 4 in Northern Indiana 20 in Southwest Michigan Total deposits of $778.8 million1 Deposit premium of 2.94% Total loans of $7.7 million1 2014 accretion of $.03 to $.05 per share Does not include any credit card, mortgage, brokerage or trust accou
Slide 6: Bob Jones, President & CEO
Bob Jones President & CEO Old National Bancorp
Slide 7: Executive Summary
Executive Summary Doubles South Bend/Elkhart presence Logical market extension in Southwest Michigan with similar characteristics Enhances organic growth potential while increasing partnership opportunities Provides additional scale to leverage existing operating platform, adds $778.8 million in dep
Slide 8: Transforming Old National's Landscape
Transforming Old National's Landscape1 Shifting to higher-growth markets from lower- growth markets Entry and fill-in of existing higher-growth markets through strategic acquisitions Acquired 151 branches Sale or consolidations in lower-growth, non-core markets Consolidated 103 branches Sold 10 bran
Slide 9: Transforming Old National's Landscape
Transforming Old National's Landscape 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 Acquired
Slide 10: South Bend / Elkhart Branches
South Bend / Elkhart Branches Transaction subject to regulatory approval Doubles Old National's branch presence and deposit totals in Northern Indiana Key Indiana market Adds 4 branches Adds $134 million in deposits Growth market opportunities Deposits as of August 2012
Slide 11: Michigan Expansion
Michigan Expansion SW Michigan a logical market extension Culturally similar to current footprint Economic similarities Adds 20 branches and $645 million in deposits MSAs of Adrian, Battle Creek, Jackson, Kalamazoo, Niles and Sturgis Michigan competitive dynamic Recent market disruption Platform for
Slide 12: Improving Demographic Profile of ONB
Improving Demographic Profile of ONB IL Sales KY Sales Indianapolis Bloomington Columbus South Bend SW MI Population (2011) 26.966 88.624 1771.285 193.707 77.371 517.731 939.673 IL Sales KY Sales ONB Indianapolis Bloomington Columbus South Bend SW MI Projected HH income change (2010-2015) 0.0865 0.1
Slide 13: Conservative Financial Assumptions
Conservative Financial Assumptions 2014 accretion = $.03 to $.05 per share Assumes proceeds invested in securities Core deposit intangible of $3 million amortized over 7 years Deposit attrition of 25% over 12 months Integration costs of $5 million Pro forma TCE > 8.25% at close No revenue synergies
Slide 14: Implications of Crossing Over $10 Billion
Implications of Crossing Over $10 Billion Debit interchange rule (Durbin) Asset size measured as of year end (12-31) Effective July 1 of the following year Estimated gross impact of $8 million to $12 million per year Could delever balance sheet to remain under $10 billion1 1 Would reduce earnings Tr
Slide 15: Thank You Q&A
Old National Bancorp Thank You Q&A
Slide 16: Appendix
Old National Bancorp Appendix
Slide 17: Pro Forma Old National Footprint
Pro Forma Old National Footprint Bank of America Old National Bancorp
Slide 18: Southwest Michigan Major Employers
Southwest Michigan Major Employers Southwest Michigan Major Employers
Slide 19: Composition of Deposits To Be Acquired
Composition of Deposits To Be Acquired Demand NOW Accounts Savings Money Markets CD's Liability 129.657 122.569 59.47 279.584 187.541 Transaction subject to regulatory approval Deposits as of August 2012
Slide 20: MSA Detail of Deposits To Be Acquired
MSA Detail of Deposits To Be Acquired MSA Detail of Deposits To Be Acquired Unemployment data per the Bureau of Labor Statistics - Population and HH Income data per SNL Financial Transaction subject to regulatory approval 1Deposits as of August 2012
Slide 21: County Detail of Pending Branch Sales
County Detail of Pending Branch Sales County Detail of Pending Branch Sales 1Deposits as of December 2012 Unemployment data per the Bureau of Labor Statistics - Population and HH Income data per SNL Financial Transaction subject to regulatory approval
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