Old National Bancorp · NASDAQ:ONB
Old National Bancorp — IPO Roadshow (September 2009)
40 slides from Old National Bancorp's IPO roadshow presentation, Sep 21, 2009
Slide 1: Common Stock Offering
NYSE: ONB Common Stock Offering September 21, 2009 Old National Bancorp has filed a registration statement (including a prospectus) and a prospectus supplement with the U.S. Securities and Exchange Commission (the "SEC") for the offering to which this communication relates. Before you invest, you sh
Slide 2: 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 3: 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 4: Offering Terms
Offering Terms Transaction Size: $150 million, subject to adjustment Offering: Common Stock Issuer: Old National Bancorp Over-Allotment Option: 15% Use of Proceeds: General corporate purposes and to support ongoing and future anticipated growth, which may include opportunistic acquisitions of other
Slide 5: Why Now
Why Now ONB is positioned for the future Market place disruption Consolidation opportunities
Slide 6: ONB Profile
ONB Profile Old National Bancorp, celebrating its 175th anniversary in 2009, is the largest financial services bank holding company by asset size headquartered in the State of Indiana 179 financial centers and 230 ATM's located throughout Indiana, Western Kentucky and Southern Illinois One of the la
Slide 7: Deposits / Local Unemployment
Deposits / Local Unemployment Deposits / Local Unemployment 51.5% / 8.1% 1.3% / 11.6% 4.7% / 12.7% 0% / 10.0% 42.5% / 8.8% 0% / 9.9% % of ONB's Indiana deposits* / Regional unemployment Unemployment data provided by Indiana Department of Workforce Development and Bureau of Labor Statistics August 20
Slide 8: Strategic Imperatives
Strategic Imperatives Strategic Imperatives
Slide 9: Positioned for the Future
Positioned for the Future Consistent application of conservative underwriting standards Strong loan quality relative to peers (2Q09) NPL's/Loans of 1.71% vs. peer average of 3.08% NCO's/Avg. Loans of 1.18% vs. peer average of 1.81% 90+ Days Past Due/Total Loans of .05% vs. peer average of ..21% C&D
Slide 10: Positioned for the Future
Positioned for the Future Recent acquisitions show proven ability and disciplined approach to consolidation Identified areas for future earnings improvement Loan pricing Operating efficiencies Dedicated, experienced management team
Slide 11: Experienced, Executive Management Team
Experienced, Executive Management Team Title Name Years in Banking/at ONB Prior Experience President and CEO Bob Jones 30 / 5 25 years at KeyCorp/Society, serving various functions Chief Financial Officer Chris Wolking 27 / 10 11 years at Old Kent, including treasury and wealth management Chief Bank
Slide 12: Positive Trends vs. Expectations
Positive Trends vs. Expectations 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 ONB Actual 0.3 0.34 0.34 0.29 0.3 0.26 0.1 0.08 0.15 Consensus Analyst Estimates* 0.27 0.31 0.32 0.14 0.29 0.27 0.11 0.06 0.06 *Mean consensus analyst estimates per First Call
Slide 13: Tangible Common Equity to Tangible Assets
Tangible Common Equity to Tangible Assets 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 ONB 0.0555 0.0596 0.0603 0.0644 0.0621 0.0606 0.0581 0.0523 0.0551 Peer Group Average 0.0674 0.068 0.0667 0.0675 0.0659 0.0659 0.0617 0.0618 0.0619 0.0721 See Appendix for Non-GAAP reconciliation and definition of
Slide 14: M&A Strategy
M&A Strategy Disciplined financial process Focus on community banking, client relationships and consistent quality earnings Target geographic markets Mid-sized markets within or near existing franchise with average to above average growth rates In market community banks where significant cost saves
Slide 15: ONB Franchise Footprint
ONB Franchise Footprint ONB Franchise Footprint ONB Headquarters
Slide 16: Target Acquisition Candidate
Target Acquisition Candidate Branch acquisition FDIC assisted transaction Whole bank purchase Must enhance Old National's mission of being a true "community bank" Must align both strategically and culturally Must meet/exceed financial targets Must pass rigorous due diligence process
Slide 17: Credit Quality
Your bank. 5 For life. OLD NATIONAL BANCORP’ NYSE: ONB Credit Quality
Slide 18: Lending Philosophies
Lending Philosophies Consistent Conservative Committed
Slide 19: Conservative Lending Limits
Conservative Lending Limits Borrower* Asset Quality Rating In-House Lending Limit* ($ in millions) 0 $25 1, 2, or 3 $20 4 $15 5 $10 6 (Watch) $7.5 7 (Special Mention) $5 In-house lending limits conservative relative to legal lending limit ONB's legal lending limit at 6-30-2009 = $110.1 million per b
Slide 20: Commercial Loan Mix
Commercial Loan Mix At June 30, 2009 Healthcare/Social Services Public Admin Manufacturing Educational Services Wholesale Trade Retail Other Real Estate Rental & Leasing Agriculture Construction 0.1 0.12 0.09 0.09 0.09 0.06 0.27 0.05 0.06 0.07 "Other" includes 15 different concentrations
Slide 21: Commercial Real Estate Mix
Commercial Real Estate Mix Industrial-Owner Occupied Industrial-Non Owner Occupied Retail-Owner Occupied Office-Non Owner Occupied Office-Owner Occupied Multifamily Acquisition & Development Construction Other Retail-Non Owner Occupied 1-4 Family Residential Rentals-Non Owner Occupied 0.07 0.07 0.06
Slide 22: Construction and Land Loans to Total Loans
Construction and Land Loans to Total Loans 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 ONB 0.0415 0.043 0.0426 0.0388 0.036 0.0365 0.0321 0.0332 0.0369 Peer Group Average 0.1263 0.1278 0.1269 0.1283 0.1245 0.1225 0.1204 0.1216 0.1177 Peer Group data per SNL Financial See Appendix for definition of
Slide 23: Total Real Estate Loans to Total Loans
Total Real Estate Loans to Total Loans 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 ONB 0.5283 0.5257 0.5177 0.5107 0.5005 0.4994 0.4907 0.4935 0.4921 Peer Group Average 0.678 0.6756 0.6759 0.674 0.6737 0.6762 0.6786 0.6835 0.6891 Peer Group data per SNL Financial See Appendix for definition of Peer
Slide 24: Quarterly Net Charge-Offs
Quarterly Net Charge-Offs 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 ONB 0.0031 0.0028 0.0079 0.0052 0.0135 0.0046 0.0114 0.0107 0.0118 Peer Group Average 0.0022 0.0028 0.0042 0.005 0.0067 0.0078 0.0129 0.0143 0.0181 Peer Group data per SNL Financial See Appendix for definition of Peer Group
Slide 25: Non-Performing Loans to Total Loans
Non-Performing Loans to Total Loans 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 ONB 0.012 0.0104 0.0087 0.015 0.0143 0.0146 0.0134 0.0167 0.0171 Peer Group Average 0.0051 0.0056 0.0073 0.0095 0.0115 0.0146 0.0206 0.0266 0.0308 Peer Group data per SNL Financial See Appendix for definition of Peer Gr
Slide 26: 90+ Day Delinquent Loans to Total Loans
90+ Day Delinquent Loans to Total Loans 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 ONB 0.0002 0.0005 0.0003 0.0003 0.0003 0.0004 0.0006 0.0005 0.0005 Peer Group Average 0.0014 0.0016 0.0017 0.0017 0.0017 0.0018 0.0023 0.0026 0.0021 Peer Group data per SNL Financial See Appendix for definition of P
Slide 27: Funding and Investments
NYSE: ONB Funding and Investments
Slide 28: Positioned for the Future
Positioned for the Future Low-cost core deposit focused Market share driven
Slide 29: Funding Advantage
Funding Advantage Demand Deposits Money Markets NOW Savings Other Time Brokered CDs East 1045.6 452 1297.2 928.9 2005 69.9 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 ONB Cost of Interest-Bearing Deposits (incl. Brokered CDs) 0.0347 0.0363 0.0359 0.0347 0.0311 0.0259 0.0203 0.0204 0.0183
Slide 30: Loan to Deposit Ratio
Loan to Deposit Ratio 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 ONB 0.7844 0.8109 0.8298 0.8774 0.8829 0.8778 0.8811 0.7927 0.7841 Peer Group Average 0.9585 0.9719 0.9805 0.9898 1.0052 0.9994 0.9764 0.9446 0.9415 Peer Group data per SNL Financial See Appendix for definition of Peer Group
Slide 31: Loan Mix / Yields
Loan Mix / Yields Commercial Commercial Real Estate HELOC Other Consumer Residential Real Estate ONB 1792.8 1124.4 271.9 883.9 473.6 At June 30, 2009 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 ONB Loan Yields 0.073 0.0729 0.0746 0.0751 0.0723 0.0681 0.0629 0.0611 0.0597 0.0521 0.0514 Pee
Slide 32: Positioned for the Future
Positioned for the Future Investments not a core asset Source of liquidity Manage interest rate risk
Slide 33: Classified Assets in Investment Portfolio
Classified Assets in Investment Portfolio ($ in millions) Book Value June 30, 2009 Market Value June 30, 2009 Credit Impairment YTD June 30, 2009 Corporate Bonds $4.3 $2.8 $- Pooled Trust Preferred Securities $37.4 $15.4 $10.3 Non-Agency Mortgage Backed Securities $103.6 $69.4 $- Totals $145.3 $87.6
Slide 34: Why ONB
Your bank. 5 For life. OLD NATIONAL BANCORP’ NYSE: ONB Why ONB
Slide 35: Why ONB
Why ONB ONB is positioned for the future Market place disruption Consolidation opportunities
Slide 36: Appendix
Your bank. For life. OLD NATIONAL BANCORP’ NYSE: ONB Appendix
Slide 37: The Old National Peer Group
The Old National Peer Group Name Ticker Name Ticker 1st Source Corp. SRCE International Bancshares Corp. IBOC AMCORE Financial, Inc. AMFI Irwin Financial Corp. IFC BancorpSouth, Inc. BXS MB Financial, Inc. MBFI Bank of Hawaii Corp. BOH National Penn Bancshares, Inc. NPBC Citizens Republic Bancorp, I
Slide 38: Non-GAAP Reconciliations
Non-GAAP Reconciliations (end of period balances- $ in millions) 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 2Q09 ProForma Total Shareholders' Equity $625.6 $647.4 $652.9 $675.4 $649.0 $635.4 $730.9 $631.8 $634.6 $777.1 Deduct: Goodwill and Intangible Assets (192.8) (191.9) (191.0) (190.3) (188.7)
Slide 39: Investment Portfolio
Investment Portfolio ($ in millions) Book Value June 30, 2009 Market Value June 30, 2009 Market Value Mar. 31, 2009 Market Value $ Change U.S. Government Agencies-Senior Debentures Federal National Mortgage Association $565.3 $725.5 Federal Home Loan Mortgage Corporation 156.4 187.1 Federal Home Loa
Slide 40: Long-Term Debt Ratings
(At 9-21-09) Bank Outlook Holding Company Outlook Moody's A1 Negative A2 Negative S & P BBB+ Stable BBB Stable Fitch BBB+ Stable BBB Stable DBRS A (low) Stable BBB (high) Stable Long-Term Debt Ratings