Finance Receivables And Allowance For Credit Losses (Tables)

6 Months Ended

Jun. 30, 2011

Finance Receivables And Allowance For Credit Losses

Schedule Of Composition Of Loans

The composition of loans by lending classification was as follows:
		June 30,			December 31,
(dollars in thousands)		2011			2010
Commercial (1)	$	1,269,607		$	1,211,399
Commercial real estate:
Construction		98,670			101,016
Other		1,071,731			841,379
Residential real estate		795,442			664,705
Consumer credit:
Heloc		255,073			248,293
Auto		486,416			497,102
Other		140,402			179,557
Subtotal		4,117,341			3,743,451
Allowance for loan losses		(70,189	)		(72,309	)
Net loans	$	4,047,152		$	3,671,142

(1) Includes direct finance leases of $92.9 million at June 30, 2011 and $106.1 million at December 31, 2010. 

Schedule Of Activity In The Allowance For Loan Losses

		Commercial
(dollars in thousands)	Commercial	Real Estate	Consumer	Residential	Unallocated	Total
2011
Allowance for loan losses:
Beginning balance	$27,190	$32,550	$10,280	$2,729	0	$72,749
Charge-offs	(3,838)	(2,274)	(2,465)	(325)	0	(8,902)
Recoveries	1,302	316	1,468	49	0	3,135
Provision	1,375	1,898	(725)	659	0	3,207
Ending balance	$26,029	$32,490	$ 8,558	$3,112	0	$70,189
		Commercial
(dollars in thousands)	Commercial	Real Estate	Consumer	Residential	Unallocated	Total
2010
Allowance for loan losses:
Beginning balance	$27,764	$28,716	$13,967	$1,651	0	$72,098
Charge-offs	(4,498)	(3,105)	(3,456)	(748)	0	(11,807)
Recoveries	1,208	853	1,473	38	0	3,572
Provision	4,085	803	893	2,219	0	8,000
Ending balance	$28,559	$27,267	$12,877	$3,160	0	$71,863

Old National's activity in the allowance for loan losses for the six months ended June 30, 2011 and 2010 is as follows:

					Commercial
(dollars in thousands)		Commercial			Real Estate			Consumer			Residential		Unallocated		Total
2011
Allowance for loan losses:
Beginning balance	$	26,204		$	32,654		$	11,142		$	2,309		0	$	72,309
Charge-offs		(5,169	)		(2,981	)		(5,853	)		(1,173	)	0		(15,176	)
Recoveries		2,135			984			3,326			92		0		6,537
Provision		2,859			1,833			(57	)		1,884		0		6,519
Ending balance	$	26,029		$	32,490		$	8,558		$	3,112		0	$	70,189
					Commercial
(dollars in thousands)		Commercial			Real Estate			Consumer			Residential		Unallocated		Total
2010
Allowance for loan losses:
Beginning balance	$	26,869		$	27,138		$	13,853		$	1,688		0	$	69,548
Charge-offs		(7,991	)		(4,841	)		(8,211	)		(1,676	)	0		(22,719	)
Recoveries		3,458			1,145			3,093			57		0		7,753
Provision		6,223			3,825			4,142			3,091		0		17,281
Ending balance	$	28,559		$	27,267		$	12,877		$	3,160		0	$	71,863

Schedule Of Recorded Investment In Financing Receivables

				Commercial
(dollars in thousands)		Commercial Real Estate				Consumer		Residential	Unallocated		Total
June 30, 2011
Allowance for loan losses:
Ending balance: individually
evaluated for impairment	$	10,162	$	7,736		0		0	0	$	17,898
Ending balance: collectively
evaluated for impairment	$	14,314	$	22,517	$	8,558	$	3,112	0	$	48,501
Ending balance: loans acquired
with deteriorated credit quality	$	1,553	$	2,237		0		0	0	$	3,790
Loans and leases outstanding:
Ending balance	$	1,269,607	$	1,170,401	$	881,891	$	795,442	0	$	4,117,341
Ending balance: individually
evaluated for impairment	$	34,099	$	39,905		0		0	0	$	74,004
Ending balance: collectively
evaluated for impairment	$	1,233,250	$	1,103,054	$	881,709	$	794,946	0	$	4,012,959
Ending balance: loans acquired
with deteriorated credit quality (1)	$	2,258	$	27,442	$	182	$	496	0	$	30,378

(1) Includes $2.4 million of revolving credits not accounted for under ASC 310-30.

				Commercial
(dollars in thousands)		Commercial		Real Estate		Consumer		Residential	Unallocated		Total
December 31, 2010
Allowance for loan losses:
Ending balance: individually
evaluated for impairment	$	6,063	$	8,514		0		0	0	$	14,577
Ending balance: collectively
evaluated for impairment	$	20,141	$	24,140	$	11,142	$	2,309	0	$	57,732
Loans and leases outstanding:
Ending balance	$	1,211,399	$	942,395	$	924,952	$	664,705	0	$	3,743,451
Ending balance: individually
evaluated for impairment	$	23,944	$	29,377		0		0	0	$	53,321
Ending balance: collectively
evaluated for impairment	$	1,187,455	$	913,018	$	924,952	$	664,705	0	$	3,690,130

Schedule Of Risk Category Of Loans

(dollars in thousands)
Corporate Credit						Commercial Real Estate-				Commercial Real Estate-
Exposure		Commercial				Construction				Other
by Internally		June 30,		December 31,		June 30,		December 31,		June 30,		December 31,
Assigned Grade		2011		2010		2011		2010		2011		2010
Grade:
Pass	$	1,140,817	$	1,105,382	$	73,436	$	77,241	$	906,793	$	729,243
Criticized		43,263		38,629		13,458		16,223		48,847		29,161
Classified - substandard		49,337		41,899		8,905		7,552		51,702		52,559
Classified - doubtful		36,190		25,489		2,871		0		64,389		30,416
Total	$	1,269,607	$	1,211,399	$	98,670	$	101,016	$	1,071,731	$	841,379

Schedule Of Recorded Investment On Payment Activity

June 30, 2011				Consumer				Residential
(dollars in
thousands)		Heloc		Auto		Other
Performing	$	254,035	$	484,155	$	138,521	$	785,635
Nonperforming		1,038		2,261		1,881		9,807
	$	255,073	$	486,416	$	140,402	$	795,442
December 31, 2010				Consumer				Residential
(dollars in
thousands)		Heloc		Auto		Other
Performing	$	246,390	$	494,771	$	177,470	$	655,986
Nonperforming		1,903		2,331		2,087		8,719
	$	248,293	$	497,102	$	179,557	$	664,705

Schedule Of Impaired Loans That Are Individually Evaluated

				Unpaid
		Recorded		Principal		Related
(dollars in thousands)		Investment		Balance		Allowance
June 30, 2011
With no related allowance recorded:
Commercial	$	8,751	$	9,986	$	0
Commercial Real Estate - Construction		0		0		0
Commercial Real Estate - Other		9,784		13,447		0
With an allowance recorded:
Commercial		25,348		28,578		10,162
Commercial Real Estate - Construction		0		0		0
Commercial Real Estate - Other		30,121		31,897		7,736
Total Commercial		74,004		83,908		17,898
December 31, 2010
With no related allowance recorded:
Commercial	$	6,116	$	8,001	$	0
Commercial Real Estate - Construction		0		0		0
Commercial Real Estate - Other		10,554		16,781		0
With an allowance recorded:
Commercial		17,828		20,341		6,063
Commercial Real Estate - Construction		0		0		0
Commercial Real Estate - Other		18,823		19,849		8,514
Total Commercial		53,321		64,972		14,577

Schedule Of Average Balance And Interest Income Recognized On Impaired Loans

		Average		Interest
		Recorded		Income
(dollars in thousands)		Investment		Recognized (1)
June 30, 2011
With no related allowance recorded:
Commercial	$	5,529	$	90
Commercial Real Estate - Construction		0		0
Commercial Real Estate - Other		8,821		105
With an allowance recorded:
Commercial		21,756		86
Commercial Real Estate - Construction		0		0
Commercial Real Estate - Other		25,872		134
Total Commercial		61,978		415

(1) The Company does not record interest on nonaccrual loans until principal is recovered.

Schedule Of Past Due Financing Receivables

						Recorded
						Investment >
		30-59 Days		60-89 Days		90 Days and				Total
(dollars in thousands)		Past Due		Past Due		Accruing		Nonaccrual		Past Due		Current
June 30, 2011
Commercial	$	3,314	$	1,055	$	3	$	36,190	$	40,562	$	1,229,045
Commercial Real Estate:
Construction		0		0		0		2,871		2,871		95,799
Other		1,668		513		57		64,389		66,627		1,005,104
Consumer:
Heloc		289		101		40		1,038		1,468		253,605
Auto		4,934		871		159		2,261		8,225		478,191
Other		1,263		646		179		1,881		3,969		136,433
Residential		7,154		1,079		0		9,807		18,040		777,402
Total	$	18,622	$	4,265	$	438	$	118,437	$	141,762	$	3,975,579
December 31, 2010
Commercial	$	2,543	$	583	$	79	$	25,488	$	28,693	$	1,182,706
Commercial Real Estate:
Construction		0		0		0		0		0		101,016
Other		992		98		0		30,416		31,506		809,873
Consumer:
Heloc		849		477		189		1,903		3,418		244,875
Auto		5,791		1,316		120		2,331		9,558		487,544
Other		1,129		972		184		2,088		4,373		175,184
Residential		9,126		1,589		0		8,719		19,434		645,271
Total	$	20,430	$	5,035	$	572	$	70,945	$	96,982	$	3,646,469

Schedule Of Activity Of Purchased Impaired Loans

		June 30,
(dollars in thousands)		2011
Commercial	$	1,733
Commercial real estate		25,532
Consumer		181
Residential		496
Outstanding balance	$	27,942
Carrying amount, net of allowance of $827	$	27,115

Schedule Of Accretable Difference On Purchased Loans

(dollars in thousands)
Balance at January 1, 2011	$	0
New loans purchased		7,001
Accretion of income		(5,198	)
Reclassifications from (to) nonaccretable difference		12,235
Disposals/other adjustments		(80	)
Balance at June 30, 2011	$	13,958

Schedule Of Payments Receivable Of Loans Purchased

		June 30,
(dollars in thousands)		2011
Contractually required payments receivable of loans
purchased during the year:
Commercial	$	8,839
Commercial real estate		52,484
Consumer		305
Residential		1,124
	$	62,752
Cash flows expected to be collected at acquisition (January 1, 2011)	$	49,557
Fair value of acquired loans at acquisition (January 1, 2011)	$	42,587