Finance Receivables And Allowance For Credit Losses (Tables)

9 Months Ended

Sep. 30, 2011

Finance Receivables And Allowance For Credit Losses

Schedule Of Composition Of Loans

		September 30,			December 31,
(dollars in thousands)		2011			2010
Commercial (1)	$	1,246,289		$	1,211,399
Commercial real estate:
Construction		50,116			101,016
Other		1,078,258			841,379
Residential real estate		865,951			664,705
Consumer credit:
Heloc		245,686			248,293
Auto		487,983			497,102
Other		165,777			179,557
Covered loans		711,266			0
Total loans		4,851,326			3,743,451
Allowance for loan losses		(65,219	)		(72,309	)
Allowance for loan losses - covered loans		(303	)		0
Net loans	$	4,785,804		$	3,671,142

(1) Includes direct finance leases of $87.0 million at September 30, 2011 and $106.1 million at December 31, 2010.

Schedule Of Activity In The Allowance For Loan Losses

Old National's activity in the allowance for loan losses for the three months ended September 30, 2011 and 2010, excluding covered loans, is as follows:

					Commercial
(dollars in thousands)		Commercial			Real Estate			Consumer			Residential		Unallocated		Total
2011
Allowance for loan losses:
Beginning balance	$	26,029		$	32,490		$	8,558		$	3,112		0	$	70,189
Charge-offs		(2,175	)		(2,834	)		(2,161	)		(367	)	0		(7,537	)
Recoveries		878			305			1,400			66		0		2,649
Provision		(864	)		315			130			337		0		(82	)
Ending balance	$	23,868		$	30,276		$	7,927		$	3,148		0	$	65,219

					Commercial
(dollars in thousands)		Commercial			Real Estate			Consumer			Residential		Unallocated		Total
2010
Allowance for loan losses:
Beginning balance	$	28,559		$	27,267		$	12,877		$	3,160		0	$	71,863
Charge-offs		(797	)		(2,708	)		(4,435	)		(248	)	0		(8,188	)
Recoveries		79			444			1,541			10		0		2,074
Provision		(932	)		4,423			2,983			(74	)	0		6,400
Ending balance	$	26,909		$	29,426		$	12,966		$	2,848		0	$	72,149

Old National's activity in the allowance for loan losses for the nine months ended September 30, 2011 and 2010, excluding covered loans, 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		(7,344	)		(5,815	)		(8,014	)		(1,540	)	0		(22,713	)
Recoveries		3,013			1,289			4,726			158		0		9,186
Provision		1,995			2,148			73			2,221		0		6,437
Ending balance	$	23,868		$	30,276		$	7,927		$	3,148		0	$	65,219

					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		(8,788	)		(7,549	)		(12,646	)		(1,924	)	0		(30,907	)
Recoveries		3,537			1,589			4,634			67		0		9,827
Provision		5,291			8,248			7,125			3,017		0		23,681
Ending balance	$	26,909		$	29,426		$	12,966		$	2,848		0	$	72,149

Schedule Of Recorded Investment In Financing Receivables

				Commercial
(dollars in thousands)		Commercial Real Estate				Consumer		Residential		Unallocated		Total
September 30, 2011
Allowance for loan losses:
Ending balance: individually
evaluated for impairment	$	8,803	$	7,233	$	0	$	0	$	0	$	16,036
Ending balance: collectively
evaluated for impairment	$	14,977	$	22,752	$	7,927	$	3,148	$	0	$	48,804
Ending balance: loans acquired
with deteriorated credit quality	$	88	$	291	$	0	$	0	$	0	$	379
Loans and leases outstanding:
Ending balance	$	1,246,289	$	1,128,374	$	899,446	$	865,951	$	0	$	4,140,060
Ending balance: individually
evaluated for impairment	$	34,296	$	47,398	$	0	$	0	$	0	$	81,694
Ending balance: collectively
evaluated for impairment	$	1,210,155	$	1,057,039	$	899,307	$	865,755	$	0	$	4,032,256
Ending balance: loans acquired
with deteriorated credit quality (1)	$	1,838	$	23,937	$	139	$	196	$	0	$	26,110

(1) Includes $166.4 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		September 30,		December 31,		September 30,		December 31,		September 30,		December 31,
Assigned Grade		2011		2010		2011		2010		2011		2010
Grade:
Pass	$	1,110,329	$	1,105,382	$	18,233	$	77,241	$	936,709	$	729,243
Criticized		45,244		38,629		13,998		16,223		39,274		29,161
Classified - substandard		52,978		41,899		11,653		7,552		35,790		52,559
Classified - doubtful		37,738		25,489		6,232		0		66,485		30,416
Total	$	1,246,289	$	1,211,399	$	50,116	$	101,016	$	1,078,258	$	841,379

Schedule Of Recorded Investment On Payment Activity

September 30, 2011				Consumer				Residential
(dollars in
thousands)		Heloc		Auto		Other
Performing	$	244,458	$	485,834	$	164,052	$	856,717
Nonperforming		1,228		2,149		1,725		9,234
	$	245,686	$	487,983	$	165,777	$	865,951
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
September 30, 2011
With no related allowance recorded:
Commercial	$	15,409	$	20,699	$	0
Commercial Real Estate - Construction		0		0		0
Commercial Real Estate - Other		13,033		19,621		0
With an allowance recorded:
Commercial		18,887		19,817		8,803
Commercial Real Estate - Construction		0		0		0
Commercial Real Estate - Other		34,365		37,743		7,233
Total Commercial	$	81,694	$	97,880	$	16,036
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

The average balance of impaired loans, excluding covered loans, and interest income recognized on impaired loans during the three months ended September 30, 2011 are included in the tables below.

		Average		Interest
		Recorded		Income
(dollars in thousands)		Investment		Recognized (1)
September 30, 2011
With no related allowance recorded:
Commercial	$	12,081	$	178
Commercial Real Estate - Construction		0		0
Commercial Real Estate - Other		11,409		64
With an allowance recorded:
Commercial		22,118		59
Commercial Real Estate - Construction		0		0
Commercial Real Estate - Other		32,243		194
Total Commercial	$	77,851	$	495

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

The average balance of impaired loans, excluding covered loans, and interest income recognized on impaired loans during the nine months ended September 30, 2011 are included in the tables below.

		Average		Interest
		Recorded		Income
(dollars in thousands)		Investment		Recognized (1)
September 30, 2011
With no related allowance recorded:
Commercial	$	11,833	$	268
Commercial Real Estate - Construction		0		0
Commercial Real Estate - Other		10,713		169
With an allowance recorded:
Commercial		17,103		145
Commercial Real Estate - Construction		0		0
Commercial Real Estate - Other		26,780		328
Total Commercial	$	66,429	$	910

(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
September 30, 2011
Commercial	$	2,459	$	3,336	$	408	$	37,739	$	43,942	$	1,202,347
Commercial Real Estate:
Construction		0		1,434		0		6,232		7,666		42,450
Other		1,185		859		490		66,485		69,019		1,009,239
Consumer:
Heloc		423		166		9		1,228		1,826		243,860
Auto		5,054		900		153		2,149		8,256		479,727
Other		1,623		381		98		1,725		3,827		161,950
Residential		6,016		1,049		0		9,234		16,299		849,652
Covered loans		12,626		1,713		692		199,028		214,059		497,207
Total loans	$	29,386	$	9,838	$	1,850	$	323,820	$	364,894	$	4,486,432
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

		September 30,
(dollars in thousands)		2011
Commercial	$	1,946
Commercial real estate		24,750
Consumer		47,095
Residential		398
Outstanding balance	$	74,189
Carrying amount, net of allowance of $1,188	$	73,001

Schedule Of Accretable Difference On Purchased Loans

(dollars in thousands)
Balance at January 1, 2011	$	0
New loans purchased		25,520
Accretion of income		(10,006	)
Reclassifications from (to) nonaccretable difference		18,851
Disposals/other adjustments		(134	)
Balance at September 30, 2011	$	34,231

Schedule Of Payments Receivable Of Loans Purchased

		September 30,
(dollars in thousands)		2011
Contractually required payments receivable of loans
purchased during the year:
Commercial	$	8,131
Commercial real estate		50,481
Consumer		57,009
Residential		907
	$	116,528
Cash flows expected to be collected at acquisition (January 1, 2011 & July 29, 2011)	$	108,567
Fair value of acquired loans at acquisition (January 1, 2011 & July 29, 2011)	$	95,330