Old National’s 1st quarter net income improves 33.4% and

1^ST Quarter 2017 Highlights:

Earnings of $36.0 million, or $0.27 per share
Commercial and commercial real estate loan growth of 6.8% annualized from 4^th quarter 2016
Tangible book value¹ increase of 9.5% from 1^st quarter 2016
Strong expense control
Consolidation of 15 branches throughout footprint

¹Non-GAAP measures – refer to Tables 4 & 10 for Non-GAAP reconciliations

EVANSVILLE, Ind., April 25, 2017 (GLOBE NEWSWIRE) -- Today Old National Bancorp (the “Company” or “Old National”) (NASDAQ: ONB) reported 1^st quarter 2017 net income of $36.0 million, or $0.27 per diluted share. Included in the current quarter were $1.4 million in pre-tax branch consolidation charges related to the 15 banking centers that were consolidated by the Company in January 2017. This current quarter net income represents an increase of 33.4% over the 1^st quarter of 2016 net income of $27.0 million and a 7.6% increase over 4^th quarter 2016 net income of $33.5 million. Contributing to this year-over-year increase was the successful redeployment of the proceeds from the sale of Old National’s insurance subsidiary into the more profitable banking business with the Anchor Bank (“Anchor”) partnership. Both transactions closed in the 2^nd quarter of 2016. During the 4^th quarter, Old National recognized $12.8 million in pre-tax gains related to the repurchase of various bank properties. Also included in the 4^th quarter of 2016 were pre-tax pension termination charges of $9.8 million, pre-tax branch consolidation charges of $5.1 million, pre-tax merger and integration charges of $1.8 million and severance charges of $1.6 million.

“With a 33% year-over-year increase in net income, strong commercial loan growth and well-controlled expenses, this was a strong 1^st quarter for Old National and our stakeholders,” said Old National Chairman and CEO Bob Jones. “This performance demonstrates our continued focus on execution and our commitment to driving shareholder value.”

Committed to our Strategic Imperatives

Old National’s continued steady performance and strong credit and capital positions can be attributed to the Company’s unwavering commitment to the three strategic imperatives that have guided Old National for 12 years:

1. Strengthen the risk profile; 2. Enhance management discipline; and 3. Achieve consistent quality earnings.

Balance Sheet and Net Interest Margin

Old National’s period-end loans, including loans held for sale, at March 31, 2017, totaled $9.149 billion, an increase of $47.9 million from the $9.101 billion at December 31, 2016. The Company’s residential mortgage loans held for sale declined $73.3 million during this same period. Commercial and commercial real estate loans grew by 6.8%, annualized, from the 4^th quarter of 2016 to the 1^st quarter of 2017.

Total period-end core deposits, including demand and interest-bearing deposits, increased $75.2 million, or 2.8% annualized, to $10.704 billion at March 31, 2017, compared to $10.629 billion at December 31, 2016.

Net interest income for the 1^st quarter of 2017 totaled $105.8 million compared to $109.9 million in the 4^th quarter of 2016, and $85.6 million in the 1^st quarter of 2016. On a fully taxable equivalent basis, net interest income was $111.5 million for the 1^st quarter of 2017 and represented a net interest margin on total average earning assets of 3.50%. These results compare to net interest income on a fully taxable equivalent basis of $115.4 million and a margin of 3.63% in the 4^th quarter of 2016. In the 1^st quarter of 2016, Old National reported net interest income on a fully taxable equivalent basis of $90.8 million and a margin of 3.52%. Refer to Table 4 for Non-GAAP taxable equivalent reconciliations.

Old National recorded $12.6 million in accretion income as part of net interest income, or a 40 basis point contribution to the net interest margin, in the 1^st quarter of 2017. Accretion income is related to purchase accounting discounts from the Company’s various acquisitions. Total accretion income in the 4^th quarter of 2016 and the 1^st quarter of 2016 reported by Old National was $16.8 million, or a 53 basis point net interest margin contribution, and $11.2 million, or a 44 basis point net interest margin contribution, respectively. Excluding accretion income, the core net interest margin was 3.10% in the 1^st quarter of 2017, compared to 3.10% in the 4^th quarter of 2016 and 3.08% in the 1^st quarter of 2016. Refer to Table 4 for Non-GAAP reconciliations.

Noninterest Income

Total noninterest income for the 1^st quarter of 2017 amounted to $42.9 million and compares to $62.8 million reported in the 4^th quarter of 2016 and $49.5 million in the 1^st quarter of 2016. The current quarter included $1.5 million of recoveries on Anchor loans that had been fully charged-off prior to the acquisition. During the 4^th quarter of 2016, Old National recognized pre-tax gains of $12.8 million relating to the repurchase of various bank properties as well as $6.4 million of recoveries on Anchor loans. The 1^st quarter of 2016 included $13.1 million in insurance income, compared to relatively none in both the 4^th quarter of 2016 and the 1^st quarter of 2017.

Noninterest Expenses

Noninterest expenses for Old National totaled $101.9 million for the 1^st quarter of 2017 and included $1.4 million in charges relating to the Company’s 15 banking centers consolidated in January 2017. Noninterest expenses for the 4^th quarter of 2016 totaled $126.3 million and included a $9.8 million pre-tax charge for the termination of the Company’s pension plan, $5.1 million in pretax charges related to branch consolidations, $1.8 million in pre-tax merger and integration charges and $1.6 million in severance. The 1^st quarter of 2016 included $1.4 million in pre-tax merger and integration charges. Following Old National’s 15 branch consolidations in January, the Company now operates 188 branches throughout its franchise.

Capital

Old National’s capital position at March 31, 2017, remained well above regulatory guideline minimums with regulatory tier 1 and total risk-based capital ratios of 11.7% and 12.2%, respectively, compared to 11.7% and 12.2% at December 31, 2016, and 12.5% and 13.2% at March 31, 2016. Old National did not repurchase any stock in the open market during the 1^st quarter of 2017.

The following table presents Old National’s risk-based and leverage ratios compared to industry requirements:

Table 1	Fully Phased-In Regulatory Guidelines Minimum	Consolidated ONB at March 31, 2017
Tier 1 Risk-Based Capital Ratio	> 8.5%	11.7%
Total Risk-Based Capital Ratio	> 10.5%	12.2%
Common Equity Tier 1 Capital Ratio	> 7.0%	11.4%
Tier 1 Leverage Capital Ratio	> 4.0%	8.5%

Old National’s ratio of tangible common equity to tangible assets was 8.16% at March 31, 2017, compared to 7.92% at December 31, 2016, and 7.88% at March 31, 2016. Refer to Table 10 for Non-GAAP reconciliations.

Credit

Old National recorded a provision expense of $0.3 million and had net charge-offs of $0.3 million in the 1^st quarter of 2017. These results compare to $1.8 million in provision recapture and net recoveries of $17 thousand, and provision expense of $0.1 million and net charge-offs of $1.6 million, in the 4^th quarter of 2016 and the 1^st quarter of 2016, respectively. Net charge-offs for the 1^st quarter of 2017 were 0.01% of average total loans on an annualized basis, compared to net charge-offs of 0.00% of average total loans in the 4^th quarter of 2016 and net charge-offs of 0.09% of average total loans in the 1^st quarter of 2016.

Delinquencies remained low as Old National reported 30+ day delinquent loans of 0.32% in the 1^st quarter of 2017 compared to 0.43% in the 4^th quarter of 2016. Old National’s 90+ day delinquent loans for the 1^st quarter of 2017 and the 4^th quarter of 2016 were near zero.

At March 31, 2017, Old National’s allowance for loan losses was $49.8 million, or 0.55% of total loans, compared to an allowance of $49.8 million, or 0.55% of total loans at December 31, 2016, and $50.7 million, or 0.72% of total loans, at March 31, 2016. The coverage ratio (allowance to non-performing loans) stood at 38% at March 31, 2017, compared to 34% at December 31, 2016, and 38% at March 31, 2016.

In accordance with current accounting practices, the loans acquired from Anchor during the 2^nd quarter of 2016 were recorded at fair value with no allowance recorded at the acquisition date. When considering both the allowance for loan losses plus the purchase accounting marks, Old National believes it remains appropriately reserved, as demonstrated by the table below.

Table 2 – At March 31, 2017 ($ in millions)	ONB Excluding Anchor¹		Anchor		ONB Consolidated
Allowance for Loan Losses (ALLL)	$49.8		$0.0		$49.8
Remaining Loan Discount		62.0		55.1		117.1
Total ALLL + Remaining Loan Discount	$111.8		$55.1		$166.9
Pre-Discount Loan Balance	$7,844.8		$1,404.0		$9,248.8
ALLL/Pre-Discount Loan Balance		0.64%		0.00%		0.54%
Mark/Pre-Discount Loan Balance		0.79%		3.93%		1.27%
Combined ALLL & Discount/Pre-Discount Loan Balance		1.42%		3.93%		1.80%

¹ Includes discount on loans acquired through previous partnerships.

The following table presents certain credit quality metrics related to Old National’s loan portfolio:

Table 3 ($ in millions)	1Q17		4Q16			1Q16
Non-Performing Loans (NPLs)	$130.3		$145.8			$132.0
Problem Loans (Including NPLs)		219.9		220.4			200.3
Special Mention Loans		95.9		95.5			132.5
Net Charge-Off (Recoveries) Ratio		0.01%		0.00%			0.09%
Provision for Loan Losses	$0.3		($1.8		)	$0.1
Allowance for Loan Losses		49.8		49.8			50.7

About Old National

Old National Bancorp (NASDAQ: ONB), the holding company of Old National Bank, is the largest financial services holding company headquartered in Indiana. With $14.9 billion in assets, it ranks among the top 100 banking companies in the U.S. and has been recognized as a World’s Most Ethical Company by the Ethisphere Institute for six consecutive years. Since its founding in Evansville in 1834, Old National Bank has focused on community banking by building long-term, highly valued partnerships with clients. Today, Old National’s footprint includes Indiana, Kentucky, Michigan and Wisconsin. In addition to providing extensive services in retail and commercial banking, Old National offers comprehensive wealth management, investments and brokerage services. For more information and financial data, please visit Investor Relations at oldnational.com.

Conference Call

Old National will hold a conference call at 10:00 a.m. Central Time on Tuesday, April 25, 2017, to discuss 1st quarter 2017 financial results, strategic developments, and the Company’s financial outlook. The live audio web cast of the call, along with the corresponding presentation slides, will be available on the Company’s Investor Relations web page at oldnational.com and will be archived there for 12 months. A replay of the call will also be available from 1:00 p.m. Central Time on April 25 through May 9. To access the replay, dial 1-855-859-2056, Conference ID Code 3913117.

Use of Non-GAAP Financial Measures

This earnings release contains GAAP financial measures and non-GAAP financial measures where management believes it to be helpful in understanding Old National’s results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables of this release.

Table 4 – Non-GAAP Reconciliations-Core Net Interest Margin

($ in millions)	1Q17		4Q16		1Q16
Net Interest Income	$105.8		$109.9		$85.6
Taxable Equivalent Adjustment		5.7		5.5		5.2
Net Interest Income – Taxable Equivalent	$111.5		$115.4		$90.8
Less Accretion¹		12.6		16.8		11.2
Core Net Interest Income – Taxable Equivalent Less Accretion	$98.9		$98.6		$79.6
Average Earning Assets	$12,742.9		$12,713.3		$10,331.0
Core Net Interest Margin – Fully Taxable Equivalent		3.10%		3.10%		3.08%

¹Accretion related to purchase accounting discounts on acquired loan portfolios.

Forward-Looking Statement

This press release 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 (“Old National’s”) financial condition, results of operations, asset and credit quality trends and profitability. Forward-looking statements can be identified by the use of the words “anticipate,” “believe,” “expect,” “intend,” “could” and “should,” and other words of similar meaning. These forward-looking statements express management’s current expectations or forecasts of future events and, by their nature, are subject to risks and uncertainties and there are a number of factors that could cause actual results to differ materially from those in such statements. Factors that might cause such a difference include, but are not limited to: expected cost savings, synergies and other financial benefits from the recently completed mergers might not be realized within the expected timeframes and costs or difficulties relating to integration matters might be greater than expected; market, economic, operational, liquidity, credit and interest rate risks associated with Old National’s business; competition; government legislation and policies (including the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act and its related regulations); ability of Old National to execute its business plan; changes in the economy which could materially impact credit quality trends and the ability to generate loans and gather deposits; failure or circumvention of our internal controls; failure or disruption of our information systems; significant changes in accounting, tax or regulatory practices or requirements; new legal obligations or liabilities or unfavorable resolutions of litigations; disruptive technologies in payment systems and other services traditionally provided by banks; computer hacking and other cybersecurity threats; other matters discussed in this press release and other factors identified in our Annual Report on Form 10-K and other periodic filings with the SEC. These forward-looking statements are made only as of the date of this press release, and Old National does not undertake an obligation to release revisions to these forward-looking statements to reflect events or conditions after the date of this press release.


TABLE 5
Financial Highlights (unaudited)
($ and shares in thousands, except per share data)

	Three Months Ended
	March 31,		December 31,			March 31,
		2017		2016			2016
Income Statement
Net interest income	$	105,801	$	109,917		$	85,643
Provision for loan losses		347		(1,756	)		91
Noninterest income		42,920		62,751			49,451
Noninterest expense		101,891		126,258			98,355
Net income		35,992		33,456			26,977


Per Common Share Data (Diluted)
Net income available to common shareholders	$	0.27	$	0.25		$	0.24
Average diluted shares outstanding		135,431		135,383			114,563
Book value		13.63		13.42			13.19
Stock price		17.35		18.15			12.19
Dividend payout ratio		48%		52%			54%
Tangible common book value (1)		8.54		8.30			7.80


Performance Ratios
Return on average assets		0.98%		0.91%			0.91%
Return on average common equity		7.89%		7.33%			7.18%
Net interest margin (FTE)		3.50%		3.63%			3.52%
Efficiency ratio (2)		64.66%		69.53%			68.76%
Net charge-offs (recoveries) to average loans		0.01%		0.00%			0.09%
Allowance for loan losses to ending loans		0.55%		0.55%			0.72%
Non-performing loans to ending loans		1.43%		1.62%			1.88%


Balance Sheet
Total loans	$	9,131,773	$	9,010,512		$	7,007,074
Total assets		14,869,645		14,860,237			11,932,326
Total deposits		10,821,352		10,743,253			8,588,895
Total borrowed funds		2,066,617		2,152,086			1,662,191
Total shareholders' equity		1,846,359		1,814,417			1,508,643


Capital Ratios (1)
Risk-based capital ratios (EOP):
Tier 1 common equity		11.4%		11.5%			12.0%
Tier 1		11.7%		11.7%			12.5%
Total		12.2%		12.2%			13.2%
Leverage ratio (to average assets)		8.5%		8.4%			8.6%

Total equity to assets (averages)		12.36%		12.44%			12.63%
Tangible common equity to tangible assets		8.16%		7.92%			7.88%


Nonfinancial Data
Full-time equivalent employees		2,659		2,733			2,615
Number of branches		188		203			160

(1) See non-GAAP measures on Table 10.
(2) Efficiency ratio is defined as noninterest expense before amortization of intangibles as a percent of FTE net interest income and
noninterest revenues, excluding net gains from securities transactions. This presentation excludes intangible amortization and net
securities gains, as is common in other company releases, and better aligns with true operating performance.
FTE - Fully taxable equivalent basis EOP - End of period actual balances


TABLE 6
Income Statement (unaudited)
($ and shares in thousands, except per share data)

	Three Months Ended
	March 31,		December 31,			March 31,
		2017		2016			2016
Interest income	$	118,468	$	121,849		$	95,329
Less: interest expense		12,667		11,932			9,686
Net interest income		105,801		109,917			85,643
Provision for loan losses		347		(1,756	)		91
Net interest income after provision for loan losses		105,454		111,673			85,552

Wealth management fees		8,999		8,593			8,121
Service charges on deposit accounts		9,843		10,448			9,639
Debit card and ATM fees		4,236		4,183			3,785
Mortgage banking revenue		4,226		4,399			2,920
Insurance premiums and commissions		107		152			13,121
Investment product fees		4,989		5,155			3,905
Company-owned life insurance		2,149		2,198			2,038
Change in Indemnification Asset		-		-			(655	)
Other income		6,825		26,319			5,424
Gains (losses) on sales of securities		1,500		1,239			1,106
Gains (losses) on derivatives		46		65			47
Total noninterest income		42,920		62,751			49,451

Salaries and employee benefits		56,564		72,344			56,972
Occupancy		12,134		11,591			12,844
Equipment		3,227		3,675			2,893
Marketing		3,050		3,495			2,486
Data processing		7,608		7,961			7,123
Communication		2,414		2,805			1,864
Professional fees		2,651		3,904			3,368
Loan expenses		1,631		1,963			1,333
Supplies		579		885			583
FDIC assessment		2,487		2,583			1,919
Other real estate owned expense		1,115		944			424
Intangible amortization		3,020		3,241			2,647
Other expense		5,411		10,867			3,899
Total noninterest expense		101,891		126,258			98,355

Income before income taxes		46,483		48,166			36,648
Income tax expense		10,491		14,710			9,671
Net income	$	35,992	$	33,456		$	26,977

Diluted Earnings Per Share
Net income	$	0.27	$	0.25		$	0.24

Average Common Shares Outstanding
Basic		134,912		134,670			113,998
Diluted		135,431		135,383			114,563

Common shares outstanding at end of period		135,435		135,159			114,352


TABLE 7
Balance Sheet (unaudited)
($ in thousands)

		March 31,			December 31,			March 31,
			2017			2016			2016
	Assets
	Federal Reserve Bank account	$	24,460		$	36,496		$	20,516
	Money market investments		7,601			9,642			1,783
	Investments:
	Treasury and government sponsored agencies		595,172			541,190			757,745
	Mortgage-backed securities		1,484,561			1,535,659			1,005,588
	States and political subdivisions		1,144,412			1,131,003			1,112,599
	Other securities		446,830			441,110			431,368
	Total investments		3,670,975			3,648,962			3,307,300
	Loans held for sale		17,373			90,682			22,546
	Loans:
	Commercial		1,910,536			1,917,099			1,792,988
	Commercial and agriculture real estate		3,222,865			3,130,853			1,922,754
	Consumer:
	Home equity		464,911			476,439			347,776
	Other consumer loans		1,421,199			1,398,591			1,293,560
	Subtotal of commercial and consumer loans		7,019,511			6,922,982			5,357,078
	Residential real estate		2,112,262			2,087,530			1,649,996
	Total loans		9,131,773			9,010,512			7,007,074
	Total earning assets		12,852,182			12,796,294			10,359,219

	Allowance for loan losses		(49,834	)		(49,808	)		(50,700	)
	Non-earning Assets:
	Cash and due from banks		184,974			209,381			153,259
	Premises and equipment		420,866			429,622			198,065
	Goodwill and intangible assets		689,675			692,695			617,077
	Company-owned life insurance		353,786			352,956			342,292
	Net deferred tax assets		165,376			181,863			98,712
	Loan servicing rights		25,446			25,561			10,534
	FDIC Indemnification Asset		-			-			7,703
	Other real estate owned		12,547			18,546			13,522
	Other assets		214,627			203,127			182,643
	Total non-earning assets		2,067,297			2,113,751			1,623,807
	Total assets	$	14,869,645		$	14,860,237		$	11,932,326

	Liabilities and Equity
	Noninterest-bearing demand deposits	$	3,024,111		$	3,016,093		$	2,491,767
	NOW accounts		2,635,317			2,596,595			2,178,690
	Savings accounts		2,997,919			2,954,709			2,271,341
	Money market accounts		697,287			707,748			561,250
	Other time deposits		1,349,303			1,353,614			919,213
	Total core deposits		10,703,937			10,628,759			8,422,261
	Brokered CD's		117,415			114,494			166,634
	Total deposits		10,821,352			10,743,253			8,588,895

	Federal funds purchased and interbank borrowings		61,016			213,003			165,320
	Securities sold under agreements to repurchase		345,550			367,052			379,060
	Federal Home Loan Bank advances		1,441,030			1,353,092			899,418
	Other borrowings		219,021			218,939			218,393
	Total borrowed funds		2,066,617			2,152,086			1,662,191
	Accrued expenses and other liabilities		135,317			150,481			172,597
	Total liabilities		13,023,286			13,045,820			10,423,683

	Common stock, surplus, and retained earnings		1,894,924			1,873,789			1,538,228
	Other comprehensive income		(48,565	)		(59,372	)		(29,585	)
	Total shareholders' equity		1,846,359			1,814,417			1,508,643
	Total liabilities and shareholders' equity	$	14,869,645		$	14,860,237		$	11,932,326


TABLE 8
Average Balance Sheet and Interest Rates (unaudited)
($ in thousands)


	Three Months Ended							Three Months Ended							Three Months Ended
	March 31, 2017							December 31, 2016							March 31, 2016
	Average			Income (1)/		Yield/		Average			Income (1)/		Yield/		Average			Income (1)/		Yield/
Earning Assets:	Balance			Expense		Rate		Balance			Expense		Rate		Balance			Expense		Rate
Fed Funds sold, resell agr, Fed Reserve
Bank account, and money market	$	27,482		$	31	0.46	%	$	40,791		$	37	0.36	%	$	44,499		$	49	0.45	%
Investments:
Treasury and gov't sponsored agencies		540,422			2,780	2.06	%		551,665			2,754	2.00	%		730,379			3,477	1.90	%
Mortgage-backed securities		1,511,388			7,818	2.07	%		1,504,887			7,182	1.91	%		1,050,520			5,078	1.93	%
States and political subdivisions		1,133,373			13,607	4.80	%		1,141,703			13,458	4.72	%		1,103,467			13,009	4.72	%
Other securities		445,235			2,828	2.54	%		445,877			2,868	2.57	%		428,324			2,837	2.66	%
Total investments		3,630,418			27,033	2.98	%		3,644,132			26,262	2.88	%		3,312,690			24,401	2.95	%
Loans: (2)
Commercial		1,887,929			19,088	4.04	%		1,871,338			17,453	3.65	%		1,781,711			17,161	3.81	%
Commercial and agriculture real estate		3,171,005			40,324	5.09	%		3,125,500			45,375	5.68	%		1,896,951			28,038	5.85	%
Consumer:
Home equity		476,353			4,659	3.97	%		485,984			4,597	3.76	%		413,796			4,279	4.16	%
Other consumer loans		1,408,100			11,767	3.39	%		1,384,017			11,942	3.43	%		1,210,993			9,680	3.22	%
Subtotal commercial and consumer loans		6,943,387			75,838	4.43	%		6,866,839			79,367	4.60	%		5,303,451			59,158	4.49	%
Residential real estate loans		2,141,571			21,254	3.97	%		2,161,583			21,689	4.00	%		1,670,389			16,921	4.06	%

Total loans		9,084,958			97,092	4.29	%		9,028,422			101,056	4.42	%		6,973,840			76,079	4.35	%

Total earning assets	$	12,742,858		$	124,156	3.91	%	$	12,713,345		$	127,355	3.97	%	$	10,331,029		$	100,529	3.88	%

Less: Allowance for loan losses		(50,710	)						(52,691	)						(52,077	)

Non-earning Assets:
Cash and due from banks	$	195,620						$	209,957						$	166,351
Other assets		1,877,849							1,806,507							1,458,537

Total assets	$	14,765,617						$	14,677,118						$	11,903,840

Interest-Bearing Liabilities:
NOW accounts	$	2,585,814		$	456	0.07	%	$	2,560,533		$	430	0.07	%	$	2,114,798		$	237	0.05	%
Savings accounts		2,969,866			1,157	0.16	%		2,952,666			1,138	0.15	%		2,224,151			780	0.14	%
Money market accounts		706,990			149	0.09	%		703,904			142	0.08	%		552,475			90	0.07	%
Other time deposits		1,332,912			2,368	0.72	%		1,392,410			2,714	0.78	%		913,347			2,115	0.93	%
Total interest-bearing deposits		7,595,582			4,130	0.22	%		7,609,513			4,424	0.23	%		5,804,771			3,222	0.22	%
Brokered CD's		107,519			253	0.95	%		132,901			293	0.88	%		127,287			272	0.86	%
Total interest-bearing deposits and CD's		7,703,101			4,383	0.23	%		7,742,414			4,717	0.24	%		5,932,058			3,494	0.24	%

Federal funds purchased and interbank borrowings		189,070			356	0.76	%		79,913			107	0.53	%		110,378			122	0.45	%
Securities sold under agreements to repurchase		331,400			256	0.31	%		354,709			370	0.41	%		386,044			373	0.39	%
Federal Home Loan Bank advances		1,429,977			5,312	1.51	%		1,264,368			4,383	1.38	%		1,106,691			3,417	1.24	%
Other borrowings		218,965			2,360	4.31	%		218,860			2,355	4.30	%		218,320			2,280	4.18	%
Total borrowed funds		2,169,412			8,284	1.55	%		1,917,850			7,215	1.50	%		1,821,433			6,192	1.37	%

Total interest-bearing liabilities	$	9,872,513		$	12,667	0.52	%	$	9,660,264		$	11,932	0.49	%	$	7,753,491		$	9,686	0.50	%

Noninterest-Bearing Liabilities
Demand deposits	$	2,917,053						$	3,006,263						$	2,473,091
Other liabilities		150,392							184,598							174,296
Shareholders' equity		1,825,659							1,825,993							1,502,962

Total liabilities and shareholders' equity	$	14,765,617						$	14,677,118						$	11,903,840

Net interest rate spread						3.39	%						3.48	%						3.38	%

Net interest margin (FTE)						3.50	%						3.63	%						3.52	%

FTE adjustment				$	5,688						$	5,506						$	5,200

(1) Interest income is reflected on a fully taxable equivalent basis (FTE).
(2) Includes loans held for sale.


TABLE 9
Asset Quality (EOP) (unaudited)
($ in thousands)

	Three Months Ended
	March 31,			December 31,			March 31,
		2017			2016			2016

Beginning allowance for loan losses	$	49,808		$	51,547		$	52,233

Provision for loan losses		347			(1,756	)		91

Gross charge-offs		(3,239	)		(3,472	)		(3,942	)
Gross recoveries		2,918			3,489			2,318
Net (charge-offs) recoveries		(321	)		17			(1,624	)

Ending allowance for loan losses	$	49,834		$	49,808		$	50,700

Net charge-offs (recoveries) / average loans (1)		0.01	%		0.00	%		0.09	%

Average loans outstanding (1)	$	9,078,672		$	9,018,280		$	6,970,578

EOP loans outstanding (1)	$	9,131,773		$	9,010,512		$	7,007,074

Allowance for loan losses / EOP loans (1)		0.55	%		0.55	%		0.72	%

Underperforming Assets:
Loans 90 Days and over (still accruing)	$	381		$	328		$	357

Non-performing loans:
Nonaccrual loans (2)		115,377			131,407			117,866
Renegotiated loans		14,969			14,376			14,155
Total non-performing loans		130,346			145,783			132,021

Foreclosed properties		12,547			18,546			13,522

Total underperforming assets	$	143,274		$	164,657		$	145,900

Classified loans - "problem loans"	$	219,929		$	220,429		$	200,297
Other classified assets		7,306			7,063			6,566
Criticized loans - "special mention loans"		95,881			95,462			132,475
Total classified and criticized assets	$	323,116		$	322,954		$	339,338

Non-performing loans / EOP loans (1)		1.43	%		1.62	%		1.88	%

Allowance to non-performing loans (3)		38	%		34	%		38	%

Under-performing assets / EOP loans (1)		1.57	%		1.83	%		2.08	%

EOP total assets	$	14,869,645		$	14,860,237		$	11,932,326

Under-performing assets / EOP assets		0.96	%		1.11	%		1.22	%

EOP - End of period actual balances
(1) Excludes loans held for sale.
(2) Includes renegotiated loans totaling $34.2 million at March 31, 2017, $26.3 million at December 31, 2016 and $35.7 million
at March 31, 2016.
(3) Includes acquired loans that were recorded at fair value in accordance with ASC 805 at the date of acquisition. As such, the
credit risk was incorporated in the fair value recorded and no allowance for loan losses was recorded on the acquisition date.



Non-GAAP Measures (unaudited)
($ in thousands)

		Three Months Ended
		March 31,			December 31,			March 31,
			2017			2016			2016

	Actual End of Period Balances
	GAAP shareholders' equity	$	1,846,359		$	1,814,417		$	1,508,643

	Deduct:
	Goodwill		655,018			655,018			584,634
	Intangibles		34,657			37,677			32,443
			689,675			692,695			617,077

	Tangible shareholders' equity	$	1,156,684		$	1,121,722		$	891,566

	Average Balances
	GAAP shareholders' equity	$	1,825,659		$	1,825,993		$	1,502,962

	Deduct:
	Goodwill		655,018			655,041			584,634
	Intangibles		36,097			39,239			33,783
			691,115			694,280			618,417

	Average tangible shareholders' equity	$	1,134,544		$	1,131,713		$	884,545

	Actual End of Period Balances
	GAAP assets	$	14,869,645		$	14,860,237		$	11,932,326

	Add:
	Trust overdrafts		86			122			48

	Deduct:
	Goodwill		655,018			655,018			584,634
	Intangibles		34,657			37,677			32,443
			689,675			692,695			617,077

	Tangible assets	$	14,180,056		$	14,167,664		$	11,315,297

	Risk-weighted assets	$	10,171,517		$	10,099,613		$	7,795,646

	GAAP net income	$	35,992		$	33,456		$	26,977

	Add:
	Intangible amortization (net of tax)		1,963			2,107			1,720

	Tangible net income	$	37,955		$	35,563		$	28,697

	Tangible Ratios
	Return on tangible common equity		13.13	%		12.68	%		12.88	%
	Return on average tangible common equity		13.38	%		12.57	%		12.98	%
	Return on tangible assets		1.07	%		1.00	%		1.01	%
	Tangible common equity to tangible assets		8.16	%		7.92	%		7.88	%
	Tangible common equity to risk-weighted assets		11.37	%		11.11	%		11.44	%
	Tangible common book value (1)		8.54			8.30			7.80

	Tangible common equity presentation includes other comprehensive income as is common in other company releases.
	(1) Tangible common shareholders' equity divided by common shares issued and outstanding at period-end.

	Tier 1 capital	$	1,191,735		$	1,176,849		$	975,717

	Deduct:
	Trust Preferred Securities		45,000			45,000			45,000
	Additional Tier 1 capital deductions		(16,100	)		(30,968	)		(7,625	)
			28,900			14,032			37,375

	Tier 1 common equity	$	1,162,835		$	1,162,817		$	938,342

	Risk-weighted assets		10,171,517			10,099,613			7,795,646

	Tier 1 common equity to risk-weighted assets		11.43	%		11.51	%		12.04	%

Old National’s 1st quarter net income improves 33.4% and earnings per share increases 12.5% over 1st quarter 2016

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