EVANSVILLE, Ind., April 19, 2021 (GLOBE NEWSWIRE) --

Old National Bancorp (NASDAQ:ONB) reports 1Q21 net income of $86.8 million, diluted EPS of $0.52.

Adjusted¹net income of $86.4 million, or $0.52 per diluted share.

CEO COMMENTARY:

"Old National's positive first quarter results were driven by record first-quarter commercial loan production, strong mortgage revenue and excellent credit quality," said Chairman and CEO Jim Ryan. "We also continue to work with our small business and non-profit clients who are affected by the pandemic to help them gain access to Paycheck Protection Program funds and also to complete the loan forgiveness process."

FIRST QUARTER HIGHLIGHTS²:

Net income	Net income of $86.8 million
Net income	Earnings per diluted share of $0.52

Net interest income/NIM	Net interest income on a fully taxable equivalent basis of $151.6 million compared to $164.6 million
Net interest income/NIM	Net interest margin on a fully taxable equivalent basis of 2.94% compared to 3.26%

Operating Performance	Pre-provision net revenue¹ ("PPNR") of $90.6 million
	Adjusted PPNR¹ of $91.3 million, up 17.9% over first quarter of 2020
	Noninterest expense of $117.7 million
	Adjusted noninterest expense¹ of $115.0 million
	Efficiency ratio¹ of 55.57%
	Adjusted efficiency ratio¹of 54.25%

Loans and Credit Quality	End-of-period total loans³ of $13,975.5 million compared to $13,849.7 million
	_º Total commercial loans increased $59.0 million, excluding the $181.1 million increase in PPP loans
	First-quarter total commercial production of $718.0 million
	Provision for credit losses was a recapture of $17.4 million
	March 31 pipeline of $2.6 billion
	Net recoveries of $5 thousand compared to net recoveries of $1.1 million
	Non-performing loans of 1.13% of total loans compared to 1.20%

Return Profile & Capital	Return on average common equity of 11.69%
	Return on average tangible common equity¹ of 18.88%
	Adjusted return on average tangible common equity¹ of 18.79%
	No shares of common stock were repurchased during the current quarter

Notable Items	$1.5 million in ONB Way charges
Notable Items	$1.2 million in tax credit amortization

¹Non-GAAP financial measure that Management believes is useful in evaluating the financial results of the Company – please refer to the Non GAAP reconciliations contained in this release ² Comparisons are on a linked-quarter basis, unless otherwise noted ³ Includes loans held for sale

RESULTS OF OPERATIONS

Old National Bancorp reported first quarter 2021 net income of $86.8 million, or $0.52 per diluted share.

Included in the first quarter were pre-tax charges of $1.5 million for the ONB Way. Excluding these charges from the current quarter and netting out debt securities gains, adjusted net income was $86.4 million, or $0.52 per diluted share.

LOANS

Strong commercial production continues.

Period-end total loans were $13,975.5 million at March 31, 2021, an increase of $125.8 million, or 3.6% annualized, when compared to the $13,849.7 million at December 31, 2020.
Paycheck Protection Program (PPP) loans totaled $1,124.1 million at March 31, 2021, compared to $943.0 million at December 31, 2020.
Excluding the $181.1 million increase in PPP loans during the quarter, total loans decreased $55.3 million, or 1.7% annualized.
Excluding PPP loans, total commercial and industrial loans increased $59.0 million, or 2.6% annualized.
Total commercial loan production in the first quarter was $718.0 million; period-end pipeline totaled $2.6 billion.
Consumer loans decreased $56.2 million to $1,579.0 million and residential mortgage loans decreased $45.1 million to $2,203.3 million.
Average total loans in the first quarter were $13,832.2 million, a decrease of $95.6 million from the fourth quarter of 2020.
Excluding PPP loans, average total loans in the first quarter increased $117.6 million from the fourth quarter of 2020.

DEPOSITS

Government stimulus actions continue to bolster deposit balances.

Period-end total deposits were $17,849.8 million at March 31, 2021, an increase of $812.3 million, or 19.1% annualized, when compared to the $17,037.5 million at December 31, 2020.
Interest-bearing checking deposits increased $56.7 million to $4,933.8 million at March 31, 2021.
Noninterest-bearing deposits increased $457.4 million to $6,091.1 million at March 31, 2021 from $5,633.7 million at December 31, 2020.
On average, total deposits in the first quarter were $17,341.8 million, compared to $16,810.6 million in the fourth quarter of 2020.

NET INTEREST INCOME AND MARGIN

Decrease in PPP fees negatively impact net interest income and margin; deposit and funding costs continue to decline.

Net interest income decreased to $148.1 million in the first quarter of 2021 compared to $161.1 million in the fourth quarter of 2020.
The net interest margin on a fully taxable equivalent basis decreased 32 basis points to 2.94% compared to 3.26% in the fourth quarter of 2020.
PPP interest and net fees combined were $12.6 million, or 10 basis points of net interest margin, in the first quarter of 2021 compared to $22.6 million, or 26 basis points of net interest margin, in the fourth quarter of 2020.
Accretion income was $4.7 million, or 9 basis points of net interest margin, in the first quarter of 2021 compared to $5.4 million, or 10 basis points of net interest margin, in the fourth quarter of 2020. In the first quarter of 2021, accretion income was 2.3% of adjusted total revenue.
Interest collected on nonaccrual loans was $0.6 million, or 1 basis point of net interest margin, in the first quarter of 2021 compared to $0.9 million, or 2 basis points of net interest margin, in the fourth quarter of 2020.
The cost of total deposits declined 2 basis points to 0.07% in the first quarter of 2021 while the cost of total interest-bearing deposits decreased 2 basis points to 0.11%.

CREDIT QUALITY

Strong credit quality remains a hallmark of the Old National franchise.

Old National recorded a provision recapture in the first quarter of 2021 of $17.4 million, compared to $1.1 million in provision recapture recorded in the fourth quarter of 2020.
Net recoveries in the first quarter were $5 thousand, compared to net recoveries of $1.1 million in the fourth quarter of 2020.
30-89 day delinquencies were 0.12% at the end of the first quarter.
Non-performing loans decreased as a percentage of total loans to 1.13%.
Loans acquired from previous acquisitions were recorded at fair value at the acquisition date. As of March 31, 2021, the remaining discount on these acquired loans was $45.9 million.
The allowance for credit losses stood at $114.0 million, or 0.82% of total loans at March 31, 2021.

NONINTEREST INCOME

Noninterest income decreased due to lower capital markets income.

Total noninterest income for the first quarter of 2021 was $56.7 million, a decrease of $1.8 million from the fourth quarter of 2020.
Capital markets income decreased $2.8 million when compared to the fourth quarter of 2020.
Gains on sales of debt securities increased $1.8 million when compared to the fourth quarter of 2020.

NONINTEREST EXPENSE

First quarter expense discipline helped drive positive operating leverage¹.

Noninterest expense for the first quarter of 2021 was $117.7 million and included $1.5 million in ONB Way charges and $1.2 million in tax credit amortization.
Excluding these items, adjusted noninterest expense for the first quarter was $115.0 million, compared to the $128.8 million in adjusted noninterest expense in the fourth quarter of 2020.
The first quarter efficiency ratio was 55.57%, while the adjusted efficiency ratio was 54.25%.
Adjusted operating leverage¹ was +919 basis points for the first quarter of 2021 as compared to the first quarter of 2020.

INCOME TAXES

On a fully taxable-equivalent basis, income tax expense in the first quarter was $21.2 million, resulting in a 19.6% FTE tax rate.
Income tax expense included $1.7 million in tax credit benefit.

CAPITAL AND LIQUIDITY

Capital ratios remain strong.

At the end of the first quarter, preliminary total risk-based capital was 12.84% and preliminary regulatory tier 1 capital was 12.01%.
Tangible common equity to tangible assets was 8.38% at the end of the first quarter compared to 8.64% in the fourth quarter of 2020.
The Company did not repurchase any shares of common stock during the first quarter.
A low loan to deposit ratio of 78.3%, combined with existing funding sources plus available unencumbered, high-quality collateral, provides strong liquidity.

NON-GAAP RECONCILIATIONS

($ in millions, except EPS, shares in 000s)	1Q21			Adjustments⁴			Adjusted 1Q21
Total Revenues (FTE)	$	208.3		$	(2.0	)	$	206.3
Less: Provision for Credit Losses	17.4			—			17.4
Less: Noninterest Expenses	(117.7		)	1.5			(116.2		)
Income before Income Taxes (FTE)	$	108.0		$	(0.5	)	$	107.5
Income Taxes	(21.2		)	0.1			(21.1		)
Net Income	$	86.8		$	(0.4	)	$	86.4
Average Shares Outstanding	165,707			—			165,707
Earnings Per Share - Diluted	$	0.52		$	—		$	0.52

⁴Tax-effect calculations use the current statutory FTE tax rates (federal + state)

($ in millions)	1Q21			4Q20
Net Interest Income	$	148.1		$	161.1
Add: FTE Adjustment	3.5			3.5
Net Interest Income (FTE)	$	151.6		$	164.6
Average Earning Assets	$	20,601.7		$	20,182.0
Net Interest Margin (FTE)	2.94		%	3.26		%

($ in millions)	1Q21			1Q20
Net Interest Income	$	148.1		$	143.8
Add: FTE Adjustment	3.5			3.3
Net Interest Income (FTE)	$	151.6		$	147.1
Add: Total Noninterest Income	56.7			57.5
Less: Noninterest Expense	117.7			158.7
Pre-Provision Net Revenue	$	90.6		$	45.9
Less: Debt Securities Gains/Losses	(2.0		)	(5.2		)
Add: ONB Way Charges	1.5			31.2
Add: Amortization of Tax Credit Investments	1.2			5.5
Adjusted Pre-Provision Net Revenue	$	91.3		$	77.4

($ in millions)	1Q21				4Q20				1Q20
Noninterest Expense	$	117.7			$	142.3			$	158.7
Less: ONB Way Charges	(1.5		)		(3.6		)		(31.2		)
Noninterest Expense less Charges	$	116.2			$	138.7			$	127.5
Less: Amortization of Tax Credit Investments	(1.2		)		(9.9		)		(5.5		)
Adjusted Noninterest Expense	$	115.0			$	128.8			$	122.0
Less: Intangible Amortization	(3.1		)		(3.3		)		(3.8		)
Adjusted Noninterest Expense Less Intangible Amortization	$	111.9			$	125.5			$	118.2
Net Interest Income	$	148.1			$	161.1			$	143.8
FTE Adjustment	3.5				3.5				3.3
Net Interest Income (FTE)	$	151.6			$	164.6			$	147.1
Total Noninterest Income	56.7				58.5				57.5
Total Revenue (FTE)	$	208.3			$	223.1			$	204.6
Less: Debt Securities Gains/Losses	(2.0		)		(0.2		)		(5.2		)
Less: Gain on Branch Actions	—				(0.1		)		—
Adjusted Total Revenue (FTE)	$	206.3			$	222.8			$	199.4
Efficiency Ratio	55.57			%	62.37			%	77.71			%
Adjusted Efficiency Ratio	54.25			%	56.35			%	59.31			%
Operating Leverage⁵ (basis points)	2,762
Adjusted Operating Leverage⁶ (basis points)	919

⁵ Year-over-year basis point change in noninterest expenses plus change in total revenue

⁶Year-over-year basis point change in adjusted noninterest expense plus change in adjusted total revenue

($ in millions)	1Q21				4Q20
Net Income	$	86.8			$	74.1
Add: Intangible Amortization (net of tax⁷)	2.3				2.4
Tangible Net Income	$	89.1			$	76.5
Less: Securities Gains/Losses (net of tax⁷)	(1.5		)		(0.2		)
Add: Gains/Losses on Branch Actions (net of tax⁷)	—				(0.1		)
Add: ONB Way Charges (net of tax⁷)	1.1				2.7
Adjusted Tangible Net Income	$	88.7			$	78.9
Average Total Shareholders' Equity	2,970.0				2,932.6
Less: Average Goodwill	(1,037.0		)		(1,037.0		)
Less: Average Intangibles	(44.4		)		(47.5		)
Average Tangible Shareholders' Equity	$	1,888.6			$	1,848.1
Return on Average Tangible Common Equity	18.88			%	16.57			%
Adjusted Return on Average Tangible Common Equity	18.79			%	17.08			%

⁷Tax-effect calculations use the current statutory FTE tax rates (federal + state)

CONFERENCE CALL AND WEBCAST

Old National will host a conference call and live webcast at 9:00 a.m. Central Time on Monday, April 19, 2021, to review first-quarter 2021 financial results. 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 Noon Central Time on April 19 through May 3. To access the replay, dial 1-855-859-2056, Conference ID Code 9135118.

ABOUT OLD NATIONAL

Old National Bancorp (NASDAQ:ONB), the holding company of Old National Bank, is the largest bank holding company headquartered in Indiana. With $23.7 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 ten consecutive years. Since its founding in Evansville in 1834, Old National Bank has focused on community banking by building long-term, highly valued partnerships and keeping our clients at the center of all we do. This is an approach to business that we call The ONB Way. Today, Old National's footprint includes Indiana, Kentucky, Michigan, Minnesota and Wisconsin. In addition to providing extensive services in retail and commercial banking, Old National offers comprehensive wealth management, investment and capital market services. For more information and financial data, please visit Investor Relations at oldnational.com.

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.

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, such as statements about the potential impacts of the COVID-19 pandemic. 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: the severity, magnitude and duration of the COVID-19 pandemic, including impacts of the pandemic and of businesses' and governments' responses to the pandemic on our operations and personnel, and on commercial activity and demand across our and our customers' businesses; market, economic, operational, liquidity, credit and interest rate risks associated with Old National's business (including developments and volatility arising from the COVID-19 pandemic); competition; heightened regulatory and governmental oversight and scrutiny of Old National's business practices; current, pending or future 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, including the anticipated impact from the ONB Way strategic plan that may differ from current estimates; 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, including the impact of the CECL standard as well as changes to address the impact of COVID-19; 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.

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

	Three Months Ended
	March 31,				December 31,					March 31,
	2021				2020					2020
Income Statement
Net interest income	$	148,120				$	161,079				$	143,771
Tax equivalent adjustment (1)	3,500				3,517					3,323
Net interest income - tax equivalent basis	151,620				164,596					147,094
Provision for credit losses	(17,356		)		(1,100			)		16,950
Noninterest income	56,712				58,552					57,502
Noninterest expense	117,740				142,318					158,744
Net income	86,818				74,120					22,640


Per Common Share Data
Weighted average diluted shares	165,707				165,631					168,404
Net income (diluted)	$	0.52				$	0.44				$	0.13
Cash dividends	0.14				0.14					0.14
Common dividend payout ratio (2)	26			%	31				%	108			%
Book value	$	17.98				$	17.98				$	17.10
Stock price	19.34				16.56					13.19
Tangible common book value (3)	11.47				11.43					10.48


Performance Ratios
Return on average assets	1.49			%	1.30				%	0.44			%
Return on average common equity	11.69			%	10.11				%	3.20			%
Return on tangible common equity (3)	18.77			%	16.20				%	5.89			%
Return on average tangible common equity (3)	18.88			%	16.57				%	5.86			%
Net interest margin (FTE)	2.94			%	3.26				%	3.31			%
Efficiency ratio (4)	55.57			%	62.37				%	77.71			%
Net charge-offs (recoveries) to average loans	0.00			%	(0.03			)	%	0.21			%
Allowance for credit losses to ending loans	0.82			%	0.95				%	0.86			%
Non-performing loans to ending loans	1.13			%	1.20				%	1.16			%


Balance Sheet (EOP)
Total loans	$	13,925,261				$	13,786,479				$	12,384,612
Total assets	23,744,451				22,960,622					20,741,141
Total deposits	17,849,755				17,037,453					14,305,362
Total borrowed funds	2,574,987				2,676,554					3,245,214
Total shareholders' equity	2,979,447				2,972,656					2,823,435


Capital Ratios (3)
Risk-based capital ratios (EOP):
Tier 1 common equity	12.01			%	11.75				%	11.40			%
Tier 1	12.01			%	11.75				%	11.40			%
Total	12.84			%	12.69				%	12.28			%
Leverage ratio (to average assets)	8.33			%	8.20				%	8.46			%

Total equity to assets (averages)	12.78			%	12.83				%	13.91			%
Tangible common equity to tangible assets	8.38			%	8.64				%	8.81			%


Nonfinancial Data
Full-time equivalent employees	2,451				2,445					2,736
Banking centers	162				162					192

(1) Calculated using the federal statutory tax rate in effect of 21% for all periods.
(2) Cash dividends per share divided by net income per share (basic).
(3) Represents a non-GAAP financial measure. Refer the "Non-GAAP Measures" table for reconciliations to GAAP financial measures.
March 31, 2021 capital ratios are preliminary.
(4) 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 debt securities transactions. This presentation excludes amortization of intangibles
and net debt 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


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

	Three Months Ended
	March 31,			December 31,			March 31,
	2021			2020			2020
Interest income	$	159,237		$	173,249		$	167,999
Less: interest expense	11,117			12,170			24,228
Net interest income	148,120			161,079			143,771
Provision for credit losses	(17,356		)	(1,100		)	16,950
Net interest income after provision for credit losses	165,476			162,179			126,821

Wealth management fees	9,708			9,259			8,884
Service charges on deposit accounts	8,124			8,724			10,077
Debit card and ATM fees	5,143			5,072			4,998
Mortgage banking revenue	16,525			16,233			11,119
Investment product fees	5,864			5,544			5,874
Capital markets income	3,715			6,545			4,328
Company-owned life insurance	2,714			3,153			3,080
Other income	2,926			3,861			3,968
Gains (losses) on sales of debt securities	1,993			161			5,174
Total noninterest income	56,712			58,552			57,502

Salaries and employee benefits	68,117			78,001			79,173
Occupancy	14,872			13,008			15,133
Equipment	3,969			3,778			5,305
Marketing	2,062			3,242			3,097
Data processing	12,353			12,362			9,467
Communication	2,878			2,396			2,798
Professional fees	2,724			4,834			4,293
FDIC assessment	1,607			1,780			1,609
Amortization of intangibles	3,075			3,244			3,776
Amortization of tax credit investments	1,202			9,871			5,515
Other expense	4,881			9,802			28,578
Total noninterest expense	117,740			142,318			158,744

Income before income taxes	104,448			78,413			25,579
Income tax expense	17,630			4,293			2,939
Net income	$	86,818		$	74,120		$	22,640

Diluted Earnings Per Share
Net income	$	0.52		$	0.44		$	0.13

Average Common Shares Outstanding
Basic	164,997			164,799			167,748
Diluted	165,707			165,631			168,404

Common shares outstanding at end of period	165,676			165,367			165,109


Balance Sheet (unaudited)
($ in thousands)
	March 31,			December 31,			March 31,
	2021			2020			2020
Assets
Federal Reserve Bank account	$	293,230		$	307,967		$	130,295
Money market investments	10,217			13,537			9,349
Investments:
Treasury and government-sponsored agencies	1,602,423			852,196			530,904
Mortgage-backed securities	3,385,339			3,339,098			3,210,000
States and political subdivisions	1,467,804			1,492,162			1,302,395
Other securities	440,810			458,639			497,709
Total investments	6,896,376			6,142,095			5,541,008
Loans held for sale, at fair value	50,281			63,250			54,209
Loans:
Commercial	4,068,896			3,956,422			3,046,579
Commercial and agriculture real estate	6,074,135			5,946,512			5,283,464
Consumer:
Home equity	541,149			556,414			561,789
Other consumer loans	1,037,804			1,078,709			1,164,929
Subtotal of commercial and consumer loans	11,721,984			11,538,057			10,056,761
Residential real estate	2,203,277			2,248,422			2,327,851
Total loans	13,925,261			13,786,479			12,384,612
Total earning assets	21,175,365			20,313,328			18,119,473

Allowance for credit losses	(114,037		)	(131,388		)	(106,380		)
Non-earning Assets:
Cash and due from banks	154,330			268,208			203,533
Premises and equipment, net	466,559			464,408			462,364
Operating lease right-of-use assets	74,611			76,197			86,819
Goodwill and other intangible assets	1,079,933			1,083,008			1,093,323
Company-owned life insurance	456,782			456,110			450,148
Other assets	450,908			430,751			431,861
Total non-earning assets	2,683,123			2,778,682			2,728,048
Total assets	$	23,744,451		$	22,960,622		$	20,741,141

Liabilities and Equity
Noninterest-bearing demand deposits	$	6,091,054		$	5,633,672		$	4,058,559
Interest-bearing:
Checking and NOW accounts	4,933,770			4,877,046			4,105,006
Savings accounts	3,631,145			3,395,747			2,853,305
Money market accounts	2,075,852			1,908,118			1,746,798
Other time deposits	1,042,903			1,103,313			1,469,185
Total core deposits	17,774,724			16,917,896			14,232,853
Brokered deposits	75,031			119,557			72,509
Total deposits	17,849,755			17,037,453			14,305,362

Federal funds purchased and interbank borrowings	922			1,166			560,770
Securities sold under agreements to repurchase	395,242			431,166			318,067
Federal Home Loan Bank advances	1,912,541			1,991,435			2,130,263
Other borrowings	266,282			252,787			236,114
Total borrowed funds	2,574,987			2,676,554			3,245,214
Operating lease liabilities	84,665			86,598			95,830
Accrued expenses and other liabilities	255,597			187,361			271,300
Total liabilities	20,765,004			19,987,966			17,917,706
Common stock, surplus, and retained earnings	2,887,538			2,824,885			2,685,278
Accumulated other comprehensive income (loss), net of tax	91,909			147,771			138,157
Total shareholders' equity	2,979,447			2,972,656			2,823,435
Total liabilities and shareholders' equity	$	23,744,451		$	22,960,622		$	20,741,141


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


	Three Months Ended							Three Months Ended							Three Months Ended
	March 31, 2021							December 31, 2020							March 31, 2020
	Average			Income (1)/		Yield/		Average			Income (1)/		Yield/		Average			Income (1)/		Yield/
Earning Assets:	Balance			Expense		Rate		Balance			Expense		Rate		Balance			Expense		Rate
Money market and other interest-earning
investments	$	370,087		$	88	0.10	%	$	413,782		$	126	0.12	%	$	58,406		$	349	2.41	%
Investments:
Treasury and government-sponsored agencies	1,155,525			4,885		1.69	%	648,314			2,937		1.81	%	583,971			3,697		2.53	%
Mortgage-backed securities	3,312,311			15,833		1.91	%	3,291,436			16,137		1.96	%	3,171,650			19,065		2.40	%
States and political subdivisions	1,478,143			12,200		3.30	%	1,437,890			12,008		3.34	%	1,273,156			11,409		3.58	%
Other securities	453,411			2,743		2.42	%	462,836			2,629		2.27	%	494,500			3,216		2.60	%
Total investments	6,399,390			35,661		2.23	%	5,840,476			33,711		2.31	%	5,523,277			37,387		2.71	%
Loans: (2)
Commercial	3,974,762			35,568		3.58	%	4,132,831			46,468		4.40	%	2,907,297			29,053		3.95	%
Commercial and agriculture real estate	5,980,774			55,746		3.73	%	5,829,912			58,334		3.92	%	5,188,597			62,439		4.76	%
Consumer:
Home equity	544,049			4,152		3.10	%	550,548			4,380		3.17	%	558,356			5,631		4.06	%
Other consumer loans	1,058,731			10,175		3.90	%	1,099,504			11,276		4.08	%	1,167,802			12,219		4.21	%
Subtotal commercial and consumer loans	11,558,316			105,641		3.71	%	11,612,795			120,458		4.13	%	9,822,052			109,342		4.48	%
Residential real estate loans	2,273,859			21,347		3.76	%	2,314,938			22,471		3.88	%	2,370,295			24,244		4.09	%

Total loans	13,832,175			126,988		3.68	%	13,927,733			142,929		4.04	%	12,192,347			133,586		4.35	%

Total earning assets	$	20,601,652		$	162,737	3.16	%	$	20,181,991		$	176,766	3.46	%	$	17,774,030		$	171,322	3.84	%

Less: Allowance for credit losses	(133,869		)					(137,539		)					(83,244		)

Non-earning Assets:
Cash and due from banks	$	288,623						$	341,154						$	287,601
Other assets	2,486,604							2,479,253							2,388,092

Total assets	$	23,243,010						$	22,864,859						$	20,366,479

Interest-Bearing Liabilities:
Checking and NOW accounts	$	4,863,819		$	612	0.05	%	$	4,708,568		$	629	0.05	%	$	4,104,778		$	2,860	0.28	%
Savings accounts	3,495,319			487		0.06	%	3,329,494			487		0.06	%	2,828,177			1,298		0.18	%
Money market accounts	1,987,348			423		0.09	%	1,932,594			445		0.09	%	1,784,169			2,507		0.57	%
Other time deposits	1,081,248			1,607		0.60	%	1,158,715			2,189		0.75	%	1,562,074			5,186		1.34	%
Total interest-bearing core deposits	11,427,734			3,129		0.11	%	11,129,371			3,750		0.13	%	10,279,198			11,851		0.46	%
Brokered deposits	157,780			30		0.08	%	37,176			26		0.28	%	84,099			447		2.14	%
Total interest-bearing deposits	11,585,514			3,159		0.11	%	11,166,547			3,776		0.13	%	10,363,297			12,298		0.48	%

Federal funds purchased and interbank borrowings	1,144			—		0.00	%	843			—		0.03	%	392,857			1,240		1.27	%
Securities sold under agreements to repurchase	398,662			120		0.12	%	438,272			125		0.11	%	329,091			384		0.47	%
Federal Home Loan Bank advances	1,925,352			5,409		1.14	%	2,089,519			5,953		1.13	%	1,965,130			7,768		1.59	%
Other borrowings	263,010			2,429		3.69	%	240,815			2,316		3.85	%	240,276			2,538		4.23	%
Total borrowed funds	2,588,168			7,958		1.25	%	2,769,449			8,394		1.21	%	2,927,354			11,930		1.64	%

Total interest-bearing liabilities	$	14,173,682		$	11,117	0.32	%	$	13,935,996		$	12,170	0.35	%	$	13,290,651		$	24,228	0.73	%

Noninterest-Bearing Liabilities and Shareholders' Equity
Demand deposits	$	5,756,277						$	5,644,017						$	3,964,493
Other liabilities	343,073							352,256							277,812
Shareholders' equity	2,969,978							2,932,590							2,833,523

Total liabilities and shareholders' equity	$	23,243,010						$	22,864,859						$	20,366,479

Net interest rate spread						2.84	%						3.11	%						3.11	%

Net interest margin (FTE)						2.94	%						3.26	%						3.31	%

FTE adjustment				$	3,500						$	3,517						$	3,323

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


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

	Three Months Ended
	March 31,				December 31,				March 31,
	2021				2020				2020

Beginning allowance for credit losses	$	131,388			$	131,388			$	54,619
Impact of adopting ASC 326 on 01/01/2020	—				—				41,347

Provision for credit losses	(17,356		)		(1,100		)		16,950

Gross charge-offs	(1,570		)		(707		)		(8,445		)
Gross recoveries	1,575				1,807				1,909
Net (charge-offs) recoveries	5				1,100				(6,536		)

Ending allowance for credit losses	$	114,037			$	131,388			$	106,380

Net charge-offs (recoveries) / average loans (1)	0.00			%	(0.03		)	%	0.21			%

Average loans outstanding (1)	$	13,815,515			$	13,910,145			$	12,182,704

EOP loans outstanding (1)	13,925,261				13,786,479				12,384,612

Allowance for credit losses / EOP loans (1)	0.82			%	0.95			%	0.86			%

Underperforming Assets:
Loans 90 Days and over (still accruing)	$	49			$	167			$	658

Non-performing loans:
Nonaccrual loans (2)	142,138				147,339				126,987
TDRs still accruing	15,226				17,749				17,040
Total non-performing loans	157,364				165,088				144,027

Foreclosed properties	751				1,324				2,163

Total underperforming assets	$	158,164			$	166,579			$	146,848

Classified and Criticized Assets:
Nonaccrual loans (2)	142,138				147,339				126,987
Substandard accruing loans	160,314				157,276				181,157
Loans 90 days and over (still accruing)	49				167				658
Total classified loans - "problem loans"	$	302,501			$	304,782			$	308,802

Other classified assets	3,791				3,706				2,616
Criticized loans - "special mention loans"	246,365				287,192				238,011

Total classified and criticized assets	$	552,657			$	595,680			$	549,429

Non-performing loans / EOP loans (1)	1.13			%	1.20			%	1.16			%

Allowance to non-performing loans	72			%	80			%	74			%

Under-performing assets / EOP loans (1)	1.14			%	1.21			%	1.19			%

EOP total assets	$	23,744,451			$	22,960,622			$	20,741,141

Under-performing assets / EOP assets	0.67			%	0.73			%	0.71			%

EOP - End of period actual balances
(1) Excludes loans held for sale.
(2) Includes non-accruing TDRs totaling $14.3 million at March 31, 2021, $14.9 million at December 31, 2020, and $11.8 million at March 31, 2020.


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

	Three Months Ended
	March 31,			December 31,			March 31,
	2021			2020			2020
Actual End of Period Balances
GAAP shareholders' equity	$	2,979,447		$	2,972,656		$	2,823,435

Deduct:
Goodwill	1,036,994			1,036,994			1,036,994
Intangibles	42,939			46,014			56,329
	1,079,933			1,083,008			1,093,323

Tangible shareholders' equity	$	1,899,514		$	1,889,648		$	1,730,112

Average Balances
GAAP shareholders' equity	$	2,969,978		$	2,932,590		$	2,833,523

Deduct:
Goodwill	1,036,994			1,036,994			1,036,994
Intangibles	44,409			47,536			58,127
	1,081,403			1,084,530			1,095,121

Average tangible shareholders' equity	$	1,888,575		$	1,848,060		$	1,738,402

Actual End of Period Balances
GAAP assets	$	23,744,451		$	22,960,622		$	20,741,141

Add:
Trust overdrafts	24			26			119

Deduct:
Goodwill	1,036,994			1,036,994			1,036,994
Intangibles	42,939			46,014			56,329
	1,079,933			1,083,008			1,093,323

Tangible assets	$	22,664,542		$	21,877,640		$	19,647,937

Risk-weighted assets (2)	$	15,524,621		$	15,369,076		$	14,420,130

GAAP net income	$	86,818		$	74,120		$	22,640

Add:
Amortization of intangibles (net of tax)	2,306			2,433			2,849

Tangible net income	$	89,124		$	76,553		$	25,489

Tangible Ratios
Return on tangible common equity	18.77		%	16.20		%	5.89		%
Return on average tangible common equity	18.88		%	16.57		%	5.86		%
Return on tangible assets	1.57		%	1.40		%	0.52		%
Tangible common equity to tangible assets	8.38		%	8.64		%	8.81		%
Tangible common equity to risk-weighted assets (2)	12.24		%	12.30		%	12.00		%
Tangible common book value (1)	11.47			11.43			10.48

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 common equity (2)	$	1,865,220		$	1,805,194		$	1,643,249

Risk-weighted assets (2)	15,524,621			15,369,076			14,420,130

Tier 1 common equity to risk-weighted assets (2)	12.01		%	11.75		%	11.40		%

(2) March 31, 2021 figures are preliminary.

Media: Kathy A. Schoettlin (812) 465-7269

Investors: Lynell J. Walton (812) 464-1366

Old National reports 1st quarter earnings of $86.8 million, or $0.52 per share