Business Context and Reporting Period
Company: Old National Bancorp
Filing Type: Form 10-K (Annual Report)
Reporting Period: Fiscal year ended December 31, 1995
Headquarters: Evansville, Indiana
Old National Bancorp is a multibank holding company operating 118 banking offices across Indiana, Kentucky, and Illinois. The company engages in commercial and consumer banking, including deposits, loans, trust services, and data processing. As of December 31, 1995, the company held 22,835,361 shares of common stock outstanding, with an aggregate market value of approximately $820 million.
Key Financial Metrics
Note: Specific numerical values for revenue, profit, cash flow, and margins are not provided in the text of this filing. These figures are incorporated by reference from the Annual Report to Shareholders (Pages 13-47) and are not present in the source text provided.
- Capital Adequacy: All affiliate banks exceeded the risk-based capital guidelines of the FDIC and OCC as of December 31, 1995.
- Regulatory Capital Requirements: The company maintains a minimum total risk-based capital ratio of 8% and a Tier 1 leverage ratio of at least 3% (or 1-2% above minimum for others).
- Deposit Insurance: Deposits are insured by the Bank Insurance Fund (BIF) and Savings Association Insurance Fund (SAIF). Less than 6% of deposits are insured by SAIF.
- Insurance Assessments: As of June 1, 1995, BIF rates ranged from 0.04% to 0.31%, with most banks paying 0.04%. Rates were scheduled to drop to 0.0% (plus a minimum payment) on January 1, 1996.
Material Changes and Operational Updates
- Acquisitions and Mergers: The company has historically acquired 17 banks and one thrift in Indiana, six banks in Kentucky, and nine banks and one thrift in Illinois. Several recent acquisitions were merged into existing affiliates (e.g., Southern Indiana Bank and Trust Company merged into Old National Bank).
- Future Expansion: The Registrant anticipates consummating a merger with a bank in Carmi, Illinois, during 1996.
- Operational Shifts: Data processing operations for affiliate banks and third-party customers are being transferred in-house to a new commercial building in downtown Evansville over a two-year period.
- Regulatory Environment: The Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 allows for interstate banking and branching, potentially impacting future growth strategies.
Guidance, Risks, and Contingencies
Management Commentary and Outlook: The filing does not contain specific earnings guidance or quantitative outlooks, as this information is incorporated by reference from the Annual Report to Shareholders. Management notes that earnings are affected by general economic conditions, interest rates, and government monetary policies.
Risks and Contingencies:
- Regulatory Compliance: The company is subject to strict capital requirements under the Bank Holding Company Act and FDICIA. Failure to meet these could result in mandatory capital restoration plans or restrictions on activities.
- Deposit Insurance Costs: Future increases in FDIC assessment rates based on risk categorization could adversely affect earnings.
- Legislative Uncertainty: The impact of new laws, such as the Riegle-Neal Act and potential SAIF recapitalization charges (up to 0.85%), cannot be predicted with certainty.
- Legal Proceedings: No material legal proceedings were reported as of the filing date.
Investor Verification Checklist
- Verify specific revenue, net income, and earnings per share figures in the "Annual Report to Shareholders" (incorporated by reference, Pages 13-47).
- Confirm the status and expected closing date of the anticipated merger with the bank in Carmi, Illinois.
- Review the detailed breakdown of loan portfolios and non-performing assets in the full financial statements.
- Monitor the implementation of the in-house data processing transition and its impact on operating expenses.
- Assess the potential financial impact of the one-time SAIF recapitalization charge if approved by Congress in 1996.