Business Context and Reporting Period
Company: Old National Bancorp
Filing Type: Form 10-K (Annual Report)
Reporting Period: Fiscal year ended December 31, 2001
Headquarters: Evansville, Indiana
Old National Bancorp is a financial holding company and bank holding company incorporated in Indiana. Its primary subsidiary is Old National Bank, formed through a charter consolidation program ("One Bank") completed in March 2001. The bank operates over 140 centers across Indiana, Illinois, Kentucky, Tennessee, and Ohio, offering commercial and consumer banking, mortgage origination, and trust services. Nonbank affiliates include insurance companies (IONIC and Central Life) and a real estate subsidiary.
Key Financial Metrics
Note: Specific financial figures for revenue, profit, cash flow, and margins are not provided in the text of this filing. The document incorporates the "Selected Financial Data" and "Financial Statements" by reference to the 2001 Annual Report to Shareholders (Exhibit 13).
- Market Capitalization: Approximately $1,468 million (as of February 14, 2002).
- Shares Outstanding: 61,000,000 shares of common stock (as of February 14, 2002).
- Employees: 2,741 full-time equivalent employees (as of December 31, 2001).
- Capital Adequacy: The affiliate bank exceeded risk-based capital requirements of the FDIC and OCC as of December 31, 2001.
- Revenue Source: A substantial portion of cash revenue is derived from dividends paid by the affiliate bank.
Material Changes and Operational Updates
- Charter Consolidation: Completed the "One Bank" program in March 2001, merging all subsidiary banks into Old National Bank.
- Real Estate Expansion: Plans to begin construction of a new headquarters in Evansville, Indiana, before the end of 2002, with completion expected in 2004. Estimated cost is $47 million.
- Regulatory Compliance: Achieved compliance with Gramm-Leach-Bliley Act (GLBA) privacy regulations by July 1, 2001.
Outlook, Risks, and Management Commentary
Regulatory Environment: The Registrant is subject to supervision by the Federal Reserve, FDIC, and OCC. It has elected to be a financial holding company, permitting expanded securities and insurance activities under the GLBA, though management does not anticipate significant changes to products or services immediately.
Risk Factors:
- Forward-Looking Statements: Actual results may differ materially due to economic conditions, interest rate risks, credit quality deterioration, and competition.
- Regulatory Risks: Subject to prompt corrective action if capital requirements are not met; restricted from certain non-banking activities unless approved.
- Operational Risks: Includes technological changes, inflation, and general economic conditions affecting the banking industry.
Legal Proceedings: No material pending legal proceedings other than ordinary routine litigation incidental to the business.
Investor Verification Checklist
- Verify specific revenue, net income, and earnings per share figures in the 2001 Annual Report to Shareholders (incorporated as Exhibit 13), as these are not listed in the 10-K text.
- Review the Capital Resources section of the Annual Report for detailed regulatory capital ratios.
- Confirm the status of the $47 million new headquarters project and its impact on future capital expenditures.
- Assess the impact of dividend restrictions on the holding company's cash flow, as noted in the financial statement references.
- Monitor credit quality trends in the Midwest regions (IN, IL, KY, TN, OH) where the bank operates.