Old National and the Banking Industry

A letter from President & CEO Bob Jones

During my 30-plus years in the financial industry, I’ve seen growth and recession, bull markets and bear markets, and regulation and de-regulation. But I have never experienced anything more challenging than the environment American families and businesses faced in late 2008 and throughout 2009. While it’s encouraging that our economy is showing signs of recovery, the truth is far too many people are still struggling with unemployment concerns, home foreclosures and diminished retirement savings. While I would prefer to deliver a different message, I firmly believe that 2010 will be another very challenging year. During these trying times, I believe the responsibility of a community bank – and that is precisely what Old National is: a community bank – is to serve as a beacon of strength and stability for clients and communities alike. That’s precisely what Old National sought to do in 2009, our landmark 175th anniversary year:

• We remained a strong, stable financial partner for our clients and shareholders. View our 2009 Annual Report.
• With Foundation grants totaling nearly $800,000 awarded during the year, we raised the bar on our commitment to community partnership. Our Foundation Board of Directors concentrated on addressing basic community needs like housing, food, job training and financial literacy. View our 2009 Community Investment Report. We also celebrated our anniversary by donating a total exceeding $175,000 to organizations throughout our footprint.
• Our associates embraced the spirit of community stewardship with more than 75,000 total volunteer hours donated to more than 2,000 organizations! This included a 7-day volunteer marathon that saw more than 600 of our associates give more than 2,200 hours of their time and talent.
• Old National became the first bank in the nation to have its corporate culture certified by Ethisphere, an independent firm that examines more than 100 criteria, including organizational health and culture, ethics and compliance programs, corporate governance systems and more. This achievement, coupled with a 99.0% Risk Metrics governance score (the highest score in our peer group), reflects our desire to be a world leader in transparency and honesty.

The true definition of a community bank

Despite ups and downs in the economy and challenges within our industry, our three strategic imperatives - to strengthen the risk profile, to enhance management discipline and to achieve consistent quality earnings - continue to drive our strategy as a community bank. At Old National, being a community bank means being a basic, conservative financial institution focused on serving the needs of clients as well as the communities they (and we) call home. It also means investing in those communities and empowering our associates to do the same. It means providing our clients with simple, straightforward banking solutions.

While some may characterize community banking as old fashioned or even a bit boring, we disagree. To us, community banking is a simple yet powerful way of doing business that provides a strong platform for consistent quality performance, today and well into the future.

The financial industry in 2010 and beyond

It’s no secret that the banking industry continues to be the subject of unprecedented focus and scrutiny. Much of this stems from the financial meltdown of 2008, which was fueled by a relatively small number of financial institutions that made risky decisions for the sake of short-term gains. Unfortunately, few in Washington D.C. or in the media seem interested in making the distinction between Wall Street banking and Main Street banking when in fact there are significant differences. While investment banks primarily concentrate on raising money through issuing and selling securities in capital markets and by offering a variety of strategic advisory services, community banks like Old National work to address the financial needs of families and businesses.

Old National certainly values and welcomes the role of regulators, and while we agree that certain changes to the financial system are clearly warranted, we are disappointed by what appears to be a one-size-fits-all approach to many of the government’s proposed solutions. As 2010 progresses, we will continue to monitor and assess proposed changes within the industry and share our concerns and opinions, when appropriate, with governmental leaders. Once final decisions are made, we will ensure that we are compliant.

At Old National we’re always here to answer your questions and provide stability in an otherwise turbulent market. That is what a community bank does, and we believe you should find comfort and reassurance in banking with us. Thank you for your trust and your business.

If you would like to speak with me, please don’t hesitate to contact me by phone at 812-464-1280 or submit a question to me online by clicking here.

Sincerely,

Bob Jones
President and CEO, Old National Bancorp