Old National selling stock to fund potential purchases

Evansville-based Old National Bancorp said this morning that it is selling $150 million of its stock in a public offering
and will use some of the proceeds to fund potential acquisitions.

Old National Bancorp is the holding company for Old
National Bank. It has $8 billion in assets and more than 180 branches in Indiana, Kentucky and Illinois, including 74 in the
Indianapolis area. 

“The company intends to use the net proceeds from the offering for general corporate
purposes and to support ongoing and future anticipated growth, which may include opportunistic acquisitions of other financial
institutions, possibly including … failed or distressed financial institutions in FDIC-sponsored or assisted transactions,”
Old National said in a written release.

In March, Old National purchased 65 Charter One branches for $15.9 million from
Providence, R.I.-based Citizens Financial Group.

Old National President and CEO Bob Jones told IBJ earlier this year
that his goal is to make Old National “Indiana’s bank.” He is targeting northern Indiana, Indianapolis and
areas extending down Interstate 65 to Louisville for acquisitions.

New York-based Keefe Bruyette & Woods analyst
Sandra Osborne recently listed Old National among two dozen U.S. banks well positioned to scoop up institutions seized by
the government.

“We continue to believe a select group of regional banks with sufficient capital, credit quality
and management talent stand to benefit by rolling up failed institutions, thereby expanding their banking franchise,”
she said in a report.

New York-based Sandler O’Neill & Partners LP is underwriting the offering. New York-based
Keefe Bruyette & Woods Inc. and Atlanta-based SunTrust Robinson Humphrey Inc. are assisting.

Old National intends
to grant the underwriters a 30-day option to purchase up to an additional 15 percent of the shares offered to cover possible
overallotments.

Old National shares were trading at $10.95 this morning, down 2.8 percent.