# EDGAR Filing Document

**Accession Number:** 0000707179
**File Stem:** 0000707179-23-000008
**Filing Date:** 2023-2
**Character Count:** 1235562
**Document Hash:** 75d25d991ce5a49fcf27567097076da9
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000707179-23-000008.hdr.sgml**: 20230222

**ACCESSION NUMBER**: 0000707179-23-000008

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 178

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230222

**DATE AS OF CHANGE**: 20230222

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** OLD NATIONAL BANCORP /IN/
- **CENTRAL INDEX KEY:** 0000707179
- **STANDARD INDUSTRIAL CLASSIFICATION:** NATIONAL COMMERCIAL BANKS [6021]
- **IRS NUMBER:** 351539838
- **STATE OF INCORPORATION:** IN
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-15817
- **FILM NUMBER:** 23652687

**BUSINESS ADDRESS:**
- **STREET 1:** ONE MAIN ST
- **CITY:** EVANSVILLE
- **STATE:** IN
- **ZIP:** 47708
- **BUSINESS PHONE:** 8124641434

**MAIL ADDRESS:**
- **STREET 1:** ONE MAIN ST
- **CITY:** EVANSVILLE
- **STATE:** IN
- **ZIP:** 47708

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** O
- **DATE OF NAME CHANGE:** 19950822

?xml version="1.0" ? onb-20221231

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

Washington, D.C. 20549

**FORM 10-K** 

☑&nbsp;&nbsp;&nbsp;&nbsp;**ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the fiscal year ended December 31, 2022** 

or

☐&nbsp;&nbsp;&nbsp;&nbsp;**TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from ____________ to ____________**

Commission File Number 001-15817

**Old National Bancorp** 

(Exact name of the Registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Indiana** | **Indiana** | **35-1539838** |
| (State or other jurisdiction of incorporation or organization) | (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
| **One Main Street** | **One Main Street** | **47708** |
| **Evansville,** | **Indiana** | **47708** |
| (Address of principal executive offices) | (Address of principal executive offices) | (Zip Code) |

---

**(800) 731-2265** 

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Title of each class** | **Trading<br>Symbol(s)** | **Name of each exchange on which registered** | **Name of each exchange on which registered** | **Name of each exchange on which registered** |
| **Common stock, no par value** | **ONB** | **The** | **NASDAQ** | **Stock Market LLC** |
| **Depositary Shares, each representing a 1/40th interest in a share of Non-Cumulative Perpetual Preferred Stock, Series A** | **ONBPP** | **The** | **NASDAQ** | **Stock Market LLC** |
| **Depositary Shares, each representing a 1/40th interest in a share of Non-Cumulative Perpetual Preferred Stock, Series C** | **ONBPO** | **The** | **NASDAQ** | **Stock Market LLC** |

---

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☑ No ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☑

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☑ | Accelerated filer | ☐ |
| Non-accelerated filer | ☐ | Smaller reporting company | ☐ |
| Emerging growth company | ☐ | | |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☑

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☑

The aggregate market value of the registrant's voting and non-voting common stock held by non-affiliates on June 30, 2022, was $4,281,188,738 (based on the closing price on that date of $14.79). In calculating the market value of securities held by non-affiliates of the registrant, the registrant has treated as securities held by affiliates as of June 30, 2022, voting and non-voting stock owned of record by its directors and principal executive officers, and voting and non-voting stock held by the registrant's trust department in a fiduciary capacity for benefit of its directors and principal executive officers. This calculation does not reflect a determination that persons are affiliates for any other purposes.

The number of shares outstanding of the registrant's common stock, as of January 31, 2023, was 292,923,000.

**DOCUMENTS INCORPORATED BY REFERENCE**

Portions of the Proxy Statement for the 2023 Annual Meeting of Shareholders are incorporated by reference into Part III of this Form 10-K.

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**OLD NATIONAL BANCORP**

**2022 ANNUAL REPORT ON FORM 10-K**

**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
| | | Page |
| PART I |  |  |
| Item 1. | <u>[Business](#iee732ed8baad4269b53c9a67c572324a_13)</u> | [5](#iee732ed8baad4269b53c9a67c572324a_13) |
| Item 1A. | <u>[Risk Factors](#iee732ed8baad4269b53c9a67c572324a_16)</u> | [16](#iee732ed8baad4269b53c9a67c572324a_16) |
| Item 1B. | <u>[Unresolved Staff Comments](#iee732ed8baad4269b53c9a67c572324a_19)</u> | [30](#iee732ed8baad4269b53c9a67c572324a_19) |
| Item 2. | <u>[Properties](#iee732ed8baad4269b53c9a67c572324a_22)</u> | [30](#iee732ed8baad4269b53c9a67c572324a_22) |
| Item 3. | <u>[Legal Proceedings](#iee732ed8baad4269b53c9a67c572324a_25)</u> | [31](#iee732ed8baad4269b53c9a67c572324a_25) |
| Item 4. | <u>[Mine Safety Disclosures](#iee732ed8baad4269b53c9a67c572324a_28)</u> | [31](#iee732ed8baad4269b53c9a67c572324a_28) |
| PART II |  |  |
| Item 5. | <u>[Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](#iee732ed8baad4269b53c9a67c572324a_34)</u> | [32](#iee732ed8baad4269b53c9a67c572324a_34) |
| Item 6. | <u>[\[Reserved\]](#iee732ed8baad4269b53c9a67c572324a_37)</u> | [33](#iee732ed8baad4269b53c9a67c572324a_37) |
| Item 7. | <u>[Management's Discussion and Analysis of Financial Condition and Results of Operations](#iee732ed8baad4269b53c9a67c572324a_40)</u> | [34](#iee732ed8baad4269b53c9a67c572324a_40) |
| Item 7A. | <u>[Quantitative and Qualitative Disclosures About Market Risk](#iee732ed8baad4269b53c9a67c572324a_73)</u> | [67](#iee732ed8baad4269b53c9a67c572324a_73) |
| Item 8. | <u>[Financial Statements and Supplementary Data](#iee732ed8baad4269b53c9a67c572324a_76)</u> | [68](#iee732ed8baad4269b53c9a67c572324a_76) |
| Item 9. | <u>[Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](#iee732ed8baad4269b53c9a67c572324a_181)</u> | [136](#iee732ed8baad4269b53c9a67c572324a_181) |
| Item 9A. | <u>[Controls and Procedures](#iee732ed8baad4269b53c9a67c572324a_184)</u> | [136](#iee732ed8baad4269b53c9a67c572324a_184) |
| Item 9B. | <u>[Other Information](#iee732ed8baad4269b53c9a67c572324a_187)</u> | [136](#iee732ed8baad4269b53c9a67c572324a_187) |
| Item 9C. | <u>[Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](#iee732ed8baad4269b53c9a67c572324a_190)</u> | [136](#iee732ed8baad4269b53c9a67c572324a_190) |
| PART III |  |  |
| Item 10. | <u>[Directors, Executive Officers and Corporate Governance](#iee732ed8baad4269b53c9a67c572324a_196)</u> | [137](#iee732ed8baad4269b53c9a67c572324a_196) |
| Item 11. | <u>[Executive Compensation](#iee732ed8baad4269b53c9a67c572324a_199)</u> | [138](#iee732ed8baad4269b53c9a67c572324a_199) |
| Item 12. | <u>[Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](#iee732ed8baad4269b53c9a67c572324a_202)</u> | [138](#iee732ed8baad4269b53c9a67c572324a_202) |
| Item 13. | <u>[Certain Relationships and Related Transactions, and Director Independence](#iee732ed8baad4269b53c9a67c572324a_205)</u> | [138](#iee732ed8baad4269b53c9a67c572324a_205) |
| Item 14. | <u>[Principal Accounting Fees and Services](#iee732ed8baad4269b53c9a67c572324a_208)</u> | [138](#iee732ed8baad4269b53c9a67c572324a_208) |
| PART IV |  |  |
| Item 15. | <u>[Exhibits and Financial Statement Schedules](#iee732ed8baad4269b53c9a67c572324a_214)</u> | [139](#iee732ed8baad4269b53c9a67c572324a_214) |
| Item 16. | <u>[Form 10-K Summary](#iee732ed8baad4269b53c9a67c572324a_217)</u> | [143](#iee732ed8baad4269b53c9a67c572324a_217) |
| <u>[SIGNATURES](#iee732ed8baad4269b53c9a67c572324a_220)</u> | <u>[SIGNATURES](#iee732ed8baad4269b53c9a67c572324a_220)</u> | [144](#iee732ed8baad4269b53c9a67c572324a_220) |

---

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**GLOSSARY OF ABBREVIATIONS AND ACRONYMS**

As used in this report, references to "Old National," "the Company," "we," "our," "us," and similar terms refer to the consolidated entity consisting of Old National Bancorp and its wholly-owned subsidiaries. Old National Bancorp refers solely to the parent holding company, and Old National Bank refers to Old National Bancorp's bank subsidiary.

The acronyms and abbreviations identified below are used throughout this report, including the Notes to Consolidated Financial Statements. You may find it helpful to refer to this page as you read this report.

ACH: Automated Clearing House

AOCI: accumulated other comprehensive income (loss)

AQR: asset quality rating

ASC: Accounting Standards Codification

ASU: Accounting Standards Update

ATM: automated teller machine

BBCC: business banking credit center (small business)

CECL: current expected credit loss

CFPB: Consumer Financial Protection Bureau

Common Stock: Old National Bancorp common stock, no par value

COVID-19: coronavirus disease 2019

DTI: debt-to-income

FASB: Financial Accounting Standards Board

FDIC: Federal Deposit Insurance Corporation

FHLB: Federal Home Loan Bank

FHLBI: Federal Home Loan Bank of Indianapolis

FHTC: Federal Historic Tax Credit

FICO: Fair Isaac Corporation

First Midwest: First Midwest Bancorp, Inc.

GAAP: U.S. generally accepted accounting principles

GDP: gross domestic product

LGD: loss given default

LIBOR: London Interbank Offered Rate

LIHTC: Low Income Housing Tax Credit

LTV: loan-to-value

N/A: not applicable

N/M: not meaningful

NASDAQ: The NASDAQ Stock Market LLC

NMTC: New Markets Tax Credit

NOW: negotiable order of withdrawal

OCC: Office of the Comptroller of the Currency

PCD: purchased credit deteriorated

PD: probability of default

PPP: Paycheck Protection Program

Renewable Energy: investment tax credits for solar projects

SEC: U.S. Securities and Exchange Commission

TDR: troubled debt restructuring

UMB: UMB Bank, n.a.

------

**OLD NATIONAL BANCORP**

**2022 ANNUAL REPORT ON FORM 10-K**

**FORWARD-LOOKING STATEMENTS**

Certain statements contained in this Annual Report on Form 10-K that are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"), notwithstanding that such statements are not specifically identified as such. In addition, certain statements may be contained in our future filings with the SEC, in press releases, and in oral and written statements made by us or with our approval that are not statements of historical fact and constitute forward-looking statements within the meaning of the Act. These statements include, but are not limited to, descriptions of Old National's financial condition, results of operations, asset and credit quality trends, profitability and business plans or opportunities. Forward-looking statements can be identified by the use of the words "anticipate," "believe," "contemplate," "could," "estimate," "expect," "intend," "may," "outlook," "plan," "should," and "will," 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. There are a number of factors that could cause actual results or outcomes to differ materially from those in such statements. Factors that might cause such a difference include, but are not limited to: the continued effects of the COVID-19 pandemic and related variants and mutations, including the continued effects on our business, operations, and employees as well as the businesses of our customers; competition; government legislation, regulations and policies; the ability of Old National to execute its business plan, including the completion of the integration related to the merger between Old National and First Midwest, and the achievement of the synergies and other benefits from the merger; unanticipated changes in our liquidity position, including but not limited to changes in our access to sources of liquidity and capital to address our liquidity needs; changes in economic conditions which could materially impact credit quality trends and the ability to generate loans and gather deposits; inflation and governmental responses to inflation, including increasing interest rates; market, economic, operational, liquidity, credit, and interest rate risks associated with our business; our ability to successfully manage our credit risk and the sufficiency of our allowance for credit losses; uncertainty about the discontinued use of LIBOR and the transition to an alternative rate; failure or circumvention of our internal controls; operational risks or risk management failures by us or critical third parties, including without limitation with respect to data processing, information systems, cybersecurity, technological changes, vendor issues, business interruption, and fraud risks; significant changes in accounting, tax or regulatory practices or requirements; new legal obligations or liabilities or unfavorable resolutions of litigation; disruptive technologies in payment systems and other services traditionally provided by banks; failure or disruption of our information systems; computer hacking and other cybersecurity threats; the effects of climate change on Old National and its customers, borrowers, or service providers; other matters discussed in this report; and other factors identified in filings with the SEC. These forward-looking statements are made only as of the date of this report and are not guarantees of future results or performance.

Such forward-looking statements are based on assumptions and estimates, which although believed to be reasonable, may turn out to be incorrect. Therefore, undue reliance should not be placed upon these estimates and statements. We cannot assure that any of these statements, estimates, or beliefs will be realized and actual results or outcomes may differ from those contemplated in these forward-looking statements. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise after the date of this report. You are advised to consult further disclosures we may make on related subjects in our filings with the SEC.

Investors should consider these risks, uncertainties, and other factors in addition to the factors under the heading "Risk Factors" included in this filing and our other filings with the SEC.

------

**PART I**

**ITEM 1.&nbsp;&nbsp;&nbsp;&nbsp;BUSINESS**

**COMPANY PROFILE**

Old National Bancorp, the financial holding company of Old National Bank, our wholly-owned banking subsidiary ("Old National Bank"), is incorporated in the state of Indiana and is the sixth largest Midwestern bank by asset size with consolidated assets of $46.8 billion at December 31, 2022. The Company's corporate headquarters and principal executive office are located in Evansville, Indiana with commercial and consumer banking operations headquartered in Chicago, Illinois. Through our wholly-owned banking subsidiary, we provide a wide range of services primarily throughout the Midwest region and elsewhere, including commercial and consumer loan and depository services, private banking, brokerage, trust, investment advisory, and other traditional banking services.

On February 15, 2022, Old National completed its previously announced merger of equals transaction with First Midwest pursuant to an agreement and plan of merger, dated as of May 30, 2021, to combine in an all-stock transaction. The merger of equals of Old National and First Midwest partners two highly compatible organizations with over 270 combined years of service and a shared relationship banking focus, consistent business models and credit cultures, and an unwavering commitment to community. The combined organization has a presence in the six largest metro markets in the Midwest, strong commercial banking capabilities, a robust retail footprint, a significant wealth management platform, and an enhanced ability to attract talent. The combined organization also creates the scale and profitability to accelerate digital and technological capabilities to drive future investments in consumer and commercial banking, as well as wealth management services.

**THE BANK**

Old National Bank traces its roots to 1834 and is the oldest company in Evansville, Indiana. At December 31, 2022, Old National Bank operated 263 banking centers located primarily throughout the Midwestern United States, including Illinois, Indiana, Iowa, Kentucky, Michigan, Minnesota, and Wisconsin. Each of the banking centers of Old National Bank provides a group of similar community banking services, including such products and services as commercial, real estate, and consumer loans; deposits; and brokerage, trust, and investment advisory services. The individual banking centers located throughout our Midwest footprint have similar operating and economic characteristics.

We earn interest income on loans as well as fee income from the origination of loans. Lending activities include loans to individuals, which primarily consist of home equity lines of credit, residential real estate loans, and consumer loans, and loans to commercial clients, which include commercial loans, commercial real estate loans, agricultural loans, letters of credit, and lease financing. Residential real estate loans are either kept in our loan portfolio or sold to secondary investors, with gains or losses from the sales being recognized.

We strive to serve individuals and commercial clients by providing depository services that fit their needs at competitive rates. We pay interest on interest-bearing deposits and receive service fee revenue on various accounts. Deposit accounts include products such as noninterest-bearing demand, interest-bearing checking and NOW, savings and money market, and time deposits. Debit and ATM cards provide clients with access to their accounts 24 hours a day at any ATM location. We also provide 24-hour telephone access and online banking as well as other electronic and mobile banking services.

In addition to providing lending and deposit services, we offer comprehensive wealth management, investment, and foreign currency services. For businesses, we provide treasury management, merchant, and capital markets services as well as community development lending and equity investment solutions intended to produce jobs and revitalize our communities.

**HUMAN CAPITAL RESOURCES**

At December 31, 2022, we employed 3,967 full-time equivalent team members. Old National respects, values, and welcomes diversity in our team members, clients, suppliers, and marketplace. We seek to maintain an inclusive environment and recognize the unique contribution each individual brings to our company, and we are fully committed to supporting a rich culture of diversity as a cornerstone to our success. Old National provides professional development opportunities to team members and seeks to improve retention, development, and job satisfaction of team members from diverse groups by providing career skills training, peer mentoring, and opportunities to interact with senior leaders. To attract and retain our group of skilled team members, Old National

------

provides a competitive total rewards package, which includes base pay, incentive opportunities, and benefits. Our strong, comprehensive benefits package includes health insurance and wellness coverages, a retirement plan with company matching contributions, other welfare plan coverages, paid time off, and paid leave benefits. In addition to our standard benefits, our team members have access to dedicated healthcare clinics and alternative work schedules for maternity, paternity, and foster-care leave.

Old National team members consistently strive to make a positive difference in the communities we serve. Old National team members actively share their talents in their communities through volunteer activities in education, economic development, human and health services, and Community Reinvestment. We have a program that allows each team member to be paid up to 24 hours per year, with supervisory approval, to volunteer for activities in their community during normal work hours. Under that program, team members logged nearly 46,800 volunteer hours during 2022 in support of more than 1,500 organizations. Team member volunteers are recognized for their efforts on our corporate portal. Team members with 25 hours or more of service each year join the "Volunteer Honor Roll" in Old National's annual communications.

We believe the merger with First Midwest has enabled the combined entity to build on both organizations' longstanding history of service, enhanced its ability to champion community initiatives, and driven positive change throughout its footprint. From First Midwest's multiple recognitions as a Best Place to Work to Old National's 11-year run as one of the World's Most Ethical companies, the combined institution has remained committed to fostering a strong culture of collaboration and trust, empowering its employees to flourish.

**MARKET AREA**

Since our founding, Old National has focused on community and commercial banking by building long-term, highly valued partnerships with clients in our Midwest region. We have continued to expand our footprint through strategic mergers and acquisitions and we are now the sixth largest bank headquartered in the Midwest.

The following table reflects information on the top markets we currently serve.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Metropolitan Statistical Area** | **Deposits as a<br>Percent of<br>Old<br>National<br>Bank<br>Franchise<br>(%)** | **Deposits<br>Per<br>Branch<br>($M)** | **2010-2023<br>Population<br>Change<br>(%)** | **2023-2028<br>Projected<br>Population<br>Change<br>(%)** | **2023<br>Median<br>Household<br>Income<br>($)** | **2023-2028<br>Projected<br>Household<br>Income<br>Change<br>(%)** |
| Chicago-Naperville-Elgin, IL-IN-WI | 41.2 | 161.6 | 0.5 | (0.4) | 83193 | 11.7 |
| Minneapolis-St. Paul-Bloomington, MN-WI | 10.7 | 133.3 | 12.0 | 3.0 | 93724 | 12.4 |
| Evansville, IN-KY | 10.4 | 234.7 | 0.7 | 0.5 | 64368 | 10.6 |
| Indianapolis-Carmel-Anderson, IN | 5.2 | 90.0 | 14.2 | 3.6 | 71979 | 15.5 |
| Milwaukee-Waukesha, WI | 3.5 | 181.0 | 0.6 |  | 72553 | 12.6 |
| Bloomington, IN | 2.6 | 189.2 | 1.1 |  | 61680 | 16.5 |
| Madison, WI | 2.5 | 81.8 | 14.4 | 3.3 | 85184 | 11.8 |
| **National average** |  |  | **8.3** | **2.1** | **73503** | **13.4** |
| **Weighted average total Old National Bank** |  |  | **3.0** | **0.6** | **76337** | **11.9** |

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Source: S&P Global Market Intelligence. Deposit data as of June 30, 2022.

**STRATEGIC TRANSACTIONS**

Since forming our holding company in 1982, we have acquired over 50 financial institutions and other financial services businesses. Old National assesses possible mergers, acquisitions, and divestitures based on a disciplined financial evaluation process and expects that future mergers, acquisitions, and divestitures will be consistent with our existing basic banking strategy, which focuses on community banking, client relationships, and consistent quality earnings. Targeted geographic markets for mergers and acquisitions include markets with average to above average growth rates.

We anticipate that, as with previous mergers and acquisitions, the consideration paid by us in future mergers and acquisitions may be in the form of cash, debt, or Old National stock, or a combination thereof. The amount and structure of such consideration is based on reasonable growth and cost savings assumptions and a thorough analysis of the impact on both long- and short-term financial results.

------

Our ability to engage in certain transactions depends on the bank regulators' views at the time as to the capital levels, quality of management, and overall condition of Old National, in addition to their assessment of a variety of other factors, including our compliance with law and regulations.

On February 15, 2022, Old National completed its previously announced merger of equals transaction with First Midwest pursuant to an agreement and plan of merger, dated as of May 30, 2021, to combine in an all-stock transaction. Following the merger, the new organization is operating under the Old National Bancorp and Old National Bank names, with the corporate headquarters and principal office located in Evansville, Indiana and commercial and consumer banking operations headquartered in Chicago, Illinois. Pursuant to the terms of the merger agreement, each First Midwest common stockholder received 1.1336 shares of Old National common stock for each share of First Midwest common stock such stockholder owned, plus, if applicable, cash in lieu of fractional shares of Old National common stock resulting from the exchange ratio. Each outstanding share of 7.000% fixed-rate non-cumulative perpetual preferred stock, Series A, no par value, and each outstanding share of 7.000% fixed-rate non-cumulative perpetual preferred stock, Series C, no par value, of First Midwest was converted into the right to receive one share of an applicable newly created series of Old National preferred stock, no par value (respectively, "Old National Series A Preferred Stock" and "Old National Series C Preferred Stock," and collectively, the "Old National Preferred Stock"). In this regard, Old National issued 108,000 shares of Old National Series A Preferred Stock and 122,500 shares of Old National Series C Preferred Stock. Old National entered into two deposit agreements, each dated as of February 15, 2022, by and among Old National, Continental Stock Transfer & Trust Company, as depository, and the holders from time to time of the depositary receipts in connection with the issuance of the Old National Preferred Stock. Pursuant to the deposit agreements, Old National issued 4,320,000 depositary shares, each representing a 1/40th interest in a share of Old National Series A Preferred Stock, and 4,900,000 depositary shares, each representing a 1/40th interest in a share of Old National Series C Preferred Stock.

*Divestitures*

On November 18, 2022, Old National completed its transaction with UMB, pursuant to which UMB acquired Old National's business of acting as a qualified custodian for, and administering, health savings accounts. Old National served as custodian for health savings accounts comprised of both investment accounts and deposit accounts. At closing, the health savings accounts held in deposit accounts that were transferred totaled approximately $382 million and the transaction resulted in a $90.7 million pre-tax gain.

During the fourth quarter of 2022, Old National initiated certain property optimization actions that included the closure and consolidation of certain branches as well as other real estate repositioning across our footprint. These actions resulted in pre-tax charges of $26.8 million that are associated with valuation adjustments related to these locations and are recorded in noninterest expense.

In 2020, as part of our previously announced strategic initiative The ONB Way, we consolidated 31 banking centers located throughout the footprint, reflecting an ongoing shift among our clients toward digital banking solutions. Many of the facilities consolidated were in smaller markets, several of which were added in recent years through acquisition and partnership activity. These actions resulted in pre-tax charges of $27.1 million associated with valuation adjustments related to these locations and were recorded in noninterest expense.

**COMPETITION**

The banking industry and related financial service providers operate in a highly competitive market. Old National competes with financial service providers such as other commercial banks, savings and loan associations, credit unions, mortgage banking firms, Financial Technology, or "FinTech," companies, consumer finance companies, securities brokerage firms, insurance companies, money market mutual funds, and other financial intermediaries.

Some of our nonfinancial institution competitors may have fewer regulatory constraints, broader geographic service areas, greater capital, and, in some cases, lower cost structures. In addition, competition for quality clients has intensified as a result of changes in regulation, mergers and acquisitions, advances in technology and product delivery systems, and consolidation among financial service providers.

**SUPERVISION AND REGULATION**

Old National is subject to extensive and comprehensive regulation under federal and state laws. The regulatory framework is intended primarily for the protection of depositors, federal deposit insurance funds, and the banking system as a whole and not for the protection of shareholders or non-depository creditors.

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Significant elements of certain laws and regulations applicable to Old National and its subsidiaries are described below. Applicable statutes, regulations, and policies are continually under review by Congress and state legislatures and federal and state regulatory agencies and are subject to change. Old National is unable to predict changes in applicable laws or regulations, or in their interpretation and application by regulatory agencies and other governmental authorities, and any such change could have a material effect on our business.

Old National Bancorp is registered as a bank holding company and has elected to be a financial holding company. As a bank holding company and financial holding company, Old National Bancorp is subject to supervision, examination and regulation by the Board of Governors of the Federal Reserve System (the "Federal Reserve") under the Bank Holding Company Act of 1956, as amended (the "BHC Act"), and is required to file reports with the Federal Reserve and to provide the Federal Reserve any additional information it may require. As a national bank, Old National Bank is subject to primary regulation, supervision, and examination by the Office of the Comptroller of the Currency ("OCC").

***Bank Holding Company Regulation.*** Generally, the BHC Act governs the acquisition and control of banks and non-banking companies by bank holding companies. The BHC Act also regulates the business activities of bank holding companies and their non-bank subsidiaries.

The BHC Act, the Bank Merger Act, and other federal and state statutes regulate acquisitions of commercial banks and their holding companies. The BHC Act requires the prior approval of the Federal Reserve for the direct or indirect acquisition by a bank holding company of more than 5.0% of the voting shares of a commercial bank or its holding company. Under the BHC Act or the Bank Merger Act, the prior approval of the Federal Reserve or other appropriate bank regulatory authority is required for a bank holding company to acquire control of another bank or for a member bank to merge with another bank or purchase the assets or assume the deposits of another bank. In reviewing applications seeking approval of merger and acquisition transactions, the bank regulatory authorities will consider, among other things, the competitive effect and public benefits of the transactions, the capital position of the combined organization, the risks to the stability of the U.S. banking or financial system, the applicant's managerial and financial resources, the applicant's performance record under the Community Reinvestment Act of 1977, as amended (the "CRA") and its compliance with law, including fair housing laws and other consumer protection laws, and the effectiveness of the subject organizations in combating money laundering activities.

In general, the BHC Act limits the business of bank holding companies to banking, managing or controlling banks and other activities that the Federal Reserve has determined to be so closely related to banking as to be a proper incident thereto. In addition, bank holding companies that qualify and elect to be financial holding companies may engage in any activity, or acquire and retain the shares of a company engaged in any activity, that is either (i) financial in nature or incidental to such financial activity (as determined by the Federal Reserve in consultation with the Secretary of the Treasury) or (ii) complementary to a financial activity and does not pose a substantial risk to the safety and soundness of depository institutions or the financial system generally (as solely determined by the Federal Reserve), without prior approval of the Federal Reserve. Activities that are financial in nature include securities underwriting and dealing, insurance underwriting and making merchant banking investments, among others.

To maintain financial holding company status, a financial holding company and all of its depository institution subsidiaries must be "well capitalized" and "well managed." A depository institution subsidiary is considered to be "well capitalized" if it satisfies the requirements for this status discussed in "Prompt Corrective Action" below. A depository institution subsidiary is considered "well managed" if it received a composite rating and management rating of at least "satisfactory" in its most recent examination. A financial holding company's status will also depend upon it maintaining its status as "well capitalized" and "well managed" under applicable Federal Reserve regulations. If a financial holding company ceases to meet these capital and management requirements, the BHC Act and the Federal Reserve's regulations provide that the financial holding company must enter into an agreement with the Federal Reserve to comply with all applicable capital and management requirements. Until the financial holding company returns to compliance, the Federal Reserve may impose limitations or conditions on the conduct of its activities, and the company may not commence any of the broader financial activities permissible for financial holding companies or acquire a company engaged in such financial activities without prior approval of the Federal Reserve. If the company does not return to compliance within 180 days, the Federal Reserve may require divestiture of the holding company's depository institutions. Bank holding companies and banks must also be both well capitalized and well managed in order to acquire banks located outside their home state.

In order for a financial holding company to commence any new activity permitted by the BHC Act or to acquire a company engaged in any new activity permitted by the BHC Act, each insured depository institution subsidiary of

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the financial holding company must have received a rating of at least "satisfactory" in its most recent examination under the CRA.

The Federal Reserve has the power to order any bank holding company or its subsidiaries to terminate any activity or to terminate its ownership or control of any subsidiary when the Federal Reserve has reasonable grounds to believe that continuation of such activity or such ownership or control constitutes a serious risk to the financial soundness, safety or stability of any bank subsidiary of the bank holding company.

***Source of Strength.*** Federal Reserve policy and regulations and federal law require bank holding companies to act as a source of financial and managerial strength to their subsidiary banks. Under this requirement, a bank holding company is expected to commit financial resources to support its bank subsidiary even at times when the holding company may not be in a financial position to provide such resources or when the holding company may not be inclined to provide it. Any loans by a bank holding company to its subsidiary bank are subordinate in right of payment to deposits and to certain other indebtedness of such subsidiary bank. In the event of a bank holding company's bankruptcy, any commitment by the bank holding company to a federal bank regulatory agency to maintain the capital of a bank subsidiary will be assumed by the bankruptcy trustee and entitled to priority of payment.

***Financial Privacy.*** Under the Gramm-Leach-Bliley Act of 1999 ("GLB Act"), a financial institution may not disclose non-public personal information about a consumer to unaffiliated third-parties unless the institution satisfies various disclosure requirements and the consumer has not elected to opt out of the information sharing. The financial institution must provide its clients with a notice of its privacy policies and practices. The Federal Reserve, the FDIC, and other financial regulatory agencies issued regulations implementing notice requirements and restrictions on a financial institution's ability to disclose non-public personal information about consumers to unaffiliated third-parties.

In addition, privacy and data protection are areas of increasing state legislative focus, and several states have recently enacted consumer privacy laws that impose significant compliance obligations with respect to personal information. Similar laws may in the future be adopted by states where the Company and Old National Bank do business. Furthermore, privacy and data protection areas are expected to receive additional attention at the Federal level. The potential effects of state or Federal privacy and data protection laws on the Company's business cannot be determined at this time, and will depend both on whether such laws are adopted by states in which the Company does business and/or at the Federal level and the requirements imposed by any such laws.

***Bank Secrecy Act and the USA Patriot Act.*** The U.S. Bank Secrecy Act ("BSA") and USA PATRIOT Act require financial institutions to develop programs to prevent them from being used for, and to detect and deter, money laundering, terrorist financing, and other illegal activities. If such activities are detected or suspected, financial institutions are obligated to file suspicious activity reports with the U.S. Treasury's Office of Financial Crimes Enforcement Network. These rules require financial institutions to establish procedures for identifying and verifying the identity of clients seeking to open new accounts and monitoring these accounts on an ongoing basis to ensure that such accounts are not used for illegal purposes. Failure to comply with these requirements could have serious financial, legal, and reputational consequences, including the imposition of civil money penalties, cease and desist orders, or causing applicable bank regulatory authorities not to approve merger or acquisition transactions or to prohibit transactions even if approval is not required.

In January 2021, the Anti-Money Laundering Act of 2020 ("AMLA"), which amends the BSA, was enacted. Among other things, the AMLA codifies a risk-based approach to anti-money laundering compliance for financial institutions; requires the Treasury to promulgate priorities for anti-money laundering and countering the financing of terrorism policy; requires the development of standards by the Treasury for testing technology and internal processes for BSA compliance; expands enforcement- and investigation-related authority, including a significant expansion in the available sanctions for certain BSA violations; and expands BSA whistleblower incentives and protections. Many of the statutory provisions in the AMLA will require additional rulemaking, reports and other measures, and the impact of the AMLA will depend on, among other things, rulemaking and implementation guidance. In June 2021, the Financial Crimes Enforcement Network, a bureau of the U.S. Department of the Treasury, issued the priorities for anti-money laundering and countering the financing of terrorism policy, which is required under the AMLA. The priorities include: corruption, cybercrime, terrorist financing, fraud, transnational crime, drug trafficking, human trafficking and proliferation financing.

***Office of Foreign Assets Control Regulation.*** The U.S. imposes economic sanctions that affect transactions with designated foreign countries, nationals, and others. These sanctions are administered by the U.S. Treasury's Office

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of Foreign Assets Control ("OFAC"). These sanctions include: (i) restrictions on trade with or investment in a sanctioned country, including prohibitions against direct or indirect imports from and exports to a sanctioned country and prohibitions on "U.S. persons" engaging in financial transactions relating to making investments in, or providing investment-related advice or assistance to, a sanctioned country, and (ii) blocking assets in which the government or specially designated nationals of the sanctioned country have an interest by prohibiting transfers of property subject to U.S. jurisdiction (including property in the possession or control of U.S. persons). Blocked assets (e.g., property and bank deposits) cannot be paid out, withdrawn, set off, or transferred in any manner without a license from OFAC. Failure to comply with these sanctions could have serious financial, legal, and reputational consequences for the institution, including the imposition of civil money penalties, or causing applicable bank regulatory authorities not to approve merger or acquisition transactions.

***Consumer Financial Protection.*** The Company and Old National Bank are subject to laws designed to protect consumers and prohibit unfair or deceptive business practices, including the Equal Credit Opportunity Act, the Fair Housing Act, the Home Ownership Protection Act, the Fair Credit Reporting Act, as amended by the Fair and Accurate Credit Transactions Act of 2003 ("FACT Act"), the GLB Act, the Truth in Lending Act, the CRA, the Home Mortgage Disclosure Act, the Real Estate Settlement Procedures Act, the National Flood Insurance Act and applicable state law counterparts. These and other laws, among other things, require disclosures of the cost of credit and terms of deposit accounts, provide substantive consumer rights, prohibit discrimination in credit transactions, regulate the use of credit report information, provide financial privacy protections, prohibit unfair, deceptive, and abusive practices and subject us to substantial regulatory oversight. Violations of applicable consumer protection laws can result in reputational damage and a significant potential liability from litigation brought by customers, including actual damages, restitution, and attorneys' fees. Federal bank regulators, state attorneys general and state and local consumer protection agencies may also seek to enforce consumer protection requirements and obtain these and other remedies, including regulatory sanctions, customer rescission rights, action by the state and local attorneys general in each jurisdiction in which we operate and civil money penalties. Failure to comply with consumer protection requirements may also result in failure to obtain any required bank regulatory approval for merger or acquisition transactions or prohibit such transactions even if approval is not required.

In addition, the Consumer Financial Protection Bureau ("CFPB") has a broad mandate to prohibit unfair, deceptive or abusive acts and practices, is specifically empowered to require certain disclosures to consumers and draft model disclosure forms, and is responsible for making rules and regulations under the federal consumer protection laws relating to financial products and services. The CFPB has examination and enforcement authority over all banks with more than $10 billion in assets, as well as their affiliates, and can issue cease-and-desist orders against banks and other entities that violate consumer financial laws. The CFPB may also institute a civil action against an entity in violation of federal consumer financial law in order to impose a civil penalty or injunction. Banking regulators take into account compliance with consumer protection laws when considering approval of a proposed transaction.

***Interchange Fees.*** The Company is subject to interchange fee limitations that establish a maximum permissible interchange fee for many types of debit interchange transactions that is equal to no more than 21 cents per transaction plus five basis points multiplied by the value of the transaction. Interchange fees, or "swipe" fees, are charges that merchants pay to card-issuing banks, such as Old National Bank, for processing electronic payment transactions. Additional Federal Reserve rules allow a debit card issuer to recover one cent per transaction for fraud prevention purposes if the issuer complies with certain fraud-related requirements.

***Capital Adequacy.***

*Capital Requirements*. The Company and Old National Bank are each required to comply with certain risk-based capital and leverage requirements under capital rules adopted by the Federal Reserve, the OCC, and the FDIC (the "Basel III Capital Rules"). These rules implement the Basel III framework set forth by the Basel Committee on Banking Supervision (the "Basel Committee") as well as certain provisions of the Dodd-Frank Street Reform and Consumer Protection Act (the "Dodd-Frank Act").

The Basel III Capital Rules define qualifying capital instruments and specify minimum amounts of capital as a percentage of assets that banking organizations are required to maintain. Under the Basel III Capital Rules, risk-based capital ratios are calculated by dividing Common Equity Tier 1 ("CET1") capital, Tier 1 capital and total risk-based capital, respectively, by risk-weighted assets. Assets and off-balance sheet credit equivalents are assigned a risk weight based primarily on supervisory assessments of relative credit risk.

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Under the Basel III Capital Rules, the Company and Old National Bank are each required to maintain the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A minimum ratio of CET1 to risk-weighted assets of 4.5%, plus a 2.5% "capital conservation buffer" that is composed entirely of CET1 capital (effectively resulting in a minimum ratio of CET1 to risk-weighted assets of 7.0%).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A minimum ratio of Tier 1 capital to risk-weighted assets of 6.0%, plus the capital conservation buffer (effectively resulting in a minimum Tier 1 capital ratio of 8.5%).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A minimum ratio of total capital (Tier 1 capital plus Tier 2 capital) to risk-weighted assets of 8.0%, plus the capital conservation buffer (effectively resulting in a minimum total capital ratio of 10.5%).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A minimum leverage ratio of 4.0%, calculated as the ratio of Tier 1 capital to average assets.

The capital conservation buffer is designed to absorb losses during periods of economic stress. Banking institutions with a ratio of CET1 to risk-weighted assets above the minimum, but below the conservation buffer, will face constraints on dividends, equity repurchases, and compensation based on the amount of the shortfall and the institution's "eligible retained income" (that is, the greater of (i) net income for the preceding four quarters, net of distributions and associated tax effects not reflected in net income and (ii) average net income over the preceding four quarters).

The Basel III Capital Rules also provide for a number of deductions from and adjustments to CET1 capital. As a "non-advanced approaches" firm under the Basel III Capital Rules, the Company is subject to rules that provide for simplified capital requirements relating to the threshold deductions for mortgage servicing assets, deferred tax assets arising from temporary differences that a banking organization could not realize through net operating loss carry backs, and investments in the capital of unconsolidated financial institutions, as well as the inclusion of minority interests in regulatory capital.

The Company and Old National Bank, as non-advanced approaches banking organizations under the Basel III Capital Rules, made a one-time permanent election to exclude the effects of certain AOCI items included in shareholders' equity under GAAP in determining regulatory capital ratios.

In December 2017, the Basel Committee published standards that it described as the finalization of the Basel III post-crisis regulatory reforms. Among other things, these standards revise the Basel Committee's standardized approach for credit risk (including the recalibration of risk weights and introducing new capital requirements for certain "unconditionally cancellable commitments," such as unused credit card lines of credit) and provide a new standardized approach for operational risk capital. The Basel framework contemplates that these standards generally will be effective on January 1, 2023, with an aggregate output floor phasing in through January 1, 2028. The federal banking regulators have not yet proposed rules implementing these standards. Under the current U.S. capital rules, operational risk capital requirements and a capital floor apply only to advanced approaches banking organizations, and therefore not to the Company or Old National Bank. The impact of these standards on the Company and Old National Bank will depend on the manner in which they are implemented by the federal bank regulators.

*Prompt Corrective Action*. The Federal Deposit Insurance Act (the "FDIA") requires the federal banking agencies to take "prompt corrective action" for depository institutions that do not meet the minimum capital requirements described above. The FDIA includes the following five capital categories: "well-capitalized," "adequately capitalized," "undercapitalized," "significantly undercapitalized" and "critically undercapitalized." An insured depository institution is considered:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Well-capitalized" if the institution has a total risk-based capital ratio of 10.0% or greater, a Tier 1 risk-based capital ratio of 8.0% or greater, a CET1 capital ratio of 6.5% or greater, and a leverage ratio of 5.0% or greater, and is not subject to any order or written directive by any such regulatory authority to meet and maintain a specific capital level for any capital measure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Adequately capitalized" if the institution has a total risk-based capital ratio of 8.0% or greater, a Tier 1 risk-based capital ratio of 6.0% or greater, a CET1 capital ratio of 4.5% or greater, and a leverage ratio of 4.0% or greater and is not "well-capitalized."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Undercapitalized" if the institution has a total risk-based capital ratio of less than 8.0%, a Tier 1 risk-based capital ratio of less than 6.0%, a CET1 capital ratio of less than 4.5%, or a leverage ratio of less than 4.0%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Significantly undercapitalized" if the institution has a total risk-based capital ratio of less than 6.0%, a Tier 1 risk-based capital ratio of less than 4.0%, a CET1 capital ratio of less than 3.0% or a leverage ratio of less than 3.0%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Critically undercapitalized" if the institution's tangible equity is equal to or less than 2.0% of average quarterly tangible assets.

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An institution may be downgraded to, or deemed to be in, a capital category that is lower than indicated by its capital ratios if it is determined to be in an unsafe or unsound condition or if it receives an unsatisfactory examination rating for certain matters. A bank's capital category is determined solely for the purpose of applying prompt corrective action regulations, and the capital category may not constitute an accurate representation of the bank's overall financial condition or prospects for other purposes. As of December 31, 2022, Old National Bank's capital ratios were all in excess of the minimum requirements for "well-capitalized" status.

The federal banking regulators must take certain mandatory supervisory actions, and are authorized to take other discretionary actions, with respect to institutions that are less than adequately capitalized, with supervisory actions progressively becoming more punitive as the institution's capital category declines. Supervisory actions include: (i) restrictions on payment of capital distributions and management fees, (ii) requirements that a federal bank regulator monitor the condition of the institution and its efforts to restore its capital, (iii) submission of a capital restoration plan, (iv) restrictions on the growth of the institution's assets and (v) requirements for prior regulatory approval of certain expansion proposals. A bank that is "critically undercapitalized" will be subject to further restrictions and generally will be placed in conservatorship or receivership within 90 days.

The FDIA prohibits an insured depository institution from accepting brokered deposits or offering interest rates on any deposits significantly higher than the prevailing rate in the bank's normal market area or nationally (depending upon where the deposits are solicited), unless it is well-capitalized or is adequately capitalized and receives a waiver from the FDIC. A depository institution that is adequately capitalized and accepts brokered deposits under a waiver from the FDIC may not pay an interest rate on any deposits in excess of 75 basis points over certain prevailing market areas.

The FDIA's prompt corrective action provisions apply only to depository institutions, and not to bank holding companies. Under the Federal Reserve's regulations, a bank holding company is considered "well capitalized" if the bank holding company (i) has a total risk based capital ratio of at least 10%, (ii) has a Tier 1 risk-based capital ratio of at least 6%, and (iii) is not subject to any written agreement order, capital directive or prompt corrective action directive to meet and maintain a specific capital level for any capital measure. Although prompt corrective action regulations apply only to depository institutions and not to bank holding companies, a bank that is required to submit a capital restoration plan generally must concurrently submit a performance guarantee by its parent holding company. The liability of the parent holding company under any such guarantee is limited to the lesser of five percent of the bank's assets at the time it became "undercapitalized" or the amount needed to comply.

***Dividends Limitation****s*.*** A substantial portion of Old National Bancorp's revenue is derived from dividends paid to it by Old National Bank. Under OCC regulations, national banks generally may not declare a dividend in excess of the bank's undivided profits or, absent OCC approval, if the total amount of dividends declared by the national bank in any calendar year exceeds the total of the national bank's retained net income year-to-date combined with its retained net income for the preceding two years. National banks also are prohibited from declaring or paying any dividend if, after making the dividend, the national bank would be considered "undercapitalized" (as defined by reference to other OCC regulations). The OCC has the authority to use its enforcement powers to prohibit a national bank, such as Old National Bank, from paying dividends if, in its opinion, the payment of dividends would constitute an unsafe or unsound practice. Further, Old National Bank's ability to pay dividends is restricted if it does not maintain the capital conservation buffer described under "—Capital Adequacy—Capital Requirements" above.

In addition, the FDIA generally prohibits a depository institution from making any capital distributions (including payment of a dividend) or paying any management fee to its parent holding company if the depository institution would thereafter be "undercapitalized" as described under "—Capital Adequacy—Prompt Corrective Action" above.

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***Transactions with Affiliates.*** Any transactions between Old National Bank and its subsidiaries and Old National Bancorp or any other subsidiary of Old National Bancorp are regulated under federal banking law. The Federal Reserve Act imposes quantitative and qualitative requirements and collateral requirements on covered transactions by Old National Bank with, or for the benefit of, its affiliates, and generally requires those transactions to be on terms at least as favorable to Old National Bank as would be a transaction conducted between unaffiliated third-parties. Covered transactions are defined by statute to include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A loan or extension of credit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A purchase of securities issued by an affiliate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A purchase of assets from an affiliate, unless otherwise exempted by the Federal Reserve.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Certain derivative transactions that create a credit exposure to an affiliate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The acceptance of securities issued by an affiliate as collateral for any loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The issuance of a guarantee, acceptance, or letter of credit on behalf of or for the benefit of an affiliate.

In general, any such transaction by Old National Bank or its subsidiaries must be limited to certain thresholds on an individual and aggregate basis and, credit transactions with, or for the benefit of, an affiliate must be secured by designated amounts of specified collateral.

Federal law also limits Old National Bank's authority to extend credit to its directors, executive officers, and stockholders who own more than 10% of Common Stock, as well as to entities controlled by such persons. Among other things, any such extension of credit is required to be made on terms that are substantially the same as, and follow credit underwriting procedures that are not less stringent than, those prevailing for comparable transactions with unaffiliated persons. In addition, the terms of such extensions of credit may not involve more than the normal risk of non-repayment or present other unfavorable features and may not exceed certain limitations on the amount of credit extended to such persons individually and in the aggregate.

***Community Reinvestment Act****.* The CRA requires depository institutions to assist in meeting the credit needs of their market areas consistent with safe and sound banking practices. Under the CRA, each depository institution is required to help meet the credit needs of its market areas by, among other things, providing credit to low-income and moderate-income individuals and small businesses in those communities. Federal and state regulators conduct CRA examinations on a regular basis to assess the performance of financial institutions and assign one of four ratings to the institution's record of meeting the credit needs of its community. Bank regulators take into account CRA ratings when considering approval of a proposed merger or acquisition. Old National Bank received a rating of "satisfactory" in its latest CRA examination.

In May 2022, the OCC, together with the Federal Reserve and FDIC, issued a joint notice of proposed rulemaking to modernize the CRA regulatory framework. The proposed rule is intended, among other things, to adapt to changes in the banking industry, including the expanded role of mobile and online banking, and to tailor performance standards to account for differences in bank size and business models. The proposed rule would adjust CRA evaluations based on bank size and type, with many of the proposed changes applying only to banks with over $2 billion in assets and several applying only to banks with over $10 billion in assets, such as Old National Bank. The effects of the proposed CRA rules on Old National will depend on the final form of any rulemaking.

***Deposit Insurance*.** Substantially all of the deposits of Old National Bank are insured up to applicable limits by the Deposit Insurance Fund ("DIF") which is administered by the FDIC. Insurance of deposits may be terminated by the FDIC upon a finding that the institution engaged or is engaging in unsafe and unsound practices, is in an unsafe or unsound condition to continue operations, or violated any applicable law, regulation, rule, order, or condition imposed by the FDIC or written agreement entered into with the FDIC.

FDIC assessment rates for large institutions that have more than $10 billion of assets, such as Old National Bank, are calculated based on a "scorecard" methodology, based primarily on the difference between the institution's average of total assets and average tangible equity. The FDIC has the ability to make discretionary adjustments to the total score, up or down, based upon significant risk factors that are not adequately captured in the scorecard. For large institutions, including Old National Bank, after accounting for potential base-rate adjustments, the total assessment rate could range from 1.5 to 40 basis points on an annualized basis.

In October 2022, the FDIC finalized a rule to increase the initial base deposit insurance assessment rate schedules for all insured depository institutions by 2 basis points, beginning with the first quarterly assessment period of 2023. The increased assessment rate is intended to improve the likelihood that the Deposit Insurance Fund reserve ratio would reach the required minimum of 1.35 percent by the statutory deadline of September 30, 2028.

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***Depositor Preference*.** The FDIA provides that, in the event of the "liquidation or other resolution" of an insured depository institution, the claims of depositors of the institution, including the claims of the FDIC as subrogee of insured depositors, and certain claims for administrative expenses of the FDIC as a receiver, will have priority over other general unsecured claims against the institution. If an insured depository institution fails, insured and uninsured depositors, along with the FDIC, will have priority in payment ahead of unsecured, non-deposit creditors, including depositors whose deposits are payable only outside of the United States, and the parent bank holding company with respect to any extensions of credit they have made to such insured depository institution.

***Anti-Tying Restrictions*.** Generally, a bank is prohibited from extending credit, leasing or selling property, furnishing any service or fixing or varying the consideration for any of the foregoing on the condition that (i) the customer obtains additional credit, property or services from the bank's parent holding company or any subsidiary of the holding company, or (ii) the customer will not obtain credit, property or services from a competitor of the bank or its affiliates (except to the extent the restriction is a reasonable condition imposed to assure the soundness of the credit extended).

***Employee Incentive Compensation*.** Under regulatory guidance applicable to all banking organizations, incentive compensation policies must be consistent with safety and soundness principles. Under this guidance, financial institutions must review their compensation programs to ensure that they: (i) provide employees with incentives that appropriately balance risk and reward and that do not encourage imprudent risk, (ii) are compatible with effective controls and risk management, and (iii) are supported by strong corporate governance, including active and effective oversight by the banking organization's board of directors. Monitoring methods and processes used by a banking organization should be commensurate with the size and complexity of the organization and its use of incentive compensation.

During 2016, the federal bank regulatory agencies and the SEC proposed revised rules on incentive-based payment arrangements at specified regulated entities having at least $1 billion of total assets (including the Company and Old National Bank). These proposed rules have not been finalized.

In October 2022, the SEC adopted a final rule directing national securities exchanges and associations, including NASDAQ, to implement listing standards that require all listed companies to adopt policies mandating the recovery or "clawback" of excess incentive-based compensation earned by a current or former executive officer during the three fiscal years preceding a required accounting restatement, including to correct an error that would result in a material misstatement if the error were corrected in the current period. The excess compensation would be based on the amount the executive officer would have received had the incentive-based compensation been determined using the restated financial statements. The final rule requires the exchanges to propose conforming listing standards by February 26, 2023 and requires the standards to become effective no later than November 23, 2023. Each listed issuer, including the Company, would then be required to adopt a clawback policy within 60 days after its exchange's listing standard has become effective.

***Cybersecurity.*** The federal banking regulators regularly issue new guidance and standards, and update existing guidance and standards, regarding cybersecurity intended to enhance cyber risk management among financial institutions. Financial institutions are expected to comply with such guidance and standards and to accordingly develop appropriate security controls and risk management processes.

State regulators have also been increasingly active in implementing privacy and cybersecurity standards and regulations. Recently, several states have adopted regulations requiring certain financial institutions to implement cybersecurity programs and providing detailed requirements with respect to these programs, including data encryption requirements. Many states have also recently implemented or modified their data breach notification and data privacy requirements. We expect this trend of state-level activity in those areas to continue and are continually monitoring developments in the states in which the Company operates.

In November 2021, the United States federal bank regulatory agencies adopted a rule regarding notification requirements for banking organizations related to significant computer security incidents. Under this rule, a bank holding company, such as Old National Bancorp, and a national bank, such as Old National Bank, are required to notify the Federal Reserve or OCC, respectively, within 36 hours of incidents that have materially disrupted or degraded, or are reasonably likely to materially disrupt or degrade, the banking organization's ability to deliver services to a material portion of its customer base, jeopardize the viability of key operations of the banking organization, or pose a threat to the financial stability of the United States.

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In March 2022, the SEC proposed new rules that would require registrants, including the Company, to (i) report material cybersecurity incidents on Form 8-K; (ii) include updated disclosure in Forms 10-K and 10-Q of previously disclosed cybersecurity incidents, and disclose previously undisclosed, individually immaterial incidents when a determination is made that such incidents have become material on an aggregated basis; (iii) disclose cybersecurity policies and procedures and governance practices, including at the board and management levels, in Form 10-K; and (iv) disclose the board of directors' cybersecurity expertise.

***Safety and Soundness Standards.*** In accordance with the FDIA, the federal banking agencies adopted safety and soundness guidelines establishing general standards relating to internal controls, information systems, internal audit systems, loan documentation, credit underwriting, interest rate risk exposure, cybersecurity, liquidity, data protection, asset growth, asset quality, earnings, compensation, fees, and benefits. In general, the guidelines require, among other things, appropriate systems and practices to identify, monitor, and manage the risks and exposures specified in the guidelines. The guidelines prohibit excessive compensation as an unsafe and unsound practice and describe compensation as excessive when the amounts paid are unreasonable or disproportionate to the services performed by an executive officer, employee, director, or principal shareholder. In addition, regulations adopted by the federal banking agencies authorize, but do not require, an agency to order that an institution that has been given notice by an agency that it is not satisfying any of such safety and soundness standards to submit a compliance plan. If, after being so notified, the institution fails to submit an acceptable compliance plan or fails in any material respect to implement an accepted compliance plan, the agency must issue an order directing corrective actions and may issue an order directing other actions of the types to which an undercapitalized institution is subject under the "prompt corrective action" provisions of FDIA. If the institution fails to comply with such an order, the agency may seek to enforce such order in judicial proceedings and to impose civil money penalties and cease and desist orders.

***Federal Home Loan Bank System.*** Old National Bank is a member of the Federal Home Loan Bank System, which consists of 12 regional Federal Home Loan Banks. The Federal Home Loan Bank System provides a central credit facility primarily for member institutions. As a member of the FHLBI, Old National Bank is required to acquire and hold a minimum amount of shares of capital stock of the FHLBI based on, among other things, the amounts of residential mortgage loans and mortgage-backed securities held by Old National Bank, outstanding borrowings from the FHLBI and the outstanding principal balance of "Acquired Member Assets", as defined by the FHLBI. As of December 31, 2022, Old National Bank was in compliance with the minimum stock ownership requirement.

***LIBOR Act****.* In March 2022, the Adjustable Interest Rate (LIBOR) Act (the "LIBOR Act") was signed into law. The LIBOR Act provides a uniform approach for replacing LIBOR as a reference interest rate in so-called "tough legacy" contracts for a time when LIBOR is no longer published or is no longer representative. Tough legacy contracts are contracts that do not include effective fallback provisions, for example, because they have no provisions for a replacement benchmark or provisions based on prior LIBOR values or dealer polls. Under the LIBOR Act, references to the most common tenors of LIBOR in these contracts will be replaced as a matter of law, without the need to be amended by the parties, to instead reference a benchmark interest rate that will be identified in Federal Reserve regulations that is based on the secured overnight funding rate ("SOFR"). In December 2022, the Federal Reserve issued final regulations to implement the LIBOR Act. The Federal Reserve's final rule identifies benchmark replacements, based on SOFR, for various types of contracts subject to the LIBOR Act. The Company continues to evaluate the effect of the LIBOR Act and its implementing regulations on the Company's LIBOR-linked contracts.

***Enhanced Prudential Standards.*** The Dodd-Frank Act, as amended by the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018 ("EGRRCPA"), directs the Federal Reserve to monitor emerging risks to financial stability and enact enhanced supervision and prudential standards. As a bank holding company with less than $100 billion of total consolidated assets, the Dodd Frank Act's enhanced prudential standards generally are not applicable to the Company. Prior to the passage of EGRRCPA, Federal Reserve rules required publicly traded bank holding companies with $10 billion or more of total consolidated assets to establish risk committees. Under the EGRRCPA and its implementing regulations, publicly traded bank holding companies with between $10 billion and $50 billion of total consolidated assets, including the Company, are no longer required to maintain a risk committee. The Company has determined, however, that it will retain its risk committee. In addition, the OCC, as the regulator of national banks, has issued guidelines for national banks with more than $50 billion in assets that establish certain standards for the design and implementation of a risk governance framework. These standards will become applicable to Old National Bank once it has $50 billion in assets.

***Volcker Rule.*** The so-called "Volcker Rule" generally restricts the ability of the Company and its subsidiaries, including Old National Bank, to sponsor or invest in hedge funds and private equity funds or to engage in

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proprietary trading. The Company generally does not engage in the businesses prohibited by the Volcker Rule; therefore, the Volcker Rule does not have a material effect on the operations of the Company and its subsidiaries.

***Future Legislation and Regulation.*** In addition to the specific legislation and regulations described above, various laws and regulations are being considered by federal and state governments and regulatory agencies. Changes in law or regulation, or in the manner in which existing regulations are applied, may change the Company's and Old National Bank's operating environment in substantial and unpredictable ways and may increase reporting requirements and compliance costs. These changes could increase or decrease the cost of doing business, increase the Company's expenses, decrease the Company's revenue, limit or expand permissible activities or change the activities in which the Company chooses to engage, or affect the competitive balance among banks, savings associations, credit unions, and other financial institutions in ways that could adversely affect the Company and Old National Bank.

**AVAILABLE INFORMATION**

All reports filed electronically by Old National with the SEC, including the annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy and information statements, other information and amendments to those reports filed or furnished (as applicable), are accessible at no cost on Old National's website at <u>www.oldnational.com</u> as soon as reasonably practicable after electronically submitting such materials to the SEC. In addition, the SEC maintains an internet site at <u>www.sec.gov</u> that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC.

**ITEM 1A.&nbsp;&nbsp;&nbsp;&nbsp;RISK FACTORS**

There are a number of risks and uncertainties that could adversely affect Old National's business, financial condition, results of operations or cash flows, and access to liquidity, thereby affecting an investment in our Common Stock.

**Strategic, Financial, and Reputational Risks**

***Economic conditions have affected and could continue to adversely affect our revenues and profits.***

Old National's financial performance generally, and in particular the ability of borrowers to pay interest on and repay principal of outstanding loans and the value of collateral securing those loans, as well as demand for loans and other products and services that Old National offers, is highly dependent upon the business environment in the markets where Old National operates and in the United States as a whole. A favorable business environment is generally characterized by, among other factors, economic growth, efficient capital markets, low inflation, low unemployment, high business and investor confidence, and strong business earnings. Unfavorable or uncertain economic and market conditions can be caused by declines in economic growth, business activity or investor or business confidence; limitations on the availability or increases in the cost of credit and capital; increases in inflation or interest rates; high unemployment; natural disasters, the severity and frequency of which are increasing as a result of climate change; terrorist acts; or a combination of these or other factors.

An economic downturn, sustained high unemployment levels, stock market volatility, and/or high levels of inflation (such as the market volatility and inflation the United States economy experienced during 2022) has in the past negatively affected, and in the future may negatively affect, our operating results and have had, or may have, a negative effect on the ability of our borrowers to make timely repayments of their loans, increasing the risk of loan defaults and losses. If the forecasts of economic conditions and other economic predictions are not accurate, we may face challenges in accurately estimating the ability of our borrowers to repay their loans. Expectations of negative market and economic conditions will be reflected in the allowances for credit losses for loans and debt securities to the estimated extent they will impact the credit losses of new and existing loans and debt securities over their remaining lives. The provision for credit losses will report the entire increased credit loss expectations over the remaining lives of the loans and debt securities in the period in which the change in expectation arises. Further, because of the impact of such increased credit losses on earnings and capital, our ability to make loans and pay dividends may be substantially diminished.

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***Changes in economic or political conditions have adversely affected, and may continue to adversely affect, Old National's earnings, if the ability of Old National's borrowers to repay loans, or the value of the collateral securing such loans, declines.***

Old National's success depends, to a certain extent, upon economic or political conditions, local and national, as well as governmental monetary policies. Conditions such as recession, unemployment, changes in interest rates, inflation, money supply, and other factors beyond Old National's control have in the past adversely affected, and may continue to adversely affect, Old National's asset quality, deposit levels, and loan demand and, therefore, Old National's earnings. Because Old National has a significant amount of commercial real estate loans, decreases in real estate values could adversely affect the value of property used as collateral. Adverse changes in the economy may also have a negative effect on the ability of Old National's borrowers to make timely repayments of their loans, which would have an adverse impact on Old National's earnings.

Supply chain constraints, robust demand and labor shortages have led to persistent inflationary pressures throughout the economy. Volatility and uncertainty related to inflation and its effects, which could potentially contribute to poor economic conditions, may enhance some of the risks described in this section. For example, higher inflation could reduce demand for our products, adversely affect the creditworthiness of our borrowers or result in lower values for our interest-earning assets and investment securities. Any of these effects, or others that we are not able to predict, could adversely affect our financial condition or results of operations.

Economic conditions, financial markets and inflationary pressures may be adversely affected by the impact of current or anticipated geopolitical uncertainties, military conflicts, including Russia's invasion of Ukraine, pandemics, including the COVID-19 pandemic, and global, national and local responses to such events by governmental authorities and other third parties. These unpredictable events could create, increase or prolong economic and financial disruptions and volatility that adversely affect the Company's business, financial condition, capital and results of operations.

***Old National's regional concentrations expose it to adverse economic conditions in the locations in which Old National operates.***

Substantially all of Old National's loans are to individuals and businesses in Old National's market areas in the Midwest region. Therefore, the Company is, or in the future may be, particularly vulnerable to adverse changes in economic conditions in the Midwest region. The credit quality of the Company's borrowers may deteriorate for a number of reasons that are outside the Company's control, including as a result of prevailing economic and market conditions and asset valuations. The trends and risks affecting borrower credit quality, particularly in the Midwest region, have caused, and in the future may cause, the Company to experience impairment charges, which are reductions in the recoverable value of an asset, increased purchase demands, wherein customers make withdrawals with minimum notice, higher costs (e.g., servicing, foreclosure, property maintenance), additional write-downs and losses and a potential impact to engage in lending transactions based on a reduction of customer deposits, which could have a material adverse effect on the Company's business, financial condition and results of operations.

***Mergers and acquisitions may not produce revenue enhancements or cost savings at levels or within timeframes originally anticipated and may result in unforeseen integration difficulties and dilution to existing shareholder value.***

We have acquired, and expect to continue to acquire, other financial institutions or parts of those institutions and other businesses related to banking in the future, and we may engage in de novo banking center expansion. We may also consider and enter into new lines of business or offer new products or services.

We may incur substantial costs to expand, and we can give no assurance such expansion will result in the levels of profits we seek or expect. There can be no assurance that integration efforts for any mergers or acquisitions will be successful or that, after giving effect to the merger or acquisition, we will achieve profits comparable to, or better than, our historical experience. We have issued, and may in the future issue, equity securities in connection with mergers and acquisitions, which have caused, and could in the future cause additional, ownership and economic dilution to our current shareholders. In addition, mergers and acquisitions may involve the payment of a premium over book and market values and, therefore, some dilution of the Company's tangible book value and net income per common share may occur in connection with any future transaction.

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Acquisitions and mergers involve a number of other expenses and risks, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the time and costs associated with identifying potential new markets, as well as acquisition and merger targets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the accuracy of the estimates and judgments used to evaluate credit, operations, management, and market risks with respect to the target institution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the time and costs of evaluating new markets, hiring experienced local management, and opening new offices, and the time lags between these activities and the generation of sufficient assets and deposits to support the costs of the expansion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to finance an acquisition or merger and possible dilution to our existing shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the diversion of our management's attention to the negotiation and execution of a transaction, and the integration of the operations and personnel of the combined businesses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• entry into new markets where we lack experience;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the introduction of new products and services into our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the incurrence and possible impairment of goodwill or other intangible assets associated with an acquisition or merger and possible adverse short-term effects on our results of operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• closing delays and increased expenses related to the resolution of lawsuits filed by shareholders of target institutions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the risk of loss of key employees and clients.

Furthermore, failure to realize the expected revenue increases, cost savings, increases in geographic or product presence, or other projected benefits from an acquisition or merger could have a material adverse effect on the Company's financial condition and results of operations.

***Mergers and acquisitions may be delayed, impeded, or prohibited due to regulatory issues.***

Mergers and acquisitions by financial institutions, including by the Company, are subject to approval by a variety of federal and state regulatory agencies. The process for obtaining these required regulatory approvals is complex and involves a comprehensive application review process. Regulatory approvals could be delayed, impeded, restrictively conditioned or denied due to existing or new regulatory issues the Company may have with regulatory agencies, including, without limitation, issues related to BSA compliance, CRA issues, fair lending laws, fair housing laws, consumer protection laws, unfair, deceptive, or abusive acts or practices regulations and other laws and regulations. Over the past several years, mergers of banking organizations have encountered greater regulatory, governmental and community scrutiny and have taken substantially longer to receive the necessary regulatory approvals and other required governmental clearances than in the past. The Company may fail to pursue, evaluate, or complete strategic and competitively significant merger and acquisition opportunities as a result of its inability, or perceived or anticipated inability, to obtain regulatory approvals in a timely manner, under reasonable conditions, or at all. Difficulties associated with potential mergers and acquisitions that may result from these factors could have a material adverse effect on our business, financial condition and results of operations.

***Our accounting estimates and risk management processes rely on analytical and forecasting models.***

The processes that we use to estimate probable credit losses and to measure the fair value of assets carried on the balance sheet at fair value, as well as the processes used to estimate the effects of changing interest rates and other market measures on our financial condition and results of operations, depend upon the use of analytical and forecasting models. These models are complex and reflect assumptions that may not be accurate, particularly in times of market stress or other unforeseen circumstances and require us to make judgments about the effect of matters that are inherently uncertain. Different assumptions could have resulted in significant changes in valuation, which in turn could have a material adverse effect on our financial condition and results of operations.

***Old National operates in an extremely competitive market, and Old National's business will suffer if Old National is unable to compete effectively.***

In our market area, Old National encounters significant competition from other commercial banks, savings and loan associations, credit unions, mortgage banking firms, FinTech companies, consumer finance companies, securities brokerage firms, insurance companies, money market mutual funds, and other financial intermediaries. Our competitors may have substantially greater resources and lending limits than Old National does and may offer services that Old National does not or cannot provide. Some of our nonfinancial institution competitors may have fewer regulatory constraints, broader geographic service areas, and, in some cases, lower cost structures and, as a result, may be able to compete more effectively for business. In particular, the activity of marketplace lenders and

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other FinTechs has grown significantly over recent years and is expected to continue to grow. FinTechs have and may continue to offer bank or bank-like products. For example, a number of FinTechs have applied for, and in some cases received, bank or industrial loan charters. In addition, other FinTechs have partnered with existing banks to allow them to offer deposit products to their customers. Regulatory changes may also make it easier for FinTechs to partner with banks and offer deposit products. Other recent regulation has reduced the regulatory burden of large bank holding companies, and raised the asset thresholds at which more onerous requirements apply, which could cause certain large bank holding companies with less than $250 billion in total consolidated assets, which were previously subject to more stringent enhanced prudential standards, to become more competitive or to pursue expansion more aggressively. There is also increased competition by out-of-market competitors through online and mobile channels. In addition, the emergence, adoption and evolution of new technologies that do not require intermediation, including distributed ledgers, as well as advances in automation, could significantly affect competition for financial services. Old National's profitability depends upon our continued ability to compete successfully in our market area.

***Our business could suffer if we fail to attract and retain skilled people.***

Our success depends, in large part, on our ability to attract and retain key people. Competition for the best employees in most of the activities we engage in can be intense. We may not be able to hire the best people for key roles or retain them. In addition, the transition to increased work-from-home and hybrid work arrangements, which are likely to survive the COVID-19 pandemic for many companies, may exacerbate the challenges of attracting and retaining talented and diverse employees as job markets may be less constrained by physical geography. Our current or future approach to in-office and work-from-home arrangements may not meet the needs or expectations of our current or prospective employees or may not be perceived as favorable as compared to the arrangements offered by competitors, which could adversely affect our ability to attract and retain employees. The loss of any of our key personnel or an inability to continue to attract, retain, and motivate key personnel could adversely affect our business.

***We may not be able to pay dividends in the future in accordance with past practice.***

Old National has traditionally paid a quarterly dividend to its common shareholders. The payment of dividends is subject to legal and regulatory restrictions and safety and soundness considerations. Any payment of dividends in the future will depend, in large part, on Old National's earnings, capital requirements, financial condition, and other factors considered relevant by our Board of Directors.

Old National Bancorp is an entity separate and distinct from Old National Bank. Old National Bank conducts most of our operations and Old National Bancorp depends upon dividends from Old National Bank to service its debt and to pay dividends to Old National's shareholders. The availability of dividends from Old National Bank is limited by various statutes and regulations. It is possible, depending upon the financial condition including liquidity and capital adequacy of Old National Bank and other factors, that the OCC could assert that the payment of dividends or other payments is an unsafe or unsound practice. In addition, the payment of dividends by our other subsidiaries is also subject to the laws of the subsidiary's state of incorporation, and regulatory capital and liquidity requirements applicable to such subsidiaries.

Under the terms of the junior subordinated deferrable interest debentures that Old National has issued to various trust preferred securities trusts, Old National has the right at any time during the term of the debentures to defer the payment of interest at any time or from time to time for an extension period not exceeding 20 consecutive quarterly periods with respect to each extension period. In the event that Old National elects to defer interest on the debentures, Old National may not, with certain exceptions, declare or pay any dividends or distributions on its capital stock or purchase or acquire any of its capital stock.

Under the terms of the Old National Preferred Stock, in the event that we do not declare and pay dividends on such Old National Preferred Stock for the most recent dividend period, we may not, with certain exceptions, declare or pay dividends on, or purchase, redeem or otherwise acquire, shares of Common Stock or any other securities that rank junior to such Old National Preferred Stock.

In the event that Old National Bank was unable to pay dividends to us, we in turn would likely have to reduce or stop paying dividends on our Common Stock. Our failure to pay dividends on our Common Stock could have a material adverse effect on the market price of our Common Stock. See "Business – Supervision and Regulation – Dividend Limitations" and Note 21 to the consolidated financial statements.

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***Old National may not realize the expected benefits of its strategic imperatives.***

Old National's ability to compete depends on a number of factors, including, among others, its ability to develop and successfully execute strategic plans and imperatives. Our strategic priorities include consistent quality earnings; continued management discipline; strong risk management and appropriate levels of risk taking; fewer operational surprises, disruptions, and losses; improved operational effectiveness and efficiency; more effective deployment of resources; and increased awareness and involvement in the achievement of strategic goals. Our inability to execute on or achieve the anticipated outcomes of our strategic priorities may affect how the market perceives us and could impede our growth and profitability.

***Climate change could have a material negative impact on the Company and clients.***

The Company's business, as well as the operations and activities of our clients, could be negatively affected by climate change. Climate change presents both immediate and long-term risks to the Company and its clients, and these risks are expected to increase over time. Climate change presents multi-faceted risks, including: operational risk from the physical effects of climate events on the Company and its clients' facilities and other assets, including the possible reduction of the value, or destruction, of collateral for our loans; credit risk from borrowers with significant exposure to climate risk; transition risks associated with the transition to a less carbon-dependent economy; and reputational risk from stakeholder concerns about our practices related to climate change, the Company's carbon footprint, and the Company's business relationships with clients who operate in carbon-intensive industries.

Federal and state banking regulators and supervisory authorities, investors, and other stakeholders have increasingly viewed financial institutions as important in helping to address the risks related to climate change both directly and with respect to their clients, which may result in financial institutions coming under increased pressure regarding the disclosure and management of their climate risks and related lending and investment activities. Given that climate change could impose systemic risks upon the financial sector, either via disruptions in economic activity resulting from the physical impacts of climate change or changes in policies as the economy transitions to a less carbon-intensive environment, the Company may face regulatory risk of increasing focus on the Company's resilience to climate-related risks, including in the context of stress testing for various climate stress scenarios. Ongoing legislative or regulatory uncertainties and changes regarding climate risk management and practices may result in higher regulatory, compliance, credit, and reputational risks and costs.

Although we continue to make efforts to enhance our governance of climate change-related risks and integrate climate considerations into our risk governance framework, the risks associated with climate change are rapidly changing and evolving in an escalating fashion, making them difficult to assess due to limited data and other uncertainties. For example, long-term shifts in the climate, including altered distribution and intensity of rainfall, rising sea levels and a rising heat index, negatively affect our ability to predict the effects of natural disasters accurately. In addition, climate change may result in reduced availability of insurance for our borrowers, including insurance that protects property pledged as collateral, which could negatively affect our ability to predict credit losses accurately.

We could experience increased expenses resulting from strategic planning, litigation, and technology and market changes, and reputational harm as a result of negative public sentiment, regulatory scrutiny, and reduced investor and stakeholder confidence due to our response to climate change and our climate change strategy, which, in turn, could have a material negative impact on our business, results of operations, and financial condition.

***Old National is exposed to reputational risk.***

Old National's reputation is a key asset to its business. A negative public opinion of the Company and its business can result from any number of activities, including the Company's lending practices, corporate governance and regulatory compliance, mergers and acquisitions, and actions taken by regulators or by community organizations in response to these activities. Significant harm to the Company's reputation could also arise as a result of regulatory or governmental actions, litigation, employee misconduct or the activities of customers, other participants in the financial services industry or the Company's contractual counterparties, such as service providers and vendors. A service disruption of the Company's technology platforms or an impact to the Company's branches could have a negative impact on a customer's access to banking services, and harm the Company's reputation with customers. In particular, a cybersecurity event impacting the Company's or its customers' data could have a negative impact on the Company's reputation and customer confidence in the Company and its cybersecurity. Damage to the Company's reputation could also adversely affect its credit ratings and access to the capital markets.

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In addition, whereas negative public opinion once was primarily driven by adverse news coverage in traditional media, the increased use of social media platforms facilitates the rapid dissemination of information or misinformation, which magnifies the potential harm to the Company's reputation.

Events that result in damage to the Company's reputation may also increase our litigation risk, increase regulatory scrutiny of the Company and its business, affect our ability to attract and retain customers and employees and have other consequences that we may not be able to predict.

**Credit Risk**

***If Old National's actual credit losses for loans or debt securities exceed Old National's allowance for credit losses on loans and debt securities, Old National's net income will decrease. Also, future additions to Old National's allowance for credit losses will reduce Old National's future earnings.***

Old National's business depends on the creditworthiness of our clients. As with most financial institutions, we maintain allowances for credit losses for loans and debt securities to provide for defaults and nonperformance, which represent an estimate of expected losses over the remaining contractual lives of the loan and debt security portfolios. This estimate is the result of our continuing evaluation of specific credit risks and loss experience, current loan and debt security portfolio quality, present economic, political, and regulatory conditions, industry concentrations, reasonable and supportable forecasts for future conditions, and other factors that may indicate losses. The determination of the appropriate levels of the allowances for loan and debt security credit losses inherently involves a high degree of subjectivity and judgment and requires us to make estimates of current credit risks and future trends, all of which may undergo material changes. Generally, our nonperforming loans, other real estate owned, and other repossessed property reflect operating difficulties of individual borrowers and weaknesses in the economies of the markets we serve. The allowances may not be adequate to cover actual losses, and future allowance for credit losses could materially and adversely affect our financial condition, results of operations, and cash flows.

Also as described further in the risk factors above and as set forth below, the COVID-19 pandemic and Russia's invasion of Ukraine have created economic and financial disruptions that have adversely affected, and may continue to adversely affect, customers.

***Old National's loan portfolio includes loans with a higher risk of loss.***

Old National Bank originates commercial real estate loans, commercial loans, agricultural loans, consumer loans, and residential real estate loans primarily within Old National's market areas. Commercial real estate, commercial, consumer, and agricultural loans may expose a lender to greater credit risk than loans secured by residential real estate because the collateral securing these loans may not be sold as easily as residential real estate. These loans also have greater credit risk than residential real estate for the following reasons:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Commercial Real Estate Loans.* Repayment is dependent upon income being generated in amounts sufficient to cover operating expenses and debt service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Commercial Loans.* Repayment is dependent upon the successful operation of the borrower's business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Consumer Loans.* Consumer loans (such as personal lines of credit) are collateralized, if at all, with assets that may not provide an adequate source of payment of the loan due to depreciation, damage, or loss.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Agricultural Loans.* Repayment is dependent upon the successful operation of the business, which is greatly dependent on many things outside the control of either Old National Bank or the borrowers. These factors include weather, input costs, commodity and land prices, and interest rates. In addition, the effects of climate change could materially enhance the credit risks related to agricultural loans in ways that we may not be able to predict.

In addition, as described further in this "Risk Factors" section, the Company's credit risks may be increased by the impacts of inflation, poor or recessionary economic conditions and financial market volatility.

Growth in our commercial real estate loan portfolio over the past several years, and potential future growth, has resulted in, and may result in further, significant expense to implement risk management procedures and controls to effectively evaluate and monitor the portfolio. At December 31, 2022, commercial real estate loans, including owner occupied, investor, and real estate construction loans, totaled $12.5 billion, or 40%, of our total loan portfolio. Commercial real estate loans generally involve a greater degree of credit risk than residential mortgage loans because they typically have larger balances and are more affected by adverse conditions in the economy. Because

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payments on loans secured by commercial real estate often depend upon the successful operation and management of the properties and the businesses which operate from within them, repayment of such loans may be affected by factors outside the borrower's control. For example, emerging and evolving factors such as the shift to work-from-home or hybrid-work arrangements, changing consumer preferences (including for online shopping), COVID-19-related restrictions and resulting changes in occupancy rates as a result of these and other trends have had, and in the future could have, a material effect on our borrowers' ability to repay their loans.

***If Old National forecloses on real property collateral, Old National may be subject to the increased costs associated with the ownership of real property, resulting in reduced revenues.***

Old National may have to foreclose on collateral real property to protect Old National's investment and may thereafter own and operate such property, in which case Old National will be exposed to the risks inherent in the ownership of real estate. The amount that Old National, as a mortgagee, may realize after a default is dependent upon factors outside of Old National's control, including, but not limited to: (i) general or local economic conditions; (ii) neighborhood values; (iii) size, use, and location of the properties; (iv) interest rates; (v) real estate tax rates; (vi) operating expenses of the mortgaged properties; (vii) environmental remediation liabilities; (viii) ability to obtain and maintain adequate occupancy of the properties; (ix) zoning laws; (x) governmental rules, regulations and fiscal policies; and (xi) acts of God. Certain expenditures associated with the ownership of real estate, principally real estate taxes, insurance, and maintenance costs, may adversely affect the income from the real estate. Therefore, the cost of operating real property may exceed the income earned from such property, and Old National may have to advance funds in order to protect Old National's investment or dispose of the real property at a loss. The foregoing expenditures and costs could adversely affect Old National's ability to generate revenues, resulting in reduced levels of profitability.

***The soundness of other financial institutions could adversely affect Old National.***

Financial services institutions are interrelated as a result of trading, clearing, counterparty, and other relationships. Old National has exposure to many different industries and counterparties, and Old National and certain of its subsidiaries routinely execute transactions with counterparties in the financial services industry, including brokers and dealers, commercial banks, investment banks, mutual and hedge funds, and other institutions. Many of these transactions expose Old National to credit risk in the event of default of its counterparty. In addition, Old National's credit risk may be affected when collateral is liquidated at prices not sufficient to recover the full amount of the loan or derivative exposure. These types of losses could materially adversely affect Old National's results of operations or financial condition.

**Market, Interest Rate, and Liquidity Risks**

***The price of Old National's Common Stock may be volatile, which may result in losses for investors.***

General market price declines or market volatility in the future could adversely affect the price of Old National's Common Stock. In addition, the following factors may cause the market price for shares of Old National's Common Stock to fluctuate:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• announcements of developments related to Old National's business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fluctuations in Old National's results of operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• sales or purchases of substantial amounts of Old National's securities in the marketplace;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• general conditions in Old National's banking niche or the global or national economy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a shortfall or excess in revenues or earnings compared to securities analysts' expectations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in analysts' recommendations or projections;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Old National's announcement of new mergers, acquisitions, or other projects; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• negative news about the Company or the financial services industry generally.

***Changes in interest rates could adversely affect Old National's results of operations and financial condition. The monetary, tax and other policies of governmental agencies, including the Federal Reserve, have a significant impact on interest rates and overall financial market performance over which the Company has no control and which the Company may not be able to anticipate adequately.***

The Federal Reserve raised benchmark interest rates throughout 2022 and may continue to raise interest rates in response to economic conditions, particularly inflationary pressures. Old National's earnings depend substantially on Old National's interest rate spread, which is the difference between (i) the rates Old National earns on loans,

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securities, and other earning assets and (ii) the interest rates Old National pays on deposits and other borrowings. These rates are highly sensitive to many factors beyond Old National's control, including general economic conditions and the policies of various governmental and regulatory authorities. When market interest rates rise, such as during 2022, Old National faces competitive pressure to increase the rates that Old National pays on deposits, which could result in a decrease of Old National's net interest income. When market interest rates decline, Old National has experienced, and could in the future experience, fixed-rate loan prepayments and higher investment portfolio cash flows, resulting in a lower yield on earning assets. Sharp fluctuations in interest rates, such as the significant increases experienced during 2022, could enhance these risks. Old National's earnings can also be impacted by the spread between short-term and long-term market interest rates.

The monetary, tax and other policies of the government and its agencies, including the Federal Reserve, have a significant impact on interest rates and overall financial market performance. These governmental policies can thus affect the activities and results of operations of banking organizations such as the Company. An important function of the Federal Reserve is to regulate the national supply of bank credit and certain interest rates. The actions of the Federal Reserve influence the rates of interest that the Company charges on loans and that the Company pays on borrowings and interest-bearing deposits and can also affect the value of the Company's on-balance sheet and off-balance sheet financial instruments. Also, due to the impact on rates for short-term funding, the Federal Reserve's policies influence, to a significant extent, the Company's cost of such funding, and increases in short-term interest rates have in the past increased, and may in the future increase, the Company's cost of short-term funding.

***Changes in the method pursuant to which the LIBOR and other benchmark rates are determined could adversely impact our business and results of operations.***

Our floating-rate funding, certain hedging transactions and certain of the products that we offer, such as floating-rate loans and mortgages, determine the applicable interest rate or payment amount by reference to a benchmark rate, such as LIBOR, or to an index, currency, basket, or other financial metric. The administrator of LIBOR has announced that the publication of the most commonly used U.S. Dollar LIBOR settings will cease to be provided or will cease to be representative after June 30, 2023. The publication of all other LIBOR settings ceased to be provided or ceased to be representative as of December 31, 2021. The U.S. federal banking agencies had also issued guidance strongly encouraging banking organizations to cease using the U.S. Dollar LIBOR as a reference rate in "new" contracts by December 31, 2021 at the latest. In March 2022, the LIBOR Act was signed into law. The LIBOR Act and its implementing regulations provide a uniform approach for replacing LIBOR as a reference interest rate in certain contracts as a matter of law. See "Business – Supervision and Regulation – LIBOR Act."

Regulators, industry groups, and certain committees (e.g., the Alternative Reference Rates Committee) have, among other things, published recommended fallback language for LIBOR-linked financial instruments, identified recommended alternatives for certain LIBOR rates (e.g., the Secured Overnight Financing Rate as the recommended alternative to U.S. Dollar LIBOR), and proposed implementations of the recommended alternatives in floating rate instruments. At this time, it is not possible to predict whether these recommendations and proposals will be broadly accepted, whether they will continue to evolve, and what the effect of their implementation may be on the markets for floating-rate financial instruments.

The discontinuation of LIBOR, changes in LIBOR, or changes in market perceptions of the acceptability of LIBOR as a benchmark could result in changes to our risk exposures (for example, if the anticipated discontinuation of LIBOR adversely affects the availability or cost of floating-rate funding and, therefore, our exposure to fluctuations in interest rates) or otherwise result in losses on a product or having to pay more or receive less on securities that we own or have issued. In addition, such uncertainty could result in pricing volatility and increased capital requirements, loss of market share in certain products, adverse tax or accounting impacts, and compliance, legal and operational costs and risks associated with client disclosures, discretionary actions taken or negotiation of fallback provisions, systems disruption, business continuity, and model disruption.

***The Company must maintain adequate sources of funding and liquidity.***

The Company's liquidity and ability to fund and operate its business could be materially adversely affected by a variety of conditions and factors, including financial and credit market disruptions and volatility or a lack of market or customer confidence in financial markets in general, which may result in a loss of customer deposits or outflows of cash or collateral and/or ability to access capital markets on favorable terms. Negative news about the Company or the financial services industry generally may reduce market or customer confidence in the Company, which could in turn materially adversely affect the Company's liquidity and funding. Such reputational damage may result in the loss of customer deposits, the inability to sell or securitize loans or other assets, and downgrades in one or more of

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the Company's credit ratings, and may also negatively affect the Company's ability to access the capital markets. A downgrade in the Company's credit ratings, which could result from general industry-wide or regulatory factors not solely related to the Company, could adversely affect the Company's ability to borrow funds, including by raising the cost of borrowings substantially, and could cause creditors and business counterparties to raise collateral requirements or take other actions that could adversely affect Old National's ability to raise capital. Many of the above conditions and factors may be caused by events over which Old National has little or no control. There can be no assurance that significant disruption and volatility in the financial markets will not occur in the future.

If the Company is unable to continue to fund assets through customer bank deposits or access funding sources on favorable terms or if the Company suffers an increase in borrowing costs or otherwise fails to manage liquidity effectively, the Company's liquidity, operating margins, financial condition and results of operations may be materially adversely affected. The Company may also need to raise additional capital and liquidity through the issuance of stock, which could dilute the ownership of existing stockholders, or reduce or even eliminate common stock dividends or share repurchases to preserve capital and liquidity.

***If the Company is unable to maintain or grow its deposits, it may be subject to paying higher funding costs.***

The total amount that the Company pays for funding costs is dependent, in part, on the Company's ability to maintain or grow its deposits. If the Company is unable to sufficiently maintain or grow its deposits to meet liquidity objectives, it may be subject to paying higher funding costs. The Company competes with banks and other financial services companies for deposits. Recent increases in short-term interest rates have resulted in and are expected to continue to result in more intense competition in deposit pricing. If competitors raise the rates they pay on deposits, the Company's funding costs may increase, either because the Company raises rates to avoid losing deposits or because the Company loses deposits to competitors and must rely on more expensive sources of funding. Customers may also move noninterest-bearing deposits to interest bearing accounts, increasing the cost of those deposits. Checking and savings account balances and other forms of customer deposits may decrease when customers perceive alternative investments, such as the stock market, as providing a better risk/return tradeoff. The Company's bank customers could withdraw their money and put it in alternative investments, causing the Company to lose a lower cost source of funding. Higher funding costs could reduce the Company's net interest margin and net interest income.

***Our wholesale funding sources may prove insufficient to replace deposits or support our future growth.***

As a part of our liquidity management, we use a number of funding sources in addition to core deposit growth and repayments and maturities of loans and investments. These sources include brokered deposits, repurchase agreements, federal funds purchased, and Federal Home Loan Bank advances. Negative operating results or changes in industry conditions could lead to an inability to replace these additional funding sources at maturity. Our financial flexibility could be constrained if we are unable to maintain our access to funding or if adequate financing is not available to accommodate future growth at acceptable interest rates. Finally, if we are required to rely more heavily on more expensive funding sources to support future growth, our revenues may not increase proportionately to cover our costs. In this case, our results of operations and financial condition would be negatively affected.

***Old National relies on dividends from Old National Bank for its liquidity.***

Old National Bancorp is a separate and distinct legal entity from its subsidiaries. Old National Bancorp typically receives substantially all of its revenue from subsidiary dividends. These dividends are Old National Bancorp's principal source of funds to pay dividends on common and preferred stock, pay interest and principal on its debt, and fund purchases of its common stock. Various federal and/or state laws and regulations, as well as regulatory expectations, limit the amount of dividends that Old National Bank and certain non-bank subsidiaries may pay. See "Item 1 — Business — Supervision and Regulation — Dividends Limitations" for a discussion of restrictions on dividends. Limitations on the Company's ability to receive dividends from its subsidiaries could have a material adverse effect on its liquidity and ability to pay dividends on its stock or interest and principal on its debt, and ability to fund purchases of its common stock.

***A reduction in our credit rating could adversely affect our business and/or the holders of our securities.***

The credit rating agencies rating our indebtedness regularly evaluate Old National and Old National Bank. Credit ratings are based on a number of factors, including our financial strength and ability to generate earnings, as well as factors not entirely within our control, including conditions affecting the financial services industry generally and the economy and changes in rating methodologies. There can be no assurance that we will maintain our current

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credit ratings. A downgrade of the credit ratings of Old National or Old National Bank could adversely affect our access to liquidity and capital, significantly increase our cost of funds, and decrease the number of investors and counterparties willing to lend to us or purchase our securities. This could affect our growth, profitability, and financial condition, including liquidity.

**Operational Risks**

***A failure or breach, including cyber-attacks, of our operational or security systems could disrupt our business, result in the disclosure of confidential information, damage our reputation, and create significant financial and legal exposure.***

Although we devote significant resources to maintain and regularly upgrade our systems and processes that are designed to protect the security of our computer systems, software, networks, and other technology assets and the confidentiality, integrity, and availability of information belonging to us and our clients, there is no assurance that our security measures will provide absolute security. Further, to access our products and services our clients may use computers and mobile devices that are beyond our security control systems. In fact, many other financial services institutions and companies engaged in data processing have reported breaches in the security of their websites or other systems, some of which have involved sophisticated and targeted attacks intended to obtain unauthorized access to confidential information, destroy data, disable or degrade service, or sabotage systems, often through the introduction of computer viruses or malware, cyberattacks, and/or malicious code, or by means of phishing attacks, social engineering and other means.

As our reliance on technology systems increases, including as a result of work-from-home arrangements, the potential risks of technology-related interruptions in our operations or the occurrence of cyber incidents also increases. Our technologies, systems, networks and our customers' devices are periodically the target of cyberattacks, and may be the target of future cyberattacks. Malicious actors may also attempt to fraudulently induce employees, customers or other users of our systems to disclose sensitive information, including passwords and other identifying information, in order to gain access to data or our systems.

Certain financial institutions in the United States have also experienced attacks from technically sophisticated and well-resourced third parties that were intended to disrupt normal business activities by making internet banking systems inaccessible to clients for extended periods. These "denial-of-service" attacks typically do not breach data security systems, but require substantial resources to defend, and may affect client satisfaction and behavior. There have been several well-publicized attacks on various companies, including in the financial services industry, and personal, proprietary, and public e-mail systems in which the perpetrators gained unauthorized access to confidential information and customer data, often through the introduction of computer viruses or malware, cyberattacks, phishing, or other means. Even if not directed at the Company or its subsidiaries specifically, attacks on other entities with whom we do business or on whom we otherwise rely or attacks on financial or other institutions important to the overall functioning of the financial system could adversely affect, directly or indirectly, aspects of our business.

Despite our efforts to ensure the integrity of our systems, it is possible that we may not be able to anticipate or to implement effective preventive measures against all security breaches, especially because the techniques used change frequently or are not recognized until launched, and because security attacks can originate from a wide variety of sources, including persons who are involved with organized crime or associated with external service providers or who may be linked to terrorist organizations or hostile foreign governments. As cyber threats continue to evolve, we may be required to expend significant additional resources to continue to modify or enhance our systems or to investigate and remediate vulnerabilities. System enhancements and updates may also create risks associated with implementing and integrating new systems. Due to the complexity and interconnectedness of information technology systems, the process of enhancing our systems can itself create a risk of systems disruptions and security issues.

If our security systems were penetrated or circumvented, it could cause serious negative consequences for us, including significant disruption of our operations, misappropriation of our confidential information or that of our clients, or damage our computers or systems and those of our clients and counterparties, and could result in violations of applicable privacy and other laws, financial loss to us or to our clients, loss of confidence in our security measures, client dissatisfaction, significant litigation exposure, regulatory action, and harm to our reputation, all of which could have a material adverse effect on us.

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***Old National is subject to laws and regulations relating to the privacy of the information of clients, employees or others, and any failure to comply with these laws and regulations could expose the Company to liability and/or reputational damage.***

Old National is subject to laws and regulations relating to the privacy of the information of clients, employees or others, and any failure to comply with these laws and regulations could expose the Company to liability and/or reputational damage. Changes to customer data privacy laws and regulations may impose additional operational burdens on the Company, may limit the Company's ability to pursue desirable business initiatives and increase the risks associated with any future use of customer data. Compliance with these laws and regulations may require changes to policies, procedures and technology for information security and segregation of data, which could, among other things, make the Company more vulnerable to operational failures, and to monetary penalties, litigation or regulatory enforcement actions for breach of such laws and regulations.

As privacy-related laws and regulations are implemented, they may also limit how companies like Old National can use customer data and impose obligations on companies in their management of such data. The time and resources needed for the Company to comply with such laws and regulations, as well as its potential liability for non-compliance and reporting obligations in the case of data breaches, may significantly increase.

***We rely on third party vendors, which could expose Old National to additional cybersecurity and operational risks.***

Third party vendors provide key components of our business infrastructure, including certain data processing and information services. Third parties may transmit confidential, propriety information on our behalf. Although we require third party providers to maintain certain levels of information security, such providers may remain vulnerable to breaches, unauthorized access, misuse, computer viruses, or other malicious attacks that could ultimately compromise sensitive information. While we may contractually limit our liability in connection with attacks against third party providers, Old National remains exposed to the risk of loss associated with such vendors. In addition, operational errors, information system failures, or interruptions of vendors' systems, or difficulty communicating with vendors, could expose us to disruption of operations, loss of service or connectivity to customers, reputational damage, and litigation risk that could have a material adverse effect on our business and, in turn, our financial condition and results of operations.

In addition, our operations are exposed to risk that vendors will not perform in accordance with the contracted arrangements under service level agreements. Although we have selected external vendors carefully, we do not control their actions. The failure of an external vendor to perform in accordance with the contracted arrangements under service level agreements, because of changes in the vendor's organizational structure, financial condition, support for existing products and services, or strategic focus or for any other reason, could be disruptive to our operations, which could have a material adverse effect on our business and, in turn, our financial condition and results of operations. Replacing a vendor, particularly a large national entity with a dominant market presence, such as a number of our current vendors, could also cause us to incur significant delay and expense.

***Failure to keep pace with technological change could adversely affect Old National's results of operations and financial condition.***

The financial services industry is continually undergoing rapid technological change with frequent introductions of new technology-driven products and services. The effective use of technology increases efficiency and enables financial institutions to better serve clients and to reduce costs. Old National's future success depends, in part, upon its ability to address client needs by using technology to provide products and services that will satisfy client demands, as well as to create additional efficiencies in Old National's operations. Old National may not be able to effectively implement new technology-driven products and services or be successful in marketing these products and services to its clients. Failure to successfully keep pace with technological change affecting the financial services industry could negatively affect Old National's growth, revenue, and profit.

Failure to successfully implement and integrate future system enhancements could adversely affect the Company's ability to provide timely and accurate financial information in compliance with legal and regulatory requirements, which could result in sanctions from regulatory authorities. Future system enhancements could have higher than expected costs and/or result in operating inefficiencies, which could increase the costs associated with the implementation as well as ongoing operations.

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Upgrading the Company's computer systems, software, and networks subjects the Company to the risk of disruptions, failures, or delays due to the complexity and interconnectedness of the Company's computer systems, software, and networks. The failure to properly upgrade or maintain these computer systems, software, and networks could result in greater susceptibility to cyber-attacks, particularly in light of the greater frequency and severity of attacks in recent years, as well as the growing prevalence of supply chain attacks affecting software and information service providers. Failures related to upgrades and maintenance also increase risks related to unauthorized access and misuse. There can be no assurance that any such disruptions, failures, or delays will not occur or, if they do occur, that they will be adequately addressed.

***Changes in consumer use of banks and changes in consumer spending and savings habits could adversely affect Old National's financial results.***

Technology and other changes now allow many clients to complete financial transactions without using banks. For example, consumers can pay bills and transfer funds directly without going through a bank. This process of eliminating banks as intermediaries could result in the loss of fee income, as well as the loss of client deposits and income generated from those deposits. In addition, changes in consumer spending and savings habits could adversely affect Old National's operations, and Old National may be unable to timely develop competitive new products and services in response to these changes.

***Old National's controls and procedures may fail or be circumvented, and Old National's methods of reducing risk exposure may not be effective.***

Old National regularly reviews and updates its internal controls, disclosure controls and procedures, and corporate governance policies and procedures. Old National also maintains an Enterprise Risk Management program designed to identify, manage, mitigate, monitor, aggregate, and report risks. Any system of controls and any system to reduce risk exposure, however well designed and operated, is based in part on certain assumptions and can provide only reasonable, not absolute, assurances that the objectives of the system are met. Additionally, instruments, systems, and strategies used to hedge or otherwise manage exposure to various types of market compliance, credit, liquidity, operational, and business risks and enterprise-wide risk could be less effective than anticipated. As a result, Old National may not be able to effectively mitigate its risk exposures in particular market environments or against particular types of risk.

***Pandemics, acts of war or terrorism and other adverse external events could significantly affect Old National's business.***

Pandemics, including the COVID-19 pandemic, acts of war, military conflicts, including Russia's invasion of Ukraine, or terrorism and other adverse external events, including severe weather and other natural disasters, could have a significant impact on the Company's ability to conduct business. Such events could affect the stability of the Company's deposit base, impair the ability of borrowers to repay outstanding loans, impair the value of collateral securing loans, cause significant property damage, result in loss of revenue and/or cause the Company to incur additional expenses. Although the Company has established disaster recovery plans and procedures, and monitors for significant environmental effects on its properties or its investments, the occurrence of any such event could have a material adverse effect on the Company.

For example, the COVID-19 pandemic has created economic and financial disruptions that have adversely affected, and may continue to adversely affect, the Company's business, financial condition, liquidity, loans, asset quality, capital, and results of operations. The extent to which the COVID-19 pandemic will continue to negatively affect the Company will depend on future developments that are highly uncertain and cannot be predicted and many of which are outside of the Company's control. These future developments may include the scope and duration of any surges in the COVID-19 pandemic, the emergence of new variants of COVID-19 and the continued effectiveness of vaccines against such variants, the continued effectiveness of the Company's business continuity plan including work-from-home arrangements and staffing at branches and certain other facilities, the direct and indirect impact of the COVID-19 pandemic on the Company's employees, clients, counterparties and service providers, as well as on other market participants, actions taken, or that may yet be taken, by governmental authorities and other third parties in response to the COVID-19 pandemic, and the effectiveness and public acceptance of vaccines for COVID-19.

Depending on the impact of the pandemic and Russia's invasion of Ukraine on general economic and market conditions, consumer and corporate spending and investment and borrowing patterns, there is a risk that adverse conditions could occur, including supply chain disruptions; higher inflation; decreased demand for the Company's products and services or those of its borrowers, which could increase credit risk; challenges related to maintaining

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sufficient qualified personnel due to labor shortages, talent attrition, employee illness, willingness to return to work; disruptions to business operations at the Company and at counterparties, vendors and other service providers.

The war between Russia and Ukraine has negatively affected the global economy. In addition, governments around the world have responded to Russia's invasion by imposing economic sanctions and export controls on certain industry sectors and parties in Russia. Russia has responded with its own restrictions against investors and countries outside Russia and has proposed additional measures aimed at non-Russia owned businesses. Businesses in the U.S. and globally have experienced shortages in materials and increased costs for transportation, energy, and raw materials due in part to the negative effects of the war on the global economy. The escalation or continuation of the war between Russia and Ukraine or other hostilities could result in, among other things, further increased risk of cyberattacks, supply chain disruptions, higher inflation, lower consumer demand and increased volatility in commodity, currency, and other financial markets.

To the extent that pandemics, including the COVID-19 pandemic, acts of war, including Russia's invasion of Ukraine, or terrorism and other external events adversely affect Old National's business, financial, liquidity, capital, or results of operations, it may also have the effect of heightening many of the other risks described in this "Risk Factors" section.

***Old National is subject to environmental liability risk associated with lending activities.***

A significant portion of the Company's loan portfolio is secured by real property. During the ordinary course of business, the Company may foreclose on and take title to properties securing certain loans. There is a risk that hazardous or toxic substances could be found on these properties. If hazardous or toxic substances are found, the Company may be liable for remediation costs, as well as for personal injury and property damage. Environmental laws may require the Company to incur substantial expenses and could materially reduce the affected property's value or limit the Company's ability to sell the affected property or to repay the indebtedness secured by the property. In addition, future laws or more stringent interpretations or enforcement policies with respect to existing laws may increase the Company's exposure to environmental liability. Although the Company has policies and procedures to perform an environmental review before initiating any foreclosure action on real property, these reviews may not be sufficient to detect all potential environmental hazards. The remediation costs and any other financial liabilities associated with an environmental hazard could have a material adverse effect on the Company's business, financial condition, results of operations, and liquidity.

***Old National's reported financial condition and results of operations depend on management's selection of accounting methods and require management to make estimates about matters that are uncertain.***

Accounting policies and processes are fundamental to the Company's reported financial condition and results of operations. Some of these policies require use of estimates and assumptions that may affect the reported amounts of assets or liabilities and financial results. Several of Old National's accounting policies are critical because they require management to make difficult, subjective and complex judgments about matters that are inherently uncertain and because it is likely that materially different amounts would be reported under different conditions or using different assumptions. Pursuant to generally accepted accounting principles, management is required to make certain assumptions and estimates in preparing the Company's financial statements. If assumptions or estimates underlying the Company's financial statements are incorrect, the Company may experience material losses.

Management has identified certain accounting policies as being critical because they require management's judgment to ascertain the valuations of assets, liabilities, commitments and contingencies. A variety of factors could affect the ultimate value that is obtained either when earning income, recognizing an expense, recovering an asset, valuing an asset or liability, or recognizing or reducing a liability. Old National has established detailed policies and control procedures with respect to these critical accounting estimates. However, because of the uncertainty surrounding judgments and the estimates pertaining to these matters, Old National could be required to adjust accounting policies or restate prior period financial statements if those judgments and estimates prove to be incorrect.

**Legal, Regulatory, and Compliance Risks**

***We have risk related to legal proceedings.***

We are involved in judicial, regulatory, and arbitration proceedings concerning matters arising from our business activities and fiduciary responsibilities. We establish reserves for legal claims when payments associated with the

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claims become probable and the costs can be reasonably estimated. We may still incur legal costs for a matter even if we have not established a reserve. In addition, the actual cost of resolving a legal claim may be substantially higher than any amounts reserved for that matter. The ultimate resolution of a pending or future proceeding, depending on the remedy sought and granted, could materially adversely affect our results of operations and financial condition.

***Old National operates in a highly regulated environment, and changes in laws and regulations to which Old National is subject may adversely affect Old National's results of operations.***

Old National operates in a highly regulated environment and is subject to extensive regulation, supervision, and examination by, among others, the OCC, the FDIC, the CFPB, and the Federal Reserve, and applicable state laws. Such regulation and supervision is primarily intended for the protection of the depositors and federal deposit insurance funds. In addition, the U.S. Department of the Treasury (the "U.S. Treasury") has certain supervisory and oversight duties and responsibilities. See "Business – Supervision and Regulation" herein.

Our business is highly regulated and the laws, rules, regulations, and supervisory guidance and policies applicable to us are subject to regular modification and change, and there have been significant revisions to the laws and regulations applicable to banks and bank holding companies that have been enacted or proposed in recent years. In addition, we expect that we will remain subject to extensive regulation and supervision, and that the level of regulatory scrutiny may fluctuate over time, based on numerous factors, including the OCC's heightened standards, when applicable to us, changes in the U.S. presidential administration or one or both houses of Congress and public sentiment regarding financial institutions (which can be influenced by scandals and other incidents that involve participants in the industry). We are unable to predict the form or nature of any future changes to statutes or regulation, including the interpretation or implementation thereof. Changes to statutes, regulations, or regulatory policies, including changes in interpretation or implementation of statutes, regulations, or policies, have and could in the future subject us to additional costs, limit the types of financial services and products we may offer, and/or increase the ability of non-banks to offer competing financial services and products, among other things. Failure to comply with laws, regulations, policies or supervisory guidance could result in enforcement and other legal actions by federal or state authorities, including criminal and civil penalties, the loss of FDIC insurance, revocation of a banking charter, other sanctions by regulatory agencies, civil money penalties, and/or reputational damage, which could have a material adverse effect on our business, financial condition, and results of operations.

***We may incur fines, penalties and other negative consequences from regulatory violations, possibly even inadvertent or unintentional violations.***

The financial services industry is subject to significant regulation and scrutiny from bank supervisors in the examination process and aggressive enforcement of federal and state regulations, particularly with respect to mortgage-related practices and other consumer compliance matters, and compliance with anti-money laundering, BSA and OFAC regulations, and economic sanctions against certain foreign countries and nationals. Enforcement actions may be initiated for violations of laws and regulations and unsafe or unsound practices. In addition, some legal/regulatory frameworks provide for the imposition of fines or penalties for noncompliance even though the noncompliance was inadvertent or unintentional and even though there were systems and procedures designed to ensure compliance in place at the time. There have been a number of significant enforcement actions in recent years by regulators, state attorneys general and the Department of Justice against banks and other non-bank financial institutions with respect to anti-money laundering and sanctions laws, and some have resulted in substantial penalties including criminal pleas. Although the Company has adopted policies and procedures designed to comply with these laws, any failure to comply with these laws and other regulations, or to maintain an adequate compliance program, could result in significant fines, penalties, lawsuits, regulatory sanctions, reputational damage, or restrictions on our business.

***Changes in accounting policies, standards, and interpretations could materially affect how Old National reports its financial condition and results of operations.***

The FASB periodically changes the financial accounting and reporting standards governing the preparation of Old National's financial statements. Additionally, those bodies that establish and/or interpret the financial accounting and reporting standards (such as the FASB, SEC, and banking regulators) may change prior interpretations on how these standards should be applied. These changes can be difficult to predict and can materially affect how Old National records and reports its financial condition and results of operations. In some cases, Old National could be required to retroactively apply a new or revised standard, resulting in changes to previously reported financial results.

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***If Old National fails to meet regulatory capital requirements which may require heightened capital levels, we may be forced to raise capital or sell assets.***

Old National is subject to regulations that require us to satisfy certain capital ratios, such as the ratio of our Tier 1 capital to our risk-based assets. Regulators have implemented and may, from time to time, implement changes to these regulatory capital adequacy requirements. If we are unable to satisfy these regulatory capital requirements, due to a decline in the value of our loan portfolio or otherwise, we will be required to improve such capital ratios by either raising additional capital or by disposing of assets. If we choose to dispose of assets, we cannot be certain that we will be able to do so at prices that we believe to be appropriate, and our future operating results could be negatively affected. If we choose to raise additional capital, we may accomplish this by selling additional shares of Common Stock, or securities convertible into or exchangeable for Common Stock, which could dilute the ownership percentage of holders of our Common Stock and cause the market price of our Common Stock to decline. Additionally, events or circumstances in the capital markets generally may increase our capital costs and impair our ability to raise capital at any given time. See "Business – Supervision and Regulation – Capital Adequacy" herein for further discussion on regulatory capital requirements applicable to the Company and Old National Bank.

***Old National could be subject to adverse changes or interpretations of tax laws, tax audits, or challenges to our tax positions.***

Old National is subject to federal and applicable state income tax laws and regulations. Income tax laws and regulations are often complex and require significant judgment in determining the Company's effective tax rate and in evaluating the Company's tax positions. Changes in tax laws, changes in interpretations, guidance or regulations that may be promulgated, or challenges to judgments or actions that the Company may take with respect to tax laws could negatively impact our current and future financial performance.

In addition, our determination of our tax liability is subject to review by applicable tax authorities. In the normal course of business, we are routinely subject to examinations and challenges from federal and applicable state and local taxing authorities regarding the amount of taxes due in connection with investments we have made and the businesses in which we have engaged. Recently, federal and state and local taxing authorities have been increasingly aggressive in challenging tax positions taken by financial institutions. The challenges made by taxing authorities may result in adjustments to the timing or amount of taxable income or deductions, or the allocation of income among tax jurisdictions. Any such challenges that are not resolved in our favor may adversely affect our effective tax rate, tax payments or financial condition.

***Our earnings could be adversely impacted by incidences of fraud and compliance failure.***

Financial institutions are inherently exposed to fraud risk. A fraud can be perpetrated by an employee, a vendor, or members of the general public, or by or at a client of Old National. We are most subject to fraud and compliance risk in connection with the origination of loans, ACH transactions, wire transactions, ATM transactions, and checking transactions. Our largest fraud risk, associated with the origination of loans, includes the intentional misstatement of information in property appraisals or other underwriting documentation provided to us by third parties. Compliance risk is the risk that loans are not originated in compliance with applicable laws and regulations and our standards. There can be no assurance that we can prevent or detect acts of fraud or violation of law or our compliance standards by the third parties that we deal with. Repeated incidences of fraud or compliance failures would adversely impact the performance of our loan portfolio.

**ITEM 1B.&nbsp;&nbsp;&nbsp;&nbsp;UNRESOLVED STAFF COMMENTS**

None.

**ITEM 2.&nbsp;&nbsp;&nbsp;&nbsp;PROPERTIES**

As of December 31, 2022, Old National and its affiliates operated a total of 263 banking centers located primarily throughout the Midwest region. Of these facilities, 140 were owned and 123 were leased from unaffiliated third parties. See Note 6 Leases to the consolidated financial statements included in Item 8 of Part II of this Form 10-K for additional information.

Old National also has several administrative offices located throughout its footprint, including its corporate headquarters located in Evansville, Indiana, which was purchased by Old National in 2016, as well as its leased commercial and consumer banking operations headquartered in Chicago, Illinois.

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**ITEM 3.&nbsp;&nbsp;&nbsp;&nbsp;LEGAL PROCEEDINGS**

See Note 20 Commitments, Contingencies, and Financial Guarantees to the consolidated financial statements included in Item 8 of Part II of this Form 10-K for information regarding certain legal proceedings in which we are involved.

**ITEM 4.&nbsp;&nbsp;&nbsp;&nbsp;MINE SAFETY DISCLOSURES** 

Not applicable.

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**PART II**

**ITEM 5.&nbsp;&nbsp;&nbsp;&nbsp;MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES**

Old National's Common Stock is traded on the NASDAQ under the ticker symbol "ONB." There were 57,134 shareholders of record as of December 31, 2022. Old National did not sell any equity securities during 2022 that were not registered under the Securities Act of 1933.

The following table summarizes the purchases of Common Stock made by Old National during the fourth quarter of 2022:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Period** | **Total**<br>**Number**<br>**of Shares**<br>**Purchased** <sup>(1)</sup> | **Average<br>Price<br>Paid Per<br>Share** | **Total Number**<br>**of Shares**<br>**Purchased as**<br>**Part of Publicly**<br>**Announced Plans**<br>**or Programs** <sup>(2)</sup> | **Maximum Dollar**<br>**Value of Shares that**<br>**May Yet Be**<br>**Purchased Under**<br>**the Plans**<br>**or Programs** <sup>(2)</sup> |
| 10/1/22 - 10/31/22 | 815 | $16.90 |  | $136093633 |
| 11/1/22 - 11/30/22 | 3173 | 19.54 |  | 136093633 |
| 12/1/22 - 12/31/22 | 11017 | 15.96 |  | 136093633 |
| &nbsp;&nbsp;&nbsp;Total | 15005 | $16.77 |  | $136093633 |

---

(1)Consists of shares acquired pursuant to the Company's share-based incentive programs. Under the terms of the Company's share-based incentive programs, the Company accepts previously owned shares of common stock surrendered to satisfy tax withholding obligations associated with the vesting of restricted stock.

(2)On February 17, 2022, the Company issued a press release announcing that its Board of Directors approved a stock repurchase program that authorizes the Company to repurchase up to $200 million of the Company's outstanding shares of common stock, as conditions warrant, through January 31, 2023. No shares were repurchased during the fourth quarter of 2022 under the Company's Board-approved stock repurchase program.

------

The table below compares five-year cumulative total returns for our Common Stock to cumulative total returns of a broad-based equity market index and published industry indices. The comparison of shareholder returns (change in December year end stock price plus reinvested dividends) for each of the periods assumes that $100 was invested on December 31, 2017, in each of the common stock of the Company, the S&P 500 Index, the KBW NASDAQ Bank Index, and the KBW NASDAQ Regional Banking Index, with investment weighted on the basis of market capitalization.

![onb-20221231_g1.jpg](onb-20221231_g1.jpg)

Source: S&P Global Market Intelligence

**ITEM 6.&nbsp;&nbsp;&nbsp;&nbsp;[RESERVED]**

------

**ITEM 7.&nbsp;&nbsp;&nbsp;&nbsp;MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

---

| | |
|:---|:---|
| | Page |
| <u>[General Overview](#iee732ed8baad4269b53c9a67c572324a_43)</u> | [34](#iee732ed8baad4269b53c9a67c572324a_43) |
| <u>[Corporate Developments in Fiscal 20](#iee732ed8baad4269b53c9a67c572324a_46)[2](#iee732ed8baad4269b53c9a67c572324a_46)[2](#iee732ed8baad4269b53c9a67c572324a_46)</u> | [34](#iee732ed8baad4269b53c9a67c572324a_46) |
| <u>[Business Outlook](#iee732ed8baad4269b53c9a67c572324a_49)</u> | [35](#iee732ed8baad4269b53c9a67c572324a_49) |
| <u>[Financial Highlights](#iee732ed8baad4269b53c9a67c572324a_52)</u> | [36](#iee732ed8baad4269b53c9a67c572324a_52) |
| <u>[Non-GAAP Financial Measures](#iee732ed8baad4269b53c9a67c572324a_55)</u> | [38](#iee732ed8baad4269b53c9a67c572324a_55) |
| <u>[Results of Operations](#iee732ed8baad4269b53c9a67c572324a_58)</u> | [41](#iee732ed8baad4269b53c9a67c572324a_58) |
| <u>[Financial Condition](#iee732ed8baad4269b53c9a67c572324a_61)</u> | [46](#iee732ed8baad4269b53c9a67c572324a_61) |
| <u>[Risk Management](#iee732ed8baad4269b53c9a67c572324a_64)</u> | [52](#iee732ed8baad4269b53c9a67c572324a_64) |
| <u>[Material Contractual Obligations, Commitments, and Contingent Liabilities](#iee732ed8baad4269b53c9a67c572324a_67)</u> | [64](#iee732ed8baad4269b53c9a67c572324a_67) |
| <u>[Critical Accounting Estimates](#iee732ed8baad4269b53c9a67c572324a_70)</u> | [64](#iee732ed8baad4269b53c9a67c572324a_70) |

---

The following discussion is an analysis of our results of operations for the fiscal years ended December 31, 2022, 2021, and 2020, and financial condition as of December 31, 2022 and 2021. This discussion and analysis should be read in conjunction with our consolidated financial statements and related notes. This discussion contains forward-looking statements concerning our business. Readers are cautioned that, by their nature, forward-looking statements are based on estimates and assumptions and are subject to risks, uncertainties, and other factors. Actual results may differ materially from our expectations that are expressed or implied by any forward-looking statement. The discussion in Item 1A, "Risk Factors," lists some of the factors that could cause our actual results to vary materially from those expressed or implied by any forward-looking statements, and such discussion is incorporated into this discussion by reference.

**GENERAL OVERVIEW**

Old National is the largest financial holding company headquartered in the state of Indiana and the sixth largest Midwestern bank by asset size. The Company's corporate headquarters and principal executive office are located in Evansville, Indiana with commercial and consumer banking operations headquartered in Chicago, Illinois. Old National, through Old National Bank, provides a wide range of banking services throughout the Midwest region, including commercial and consumer loan and depository services, and other traditional banking services. Old National also provides services to supplement its traditional banking business including fiduciary and wealth management services, investment and brokerage services, investment consulting, and other financial services.

**CORPORATE DEVELOPMENTS IN FISCAL 2022**

Old National had a transformational year in 2022, evidenced by our merger with First Midwest, successful completion of all related systems conversions, solid client growth, and strong talent retention and attraction. Key performance indicators experienced in 2022 included:

&nbsp;&nbsp;&nbsp;&nbsp;• net income applicable to common shareholders of $414.2 million, or $1.50 per diluted common share;

&nbsp;&nbsp;&nbsp;&nbsp;• net interest margin expansion of 58 basis points, reflective of strong loan growth and the higher rate environment;

&nbsp;&nbsp;&nbsp;&nbsp;• robust, broad-based loan growth of 12%;

&nbsp;&nbsp;&nbsp;&nbsp;• maintenance of a stable, low-cost deposit base along with a loan to deposit ratio of 89%;

&nbsp;&nbsp;&nbsp;&nbsp;• disciplined expense management; and

&nbsp;&nbsp;&nbsp;&nbsp;• excellent credit and capital metrics including net charge-offs to average loans of 0.06%.

Our net interest income increased to $1.3 billion during 2022, compared to $596.4 million in 2021 driven by the First Midwest merger, loan growth, and the higher rate environment. Noninterest income increased from $214.2 million in 2021 to $399.8 million in 2022 reflecting the First Midwest merger and a $90.7 million gain on the sale of health savings accounts in the fourth quarter of 2022, partially offset by lower mortgage banking revenue, which was impacted by the higher rate environment, and, accordingly, lower production and gain on sale margins. Our noninterest expenses increased from $501.4 million in 2021 to $1.0 billion in 2022 reflective of the additional operating costs associated with the First Midwest merger, as well as $120.9 million of merger-related expenses and $26.8 million for property optimization. In addition, higher incentive accruals resulting from strong performance contributed to the increase.

------

On February 15, 2022, Old National completed its previously announced merger of equals transaction with First Midwest. At closing, Old National acquired $21.9 billion of assets, including $14.3 billion of loans, and assumed $17.2 billion of deposits. Old National completed branding and all systems conversions in the third quarter of 2022.

On November 18, 2022, Old National completed its previously announced transaction with UMB, pursuant to which UMB acquired Old National's business of acting as a qualified custodian for, and administering, health savings accounts. Old National served as custodian for health savings accounts comprised of both investment accounts and deposit accounts. At closing, the health savings accounts held in deposit accounts that were transferred totaled approximately $382 million and the transaction resulted in a $90.7 million pre-tax gain.

During the fourth quarter of 2022, Old National initiated certain property optimization actions that included the closure and consolidation of certain branches as well as other real estate repositioning across our footprint. These actions resulted in pre-tax charges of $26.8 million that are associated with valuation adjustments related to these locations and are recorded in noninterest expense.

In early December of 2022, Old National implemented several enhancements to its overdraft protection programs to provide clients with more flexibility. The changes included the elimination of the non-sufficient fund ("NSF") fee when an item is returned, among other modifications that benefit consumers that will impact service charges on deposit accounts.

**Pandemic Update**

As previously disclosed, the COVID-19 pandemic has created economic and financial disruptions that continued to adversely affect our operations during 2022. Our historically disciplined underwriting practices, diverse and granular portfolios, and Midwest-based footprint have helped minimize the adverse impact to Old National. The pandemic has become less disruptive to the Company's business, financial condition, results of operations, and its clients as of December 31, 2022 than in prior periods.

**BUSINESS OUTLOOK**

In 2022, Old National benefited from the tailwinds of the Federal Reserve's target interest rate increases in general, and we enter 2023 proactively managing our balance sheet for a potential downshift in interest rates. Old National's peer leading deposit franchise adds value in any economic cycle as deposits typically cost less than other types of funding. Our healthy commercial loan pipeline heading into 2023 bodes well for future organic growth, which remains a top priority for the Company.

Our transformational merger with First Midwest accelerated our evolution into a commercially-oriented regional bank that expects to consistently deliver top quartile performance. The accomplishment of merger-related cost saves and our enduring focus on the fundamentals of basic banking, including loan growth, expansion of revenue-generating businesses, prudent capital deployment, and expense management, will help us to deliver meaningful, positive operating leverage.

Organic loan growth continues to be our priority. As we enter into 2023, our commercial loan production and pipeline are at robust levels, yet we continue to adhere to our disciplined underwriting process. We believe our approach to downgrading troubled credits early and a patient approach to resolving issues results in better outcomes for our clients and ultimately lower costs for Old National. Old National credit quality remains strong, and we have not experienced any specific sector credit related weaknesses, yet we will remain diligent in adhering to our risk profile and underwriting standards.

As we look ahead to 2023, we believe our increased scale, relationship banking approach, skilled team members, geographic reach, strong balance sheet, including our peer leading deposit franchise, and operating efficiency will allow us to continue to create value for our shareholders and drive positive operating leverage.

------

**FINANCIAL HIGHLIGHTS**

The following table sets forth certain financial highlights of Old National for the previous five quarters:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| (dollars and shares in thousands,<br>except per share data) | **December 31,** | **September 30,** | **June 30,** | **March 31,** | **December 31,** |
| (dollars and shares in thousands,<br>except per share data) | **2022** | **2022** | **2022** | **2022** | **2021** |
| **Income Statement:** |  |  |  |  |  |
| Net interest income | $**391090** | $376589 | $337472 | $222785 | $146781 |
| Taxable equivalent adjustment <sup>(1)</sup> | **5378** | 4950 | 4314 | 3772 | 3442 |
| Net interest income - taxable equivalent basis | **396468** | 381539 | 341786 | 226557 | 150223 |
| Provision for credit losses <sup>(2)</sup> | **11408** | 15490 | 9165 | 108736 | (1332) |
| Noninterest income | **165037** | 80385 | 89117 | 65240 | 51484 |
| Noninterest expense <sup>(2)</sup> | **282675** | 262444 | 277475 | 215589 | 131355 |
| Net income (loss) available to common shareholders | $**196701** | $136119 | $110952 | $(29603) | $56188 |
| **Per Common Share Data:** |  |  |  |  |  |
| Weighted average diluted common shares | **293131** | 292483 | 291881 | 227002 | 166128 |
| Net income (loss) (diluted) | $**0.67** | $0.47 | $0.38 | $(0.13) | $0.34 |
| Cash dividends | **0.14** | 0.14 | 0.14 | $0.14 | $0.14 |
| Common dividend payout ratio <sup>(3)</sup> | **21%** | 30% | 37% | (108)% | 41% |
| Book value | $**16.68** | $16.05 | $16.51 | $17.03 | $18.16 |
| Stock price | **17.98** | 16.47 | 14.79 | 16.38 | 18.12 |
| Tangible common book value <sup>(4)</sup> | **9.42** | 8.75 | 9.23 | 9.71 | 11.70 |
| **Performance Ratios:** |  |  |  |  |  |
| Return on average assets | **1.74%** | 1.22% | 1.01% | (0.31)% | 0.93% |
| Return on average common equity | **16.77** | 11.13 | 9.08 | (2.89) | 7.49 |
| Return on tangible common equity <sup>(4)</sup> | **29.25** | 22.07 | 17.21 | (3.61) | 11.98 |
| Return on average tangible common equity <sup>(4)</sup> | **31.53** | 20.49 | 16.93 | (4.03) | 12.07 |
| Net interest margin <sup>(4)</sup> | **3.85** | 3.71 | 3.33 | 2.88 | 2.77 |
| Efficiency ratio <sup>(4)</sup> | **49.12** | 55.26 | 62.72 | 72.32 | 63.98 |
| Efficiency ratio (prior presentation) <sup>(5)</sup> | **N/A&nbsp;&nbsp;&nbsp;&nbsp;** | 56.17 | 62.70 | 76.15 | 64.27 |
| Net charge-offs (recoveries) to average loans | **0.05** | 0.10 | 0.02 | 0.05 | (0.04) |
| Allowance for credit losses on loans to ending loans | **0.98** | 0.99 | 0.97 | 0.99 | 0.79 |
| Allowance for credit losses <sup>(6)</sup> to ending loans | **1.08** | 1.08 | 1.05 | 1.07 | 0.87 |
| Non-performing loans to ending loans | **0.81** | 0.81 | 0.78 | 0.88 | 0.92 |
| **Balance Sheet:** |  |  |  |  |  |
| Total loans | $**31123641** | $30528933 | $29553648 | $28336244 | $13601846 |
| Total assets | **46763372** | 46215526 | 45748355 | 45834648 | 24453564 |
| Total deposits | **35000830** | 36053663 | 35538975 | 35607390 | 18569195 |
| Total borrowed funds | **5586314** | 4264750 | 4384411 | 4347560 | 2575240 |
| Total shareholders' equity | **5128595** | 4943383 | 5078783 | 5232114 | 3012018 |
| **Capital Ratios:** |  |  |  |  |  |
| Risk-based capital ratios: |  |  |  |  |  |
| &nbsp;&nbsp;Tier 1 common equity | **10.03%** | 9.88% | 9.90% | 10.04% | 12.04% |
| &nbsp;&nbsp;Tier 1 | **10.71** | 10.58 | 10.63 | 10.79 | 12.04 |
| &nbsp;&nbsp;Total | **12.02** | 11.84 | 12.03 | 12.19 | 12.77 |
| Leverage ratio (to average assets) | **8.52** | 8.26 | 8.19 | 10.58 | 8.59 |
| Total equity to assets (averages) | **10.70** | 11.18 | 11.22 | 12.03 | 12.35 |
| Tangible common equity to tangible assets <sup>(4)</sup> | **6.18** | 5.82 | 6.20 | 6.51 | 8.30 |
| **Nonfinancial Data:** |  |  |  |  |  |
| Full-time equivalent employees | **3967** | 4008 | 4196 | 4333 | 2374 |
| Banking centers | **263** | 263 | 266 | 267 | 162 |

---

(1)Calculated using the federal statutory tax rate in effect of 21% for all periods.

(2)Provision for unfunded loan commitments is included in the provision for credit losses. The reclassification of the provision for unfunded loan commitments out of other expense as a component of noninterest expense was made to prior period amounts to conform to the current period presentation.

(3)Cash dividends per share divided by net income per share (basic).

(4)Represents a non-GAAP financial measure. Refer to the "Non-GAAP Financial Measures" section for reconciliations to GAAP financial measures.

(5)Presented as calculated prior to December 31, 2022, which included the provision for unfunded loan commitments in noninterest expense. Management believes that removing the provision for unfunded loan commitments from this metric enhances comparability for peer comparison purposes.

(6)Includes the allowance for credit losses on loans and unfunded loan commitments.

------

The following table sets forth certain financial highlights of Old National for the year-to-date periods:

---

| | | |
|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** |
|<br>(dollars and shares in thousands, except per share data) | **2022** | **2021** |
| **Income Statement:** |  |  |
| Net interest income | $**1327936** | $596400 |
| Taxable equivalent adjustment <sup>(1)</sup> | **18414** | 13913 |
| Net interest income - taxable equivalent basis | **1346350** | 610313 |
| Provision for credit losses <sup>(2)</sup> | **144799** | (29622) |
| Noninterest income | **399779** | 214219 |
| Noninterest expense <sup>(2)</sup> | **1038183** | 501379 |
| Net income available to common shareholders | $**414169** | $277538 |
| **Per Common Share Data:** |  |  |
| Weighted average diluted common shares | **276688** | 165929 |
| Net income (diluted) | $**1.50** | $1.67 |
| Cash dividends | $**0.56** | $0.56 |
| Common dividend payout ratio <sup>(3)</sup> | **37%** | 33% |
| Book value | $**16.68** | $18.16 |
| Stock price | **17.98** | 18.12 |
| Tangible common book value <sup>(4)</sup> | **9.42** | 11.70 |
| **Performance Ratios:** |  |  |
| Return on average assets | **0.99%** | 1.17% |
| Return on average common equity | **8.92** | 9.26 |
| Return on tangible common equity <sup>(4)</sup> | **15.72** | 14.74 |
| Return on average tangible common equity <sup>(4)</sup> | **16.34** | 14.89 |
| Net interest margin <sup>(4)</sup> | **3.47** | 2.89 |
| Efficiency ratio <sup>(4)</sup> | **57.97** | 59.75 |
| Efficiency ratio (prior presentation) <sup>(5)</sup> | **N/A&nbsp;&nbsp;&nbsp;&nbsp;** | 59.65 |
| Net charge-offs (recoveries) to average loans | **0.06** | (0.03) |
| Allowance for credit losses on loans to ending loans | **0.98** | 0.79 |
| Allowance for credit losses <sup>(6)</sup> to ending loans | **1.08** | 0.87 |
| Non-performing loans to ending loans | **0.81** | 0.92 |
| **Balance Sheet:** |  |  |
| Total loans | $**31123641** | $13601846 |
| Total assets | **46763372** | 24453564 |
| Total deposits | **35000830** | 18569195 |
| Total borrowed funds | **5586314** | 2575240 |
| Total shareholders' equity | **5128595** | 3012018 |
| **Capital Ratios:** |  |  |
| Risk-based capital ratios: |  |  |
| &nbsp;&nbsp;Tier 1 common equity | **10.03%** | 12.04% |
| &nbsp;&nbsp;Tier 1 | **10.71** | 12.04 |
| &nbsp;&nbsp;Total | **12.02** | 12.77 |
| Leverage ratio (to average assets) | **8.52** | 8.59 |
| Total equity to assets (averages) | **11.23** | 12.60 |
| Tangible common equity to tangible assets <sup>(4)</sup> | **6.18** | 8.30 |
| **Nonfinancial Data:** |  |  |
| Full-time equivalent employees | **3967** | 2374 |
| Banking centers | **263** | 162 |

---

(1)Calculated using the federal statutory tax rate in effect of 21% for all periods.

(2)Provision for unfunded loan commitments is included in the provision for credit losses. The reclassification of the provision for unfunded loan commitments out of other expense as a component of noninterest expense was made to prior period amounts to conform to the current period presentation.

(3)Cash dividends per share divided by net income per share (basic).

(4)Represents a non-GAAP financial measure. Refer to the "Non-GAAP Financial Measures" section for reconciliations to GAAP financial measures.

(5)Presented as calculated prior to December 31, 2022, which included the provision for unfunded loan commitments in noninterest expense. Management believes that removing the provision for unfunded loan commitments from this metric enhances comparability for peer comparison purposes.

(6)Includes the allowance for credit losses on loans and unfunded loan commitments.

------

**NON-GAAP FINANCIAL MEASURES**

The Company's accounting and reporting policies conform to GAAP and general practices within the banking industry. As a supplement to GAAP, the Company provides non-GAAP performance results, which the Company believes are useful because they assist investors in assessing the Company's operating performance. 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 following table.

The taxable equivalent adjustment to net interest income and net interest margin recognizes the income tax savings when comparing taxable and tax-exempt assets. Interest income and yields on tax-exempt securities and loans are presented using the current federal income tax rate of 21%. Management believes that it is standard practice in the banking industry to present net interest income and net interest margin on a fully tax-equivalent basis and that it may enhance comparability for peer comparison purposes.

In management's view, tangible common equity measures are capital adequacy metrics that may be meaningful to the Company, as well as analysts and investors, in assessing the Company's use of equity and in facilitating comparisons with peers. These non-GAAP measures are valuable indicators of a financial institution's capital strength since they eliminate intangible assets from shareholders' equity and retain the effect of AOCI in shareholders' equity.

Although intended to enhance investors' understanding of the Company's business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP. In addition, these non-GAAP financial measures may differ from those used by other financial institutions to assess their business and performance. See the previously provided tables and the following reconciliations in the "Non-GAAP Reconciliations" section for details on the calculation of these measures to the extent presented herein.

------

The following table presents GAAP to non-GAAP reconciliations for the previous five quarters:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| (dollars and shares in thousands,<br>except per share data) | **December 31,** | **September 30,** | **June 30,** | **March 31,** | **December 31,** |
| (dollars and shares in thousands,<br>except per share data) | **2022** | **2022** | **2022** | **2022** | **2021** |
| **Tangible common book value:** |  |  |  |  |  |
| Shareholders' common equity | $**4884876** | $4699664 | $4835064 | $4988395 | $3012018 |
| Deduct: Goodwill and intangible assets | **2125121** | 2135792 | 2131815 | 2144609 | 1071672 |
| Tangible shareholders' common equity <sup>(1)</sup> | $**2759755** | $2563872 | $2703249 | $2843786 | $1940346 |
| Period end common shares | **292903** | 292880 | 292893 | 292959 | 165838 |
| Tangible common book value <sup>(1)</sup> | **9.42** | 8.75 | 9.23 | 9.71 | 11.70 |
| **Return on tangible common equity:** |  |  |  |  |  |
| Net income (loss) applicable to common shares | $**196701** | $136119 | $110952 | $(29603) | $56188 |
| Add: Intangible amortization (net of tax) <sup>(2)</sup> | **5090** | 5317 | 5378 | 3934 | 1930 |
| Tangible net income (loss) <sup>(1)</sup> | $**201791** | $141436 | $116330 | $(25669) | $58118 |
| Tangible shareholders' common equity <sup>(1)</sup><br>&nbsp;&nbsp;&nbsp;&nbsp;(see above) | $**2759755** | $2563872 | $2703249 | $2843786 | $1940346 |
| Return on tangible common equity <sup>(1)</sup> | **29.25%** | 22.07% | 17.21% | (3.61)% | 11.98% |
| **Return on average tangible common equity:** |  |  |  |  |  |
| Tangible net income (loss) <sup>(1)</sup> (see above) | $**201791** | $141436 | $116330 | $(25669) | $58118 |
| Average shareholders' common equity | $**4692863** | $4890434 | $4886181 | $4101206 | $2998825 |
| Deduct: Average goodwill and intangible assets | **2132480** | 2129858 | 2136964 | 1550624 | 1072986 |
| Average tangible shareholders' common equity <sup>(1)</sup> | $**2560383** | $2760576 | $2749217 | $2550582 | $1925839 |
| Return on average tangible common equity <sup>(1)</sup> | **31.53%** | 20.49% | 16.93% | (4.03)% | 12.07% |
| **Net interest margin:** |  |  |  |  |  |
| Net interest income | $**391090** | $376589 | $337472 | $222785 | $146781 |
| Taxable equivalent adjustment | **5378** | 4950 | 4314 | 3772 | 3442 |
| Net interest income - taxable equivalent basis <sup>(1)</sup> | $**396468** | $381539 | $341786 | $226557 | $150223 |
| Average earning assets | $**41206695** | $41180026 | $41003338 | $31483553 | $21670723 |
| Net interest margin <sup>(1)</sup> | **3.85%** | 3.71% | 3.33% | 2.88% | 2.77% |
| **Efficiency ratio:** |  |  |  |  |  |
| Noninterest expense | $**282675** | $262444 | $277475 | $215589 | $131355 |
| Deduct: Intangible amortization expense | **6787** | 7089 | 7170 | 4811 | 2573 |
| Adjusted noninterest expense <sup>(1)</sup> | $**275888** | $255355 | $270305 | $210778 | $128782 |
| Net interest income - taxable equivalent basis <sup>(1)</sup> <br>&nbsp;&nbsp;&nbsp;&nbsp;(see above) | $**396468** | $381539 | $341786 | $226557 | $150223 |
| Noninterest income | **165037** | 80385 | 89117 | 65240 | 51484 |
| Deduct: Debt securities gains (losses), net | **(173)** | (172) | (85) | 342 | 435 |
| Adjusted total revenue <sup>(1)</sup> | $**561678** | $462096 | $430988 | $291455 | $201272 |
| Efficiency ratio | **49.12%** | 55.26% | 62.72% | 72.32% | 63.98% |
| **Tangible common equity to tangible assets:** |  |  |  |  |  |
| Tangible shareholders' equity <sup>(1)</sup> (see above) | $**2759755** | $2563872 | $2703249 | $2843786 | $1940346 |
| Assets | $**46763372** | $46215526 | $45748355 | $45834648 | $24453564 |
| Add: Trust overdrafts | **—** |  |  | 1 |  |
| Deduct: Goodwill and intangible assets | **2125121** | 2135792 | 2131815 | 2144609 | 1071672 |
| Tangible assets <sup>(1)</sup> | $**44638251** | $44079734 | $43616540 | $43690040 | $23381892 |
| Tangible common equity to tangible assets <sup>(1)</sup> | **6.18%** | 5.82% | 6.20% | 6.51% | 8.30% |

---

(1)Represents a non-GAAP financial measure.

(2)Calculated using management's estimate of the annual fully taxable equivalent rates (federal and state).

------

The following table presents GAAP to non-GAAP reconciliations for the year-to-date periods:

---

| | | |
|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** |
|<br>(dollars and shares in thousands, except per share data) | **2022** | **2021** |
| **Tangible common book value:** |  |  |
| Shareholders' common equity | $**4884876** | $3012018 |
| Deduct: Goodwill and intangible assets | **2125121** | 1071672 |
| Tangible shareholders' common equity <sup>(1)</sup> | $**2759755** | $1940346 |
| Period end common shares | **292903** | 165838 |
| Tangible common book value <sup>(1)</sup> | **9.42** | 11.70 |
| **Return on tangible common equity:** |  |  |
| Net income (loss) applicable to common shares | $**414169** | $277538 |
| Add: Intangible amortization (net of tax) <sup>(2)</sup> | **19718** | 8502 |
| Tangible net income (loss) <sup>(1)</sup> | $**433887** | $286040 |
| Tangible shareholders' common equity <sup>(1)</sup> (see above) | $**2759755** | $1940346 |
| Return on tangible common equity <sup>(1)</sup> | **15.72%** | 14.74% |
| **Return on average tangible common equity:** |  |  |
| Tangible net income (loss) <sup>(1)</sup> (see above) | $**433887** | $286040 |
| Average shareholders' common equity | $**4644971** | $2997520 |
| Deduct: Average goodwill and intangible assets | **1989466** | 1077065 |
| Average tangible shareholders' common equity <sup>(1)</sup> | $**2655505** | $1920455 |
| Return on average tangible common equity <sup>(1)</sup> | **16.34%** | 14.89% |
| **Net interest margin:** |  |  |
| Net interest income | $**1327936** | $596400 |
| Taxable equivalent adjustment | **18414** | 13913 |
| Net interest income - taxable equivalent basis <sup>(1)</sup> | $**1346350** | $610313 |
| Average earning assets | $**38751786** | $21152209 |
| Net interest margin <sup>(1)</sup> | **3.47%** | 2.89% |
| **Efficiency ratio:** |  |  |
| Noninterest expense | $**1038183** | $501379 |
| Deduct: Intangible amortization expense | **25857** | 11336 |
| Adjusted noninterest expense <sup>(1)</sup> | $**1012326** | $490043 |
| Net interest income - taxable equivalent basis <sup>(1)</sup> (see above) | $**1346350** | $610313 |
| Noninterest income | **399779** | 214219 |
| Deduct: Debt securities gains (losses), net | **(88)** | 4327 |
| Adjusted total revenue <sup>(1)</sup> | $**1746217** | $820205 |
| Efficiency ratio | **57.97%** | 59.75% |
| **Tangible common equity to tangible assets:** |  |  |
| Tangible shareholders' equity <sup>(1)</sup> (see above) | $**2759755** | $1940346 |
| Assets | $**46763372** | $24453564 |
| Deduct: Goodwill and intangible assets | **2125121** | 1071672 |
| Tangible assets <sup>(1)</sup> | $**44638251** | $23381892 |
| Tangible common equity to tangible assets <sup>(1)</sup> | **6.18%** | 8.30% |

---

(1)Represents a non-GAAP financial measure.

(2)Calculated using management's estimate of the annual fully taxable equivalent rates (federal and state).

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**RESULTS OF OPERATIONS**

The following table sets forth certain income statement information of Old National:

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| | | | |
|:---|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|<br>(dollars in thousands, except per share data) | **2022** | **2021** | **2020** |
| **Income Statement Summary:** |  |  |  |
| Net interest income | $**1327936** | $596400 | $596094 |
| Provision for credit losses | **144799** | (29622) | 42879 |
| Noninterest income | **399779** | 214219 | 239274 |
| Noninterest expense | **1038183** | 501379 | 536933 |
| Net income applicable to common shareholders | **414169** | 277538 | 226409 |
| Net income per common share - diluted | **1.50** | 1.67 | 1.36 |
| **Other Data:** |  |  |  |
| Return on average common equity | **8.92%** | 9.26% | 7.87% |
| Return on tangible common equity <sup>(1)</sup> | **15.72%** | 14.74% | 12.54% |
| Return on average tangible common equity <sup>(1)</sup> | **16.34%** | 14.89% | 13.27% |
| Efficiency ratio <sup>(1)</sup> | **57.97%** | 59.75% | 62.38% |
| Efficiency ratio (prior presentation) <sup>(2)</sup> | **N/A&nbsp;&nbsp;&nbsp;&nbsp;** | 59.65% | 62.91% |
| Tier 1 leverage ratio | **8.52%** | 8.59% | 8.20% |
| Net charge-offs (recoveries) to average loans | **0.06%** | (0.03)% | 0.02% |

---

(1)&nbsp;&nbsp;&nbsp;&nbsp;Represents a non-GAAP financial measure. Refer to "Non-GAAP Financial Measures" section for reconciliations to GAAP financial measures.

(2)&nbsp;&nbsp;&nbsp;&nbsp;Presented as calculated prior to December 31, 2022, which included the provision for unfunded loan commitments in noninterest expense. Management believes that removing the provision for unfunded loan commitments from this metric enhances comparability for peer comparison purposes.

***Comparison of Fiscal Years 2022 and 2021***

**Net Interest Income**

Net interest income is the most significant component of our earnings, comprising 77% of 2022 revenues. Net interest income and net interest margin are influenced by many factors, primarily the volume and mix of earning assets, funding sources, and interest rate fluctuations. Other factors include the level of accretion income on purchased loans, prepayment risk on mortgage and investment-related assets, and the composition and maturity of interest-earning assets and interest-bearing liabilities.

Interest rates increased significantly during 2022. The Federal Reserve's Federal Funds range is currently in a target range of 4.25% to 4.50%, with the Effective Federal Funds Rate at 4.33% at December 31, 2022. The Federal Reserve is expected to continue to increase the Federal Funds Rate into 2023. Management actively takes balance sheet restructuring, derivative, and deposit pricing actions to help mitigate interest rate risk. See the section of this Item 7 titled "Market Risk" for additional information regarding this risk.

Loans typically generate more interest income than investment securities with similar maturities. Funding from client deposits generally costs less than wholesale funding sources. Factors such as general economic activity, Federal Reserve monetary policy, and price volatility of competing alternative investments, can also exert significant influence on our ability to optimize our mix of assets and funding, net interest income, and net interest margin.

Net interest income is the excess of interest received from interest-earning assets over interest paid on interest-bearing liabilities. For analytical purposes, net interest income is presented in the table that follows, adjusted to a taxable equivalent basis to reflect what our tax-exempt assets would need to yield in order to achieve the same after-tax yield as a taxable asset. We used the federal statutory tax rate in effect of 21% for all periods. This analysis portrays the income tax benefits related to tax-exempt assets and helps to facilitate a comparison between taxable and tax-exempt assets. Management believes that it is a standard practice in the banking industry to present net interest margin and net interest income on a fully taxable equivalent basis. Therefore, management believes these measures provide useful information for both management and investors by allowing them to make better peer comparisons.

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The following table presents a three-year average balance sheet and for each major asset and liability category, its related interest income and yield, or its expense and rate for the years ended December 31.

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **2022** | **2022** | **2022** | **2021** | **2021** | **2021** | **2020** | **2020** | **2020** |
|<br>(Taxable equivalent basis,<br>dollars in thousands) | **Average<br>Balance** | **Income** <sup>(1)</sup>**/**<br>**Expense** | **Yield/<br>Rate** | **Average<br>Balance** | **Income** <sup>(1)</sup>**/**<br>**Expense** | **Yield/<br>Rate** | **Average<br>Balance** | **Income** <sup>(1)</sup>**/**<br>**Expense** | **Yield/<br>Rate** |
| **Earning Assets** |  |  |  |  |  |  |  |  |  |
| Money market and other interest-<br> earning investments | $**812296** | $**2814** | **0.35%** | $450158 | $589 | 0.13% | $174494 | $568 | 0.33% |
| Investment securities: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Treasury and government-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;sponsored agencies | **2290229** | **47932** | **2.09** | 1573855 | 24209 | 1.54 | 547054 | 12124 | 2.22 |
| &nbsp;&nbsp;&nbsp;Mortgage-backed securities | **5562442** | **129411** | **2.33** | 3356950 | 60479 | 1.80 | 3246520 | 70611 | 2.17 |
| &nbsp;&nbsp;&nbsp;States and political subdivisions | **1805433** | **57688** | **3.20** | 1548939 | 50115 | 3.24 | 1347490 | 47034 | 3.49 |
| &nbsp;&nbsp;&nbsp;Other securities | **687926** | **24133** | **3.51** | 443606 | 10680 | 2.41 | 485430 | 11990 | 2.47 |
| &nbsp;&nbsp;&nbsp;Total investment securities | **10346030** | **259164** | **2.50** | 6923350 | 145483 | 2.10 | 5626494 | 141759 | 2.52 |
| Loans: <sup>(2)</sup> |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial | **8252237** | **397228** | **4.81** | 3763099 | 138063 | 3.67 | 3843089 | 140473 | 3.66 |
| &nbsp;&nbsp;&nbsp;Commercial real estate | **11147967** | **489499** | **4.39** | 6168146 | 228568 | 3.71 | 5477562 | 234670 | 4.28 |
| &nbsp;&nbsp;&nbsp;Residential real estate loans | **5622901** | **201637** | **3.59** | 2269989 | 83578 | 3.68 | 2352444 | 94202 | 4.00 |
| &nbsp;&nbsp;&nbsp;Consumer | **2570355** | **122274** | **4.76** | 1577467 | 56281 | 3.57 | 1684598 | 65222 | 3.87 |
| &nbsp;&nbsp;&nbsp;Total loans | **27593460** | **1210638** | **4.39** | 13778701 | 506490 | 3.68 | 13357693 | 534567 | 4.00 |
| &nbsp;&nbsp;&nbsp;Total earning assets | **38751786** | $**1472616** | **3.80%** | 21152209 | $652562 | 3.09% | 19158681 | $676894 | 3.53% |
| Less: Allowance for credit losses<br> on loans | **(261534)** |  |  | (117436) |  |  | (115321) |  |  |
| **Non-Earning Assets** |  |  |  |  |  |  |  |  |  |
| Cash and due from banks | **355391** |  |  | 256860 |  |  | 327053 |  |  |
| Other assets | **4404057** |  |  | 2492054 |  |  | 2414602 |  |  |
| &nbsp;&nbsp;&nbsp;Total assets | $**43249700** |  |  | $23783687 |  |  | $21785015 |  |  |
| **Interest-Bearing Liabilities** |  |  |  |  |  |  |  |  |  |
| Checking and NOW accounts | $**8104844** | $**21321** | **0.26%** | $4974477 | $2080 | 0.04% | $4465120 | $5450 | 0.12% |
| Savings accounts | **6342697** | **3367** | **0.05** | 3648019 | 2003 | 0.05 | 3113435 | 3156 | 0.10 |
| Money market accounts | **4961159** | **11882** | **0.24** | 2092661 | 1756 | 0.08 | 1866197 | 4585 | 0.25 |
| Time deposits | **2358731** | **12523** | **0.53** | 1020359 | 5115 | 0.50 | 1421216 | 14978 | 1.05 |
| &nbsp;&nbsp;Total interest-bearing deposits | **21767431** | **49093** | **0.23** | 11735516 | 10954 | 0.09 | 10865968 | 28169 | 0.26 |
| Federal funds purchased and<br> interbank borrowings | **151243** | **5021** | **3.32** | 1113 |  |  | 138257 | 1296 | 0.94 |
| Securities sold under agreements<br> to repurchase | **440619** | **843** | **0.19** | 392777 | 397 | 0.10 | 375961 | 854 | 0.23 |
| FHLB advances | **2986006** | **51524** | **1.73** | 1902407 | 21075 | 1.11 | 2055155 | 27274 | 1.33 |
| Other borrowings | **619659** | **19785** | **3.19** | 269484 | 9823 | 3.65 | 242642 | 9621 | 3.96 |
| &nbsp;&nbsp;&nbsp;Total borrowed funds | **4197527** | **77173** | **1.84** | 2565781 | 31295 | 1.22 | 2812015 | 39045 | 1.39 |
| &nbsp;&nbsp;&nbsp;Total interest-bearing liabilities | $**25964958** | $**126266** | **0.49%** | $14301297 | $42249 | 0.30% | $13677983 | $67214 | 0.49% |
| **Noninterest-Bearing Liabilities<br> and Shareholders' Equity** |  |  |  |  |  |  |  |  |  |
| Demand deposits | **11750306** |  |  | 6163937 |  |  | 4945506 |  |  |
| Other liabilities | **676940** |  |  | 320933 |  |  | 286066 |  |  |
| Shareholders' equity | **4857496** |  |  | 2997520 |  |  | 2875460 |  |  |
| Total liabilities and shareholders'<br> equity | $**43249700** |  |  | $23783687 |  |  | $21785015 |  |  |
| Net interest income - taxable<br> equivalent basis |  | $**1346350** | **3.47%** |  | $610313 | 2.89% |  | $609680 | 3.18% |
| Taxable equivalent adjustment |  | **(18414)** |  |  | (13913) |  |  | (13586) |  |
| Net interest income (GAAP) |  | $**1327936** | **3.43%** |  | $596400 | 2.82% |  | $596094 | 3.11% |

---

(1)Interest income is reflected on a fully taxable equivalent basis.

(2)Includes loans held for sale.

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The following table presents fluctuations in taxable equivalent net interest income attributable to changes in the average balances of assets and liabilities and the yields earned or rates paid for the years ended December 31.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **From 2021 to 2022** | **From 2021 to 2022** | **From 2021 to 2022** | **From 2020 to 2021** | **From 2020 to 2021** | **From 2020 to 2021** |
| | | **Attributed to** | **Attributed to** | | **Attributed to** | **Attributed to** |
|<br>(dollars in thousands) | **Total**<br>**Change** <sup>(1)</sup> | **Volume** | **Rate** | **Total**<br>**Change** <sup>(1)</sup> | **Volume** | **Rate** |
| **Interest Income** |  |  |  |  |  |  |
| Money market and other interest-earning<br> investments | $**2225** | $**865** | $**1360** | $21 | $628 | $(607) |
| Investment securities <sup>(2)</sup> | **113681** | **78830** | **34851** | 3724 | 29963 | (26239) |
| Loans <sup>(2)</sup> | **704148** | **556963** | **147185** | (28077) | 16163 | (44240) |
| &nbsp;&nbsp;&nbsp;Total interest income | **820054** | **636658** | **183396** | (24332) | 46754 | (71086) |
| **Interest Expense** |  |  |  |  |  |  |
| Checking and NOW deposits | **19241** | **4770** | **14471** | (3370) | 419 | (3789) |
| Savings deposits | **1364** | **1299** | **65** | (1153) | 417 | (1570) |
| Money market deposits | **10126** | **4644** | **5482** | (2829) | 371 | (3200) |
| Time deposits | **7408** | **6897** | **511** | (9863) | (3127) | (6736) |
| Federal funds purchased and interbank<br> borrowings | **5021** | **2492** | **2529** | (1296) | (640) | (656) |
| Securities sold under agreements to<br> repurchase | **446** | **70** | **376** | (457) | 27 | (484) |
| Federal Home Loan Bank advances | **30449** | **15351** | **15098** | (6199) | (1859) | (4340) |
| Other borrowings | **9962** | **11972** | **(2010)** | 202 | 1021 | (819) |
| &nbsp;&nbsp;&nbsp;Total interest expense | **84017** | **47495** | **36522** | (24965) | (3371) | (21594) |
| &nbsp;&nbsp;&nbsp;Net interest income | $**736037** | $**589163** | $**146874** | $633 | $50125 | $(49492) |

---

(1)&nbsp;&nbsp;&nbsp;&nbsp;The variance not solely due to rate or volume is allocated equally between the rate and volume variance.

(2)&nbsp;&nbsp;&nbsp;&nbsp;Interest on investment securities and loans includes the effect of taxable equivalent adjustments of $11.5 million and $6.9 million, respectively, in 2022; $9.9 million and $4.0 million, respectively, in 2021; and $8.9 million and $4.7 million, respectively, in 2020; using the federal statutory tax rate in effect of 21%.

The increase in net interest income in 2022 when compared to 2021 was primarily due to higher average earning assets as a result of the merger, loan growth, higher rates, and higher accretion income. Partially offsetting these increases were higher average interest-bearing liabilities as a result of the merger, lower interest and fees related to PPP loans, and higher costs of average interest-bearing liabilities. Accretion income associated with acquired loans and borrowings totaled $86.4 million in 2022, compared to $16.7 million in 2021. Net interest income in 2022 included $6.9 million of interest and net fees on PPP loans, compared to $44.4 million in 2021. There were no unamortized fees on remaining PPP loans at December 31, 2022.

The increase in the net interest margin on a fully taxable equivalent basis in 2022 when compared to 2021 was primarily due to higher yields on interest earning assets, partially offset by higher costs of interest-bearing liabilities. The yield on average earning assets increased 71 basis points from 3.09% in 2021 to 3.80% in 2022 and the cost of interest-bearing liabilities increased 19 basis points from 0.30% in 2021 to 0.49% in 2022. Average earning assets increased by $17.6 billion, or 83%. The increase in average earning assets consisted of a $3.4 billion increase in investment securities, a $13.8 billion increase in loans, and a $362.1 million increase in money market and other interest-earning investments. Average interest-bearing liabilities increased $11.7 billion, or 82%. The increase in average interest-bearing liabilities consisted of an $10.0 billion increase in interest-bearing deposits, a $150.1 million increase in federal funds purchased and interbank borrowings, a $47.8 million increase in securities sold under agreements to repurchase, a $1.1 billion increase in FHLB advances, and a $350.2 million increase in other borrowings. Average noninterest-bearing deposits increased by $5.6 billion.

The increase in average earning assets in 2022 compared to 2021 was primarily due to the merger with First Midwest and strong loan growth. The loan portfolio, including loans held for sale, which generally has an average yield higher than the investment portfolio, was 71% of average interest earning assets in 2022, compared to 65% in 2021.

Average loans including loans held for sale increased $13.8 billion in 2022 compared to 2021 primarily due to the First Midwest merger and strong organic loan growth.

Average investments increased $3.4 billion in 2022 compared to 2021 reflecting the First Midwest merger.

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Average non-interest-bearing deposits increased $5.6 billion in 2022 compared to 2021 primarily due to the First Midwest merger. Average interest-bearing deposits increased $10.0 billion in 2022 compared to 2021 driven by the First Midwest merger.

Average borrowed funds increased $1.6 billion in 2022 compared to 2021 primarily due to the First Midwest merger.

**Provision for Credit Losses**

Old National recorded a provision for credit losses of $144.8 million in 2022, compared to a recapture of $29.6 million in 2021. Net charge-offs totaled $16.1 million in 2022, which included $11.2 million of net charge-offs on PCD loans, compared to net recoveries of $4.8 million in 2021. The provision for credit losses on loans in 2022 included $96.3 million to establish an allowance for credit losses on non-PCD loans acquired in the First Midwest merger. Provision for credit losses on unfunded loan commitments totaled $21.3 million in 2022, including $11.0 million for unfunded loan commitments acquired in the First Midwest merger. Recapture of credit losses on unfunded loan commitments totaled $0.8 million in 2021. Continued loan growth in future periods, a decline in our current level of recoveries, or an increase in charge-offs could result in an increase in provision expense. Additionally, provision expense may be volatile due to changes in CECL model assumptions of credit quality, macroeconomic factors and conditions, and loan composition, which drive the allowance for credit losses balance. For additional information about non-performing loans, charge-offs, and additional items impacting the provision, refer to the "Risk Management – Credit Risk" section of Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations."

**Noninterest Income**

We generate revenues in the form of noninterest income through client fees, sales commissions, and gains and losses from our core banking franchise and other related businesses, such as wealth management, investment consulting, and investment products. This source of revenue as a percentage of total revenue was 23% in 2022 compared to 26% in 2021.

The following table details the components of noninterest income:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **% Change From<br>Prior Year** | **% Change From<br>Prior Year** |
|<br>(dollars in thousands) | **2022** | **2021** | **2020** | **2022** | **2021** |
| Wealth management fees | $**69102** | $40409 | $36806 | **71.0%** | 9.8% |
| Service charges on deposit accounts | **72501** | 31658 | 32557 | **129.0** | (2.8) |
| Debit card and ATM fees | **40227** | 23766 | 22702 | **69.3** | 4.7 |
| Mortgage banking revenue | **23015** | 42558 | 62775 | **(45.9)** | (32.2) |
| Investment product fees | **31749** | 24639 | 21614 | **28.9** | 14.0 |
| Capital markets income | **25986** | 21997 | 22480 | **18.1** | (2.1) |
| Company-owned life insurance | **14564** | 10589 | 12031 | **37.5** | (12.0) |
| Debt securities gains (losses), net | **(88)** | 4327 | 10767 | **(102.0)** | (59.8) |
| Gain on sale of health savings accounts | **90673** |  |  | **N/A&nbsp;&nbsp;&nbsp;&nbsp;** | N/A&nbsp;&nbsp;&nbsp;&nbsp; |
| Other income | **32050** | 14276 | 17542 | **124.5** | (18.6) |
| &nbsp;&nbsp;&nbsp;Total noninterest income | $**399779** | $214219 | $239274 | **86.6%** | (10.5)% |
| Noninterest income to total revenue <sup>(1)</sup> | **22.9%** | 26.0% | 28.2% |  |  |

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(1)Total revenue includes the effect of a taxable equivalent adjustment of $18.4 million in 2022, $13.9 million in 2021, and $13.6 million in 2020.

The increase in noninterest income in 2022 compared to 2021 was primarily due to the First Midwest merger in February of 2022 and a $90.7 million gain on the sale of health savings accounts in the fourth quarter of 2022. The increase in noninterest income was partially offset by lower mortgage banking revenue, which was impacted by the higher rate environment, and, accordingly, lower production and gain on sale margins. In addition, wealth management fees were negatively impacted by current market conditions.

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On November 18, 2022, Old National completed its previously announced transaction with UMB, pursuant to which UMB acquired Old National's business of acting as a qualified custodian for, and administering, health savings accounts. Old National served as custodian for health savings accounts comprised of both investment accounts and deposit accounts. At closing, the health savings accounts held in deposit accounts that were transferred totaled approximately $382 million and the transaction resulted in a $90.7 million pre-tax gain.

**Noninterest Expense**

The following table details the components of noninterest expense:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **% Change From<br>Prior Year** | **% Change From<br>Prior Year** |
|<br>(dollars in thousands) | **2022** | **2021** | **2020** | **2022** | **2021** |
| Salaries and employee benefits | $**575626** | $284098 | $293590 | **102.6%** | (3.2)% |
| Occupancy | **100421** | 54834 | 55316 | **83.1** | (0.9) |
| Equipment | **27637** | 16704 | 16690 | **65.5** | 0.1 |
| Marketing | **32264** | 12684 | 10874 | **154.4** | 16.6 |
| Data processing | **84865** | 47047 | 41086 | **80.4** | 14.5 |
| Communication | **18846** | 10073 | 9731 | **87.1** | 3.5 |
| Professional fees | **39046** | 20077 | 15755 | **94.5** | 27.4 |
| FDIC assessment | **19332** | 6059 | 6722 | **219.1** | (9.9) |
| Amortization of intangibles | **25857** | 11336 | 14091 | **128.1** | (19.6) |
| Amortization of tax credit investments | **10961** | 6770 | 18788 | **61.9** | (64.0) |
| Property optimization | **26818** |  | 27050 | **N/A&nbsp;&nbsp;&nbsp;&nbsp;** | (100.0) |
| Other expense | **76510** | 31697 | 27240 | **141.4** | 16.4 |
| &nbsp;&nbsp;&nbsp;Total noninterest expense | $**1038183** | $501379 | $536933 | **107.1%** | (6.6)% |

---

Noninterest expense increased $536.8 million in 2022 compared to 2021 reflective of the additional operating costs associated with the First Midwest merger, as well as $120.9 million of merger-related expenses and $26.8 million for property optimization. In addition, higher incentive accruals resulting from strong performance contributed to the increase. Noninterest expense for 2021 included $14.6 million of merger-related expenses.

During the fourth quarter of 2022, Old National initiated certain property optimization actions that included the closure and consolidation of certain branches as well as other real estate repositioning across our footprint. These actions resulted in expenses totaling $26.8 million that are associated with valuation adjustments related to these locations.

Amortization of tax credit investments increased $4.2 million in 2022 compared to 2021. The recognition of tax credit amortization expense is contingent upon the successful completion of the rehabilitation of a historic building or completion of a solar project within the reporting period. Many factors including weather, labor availability, building regulations, inspections, and other unexpected construction delays related to a rehabilitation project can cause a project to exceed its estimated completion date. See Note 9 to the consolidated financial statements for additional information on our tax credit investments.

**Provision for Income Taxes**

We record a provision for income taxes currently payable and for income taxes payable or benefits to be received in the future, which arise due to timing differences in the recognition of certain items for financial statement and income tax purposes. The major difference between the effective tax rate applied to our financial statement income and the federal statutory tax rate is caused by a tax benefit from our tax credit investments and interest on tax-exempt securities and loans. The effective tax rate was 21.4% in 2022 compared to 18.1% in 2021. The higher effective tax rate in 2022 compared to 2021 reflected the increase in pre-tax book income and higher post-merger estimated state effective tax rates. An increase in non-deductible officer compensation also contributed to the higher tax rate, the majority of which was merger related. See Note 15 to the consolidated financial statements for additional details on Old National's income tax provision.

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***Comparison of Fiscal Years 2021 and 2020***

In 2021, we generated net income applicable to common shareholders of $277.5 million and diluted net income per common share of $1.67 compared to $226.4 million and diluted net income per common share of $1.36, respectively, in 2020. The 2021 earnings included a $0.3 million increase in net interest income, a $35.6 million decrease in noninterest expense, and a $72.5 million decrease in provision for credit losses. These favorable variances in net income applicable to common shareholders were partially offset by $25.1 million decrease in noninterest income and a $32.2 million increase in income tax expense. High commercial loan production and mortgage production, consistently strong credit quality metrics, and low cost of total deposits all contributed to favorable 2021 performance when compared to 2020.

Net interest income increased slightly to $596.4 million in 2021, compared to $596.1 million in 2020. Taxable equivalent net interest income was $610.3 million in 2021, compared to $609.7 million in 2020. Average earning assets increased by $2.0 billion in 2021 and the yield on average earning assets decreased 44 basis points from 3.53% in 2020 to 3.09% in 2021.

The provision for credit losses was a recapture of $29.6 million in 2021, compared to an expense of $42.9 million in 2020. Charge-offs remained low during 2021 and we continued to see positive trends in credit quality.

Noninterest income decreased $25.1 million in 2021 compared to 2020 reflecting lower mortgage banking revenue and lower debt securities gains.

Noninterest expense decreased $35.6 million in 2021 compared to 2020 reflecting higher charges related to the ONB Way strategic initiative in 2020 and lower amortization of tax credit investments in 2021.

The provision for income taxes was $61.3 million in 2021 compared to $29.1 million in 2020. Old National's effective tax rate was 18.1% in 2021 compared to 11.4% in 2020. The higher effective tax rate in 2021 compared to 2020 was primarily the result of an increase in pre-tax book income and lower federal tax credits available.

**FINANCIAL CONDITION**

**Overview**

At December 31, 2022, our assets were $46.8 billion, a $22.3 billion increase compared to $24.5 billion at December 31, 2021. The increase was driven primarily by the merger with First Midwest in February of 2022, as well as organic loan growth.

**Earning Assets**

Our earning assets are comprised of investment securities, portfolio loans, loans held for sale, money market investments, interest earning accounts with the Federal Reserve, and equity securities. Earning assets were $41.6 billion at December 31, 2022, an increase of $19.8 billion compared to earning assets of $21.9 billion at December 31, 2021.

*Investment Securities*

We classify the majority of our investment securities as available-for-sale to give management the flexibility to sell the securities prior to maturity if needed, based on fluctuating interest rates or changes in our funding requirements. During 2022, we transferred $3.0 billion of securities available-for-sale to held-to-maturity due to rising interest rates and related effects on the value of our investment securities.

Equity securities are recorded at fair value and totaled $52.5 million at December 31, 2022 compared to $13.2 million at December 31, 2021. The increase in equity securities was driven by the merger with First Midwest.

At December 31, 2022, the investment securities portfolio, including equity securities, was $10.2 billion compared to $7.6 billion at December 31, 2021, an increase of $2.7 billion driven primarily by the merger with First Midwest. Investment securities represented 25% of earning assets at December 31, 2022, compared to 35% at December 31, 2021. This decrease was driven by the First Midwest merger and stronger loan demand in 2022. As of December 31, 2022, we had no intent to sell any securities that were in an unrealized loss position nor is it expected that we would be required to sell the securities prior to their anticipated recovery.

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The investment securities available-for-sale portfolio had net unrealized losses of $844.4 million at December 31, 2022, compared to net unrealized losses of $6.0 million at December 31, 2021. The investment securities held-to-maturity portfolio had net unrealized losses of $445.5 million at December 31, 2022. Net unrealized losses increased from December 31, 2021 to December 31, 2022 primarily due to an increase in rates impacting market values for mortgage-backed, U.S. government-sponsored entities and agencies, and tax exempt municipal securities.

The investment securities available-for-sale portfolio including securities hedges had an effective duration of 4.57 at December 31, 2022, compared to 4.26 at December 31, 2021. The total investment securities portfolio had an effective duration of 6.45 at December 31, 2022. Effective duration represents the percentage change in the fair value of the portfolio in response to a change in interest rates and is used to evaluate the portfolio's price volatility at a single point in time. Generally, there is more uncertainty in interest rates over a longer average maturity, resulting in a higher duration percentage. The weighted average yields on investment securities, on a taxable equivalent basis, were 2.50% in 2022 and 2.10% in 2021.

**Loan Portfolio**

We lend primarily to consumers and small to medium-sized commercial and commercial real estate clients in many diverse industries including, among others, real estate rental and leasing, manufacturing, healthcare, wholesale trade, construction, and agriculture. Our policy is to concentrate our lending activity in the geographic market areas we serve, primarily in the Midwest region.

The following table presents the composition of the loan portfolio at December 31.

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| | | |
|:---|:---|:---|
| (dollars in thousands) | **2022** | **2021** |
| Commercial | $**9508904** | $3391769 |
| Commercial real estate | **12457070** | 6380674 |
| Consumer | **2697226** | 1574114 |
| Total loans excluding residential real estate | **24663200** | 11346557 |
| Residential real estate | **6460441** | 2255289 |
| &nbsp;&nbsp;&nbsp;Total loans | **31123641** | 13601846 |
| Less: Allowance for credit losses on loans | **303671** | 107341 |
| &nbsp;&nbsp;&nbsp;Net loans | $**30819970** | $13494505 |

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The following table presents the maturity distribution and rate sensitivity of loans at December 31, 2022 and an analysis of these loans that have fixed and floating interest rates.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| (dollars in thousands) | **Within<br>1 Year** | **After 1 - 5<br>Years** | **After 5 - 15<br>Years** | **After<br>15 Years** | **Total** | **% of<br>Total** |
| **Commercial** |  |  |  |  |  |  |
| Interest rates: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Fixed | $**224963** | $**1662958** | $**1022213** | $**93895** | $**3004029** | **32%** |
| &nbsp;&nbsp;&nbsp;Floating | **1512295** | **3363694** | **1539509** | **89377** | **6504875** | **68** |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $**1737258** | $**5026652** | $**2561722** | $**183272** | $**9508904** | **100%** |
| **Commercial Real Estate** |  |  |  |  |  |  |
| Interest rates: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Fixed | $**426478** | $**3068434** | $**1147547** | $**44599** | $**4687058** | **38%** |
| &nbsp;&nbsp;&nbsp;Floating | **917318** | **4604668** | **2129048** | **118978** | **7770012** | **62** |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $**1343796** | $**7673102** | $**3276595** | $**163577** | $**12457070** | **100%** |
| **Residential Real Estate** |  |  |  |  |  |  |
| Interest rates: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Fixed | $**6523** | $**61713** | $**2327968** | $**2833756** | $**5229960** | **81%** |
| &nbsp;&nbsp;&nbsp;Floating | **70** | **1232** | **33054** | **1196125** | **1230481** | **19** |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $**6593** | $**62945** | $**2361022** | $**4029881** | $**6460441** | **100%** |
| **Consumer** |  |  |  |  |  |  |
| Interest rates: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Fixed | $**36099** | $**940836** | $**679161** | $**19006** | $**1675102** | **62%** |
| &nbsp;&nbsp;&nbsp;Floating | **52403** | **160551** | **147075** | **662095** | **1022124** | **38** |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $**88502** | $**1101387** | $**826236** | $**681101** | $**2697226** | **100%** |

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*Commercial and Commercial Real Estate Loans*

Commercial and commercial real estate loans are the largest classifications within earning assets, representing 53% at December 31, 2022, compared to 45% at December 31, 2021. At December 31, 2022, commercial and commercial real estate loans were $22.0 billion, an increase of $12.2 billion compared to December 31, 2021 driven by the merger with First Midwest and strong loan production in 2022.

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The following table provides detail on commercial loans by industry classification (as defined by the North American Industry Classification System) and by loan size at December 31.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **2022** | **2022** | **2022** | **2021** | **2021** | **2021** |
|<br>(dollars in thousands) | **Outstanding** | **Exposure** | **Nonaccrual** | **Outstanding** | **Exposure** | **Nonaccrual** |
| By Industry: |  |  |  |  |  |  |
| &nbsp;&nbsp;Manufacturing | $**1757907** | $**2803883** | $**2464** | $612873 | $1152774 | $6689 |
| &nbsp;&nbsp;Health care and social assistance | **1588392** | **2043105** | **11806** | 376664 | 550400 | 444 |
| &nbsp;&nbsp;Wholesale trade | **857400** | **1552985** | **2895** | 240618 | 438357 | 1598 |
| &nbsp;&nbsp;Real estate rental and leasing | **642511** | **962549** | **1135** | 204612 | 347991 | 504 |
| &nbsp;&nbsp;Construction | **556913** | **1307582** | **1517** | 310649 | 744610 | 1429 |
| &nbsp;&nbsp;Professional, scientific, and<br> technical services | **507940** | **832407** | **4735** | 141364 | 279185 | 937 |
| &nbsp;&nbsp;Finance and insurance | **484532** | **858391** | **17** | 162920 | 232847 | 44 |
| &nbsp;&nbsp;Transportation and warehousing | **422643** | **633267** | **3496** | 134072 | 243086 | 1594 |
| &nbsp;&nbsp;Accommodation and food services | **399915** | **512025** | **596** | 78689 | 108724 | 2399 |
| &nbsp;&nbsp;Retail trade | **332367** | **538135** | **7386** | 131303 | 289478 | 945 |
| &nbsp;&nbsp;Administrative and support and<br> waste management and<br> remediation services | **315785** | **446655** | **13860** | 86307 | 149417 |  |
| &nbsp;&nbsp;Agriculture, forestry, fishing, <br> and hunting | **261355** | **382376** | **996** | 114699 | 164364 | 1521 |
| &nbsp;&nbsp;Public administration | **231453** | **325834** | **846** | 247770 | 357310 |  |
| &nbsp;&nbsp;Educational services | **210850** | **378955** | **3750** | 216384 | 295065 |  |
| &nbsp;&nbsp;Other services | **194998** | **356743** | **2656** | 121577 | 260413 | 2542 |
| &nbsp;&nbsp;Other | **743943** | **1122409** | **739** | 211268 | 388110 | 4003 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $**9508904** | $**15057301** | $**58894** | $3391769 | $6002131 | $24649 |
| By Loan Size: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Less than $200,000 | **3%** | **3%** | **3%** | 8% | 6% | 7% |
| &nbsp;&nbsp;&nbsp;$200,000 to $1,000,000 | **11** | **11** | **20** | 18 | 16 | 42 |
| &nbsp;&nbsp;&nbsp;$1,000,000 to $5,000,000 | **25** | **26** | **36** | 31 | 29 | 51 |
| &nbsp;&nbsp;&nbsp;$5,000,000 to $10,000,000 | **15** | **15** | **24** | 15 | 16 |  |
| &nbsp;&nbsp;&nbsp;$10,000,000 to $25,000,000 | **31** | **27** | **17** | 18 | 18 |  |
| &nbsp;&nbsp;&nbsp;Greater than $25,000,000 | **15** | **18** | **—** | 10 | 15 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | **100%** | **100%** | **100%** | 100% | 100% | 100% |

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The following table provides detail on commercial real estate loans classified by property type at December 31.

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| | | | | |
|:---|:---|:---|:---|:---|
| | **2022** | **2022** | **2021** | **2021** |
|<br>(dollars in thousands) | **Outstanding** | **%** | **Outstanding** | **%** |
| By Property Type: |  |  |  |  |
| &nbsp;&nbsp;Multifamily | $**4188137** | **34%** | $1995803 | 31% |
| &nbsp;&nbsp;Warehouse / Industrial | **1976804** | **16** | 851956 | 14 |
| &nbsp;&nbsp;Office | **1813007** | **15** | 1018973 | 16 |
| &nbsp;&nbsp;Retail | **1808041** | **14** | 1037034 | 16 |
| &nbsp;&nbsp;Commercial development | **660798** | **5** | 114113 | 2 |
| &nbsp;&nbsp;Single family | **515390** | **4** | 333221 | 5 |
| &nbsp;&nbsp;Other <sup>(1)</sup> | **1494893** | **12** | 1029574 | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $**12457070** | **100%** | $6380674 | 100% |

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(1)&nbsp;&nbsp;&nbsp;&nbsp;Other includes agriculture real estate, hotels, self-storage, senior housing, land development, religion, and mixed-use properties.

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*Residential Real Estate Loans*

Residential real estate loans held in our portfolio increased $4.2 billion to $6.5 billion at December 31, 2022, compared to December 31, 2021, driven by the merger with First Midwest and organic loan growth. Future increases in interest rates could result in a decline in the level of refinancings and new originations of residential real estate loans.

*Consumer Loans*

Consumer loans, including automobile loans, personal, and home equity loans and lines of credit, increased $1.1 billion to $2.7 billion at December 31, 2022 compared to December 31, 2021, driven by the merger with First Midwest and loan growth.

*Allowance for Credit Losses on Loans and Unfunded Loan Commitments*

At December 31, 2022, the allowance for credit losses on loans was $303.7 million, compared to $107.3 million at December 31, 2021. The increase in the allowance for credit losses on loans reflected $89.1 million of allowance for credit losses on acquired PCD loans established through acquisition accounting adjustments on or after the First Midwest merger date. In addition, the provision for credit losses expense in 2022 included $96.3 million to establish an allowance for credit losses on non-PCD loans acquired in the First Midwest merger. Continued loan growth in future periods, a decline in our current level of recoveries, or an increase in charge-offs could result in an increase in provision expense. Additionally, provision expense may be volatile due to changes in CECL model assumptions of credit quality, macroeconomic factors and conditions, and loan composition, which drive the allowance for credit losses balance.

We maintain an allowance for credit losses on unfunded loan commitments to provide for the risk of loss inherent in these arrangements. The allowance is computed using a methodology similar to that used to determine the allowance for credit losses on loans, modified to take into account the probability of a drawdown on the commitment. The allowance for credit losses on unfunded loan commitments is classified as a liability account on the balance sheet within accrued expenses and other liabilities, while the corresponding provision for unfunded loan commitments is included in the provision for credit losses. The allowance for credit losses on unfunded loan commitments totaled $32.2 million at December 31, 2022, compared to $10.9 million at December 31, 2021. The increase in the allowance for credit losses on unfunded loan commitments was driven by the merger with First Midwest as well as organic loan growth.

Additional information about our Allowance for Credit Losses is included in the "Risk Management – Credit Risk" section of Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" and Notes 1 and 4 to the consolidated financial statements.

**Goodwill and Other Intangible Assets**

Goodwill and other intangible assets at December 31, 2022 totaled $2.1 billion, an increase of $1.1 billion compared to December 31, 2021 as a result of goodwill and other intangible assets recorded with the First Midwest merger.

**Other Assets**

Other assets increased $770.2 million since December 31, 2021 primarily due to higher net deferred tax assets related to the market value adjustments of certain investment securities, higher derivative assets, and deferred tax and other assets related to the First Midwest merger.

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**Funding**

The following table summarizes Old National's total funding, comprised of deposits and wholesale borrowings at December 31:

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| | | | | |
|:---|:---|:---|:---|:---|
| (dollars in thousands) | **2022** | **2021** | **$ Change** | **% Change** |
| Deposits: |  |  |  |  |
| &nbsp;&nbsp;Noninterest-bearing demand | $**11930798** | $6303106 | $**5627692** | **89%** |
| &nbsp;&nbsp;Interest-bearing: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Checking and NOW | **8340955** | 5338022 | **3002933** | **56%** |
| &nbsp;&nbsp;&nbsp;&nbsp;Savings | **6326158** | 3798494 | **2527664** | **67%** |
| &nbsp;&nbsp;&nbsp;&nbsp;Money market | **5389139** | 2169160 | **3219979** | **148%** |
| &nbsp;&nbsp;&nbsp;&nbsp;Time deposits | **3013780** | 960413 | **2053367** | **214%** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deposits | **35000830** | 18569195 | **16431635** | **88%** |
| Wholesale borrowings: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Federal funds purchased and interbank borrowings | **581489** | 276 | **581213** | **N/M** |
| &nbsp;&nbsp;&nbsp;Securities sold under agreements to repurchase | **432804** | 392275 | **40529** | **10%** |
| &nbsp;&nbsp;&nbsp;Federal Home Loan Bank advances | **3829018** | 1886019 | **1942999** | **103%** |
| &nbsp;&nbsp;&nbsp;Other borrowings | **743003** | 296670 | **446333** | **150%** |
| &nbsp;&nbsp;&nbsp;&nbsp;Total wholesale borrowings | **5586314** | 2575240 | **3011074** | **117%** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total funding | $**40587144** | $21144435 | $**19442709** | **92%** |

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The increase in total funding was driven by the merger with First Midwest as well as loan growth. We use wholesale funding to augment deposit funding and to help maintain our desired interest rate risk position. Wholesale funding as a percentage of total funding was 14% at December 31, 2022, compared to 12% at December 31, 2021. See Notes 11, 12, and 13 to the consolidated financial statements for additional details on our financing activities.

At December 31, 2022, time deposits in excess of the FDIC insurance limit and estimated time deposits that are otherwise uninsured by maturity were as follows:

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| | | |
|:---|:---|:---|
| (dollars in thousands) | **Individual<br>Instruments in<br>Denominations that<br>Meet or Exceed the<br>FDIC Insurance<br>Limit** | **Estimated Aggregate<br>Time Deposits that<br>Meet or Exceed the<br>FDIC Insurance<br>Limit and Otherwise<br>Uninsured Time<br>Deposits** |
| Three months or less | $111066 | $421570 |
| Over three through six months | 161748 | 181430 |
| Over six through 12 months | 372961 | 114201 |
| Over 12 months | 147611 | 314808 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $793386 | $1032009 |

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**Accrued Expenses and Other Liabilities**

Accrued expenses and other liabilities increased $614.8 million from December 31, 2021 primarily due to higher derivative liabilities and accrued expenses and other liabilities associated with the First Midwest merger.

**Capital**

Shareholders' equity totaled $5.1 billion, or 11% of total assets, at December 31, 2022 and $3.0 billion, or 12% of total assets, at December 31, 2021. In relation to the merger of equals transaction with First Midwest, Old National issued 108,000 shares of Old National Series A Preferred Stock and 122,500 shares of Old National Series C Preferred Stock. Old National entered into two deposit agreements, each dated as of February 15, 2022, by and among Old National, Continental Stock Transfer & Trust Company, as depository, and the holders from time to time of the depositary receipts in connection with the issuance of the Old National Preferred Stock. Pursuant to the deposit agreements, Old National issued 4,320,000 depositary shares, each representing a 1/40th interest in a share of Old National Series A Preferred Stock, and 4,900,000 depositary shares, each representing a 1/40th interest in a

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share of Old National Series C Preferred Stock. The change in unrealized gains (losses) on available-for-sale investment securities decreased equity by $639.4 million during 2022. In addition, available-for-sale investment securities with a fair value of $3.0 billion were transferred from the available-for-sale portfolio to the held-to-maturity portfolio during 2022. The resulting unrealized holding loss, net of tax, is included in shareholders' equity and totaled $112.7 million at December 31, 2022. Old National repurchased 3.5 million shares of Common Stock in 2022 under a stock repurchase plan that was approved by the Company's Board of Directors, which reduced equity by $63.8 million. Old National paid cash dividends of $0.56 per common share in 2022, which reduced equity by $163.5 million. Old National's Common Stock is traded on the NASDAQ under the symbol "ONB" with 57,134 shareholders of record at December 31, 2022.

**Capital Adequacy**

Old National and the banking industry are subject to various regulatory capital requirements administered by the federal banking agencies. Management routinely analyzes Old National's capital to ensure an optimized capital structure. Accordingly, such evaluations may result in Old National taking a capital action. For additional information on capital adequacy see Note 21 to the consolidated financial statements.

Management views stress testing as an integral part of the Company's risk management and strategic planning activities. Old National performs stress testing periodically throughout the year. The primary objective of the stress test is to ensure that Old National has a robust, forward-looking stress testing process and maintains sufficient capital to continue operations throughout times of economic and financial stress. Management also uses the stress testing framework to evaluate decisions relating to pricing, loan concentrations, capital deployment, and mergers and acquisitions to ensure that strategic decisions align with Old National's risk appetite statement. Old National's stress testing process incorporates key risks that include strategic, market, liquidity, credit, operational, regulatory, compliance, legal, and reputational risks. Old National's stress testing policy outlines steps that will be taken if stress test results do not meet internal thresholds under severely adverse economic scenarios.

**RISK MANAGEMENT**

**Overview**

Old National has adopted a Risk Appetite Statement to enable our Board of Directors, Executive Leadership Team, and Senior Management to better assess, understand, monitor, and mitigate Old National's risks. The Risk Appetite Statement addresses the following major risks: strategic, market, liquidity, credit, operational, talent management, compliance and regulatory, legal, and reputational. Our Chief Risk Officer is independent of all other management and provides quarterly reports to the Board's Enterprise Risk Committee. The following discussion addresses certain of these major risks including credit, market, liquidity, operational, compliance and regulatory, and legal. Discussion of strategic, talent management, and reputational risks is provided in the section entitled "Risk Factors" in Item 1A of this Form 10-K.

**Credit Risk**

Credit risk represents the risk of loss arising from an obligor's inability or failure to meet contractual payment or performance terms. Our primary credit risks result from our investment and lending activities.

<u>Investment Activities</u>

We carry a higher exposure to loss in our pooled trust preferred securities, which are collateralized debt obligations, due to illiquidity in that market and the performance of the underlying collateral. At December 31, 2022, we had pooled trust preferred securities with a fair value of $10.8 million, or less than 1% of the available-for-sale securities portfolio. These securities remained classified as available-for-sale and the unrealized loss on our pooled trust preferred securities was $3.0 million at December 31, 2022. The fair value of these securities is expected to improve as we get closer to maturity but may be adversely impacted by credit deterioration.

All of our mortgage-backed securities are backed by U.S. government-sponsored or federal agencies. Municipal bonds, corporate bonds, and other debt securities are evaluated by reviewing the credit-worthiness of the issuer and general market conditions. See Note 3 to the consolidated financial statements for additional details about our investment security portfolio.

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<u>Counterparty Exposure</u>

Counterparty exposure is the risk that the other party in a financial transaction will not fulfill its obligation. We define counterparty exposure as nonperformance risk in transactions involving federal funds sold and purchased, repurchase agreements, correspondent bank relationships, and derivative contracts with companies in the financial services industry. Old National manages exposure to counterparty risk in connection with its derivatives transactions by generally engaging in transactions with counterparties having ratings of at least "A" by Standard & Poor's Rating Service or "A2" by Moody's Investors Service. Total credit exposure is monitored by counterparty and managed within limits that management believes to be prudent. Old National's net counterparty exposure was an asset of $108.9 million at December 31, 2022.

<u>Lending Activities</u>

<u>Commercial</u>

Commercial and industrial loans are made primarily for the purpose of financing equipment acquisition, expansion, working capital, and other general business purposes. Lease financing consists of direct financing leases and is used by commercial clients to finance capital purchases ranging from computer equipment to transportation equipment. The credit decisions for these transactions are based upon an assessment of the overall financial capacity of the applicant. A determination is made as to the applicant's ability to repay in accordance with the proposed terms as well as an overall assessment of the risks involved. In addition to an evaluation of the applicant's financial condition, a determination is made of the probable adequacy of the primary and secondary sources of repayment, such as additional collateral or personal guarantees, to be relied upon in the transaction. Credit agency reports of the applicant's credit history supplement the analysis of the applicant's creditworthiness.

Commercial mortgages and construction loans are offered to real estate investors, developers, and builders primarily domiciled in the geographic Midwest market areas we serve. These loans are secured by first mortgages on real estate at LTV margins deemed appropriate for the property type, quality, location, and sponsorship. Generally, these LTV ratios do not exceed 80%. The commercial properties are predominantly multi-family and non-residential properties such as retail centers, industrial properties as well as, to a lesser extent, more specialized properties. Substantially all of our commercial real estate loans are secured by properties located in our primary market area.

In the underwriting of our commercial real estate loans, we obtain appraisals for the underlying properties. Decisions to lend are based on the economic viability of the property and the creditworthiness of the borrower. In evaluating a proposed commercial real estate loan, we primarily emphasize the ratio of the property's projected net cash flows to the loan's debt service requirement. The debt service coverage ratio normally is not less than 120% and it is computed after deduction for a vacancy factor and property expenses as appropriate. In addition, a personal guarantee of the loan or a portion thereof is often required from the principal(s) of the borrower. In most cases, we require title insurance insuring the priority of our lien, fire and extended coverage casualty insurance, and flood insurance, if appropriate, in order to protect our security interest in the underlying property. In addition, business interruption insurance or other insurance may be required.

Construction loans are underwritten against projected cash flows derived from rental income, business income from an owner-occupant, or the sale of the property to an end-user. We may mitigate the risks associated with these types of loans by requiring fixed-price construction contracts, performance and payment bonding, controlled disbursements, and pre-sale contracts or pre-lease agreements.

<u>Consumer</u>

We offer a variety of first mortgage and junior lien loans to consumers within our markets, with residential home mortgages comprising our largest consumer loan category. These loans are secured by a primary residence and are underwritten using traditional underwriting systems to assess the credit risks of the consumer. Decisions are primarily based on LTV ratios, DTI ratios, liquidity, and credit scores. A maximum LTV ratio of 90% is generally required, although higher levels are permitted with mortgage insurance or other mitigating factors. We offer fixed rate mortgages and variable rate mortgages with interest rates that are subject to change every year after the first, third, fifth, or seventh year, depending on the product and are based on indexed rates such as prime. We do not offer payment-option facilities, sub-prime loans, or any product with negative amortization.

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Home equity loans are secured primarily by second mortgages on residential property of the borrower. The underwriting terms for the home equity product generally permit borrowing availability, in the aggregate, up to 90% of the appraised value of the collateral property at the time of origination. We offer fixed and variable rate home equity loans, with variable rate loans underwritten at fully-indexed rates. Decisions are primarily based on LTV ratios, DTI ratios, and credit scores. We do not offer home equity loan products with reduced documentation.

Automobile loans include loans and leases secured by new or used automobiles. We originate automobile loans and leases primarily on an indirect basis through selected dealerships. We require borrowers to maintain collision insurance on automobiles securing consumer loans, with us listed as loss payee. Our procedures for underwriting automobile loans include an assessment of an applicant's overall financial capacity, including credit history and the ability to meet existing obligations and payments on the proposed loan. Although an applicant's creditworthiness is the primary consideration, the underwriting process also includes a comparison of the value of the collateral security to the proposed loan amount.

<u>Asset Quality</u>

Community-based lending personnel, along with region-based independent underwriting and analytic support staff, extend credit under guidelines established and administered by management and overseen by our Enterprise Risk Committee. This committee, which meets quarterly, is made up of independent outside directors. The committee monitors credit quality through its review of information such as delinquencies, credit exposures, peer comparisons, problem loans, and charge-offs. In addition, the committee provides oversight of loan policy changes as recommended by management to assure our policy remains appropriate for the current lending environment.

We lend to commercial and commercial real estate clients in many diverse industries including, among others, real estate rental and leasing, manufacturing, healthcare, wholesale trade, construction, and agriculture. Old National manages concentrations of credit exposure by industry, product, geography, client relationship, and loan size. At December 31, 2022, our average commercial loan size was approximately $560,000 and our average commercial real estate loan size was approximately $1,200,000. In addition, while loans to lessors of residential and non-residential real estate exceed 10% of total loans, no individual sub-segment category within those broader categories reaches the 10% threshold. At December 31, 2022, we had minimal exposure to foreign borrowers and no sovereign debt. Our policy is to concentrate our lending activity in the geographic market areas we serve, primarily in the Midwest region.

On February 15, 2022, Old National closed on its merger of equals transaction with First Midwest. As of the closing date of the transaction, First Midwest loans totaled $14.3 billion. Old National reviewed the acquired loans and determined that as of December 31, 2022, $275.6 million met the definition of criticized and $429.1 million were considered classified (of which $132.8 million are reported with nonaccrual loans). These loans are included in our summary of under-performing, criticized, and classified assets table below.

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The following table presents a summary of under-performing, criticized, and classified assets at December 31:

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| | | |
|:---|:---|:---|
| (dollars in thousands) | **2022** | **2021** |
| Total nonaccrual loans | $**238178** | $106691 |
| TDRs still accruing | **15313** | 18378 |
| Total past due loans (90 days or more and still accruing) | **2650** | 7 |
| Foreclosed assets | **10845** | 2030 |
| &nbsp;&nbsp;&nbsp;Total under-performing assets | $**266986** | $127106 |
| Classified loans (includes nonaccrual, TDRs still accruing, <br> past due 90 days, and other problem loans) | $**745485** | $269270 |
| Other classified assets <sup>(1)</sup> | **24735** | 4338 |
| Criticized loans | **636069** | 235910 |
| &nbsp;&nbsp;&nbsp;Total criticized and classified assets | $**1406289** | $509518 |
| Asset Quality Ratios: |  |  |
| &nbsp;&nbsp;Nonaccrual loans/total loans <sup>(2)</sup> | **0.77%** | 0.78% |
| &nbsp;&nbsp;Non-performing loans/total loans <sup>(2) (3)</sup> | **0.81** | 0.92 |
| &nbsp;&nbsp;Under-performing assets/total loans <sup>(2)</sup> | **0.86** | 0.93 |
| &nbsp;&nbsp;&nbsp;Under-performing assets/total assets | **0.57** | 0.52 |
| &nbsp;&nbsp;&nbsp;Allowance for credit losses on loans/under-performing assets | **113.74** | 84.45 |
| &nbsp;&nbsp;&nbsp;Allowance for credit losses on loans/nonaccrual loans | **127.50** | 100.61 |

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(1)Includes investment securities that fell below investment grade rating.

(2)Loans exclude loans held for sale.

(3)Non-performing loans include nonaccrual loans and TDRs still accruing.

Under-performing assets increased to $267.0 million at December 31, 2022, compared to $127.1 million at December 31, 2021 primarily due to the First Midwest merger. Under-performing assets as a percentage of total loans at December 31, 2022 were 0.86%, a 7 basis point improvement from 0.93% at December 31, 2021.

Nonaccrual loans increased $131.5 million from December 31, 2021 to December 31, 2022 primarily due to the First Midwest merger. As a percentage of nonaccrual loans, the allowance for credit losses on loans was 127.50% at December 31, 2022, compared to 100.61% at December 31, 2021.

If nonaccrual and renegotiated loans outstanding at December 31, 2022 and 2021, respectively, had been accruing interest throughout the year in accordance with their original terms, interest income of approximately $7.9 million in 2022 and $5.1 million in 2021 would have been recorded on these loans. The amount of interest income actually recorded on nonaccrual and renegotiated loans was $5.1 million in 2022 and $1.3 million in 2021.

Total criticized and classified assets were $1.4 billion at December 31, 2022, an increase of $896.8 million from December 31, 2021. Criticized and classified assets related to the First Midwest merger totaled $704.8 million at December 31, 2022. Other classified assets include investment securities that fell below investment grade rating totaling $24.7 million at December 31, 2022, compared to $4.3 million at December 31, 2021.

Old National may choose to restructure the contractual terms of certain loans. At December 31, 2022, TDRs totaled $39.3 million, $24.0 million of which were included within nonaccrual loans. At December 31, 2021, TDRs totaled $30.0 million, $11.7 million of which were included within nonaccrual loans.

Old National has established specific allowances for credit losses for clients whose loan terms have been modified as TDRs totaling $4.5 million at December 31, 2022 and $0.7 million at December 31, 2021. Old National had not committed to lend any additional funds to clients with outstanding loans that are classified as TDRs at December 31, 2022 or December 31, 2021.

See Note 4 to the consolidated financial statements for additional information on TDRs.

*Allowance for Credit Losses on Loans and Unfunded Loan Commitments*

Credit quality within the loans held for investment portfolio is continuously monitored by management and is reflected within the allowance for credit losses on loans. The allowance for credit losses is an estimate of expected

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losses inherent within the Company's loans held for investment portfolio. Credit quality is assessed and monitored by evaluating various attributes and the results of those evaluations are utilized in underwriting new loans and in our process for estimating expected credit losses. Expected credit loss inherent in non-cancelable off-balance-sheet credit exposures is accounted for as a separate liability included in other liabilities on the balance sheet. The allowance for credit losses on loans held for investment and unfunded loan commitments is adjusted by a credit loss expense, which is reported in earnings, and reduced by the charge-off of loan amounts, net of recoveries. Accrued interest receivable is excluded from the estimate of credit losses.

The allowance for credit loss estimation process involves procedures to consider the unique characteristics of our loan portfolio segments. These segments are further disaggregated into loan classes based on the level at which credit risk of the loan is monitored. When computing the level of expected credit losses, credit loss assumptions are estimated using a model that categorizes loan pools based on loss history, delinquency status, and other credit trends and risk characteristics, including current conditions and reasonable and supportable forecasts about the future. Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. In future periods, evaluations of the overall loan portfolio, in light of the factors and forecasts then prevailing, may result in significant changes in the allowance and credit loss expense in those future periods.

The allowance level is influenced by loan volumes, loan AQR migration or delinquency status, changes in historical loss experience, and other conditions influencing loss expectations, such as reasonable and supportable forecasts of economic conditions. The methodology for estimating the amount of expected credit losses reported in the allowance for credit losses on loans has two basic components: first, an asset-specific component involving individual loans that do not share risk characteristics with other loans and the measurement of expected credit losses for such individual loans; and second, a pooled component for estimated expected credit losses for pools of loans that share similar risk characteristics.

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The loan categories used to monitor and analyze interest income and yields are different than the portfolio segments used to determine the allowance for credit losses on loans. The allowance for credit losses on loans was calculated by pooling loans of similar credit risk characteristics and credit monitoring procedures. The four loan portfolios used to monitor and analyze interest income and yields – commercial, commercial real estate, residential real estate, and consumer – are reclassified into seven segments of loans – commercial, commercial real estate, BBCC, residential real estate, indirect, direct, and home equity for purposes of determining the allowance for credit losses on loans. The commercial and commercial real estate loan categories shown on the balance sheet include the same pool of loans as the commercial, commercial real estate, and BBCC portfolio segments. The consumer loan category shown on the balance sheet is comprised of the same loans in the indirect, direct, and home equity portfolio segments. The portfolio segment reclassifications follow:

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| | | | |
|:---|:---|:---|:---|
| | **Statement<br>Balance** | **Portfolio<br>Segment<br>Reclassifications** | **After<br>Reclassifications** |
| | **Statement<br>Balance** | **Portfolio<br>Segment<br>Reclassifications** | **After<br>Reclassifications** |
|<br>(dollars in thousands) | **Statement<br>Balance** | **Portfolio<br>Segment<br>Reclassifications** | **After<br>Reclassifications** |
| **December 31, 2022** |  |  |  |
| Commercial | $**9508904** | $**(210280)** | $**9298624** |
| Commercial real estate | **12457070** | **(158322)** | **12298748** |
| BBCC | **N/A** | **368602** | **368602** |
| Residential real estate | **6460441** | **—** | **6460441** |
| Consumer | **2697226** | **(2697226)** | **N/A** |
| Indirect | **N/A** | **1034257** | **1034257** |
| Direct | **N/A** | **629186** | **629186** |
| Home equity | **N/A** | **1033783** | **1033783** |
| &nbsp;&nbsp;Total | $**31123641** | $**—** | $**31123641** |
| **December 31, 2021** |  |  |  |
| Commercial | $3391769 | $(191557) | $3200212 |
| Commercial real estate | 6380674 | (159190) | 6221484 |
| BBCC | N/A | 350747 | 350747 |
| Residential real estate | 2255289 |  | 2255289 |
| Consumer | 1574114 | (1574114) | N/A |
| Indirect | N/A | 873139 | 873139 |
| Direct | N/A | 140385 | 140385 |
| Home equity | N/A | 560590 | 560590 |
| &nbsp;&nbsp;Total | $13601846 | $— | $13601846 |

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The following table details activity in our allowance for credit losses on loans for the years ended December 31:

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| | | | |
|:---|:---|:---|:---|
| (dollars in thousands) | **2022** | **2021** | **2020** |
| Beginning allowance for credit losses on loans | $**107341** | $131388 | $54619 |
| Allowance established for acquired PCD loans | **89089** |  |  |
| Impact of adopting ASC 326 | **—** |  | 41347 |
| Loans charged-off: |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial | **6885** | 1228 | 5593 |
| &nbsp;&nbsp;&nbsp;Commercial real estate | **6519** | 264 | 4323 |
| &nbsp;&nbsp;&nbsp;BBCC | **85** | 144 | 95 |
| &nbsp;&nbsp;&nbsp;Residential real estate | **344** | 346 | 824 |
| &nbsp;&nbsp;&nbsp;Indirect | **2525** | 1087 | 2754 |
| &nbsp;&nbsp;&nbsp;Direct | **10799** | 1159 | 1763 |
| &nbsp;&nbsp;&nbsp;Home equity | **124** | 82 | 201 |
| &nbsp;&nbsp;&nbsp;Total charge-offs | **27281** | 4310 | 15553 |
| Recoveries on charged-off loans: |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial | **4610** | 791 | 3629 |
| &nbsp;&nbsp;&nbsp;Commercial real estate | **1095** | 4403 | 4515 |
| &nbsp;&nbsp;&nbsp;BBCC | **281** | 105 | 140 |
| &nbsp;&nbsp;&nbsp;Residential real estate | **760** | 339 | 633 |
| &nbsp;&nbsp;&nbsp;Indirect | **1263** | 1682 | 1922 |
| &nbsp;&nbsp;&nbsp;Direct | **2557** | 777 | 819 |
| &nbsp;&nbsp;&nbsp;Home equity | **616** | 978 | 922 |
| &nbsp;&nbsp;&nbsp;Total recoveries | **11182** | 9075 | 12580 |
| &nbsp;&nbsp;&nbsp;Net charge-offs (recoveries) | **16099** | (4765) | 2973 |
| Provision for credit losses on loans | **123340** | (28812) | 38395 |
| Ending allowance for credit losses on loans | $**303671** | $107341 | $131388 |
| Beginning allowance for credit losses on unfunded loan commitments | $**10879** | $11689 | $2656 |
| Provision for credit losses on unfunded loan commitments acquired<br> during the period | **11013** |  |  |
| Impact of adopting ASC 326 | **—** |  | 4549 |
| Provision for credit losses on unfunded loan commitments | **10296** | (810) | 4484 |
| Ending allowance for credit losses on unfunded loan commitments | $**32188** | $10879 | $11689 |
| Allowance for credit losses | $**335859** | $118220 | $143077 |
| Average loans for the year <sup>(1)</sup> | $**27589442** | $13766590 | $13341677 |
| Asset Quality Ratios: |  |  |  |
| &nbsp;&nbsp;Allowance for credit losses on loans/year-end loans <sup>(1)</sup> | **0.98%** | 0.79% | 0.95% |
| &nbsp;&nbsp;Allowance for credit losses on loans/average loans <sup>(1)</sup> | **1.10** | 0.78 | 0.98 |
| &nbsp;&nbsp;Allowance for credit losses/year-end loans <sup>(1)</sup> | **1.08** | 0.87 | 1.04 |
| &nbsp;&nbsp;Allowance for credit losses/average loans <sup>(1)</sup> | **1.22** | 0.86 | 1.07 |

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(1)Loans exclude loans held for sale.

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The following table details net charge-offs to average loans outstanding by loan category for the years ended December 31:

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| | | | |
|:---|:---|:---|:---|
| (dollars in thousands) | **2022** | **2021** | **2020** |
| **Commercial:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Net charge-offs (recoveries) | $**2275** | $437 | $1964 |
| &nbsp;&nbsp;&nbsp;Average loans for the year | $**7755895** | $3553527 | $3520397 |
| &nbsp;&nbsp;&nbsp;Net charge-offs (recoveries)/average loans | **0.03%** | 0.01% | 0.06% |
| **Commercial real estate:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Net charge-offs (recoveries) | $**5424** | $(4139) | $(192) |
| &nbsp;&nbsp;&nbsp;Average loans for the year | $**11292033** | $6022408 | $5436791 |
| &nbsp;&nbsp;&nbsp;Net charge-offs (recoveries)/average loans | **0.05%** | (0.07)% | —% |
| **BBCC:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Net charge-offs (recoveries) | $**(196)** | $39 | $(45) |
| &nbsp;&nbsp;&nbsp;Average loans for the year | $**352276** | $355310 | $363463 |
| &nbsp;&nbsp;&nbsp;Net charge-offs (recoveries)/average loans | **(0.06)%** | 0.01% | (0.01)% |
| **Residential real estate:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Net charge-offs (recoveries) | $**(416)** | $7 | $191 |
| &nbsp;&nbsp;Average loans for the year <sup>(1)</sup> | $**5618883** | $2257878 | $2336428 |
| &nbsp;&nbsp;&nbsp;Net charge-offs (recoveries)/average loans | **(0.01)%** | —% | 0.01% |
| **Indirect:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Net charge-offs (recoveries) | $**1262** | $(595) | $832 |
| &nbsp;&nbsp;&nbsp;Average loans for the year | $**1089394** | $879525 | $935233 |
| &nbsp;&nbsp;&nbsp;Net charge-offs (recoveries)/average loans | **0.12%** | (0.07)% | 0.09% |
| **Direct:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Net charge-offs (recoveries) | $**8242** | $382 | $944 |
| &nbsp;&nbsp;&nbsp;Average loans for the year | $**559943** | $150620 | $195795 |
| &nbsp;&nbsp;&nbsp;Net charge-offs (recoveries)/average loans | **1.47%** | 0.25% | 0.48% |
| **Home equity:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Net charge-offs (recoveries) | $**(492)** | $(896) | $(721) |
| &nbsp;&nbsp;&nbsp;Average loans for the year | $**921018** | $547322 | $553570 |
| &nbsp;&nbsp;&nbsp;Net charge-offs (recoveries)/average loans | **(0.05)%** | (0.16)% | (0.13)% |
| **Total loans:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Net charge-offs (recoveries) | $**16099** | $(4765) | $2973 |
| &nbsp;&nbsp;Average loans for the year <sup>(1)</sup> | $**27589442** | $13766590 | $13341677 |
| &nbsp;&nbsp;&nbsp;Net charge-offs (recoveries)/average loans | **0.06%** | (0.03)% | 0.02% |

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(1)Average loans exclude loans held for sale.

The allowance for credit losses on loans was $303.7 million at December 31, 2022, compared to $107.3 million at December 31, 2021. The increase reflects $89.1 million of allowance for credit losses on acquired PCD loans established through acquisition accounting adjustments as a result of the First Midwest merger. In addition, the provision for credit losses expense in 2022 included $96.3 million to establish an allowance for credit losses on non-PCD loans acquired in the First Midwest merger. Continued loan growth in future periods, a decline in our current level of recoveries, or an increase in charge-offs could result in an increase in provision expense. Additionally, provision expense may be volatile due to changes in CECL model assumptions of credit quality, macroeconomic factors and conditions, and loan composition, which drive the allowance for credit losses balance.

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The following table details the allowance for credit losses on loans by loan category and the percent of loans in each category compared to total loans at December 31.

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| | | | | |
|:---|:---|:---|:---|:---|
| | **2022** | **2022** | **2021** | **2021** |
|<br>(dollars in thousands) | **Allowance<br>Amount** | **% of<br>Loans<br>to Total<br>Loans** | **Allowance<br>Amount** | **% of<br>Loans<br>to Total<br>Loans** |
| Commercial | $**120612** | **29.9%** | $27232 | 23.5% |
| Commercial real estate | **138244** | **39.5** | 64004 | 45.8 |
| BBCC | **2431** | **1.2** | 2458 | 2.6 |
| Residential real estate | **21916** | **20.8** | 9347 | 16.6 |
| Indirect | **1532** | **3.3** | 1743 | 6.4 |
| Direct | **12116** | **2.0** | 528 | 1.0 |
| Home equity | **6820** | **3.3** | 2029 | 4.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $**303671** | **100.0%** | $107341 | 100.0% |

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We maintain an allowance for credit losses on unfunded loan commitments to provide for the risk of loss inherent in these arrangements. The allowance is computed using a methodology similar to that used to determine the allowance for credit losses on loans, modified to take into account the probability of a drawdown on the commitment. The allowance for credit losses on unfunded loan commitments is classified as a liability account on the balance sheet within accrued expenses and other liabilities, while the corresponding provision for unfunded loan commitments is included in the provision for credit losses. The allowance for credit losses on unfunded loan commitments totaled $32.2 million at December 31, 2022, compared to $10.9 million at December 31, 2021. The increase in the allowance for credit losses on unfunded loan commitments was driven by the merger with First Midwest as well as organic loan growth.

**Market Risk**

Market risk is the risk that the estimated fair value of our assets, liabilities, and derivative financial instruments will decline as a result of changes in interest rates or financial market volatility, or that our net income will be significantly reduced by interest rate changes.

The objective of our interest rate management process is to maximize net interest income while operating within acceptable limits established for interest rate risk and maintaining adequate levels of funding and liquidity.

Potential cash flows, sales, or replacement value of many of our assets and liabilities, especially those that earn or pay interest, are sensitive to changes in the general level of interest rates. This interest rate risk arises primarily from our normal business activities of gathering deposits and extending loans. Many factors affect our exposure to changes in interest rates, such as general economic and financial conditions, client preferences, historical pricing relationships, and re-pricing characteristics of financial instruments. Our earnings can also be affected by the monetary and fiscal policies of the U.S. Government and its agencies, particularly the Federal Reserve.

In managing interest rate risk, we establish guidelines for asset and liability management, including measurement of short and long-term sensitivities to changes in interest rates, which are reviewed with the Enterprise Risk Committee of our Board of Directors. Based on the results of our analysis, we may use different techniques to manage changing trends in interest rates including:

&nbsp;&nbsp;&nbsp;&nbsp;• adjusting balance sheet mix or altering interest rate characteristics of assets and liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;• changing product pricing strategies;

&nbsp;&nbsp;&nbsp;&nbsp;• modifying characteristics of the investment securities portfolio; or

&nbsp;&nbsp;&nbsp;&nbsp;• using derivative financial instruments, to a limited degree.

A key element in our ongoing process is to measure and monitor interest rate risk using a model to quantify the likely impact of changing interest rates on Old National's results of operations. The model quantifies the effects of various possible interest rate scenarios on projected net interest income. The model measures the impact on net interest income relative to a base case scenario. The base case scenario assumes that the balance sheet and interest rates are held at current levels. The model shows our projected net interest income sensitivity based on interest rate changes only and does not consider other forecast assumptions.

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The following table illustrates our projected net interest income sensitivity over a two-year cumulative horizon based on the asset/liability model as of December 31, 2022 and 2021:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Immediate<br>Rate Decrease** | **Immediate<br>Rate Decrease** | | **Immediate Rate Increase** | **Immediate Rate Increase** | **Immediate Rate Increase** |
|<br>(dollars in thousands) | **-200<br>Basis Points** | **-100<br>Basis Points** |<br>**Base** | **+100<br>Basis Points** | **+200<br>Basis Points** | **+300<br>Basis Points** |
| **December 31, 2022** |  |  |  |  |  |  |
| Projected interest income: |  |  |  |  |  |  |
| Money market, other interest earning<br> investments, and investment securities | $**620880** | $**658876** | $**698965** | $**738776** | $**778162** | $**817474** |
| &nbsp;&nbsp;&nbsp;Loans | **2664328** | **2996970** | **3340228** | **3676293** | **4007987** | **4339475** |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest income | **3285208** | **3655846** | **4039193** | **4415069** | **4786149** | **5156949** |
| Projected interest expense: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Deposits | **396535** | **554823** | **718942** | **890027** | **1061113** | **1232199** |
| &nbsp;&nbsp;&nbsp;Borrowings | **322555** | **399862** | **473953** | **551211** | **628518** | **705816** |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest expense | **719090** | **954685** | **1192895** | **1441238** | **1689631** | **1938015** |
| &nbsp;&nbsp;&nbsp;&nbsp;Net interest income | $**2566118** | $**2701161** | $**2846298** | $**2973831** | $**3096518** | $**3218934** |
| Change from base | $**(280180)** | $**(145137)** |  | $**127533** | $**250220** | $**372636** |
| % change from base | **(9.84)%** | **(5.10)%** |  | **4.48%** | **8.79%** | **13.09%** |
|  |  | **Immediate<br>Rate<br>Decrease** |  | **Immediate Rate Increase** | **Immediate Rate Increase** | **Immediate Rate Increase** |
|  |  | **-50<br>Basis Points** | **Base** | **+100<br>Basis Points** | **+200<br>Basis Points** | **+300<br>Basis Points** |
| **December 31, 2021** |  |  |  |  |  |  |
| Projected interest income: |  |  |  |  |  |  |
| Money market, other interest earning<br> investments, and investment securities |  | $286047 | $306020 | $343964 | $380103 | $414696 |
| &nbsp;&nbsp;&nbsp;Loans |  | 836118 | 867676 | 1007875 | 1151879 | 1291113 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest income |  | 1122165 | 1173696 | 1351839 | 1531982 | 1705809 |
| Projected interest expense: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Deposits |  | 14032 | 23628 | 108236 | 193024 | 277809 |
| &nbsp;&nbsp;&nbsp;Borrowings |  | 71218 | 79068 | 111178 | 146967 | 183450 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest expense |  | 85250 | 102696 | 219414 | 339991 | 461259 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net interest income |  | $1036915 | $1071000 | $1132425 | $1191991 | $1244550 |
| Change from base |  | $(34085) |  | $61425 | $120991 | $173550 |
| % change from base |  | (3.18)% |  | 5.74% | 11.30% | 16.20% |

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Our projected net interest income increased year over year due to the First Midwest merger, loan growth, and rising interest rates.

A key element in the measurement and modeling of interest rate risk is the re-pricing assumptions of our transaction deposit accounts, which have no contractual maturity dates. Because the models are driven by expected behavior in various interest rate scenarios and many factors besides market interest rates affect our net interest income, we recognize that model outputs are not guarantees of actual results. For this reason, we model many different combinations of interest rates and balance sheet assumptions to understand our overall sensitivity to market interest rate changes, including shocks, ramps, yield curve flattening, yield curve steepening, as well as forecasts of likely interest rate scenarios tested.

We use cash flow and fair value hedges, primarily interest rate swaps, collars, and floors, to mitigate interest rate risk. Derivatives designated as hedging instruments were in a net liability position with a fair value loss of $36.1 million at December 31, 2022, compared to a net asset position with a fair value gain of $1.3 million at December 31, 2021. See Note 19 to the consolidated financial statements for further discussion of derivative financial instruments.

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**Liquidity Risk**

Liquidity risk arises from the possibility that we may not be able to satisfy current or future financial commitments or may become unduly reliant on alternative funding sources. We establish liquidity risk guidelines that we review with the Enterprise Risk Committee of our Board of Directors and monitor through our Balance Sheet Management Committee. The objective of liquidity management is to ensure we have the ability to fund balance sheet growth and meet deposit and debt obligations in a timely and cost-effective manner. Management monitors liquidity through a regular review of asset and liability maturities, funding sources, and loan and deposit forecasts. We maintain strategic and contingency liquidity plans to ensure sufficient available funding to satisfy requirements for balance sheet growth, properly manage capital markets' funding sources and to address unexpected liquidity requirements. On June 5, 2020, we filed an automatic shelf registration statement with the SEC that permits us to issue an unspecified amount of debt or equity securities.

Loan repayments and maturing investment securities are a relatively predictable source of funds. However, deposit flows, calls of investment securities, and prepayments of loans and mortgage-related securities are not as predictable as they are strongly influenced by interest rates, the housing market, general and local economic conditions, and competition in the marketplace. We continually monitor marketplace trends to identify patterns that might improve the predictability of the timing of deposit flows or asset prepayments.

A maturity schedule for Old National Bank's time deposits is shown in the following table at December 31, 2022.

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| | | |
|:---|:---|:---|
| (dollars in thousands) |  |  |
| **Maturity Bucket** | **Amount** | **Rate** |
| 2023 | $2099157 | 1.54% |
| 2024 | 684377 | 2.84 |
| 2025 | 118776 | 1.02 |
| 2026 | 64207 | 0.51 |
| 2027 | 41794 | 0.60 |
| 2028 and beyond | 5469 | 0.97 |
| Total | $3013780 | 1.78% |

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Our ability to acquire funding at competitive prices is influenced by rating agencies' views of our credit quality, liquidity, capital, and earnings. Moody's Investors Service places us in an investment grade that indicates a low risk of default. For both Old National and Old National Bank:

&nbsp;&nbsp;&nbsp;&nbsp;• Moody's Investors Service affirmed the Long-Term Rating of "A3" for Old National's senior unsecured/issuer rating on February 16, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;• Moody's Investors Service affirmed Old National Bank's long-term deposit rating of "Aa3" on February 16, 2022. The bank's short-term deposit rating was affirmed at "P-1" and the bank's issuer rating was affirmed at "A3."

Moody's Investors Service concluded a rating review of Old National Bank on February 16, 2022.

The credit ratings of Old National and Old National Bank at December 31, 2022 are shown in the following table.

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| | | |
|:---|:---|:---|
| | **Moody's Investors Service** | **Moody's Investors Service** |
| | **Long-term** | **Short-term** |
| Old National | A3 | N/A |
| Old National Bank | Aa3 | P-1 |

---

------

Old National Bank maintains relationships in capital markets with brokers and dealers to issue certificates of deposit and short-term and medium-term bank notes as well. At December 31, 2022, Old National and its subsidiaries had the following availability of liquid funds and borrowings:

---

| | | |
|:---|:---|:---|
| (dollars in thousands) | **Parent<br>Company** | **Subsidiaries** |
| **Available liquid funds:** |  |  |
| &nbsp;&nbsp;&nbsp;Cash and due from banks | $297041 | $431371 |
| &nbsp;&nbsp;&nbsp;Unencumbered government-issued debt securities |  | 2193446 |
| &nbsp;&nbsp;&nbsp;Unencumbered investment grade municipal securities |  | 817889 |
| &nbsp;&nbsp;&nbsp;Unencumbered corporate securities |  | 310503 |
| **Availability of borrowings:** |  |  |
| &nbsp;&nbsp;&nbsp;Amount available from Federal Reserve discount window\* |  | 584872 |
| &nbsp;&nbsp;&nbsp;Amount available from Federal Home Loan Bank\* |  | 507199 |
| **Total available funds** | $297041 | $4845280 |

---

\* Based on collateral pledged

Old National Bancorp has routine funding requirements consisting primarily of operating expenses, dividends to shareholders, debt service, net derivative cash flows, and funds used for acquisitions. Old National Bancorp can obtain funding to meet its obligations from dividends and management fees collected from its subsidiaries, operating line of credit, and through the issuance of debt securities. Additionally, Old National Bancorp has a shelf registration in place with the SEC permitting ready access to the public debt and equity markets. At December 31, 2022, Old National Bancorp's other borrowings outstanding were $484.8 million. Management believes the Company has the ability to generate and obtain adequate amounts of liquidity to meet its requirements in the short-term and the long-term.

Federal banking laws regulate the amount of dividends that may be paid by Old National Bank to Old National Bancorp on an unconsolidated basis without obtaining prior regulatory approval. Prior regulatory approval is required if dividends to be declared in any year would exceed net earnings of the current year plus retained net profits for the preceding two years. Prior regulatory approval to pay dividends was not required in 2021 or 2022 and is not currently required. At December 31, 2022, Old National Bank could pay dividends of $303.7 million without prior regulatory approval and while maintaining capital levels above regulatory minimum and well-capitalized guidelines.

**Operational Risk**

Operational risk is the risk that inadequate information systems, operational issues, breaches in internal controls, information security breaches, fraud, or unforeseen catastrophes will result in unexpected losses and other adverse impacts to Old National, such as reputational harm. We maintain frameworks, programs, and internal controls to prevent or minimize financial loss from failure of systems, people, or processes. This includes specific programs and frameworks intended to prevent or limit the effects of cybersecurity risk including, but not limited to, cyber-attacks or other information security breaches that might allow unauthorized transactions or unauthorized access to client, team member, or company sensitive information. Metrics and measurements are used by our management team in the management of day-to-day operations to ensure effective client service, minimization of service disruptions, and oversight of cybersecurity risk. We continually monitor and internally report on weaknesses in the internal control environment, third party risks, privacy and data governance, cyber-attacks, information security or data breaches; damage to physical assets; employee and workplace safety; execution, delivery, and process management; external and internal fraud; and model risk management.

**Compliance and Regulatory Risk**

Compliance and regulatory risk is the risk that the Company violated or was not in compliance with applicable laws, regulations or practices, industry standards, or ethical standards. Compliance with applicable regulatory requirements, internal policies and procedures, and ethical standards is not only the right thing to do, but it is embedded within our culture and mission to assist our clients in achieving financial success. Adherence to this belief is the responsibility of every employee, every day, in everything we do. It is Old National's policy to comply with the letter and intent of all applicable regulatory requirements. Management, the first line of defense, is responsible for ensuring this expectation is met, with oversight from the second and third lines of defense, the risk

------

and internal audit functions, respectively. Recognizing that inadvertent violations may occur, risk management activities are established to promptly identify, analyze, and, if necessary, remediate compliance and regulatory issues to limit compliance risk exposure.

**Legal Risk**

Legal risk generally results from unidentified or unmitigated risks that could result in lawsuits or adverse judgments that negatively affect the operations or condition of the Company. Business practices must be executed, as well as products and services delivered, in a manner that is compliant with laws, regulatory requirements, and agreements to which we are a party. Corporate governance practices must be compliant with applicable legal requirements and aligned with market practices. The Board of Directors expects that we will perform business in a manner compliant with applicable laws and/or regulations and expects issues to be identified, analyzed, and remediated in a timely and complete manner.

**MATERIAL CONTRACTUAL OBLIGATIONS, COMMITMENTS, AND CONTINGENT LIABILITIES**

The following table presents our material fixed and determinable contractual obligations and significant commitments at December 31, 2022. Further discussion of each obligation or commitment is included in the referenced note to the consolidated financial statements.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **Payments Due In** | **Payments Due In** | **Payments Due In** |
|<br>(dollars in thousands) |<br>**Note<br>Reference** | **One Year<br>or Less** | **Over<br>One Year** | **Total** |
| Deposits without stated maturity |  | $**31987050** | $**—** | $**31987050** |
| IRAs, consumer deposits, and brokered certificates of deposit | 10 | **2099157** | **914623** | **3013780** |
| Federal funds purchased and interbank borrowings |  | **581489** | **—** | **581489** |
| Securities sold under agreements to repurchase | 11 | **432804** | **—** | **432804** |
| Federal Home Loan Bank advances | 12 | **950149** | **2878869** | **3829018** |
| Other borrowings | 13 | **90276** | **652727** | **743003** |

---

We are party to various derivative contracts as a means to manage the balance sheet and our related exposure to changes in interest rates, to manage our residential real estate loan origination and sale activity, and to provide derivative contracts to our clients. Since the derivative liabilities recorded on the balance sheet change frequently and do not represent the amounts that may ultimately be paid under these contracts, these liabilities are not included in the table of contractual obligations presented above. Further discussion of derivative instruments is included in Note 19 to the consolidated financial statements.

In the normal course of business, various legal actions and proceedings are pending against us and our affiliates which are incidental to the business in which they are engaged. Further discussion of contingent liabilities is included in Note 20 to the consolidated financial statements.

In addition, liabilities recorded under FASB ASC 740-10 (FASB Interpretation No. 48, *Accounting for Uncertainty in Income Taxes – an interpretation of FASB Statement No. 109*) are not included in the table because the amount and timing of any cash payments cannot be reasonably estimated. Further discussion of income taxes and liabilities is included in Note 15 to the consolidated financial statements.

**CRITICAL ACCOUNTING ESTIMATES**

Our most significant accounting policies are described in Note 1 to the consolidated financial statements. Certain of these accounting policies require management to use significant judgment and estimates, which can have a material impact on the carrying value of certain assets and liabilities. We consider these policies to be our critical accounting estimates. The judgment and assumptions made are based upon historical experience, future forecasts, or other factors that management believes to be reasonable under the circumstances. Because of the nature of the judgment and assumptions, actual results could differ from estimates, which could have a material effect on our financial condition and results of operations.

The following accounting policies materially affect our reported earnings and financial condition and require significant judgments and estimates. Management has reviewed these critical accounting estimates and related disclosures with our Audit Committee.

------

**Business Combinations and Goodwill**

&nbsp;&nbsp;&nbsp;&nbsp;• **Description.** For mergers and acquisitions, we are required to record the assets acquired, including identified intangible assets such as core deposit and customer trust relationship intangibles, and the liabilities assumed at their fair value. The difference between consideration and the net fair value of assets acquired is recorded as goodwill. Management uses significant estimates and assumptions to value such items, including projected cash flows, repayment rates, default rates and losses assuming default, discount rates, and realizable collateral values. The allowance for credit losses for PCD loans is recognized within acquisition accounting. The allowance for credit losses for non-PCD assets is recognized as provision for credit losses in the same reporting period as the merger or acquisition. Fair value adjustments are amortized or accreted into the income statement over the estimated life of the acquired assets or assumed liabilities. The purchase date valuations and any subsequent adjustments determine the amount of goodwill recognized in connection with the merger or acquisition. The use of different assumptions could produce significantly different valuation results, which could have material positive or negative effects on our results of operations. The carrying value of goodwill recorded must be reviewed for impairment on an annual basis, as well as on an interim basis if events or changes indicate that the asset might be impaired. An impairment loss must be recognized for any excess of carrying value over fair value of the goodwill.

&nbsp;&nbsp;&nbsp;&nbsp;• **Judgments and Uncertainties.** The determination of fair values is based on valuations using management's assumptions of future growth rates, future attrition, discount rates, multiples of earnings or other relevant factors. In addition, we engage third party specialists to assist in the development of fair values. Preliminary estimates of fair values may be adjusted for a period of time subsequent to the merger or acquisition date if new information is obtained about facts and circumstances that existed as of the merger or acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. Adjustments recorded during this period are recognized in the current reporting period. Management uses various valuation methodologies to estimate the fair value of these assets and liabilities, and often involves a significant degree of judgment, particularly when liquid markets do not exist for the particular item being valued. Examples of such items include loans, deposits, identifiable intangible assets, and certain other assets and liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;• **Effect if Actual Results Differ From Assumptions.** Changes in these factors, as well as downturns in economic or business conditions, could have a significant adverse impact on the carrying value of assets, including goodwill and liabilities, which could result in impairment losses affecting our financial statements as a whole and our banking subsidiary in which the goodwill resides.

&nbsp;&nbsp;&nbsp;&nbsp;• **Pandemic.** A prolonged COVID-19 pandemic, or any other epidemic that harms the global economy, U.S. economy, or the economies in which we operate could adversely affect our operations. Goodwill is especially susceptible to risk of impairment during prolonged periods of economic downturn.

**Allowance for Credit Losses on Loans**

&nbsp;&nbsp;&nbsp;&nbsp;• **Description.** The allowance for credit losses on loans represents management's estimate of all expected credit losses over the expected contractual life of our loan portfolio. Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. Subsequent evaluations of the then-existing loan portfolio, in light of the factors then prevailing, may result in significant changes in the allowance for credit losses in those future periods.

The allowance for credit losses on loans, as reported in our consolidated statements of financial condition, is adjusted by an expense for credit losses, which is recognized in earnings, and reduced by the charge-off of loan amounts, net of recoveries.

&nbsp;&nbsp;&nbsp;&nbsp;• **Judgments and Uncertainties.** We utilize a discounted cashflow approach to determine the allowance for credit losses for performing loans and nonperforming loans. Expected cashflows are created for each loan and discounted using the effective yield method. The discounted sum of expected cashflows is then compared to the amortized cost and any shortfall is recorded as an allowance. Expected cashflows are created using a combination of contractual payment schedules, calculated PDs, LGD and prepayment assumptions as well as qualitative factors. For commercial and commercial real estate loans, the PD is forecasted using a regression model to determine the likelihood of a loan moving into nonaccrual within the time horizon. For residential and consumer loans, the PD is forecasted using a regression model to determine the likelihood of a loan being charged-off within the time horizon. The regression models use combinations

------

of variables to assess systematic and unsystematic risk. Variables used for unsystematic risk are borrower specific and help to gauge the risk of default from an individual borrower. Variables for systematic risk, risk inherent to all borrowers, come from the use of forward-looking economic forecasts and include variables such as unemployment rate, gross domestic product, and house price index. The LGD is defined as credit loss incurred when an obligor of the bank defaults. Qualitative factors include items such as changes in lending policies or procedures and economic uncertainty in forward-looking forecasts.

&nbsp;&nbsp;&nbsp;&nbsp;• **Effect if Actual Results Differ From Assumptions.** The allowance represents management's best estimate, but significant downturns in circumstances relating to loan quality and economic conditions could result in a requirement for additional allowance. Likewise, an upturn in loan quality and improved economic conditions may allow a reduction in the required allowance. In either instance, unanticipated changes could have a significant impact on results of operations.

One of the most significant judgments used in determining the allowance for credit losses is the macroeconomic forecast provided by a third party. The economic indices sourced from the macroeconomic forecast and used in projecting loss rates include the national unemployment rate, changes in commercial real estate prices, changes in home values, and changes in the United States gross domestic product. The economic index used in the calculation to which the calculation may be most sensitive is the national unemployment rate. Each reporting period, several macroeconomic forecast scenarios are considered by management. Management selects the macroeconomic forecast that is most reflective of expectations at that point in time. Changes in the macroeconomic forecast, especially for the national unemployment rate, could significantly impact the calculated estimated credit losses.

The expense for credit loss recorded through earnings is the amount necessary to maintain the allowance for credit losses at the amount of expected credit losses inherent within the loans held for investment portfolio. The amount of expense and the corresponding level of allowance for credit losses on loans are based on our evaluation of the collectability of the loan portfolio based on historical loss experience, reasonable and supportable forecasts, and other significant qualitative and quantitative factors.

**Derivative Financial Instruments**

&nbsp;&nbsp;&nbsp;&nbsp;• **Description.** As part of our overall interest rate risk management, we use derivative instruments to reduce exposure to changes in interest rates and market prices for financial instruments. The application of the hedge accounting policy requires judgment in the assessment of hedge effectiveness, identification of similar hedged item groupings and measurement of changes in the fair value of derivative financial instruments and hedged items. To the extent hedging relationships are found to be effective, changes in fair value of the derivatives are offset by changes in the fair value of the related hedged item or recorded to other comprehensive income (loss). Management believes hedge effectiveness is evaluated properly in preparation of the financial statements. All of the derivative financial instruments we use have an active market and indications of fair value can be readily obtained. We are not using the "short-cut" method of accounting for any fair value derivatives.

Credit risk arises from the possible inability of counterparties to meet the terms of their contracts. Old National's exposure is limited to the termination value of the contracts rather than the notional, principal, or contract amounts. There are provisions in our agreements with the counterparties that allow for certain unsecured credit exposure up to an agreed threshold. Exposures in excess of the agreed thresholds are collateralized. In addition, we minimize credit risk through credit approvals, limits, and monitoring procedures.

&nbsp;&nbsp;&nbsp;&nbsp;• **Judgments and Uncertainties.** The application of the hedge accounting policy requires judgment in the assessment of hedge effectiveness, identification of similar hedged item groupings and measurement of changes in the fair value of derivative financial instruments and hedged items.

&nbsp;&nbsp;&nbsp;&nbsp;• **Effect if Actual Results Differ From Assumptions.** To the extent hedging relationships are found to be effective, changes in fair value of the derivatives are offset by changes in the fair value of the related hedged item or recorded to other comprehensive income (loss). However, if in the future the derivative financial instruments used by us no longer qualify for hedge accounting treatment, all changes in fair value of the derivative would flow through the consolidated statements of income in other noninterest income, resulting in greater volatility in our earnings.

------

**Income Taxes**

&nbsp;&nbsp;&nbsp;&nbsp;• **Description.** We are subject to the income tax laws of the U.S., its states, and the municipalities in which we operate. These tax laws are complex and subject to different interpretations by the taxpayer and the relevant government taxing authorities. We review income tax expense and the carrying value of deferred tax assets quarterly; and as new information becomes available, the balances are adjusted as appropriate. FASB ASC 740-10 (FIN 48) prescribes a recognition threshold of more-likely-than-not, and a measurement attribute for all tax positions taken or expected to be taken on a tax return, in order for those tax positions to be recognized in the financial statements. See Note 15 to the consolidated financial statements for a further description of our provision and related income tax assets and liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;• **Judgments and Uncertainties.** In establishing a provision for income tax expense, we must make judgments and interpretations about the application of these inherently complex tax laws. We must also make estimates about when in the future certain items will affect taxable income in the various tax jurisdictions. Disputes over interpretations of the tax laws may be subject to review/adjudication by the court systems of the various tax jurisdictions or may be settled with the taxing authority upon examination or audit.

&nbsp;&nbsp;&nbsp;&nbsp;• **Effect if Actual Results Differ From Assumptions.** Although management believes that the judgments and estimates used are reasonable, actual results could differ and we may be exposed to losses or gains that could be material. To the extent we prevail in matters for which reserves have been established or are required to pay amounts in excess of our reserves, our effective income tax rate in a given financial statement period could be materially affected. An unfavorable tax settlement would result in an increase in our effective income tax rate in the period of resolution. A favorable tax settlement would result in a reduction in our effective income tax rate in the period of resolution.

Management has discussed the development and selection of these critical accounting estimates with the Audit Committee and the Audit Committee has reviewed our disclosure relating to it in this "Management's Discussion and Analysis of Financial Condition and Results of Operations."

**ITEM 7A.&nbsp;&nbsp;&nbsp;&nbsp;QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

The information contained under the caption "Management's Discussion and Analysis of Financial Condition and Results of Operations – Market Risk" of this Form 10-K is incorporated herein by reference in response to this item.

------

**ITEM 8.&nbsp;&nbsp;&nbsp;&nbsp;FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA** 

---

| | |
|:---|:---|
| | Page |
| <u>[Report of Management](#iee732ed8baad4269b53c9a67c572324a_79)</u> | [69](#iee732ed8baad4269b53c9a67c572324a_79) |
| <u>[Report of Independent Registered Public Accounting Firm](#iee732ed8baad4269b53c9a67c572324a_82)</u> (PCAOB ID: 173) | [70](#iee732ed8baad4269b53c9a67c572324a_82) |
| <u>[Consolidated Balance Sheets](#iee732ed8baad4269b53c9a67c572324a_85)</u> | [74](#iee732ed8baad4269b53c9a67c572324a_85) |
| <u>[Consolidated Statements of Income](#iee732ed8baad4269b53c9a67c572324a_88)</u> | [75](#iee732ed8baad4269b53c9a67c572324a_88) |
| <u>[Consolidated Statements of Comprehensive Income](#iee732ed8baad4269b53c9a67c572324a_91)[(](#iee732ed8baad4269b53c9a67c572324a_91)[Loss)](#iee732ed8baad4269b53c9a67c572324a_91)</u> | [76](#iee732ed8baad4269b53c9a67c572324a_91) |
| <u>[Consolidated Statements of Changes in Shareholders' Equity](#iee732ed8baad4269b53c9a67c572324a_94)</u> | [77](#iee732ed8baad4269b53c9a67c572324a_94) |
| <u>[Consolidated Statements of Cash Flows](#iee732ed8baad4269b53c9a67c572324a_97)</u> | [78](#iee732ed8baad4269b53c9a67c572324a_97) |
| <u>[Notes to Consolidated Financial Statements](#iee732ed8baad4269b53c9a67c572324a_100)</u> | [79](#iee732ed8baad4269b53c9a67c572324a_100) |
| <u>[Note 1. Basis of Presentation and Significant Accounting Policies](#iee732ed8baad4269b53c9a67c572324a_103)</u> | [79](#iee732ed8baad4269b53c9a67c572324a_103) |
| <u>[Note 2.](#iee732ed8baad4269b53c9a67c572324a_106)[Merger](#iee732ed8baad4269b53c9a67c572324a_106)[,](#iee732ed8baad4269b53c9a67c572324a_106)[Acquisition](#iee732ed8baad4269b53c9a67c572324a_106)[,](#iee732ed8baad4269b53c9a67c572324a_106)[and Divestiture Activity](#iee732ed8baad4269b53c9a67c572324a_106)</u> | [87](#iee732ed8baad4269b53c9a67c572324a_106) |
| <u>[Note 3. Investment Securities](#iee732ed8baad4269b53c9a67c572324a_109)</u> | [90](#iee732ed8baad4269b53c9a67c572324a_109) |
| <u>[Note 4. Loans and Allowance for Credit Losses](#iee732ed8baad4269b53c9a67c572324a_112)</u> | [93](#iee732ed8baad4269b53c9a67c572324a_112) |
| <u>[Note](#iee732ed8baad4269b53c9a67c572324a_118)[5](#iee732ed8baad4269b53c9a67c572324a_118)[. Premises and Equipment](#iee732ed8baad4269b53c9a67c572324a_118)</u> | [106](#iee732ed8baad4269b53c9a67c572324a_118) |
| <u>[Note](#iee732ed8baad4269b53c9a67c572324a_121)[6](#iee732ed8baad4269b53c9a67c572324a_121)[. Leases](#iee732ed8baad4269b53c9a67c572324a_121)</u> | [106](#iee732ed8baad4269b53c9a67c572324a_121) |
| <u>[Note](#iee732ed8baad4269b53c9a67c572324a_124)[7](#iee732ed8baad4269b53c9a67c572324a_124)[. Goodwill and Other Intangible Assets](#iee732ed8baad4269b53c9a67c572324a_124)</u> | [108](#iee732ed8baad4269b53c9a67c572324a_124) |
| <u>[Note](#iee732ed8baad4269b53c9a67c572324a_127)[8](#iee732ed8baad4269b53c9a67c572324a_127)[. Loan Servicing Rights](#iee732ed8baad4269b53c9a67c572324a_127)</u> | [109](#iee732ed8baad4269b53c9a67c572324a_127) |
| <u>[Note](#iee732ed8baad4269b53c9a67c572324a_130)[9](#iee732ed8baad4269b53c9a67c572324a_130)[. Qualified Affordable Housing Projects and Other Tax Credit Investments](#iee732ed8baad4269b53c9a67c572324a_130)</u> | [109](#iee732ed8baad4269b53c9a67c572324a_130) |
| <u>[Note 1](#iee732ed8baad4269b53c9a67c572324a_133)[0](#iee732ed8baad4269b53c9a67c572324a_133)[. Deposits](#iee732ed8baad4269b53c9a67c572324a_133)</u> | [111](#iee732ed8baad4269b53c9a67c572324a_133) |
| <u>[Note 1](#iee732ed8baad4269b53c9a67c572324a_136)[1](#iee732ed8baad4269b53c9a67c572324a_136)[. Securities Sold Under Agreements to Repurchase](#iee732ed8baad4269b53c9a67c572324a_136)</u> | [111](#iee732ed8baad4269b53c9a67c572324a_136) |
| <u>[Note 1](#iee732ed8baad4269b53c9a67c572324a_139)[2](#iee732ed8baad4269b53c9a67c572324a_139)[. Federal Home Loan Bank Advances](#iee732ed8baad4269b53c9a67c572324a_139)</u> | [111](#iee732ed8baad4269b53c9a67c572324a_139) |
| <u>[Note 1](#iee732ed8baad4269b53c9a67c572324a_142)[3](#iee732ed8baad4269b53c9a67c572324a_142)[. Other Borrowings](#iee732ed8baad4269b53c9a67c572324a_142)</u> | [112](#iee732ed8baad4269b53c9a67c572324a_142) |
| <u>[Note 1](#iee732ed8baad4269b53c9a67c572324a_145)[4](#iee732ed8baad4269b53c9a67c572324a_145)[. Accumulated Other Comprehensive Income (Loss)](#iee732ed8baad4269b53c9a67c572324a_145)</u> | [114](#iee732ed8baad4269b53c9a67c572324a_145) |
| <u>[Note 1](#iee732ed8baad4269b53c9a67c572324a_148)[5](#iee732ed8baad4269b53c9a67c572324a_148)[. Income Taxes](#iee732ed8baad4269b53c9a67c572324a_148)</u> | [115](#iee732ed8baad4269b53c9a67c572324a_148) |
| <u>[Note 1](#iee732ed8baad4269b53c9a67c572324a_151)[6](#iee732ed8baad4269b53c9a67c572324a_151)[. Share-Based Compensation and Other Employee Benefit Plans](#iee732ed8baad4269b53c9a67c572324a_151)</u> | [117](#iee732ed8baad4269b53c9a67c572324a_151) |
| <u>[Note 1](#iee732ed8baad4269b53c9a67c572324a_154)[7](#iee732ed8baad4269b53c9a67c572324a_154)[. Shareholders' Equity](#iee732ed8baad4269b53c9a67c572324a_154)</u> | [119](#iee732ed8baad4269b53c9a67c572324a_154) |
| <u>[Note 1](#iee732ed8baad4269b53c9a67c572324a_157)[8](#iee732ed8baad4269b53c9a67c572324a_157)[. Fair Value](#iee732ed8baad4269b53c9a67c572324a_157)</u> | [120](#iee732ed8baad4269b53c9a67c572324a_157) |
| <u>[Note](#iee732ed8baad4269b53c9a67c572324a_160)[19](#iee732ed8baad4269b53c9a67c572324a_160)[. Derivative Financial Instruments](#iee732ed8baad4269b53c9a67c572324a_160)</u> | [127](#iee732ed8baad4269b53c9a67c572324a_160) |
| <u>[Note 2](#iee732ed8baad4269b53c9a67c572324a_163)[0](#iee732ed8baad4269b53c9a67c572324a_163)[. Commitments](#iee732ed8baad4269b53c9a67c572324a_163)[,](#iee732ed8baad4269b53c9a67c572324a_163)[Contingencies](#iee732ed8baad4269b53c9a67c572324a_163)[, and Finan](#iee732ed8baad4269b53c9a67c572324a_163)[cial Guarantees](#iee732ed8baad4269b53c9a67c572324a_163)</u> | [130](#iee732ed8baad4269b53c9a67c572324a_163) |
| <u>[Note 2](#iee732ed8baad4269b53c9a67c572324a_172)[1](#iee732ed8baad4269b53c9a67c572324a_172)[. Regulatory Restrictions](#iee732ed8baad4269b53c9a67c572324a_172)</u> | [131](#iee732ed8baad4269b53c9a67c572324a_172) |
| <u>[Note 2](#iee732ed8baad4269b53c9a67c572324a_175)[2](#iee732ed8baad4269b53c9a67c572324a_175)[. Parent Company Financial Statements](#iee732ed8baad4269b53c9a67c572324a_175)</u> | [134](#iee732ed8baad4269b53c9a67c572324a_175) |
| <u>[Note 2](#iee732ed8baad4269b53c9a67c572324a_178)[3](#iee732ed8baad4269b53c9a67c572324a_178)[. Segment Information](#iee732ed8baad4269b53c9a67c572324a_178)</u> | [135](#iee732ed8baad4269b53c9a67c572324a_178) |

---

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**REPORT OF MANAGEMENT**

**MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL REPORTING**

Management is responsible for the preparation of the financial statements and related financial information appearing in this annual report on Form 10-K. The financial statements and notes have been prepared in conformity with accounting principles generally accepted in the United States and include some amounts which are estimates based upon currently available information and management's judgment of current conditions and circumstances. Financial information throughout this annual report on Form 10-K is consistent with that in the financial statements.

Management maintains a system of internal accounting controls, which is believed to provide, in all material respects, reasonable assurance that assets are safeguarded against loss from unauthorized use or disposition, transactions are properly authorized and recorded, and the financial records are reliable for preparing financial statements and maintaining accountability for assets. In addition, Old National has a Code of Business Conduct and Ethics, a Senior Financial and Executive Officer Code of Ethics and Corporate Governance Guidelines that outline high levels of ethical business standards. Old National has also appointed a Chief Ethics Officer and had a third party perform an independent validation of our ethics program. All systems of internal accounting controls are based on management's judgment that the cost of controls should not exceed the benefits to be achieved and that no system can provide absolute assurance that control objectives are achieved. Management believes Old National's system provides the appropriate balance between cost of controls and the related benefits.

In order to monitor compliance with this system of controls, Old National maintains an extensive internal audit program. Internal audit reports are issued to appropriate officers and significant audit exceptions, if any, are reviewed with management and the Audit Committee.

The Board of Directors, through an Audit Committee comprised solely of independent outside directors, oversees management's discharge of its financial reporting responsibilities. The Audit Committee meets regularly with Old National's independent registered public accounting firm, Crowe LLP, and the managers of financial reporting, internal audit, and risk. During these meetings, the committee meets privately with the independent registered public accounting firm as well as with financial reporting and internal audit personnel to review accounting, auditing, and financial reporting matters. The appointment of the independent registered public accounting firm is made by the Audit Committee.

The consolidated financial statements in this annual report on Form 10-K have been audited by Crowe LLP, for the purpose of determining that the consolidated financial statements are presented fairly, in all material respects in conformity with accounting principles generally accepted in the United States. Crowe LLP's report on the financial statements follows.

**MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING**

The management of Old National is responsible for establishing and maintaining adequate internal control over financial reporting. A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Old National's management assessed the effectiveness of Old National's internal control over financial reporting as of December 31, 2022. In making this assessment, management used the criteria established in 2013 by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO") in *Internal Control - Integrated Framework*. Based on that assessment, Old National has concluded that, as of December 31, 2022, Old National's internal control over financial reporting is effective. Old National's independent registered public accounting firm has audited the effectiveness of Old National's internal control over financial reporting as of December 31, 2022 as stated in their report, which follows.

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| | |
|:---|:---|
| ![onb-20221231_g2.jpg](onb-20221231_g2.jpg) | |
| ![onb-20221231_g2.jpg](onb-20221231_g2.jpg) | |
| ![onb-20221231_g2.jpg](onb-20221231_g2.jpg) | **Crowe LLP**<br>Independent Member Crowe Global |

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Shareholders and the Board of Directors of Old National Bancorp

Evansville, Indiana

**Opinions on the Financial Statements and Internal Control over Financial Reporting**

We have audited the accompanying consolidated balance sheets of Old National Bancorp (the "Company") as of December 31, 2022 and 2021, the related consolidated statements of income, comprehensive income (loss), changes in shareholders' equity, and cash flows for each of the years in the three-year period ended December 31, 2022, and the related notes (collectively referred to as the "financial statements"). We also have audited the Company's internal control over financial reporting as of December 31, 2022, based on criteria established in Internal Control – Integrated Framework: (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO").

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2022 and 2021, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2022 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2022, based on criteria established in Internal Control – Integrated Framework: (2013) issued by COSO.

**Basis for Opinions**

The Company's management is responsible for these financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Assessment of Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company's financial statements and an opinion on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the financial statements included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

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**Definition and Limitations of Internal Control Over Financial Reporting**

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

**Critical Audit Matters**

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

*Allowance and Provision for Credit Losses on Loans – Forecasting and Qualitative Factors, and Model Design for Acquired Loans* 

The allowance for credit losses (the "ACL") is an accounting estimate of expected credit losses over the contractual life of financial assets carried at amortized cost and off-balance-sheet credit exposures as described in Notes 1 and 4 of the consolidated financial statements. A financial asset (or a group of financial assets), including the Company's loan portfolio, is required to be measured at amortized cost to be presented at the net amount expected to be collected. Estimates of expected credit losses for loans are based on historical experience, current conditions, and reasonable and supportable forecasts over the expected life of the loans. At December 31, 2022, the ACL on the overall loan portfolio was $303.7 million. As part of the Company's merger with First Midwest Bancorp, Inc. ("FMB"), the Company recorded $96.3 million of provision for credit losses to establish an ACL on acquired non-purchased credit deteriorated (PCD) loans and $89.1 million to establish an ACL for acquired PCD loans.

The Company utilizes a discounted cash flow ("DCF") approach with probability of default ("PD") methodology. The PD regression models use combinations of variables to assess risk including unsystematic risk to help gauge the risk of default from an individual borrower and variables for systematic risk applicable to all borrowers. Other assumptions used to determine the quantitative allowance include the loss given default ("LGD"), which is defined as credit loss incurred when an obligor of the bank defaults, and prepayment assumptions. Expected cash flows are created for each loan using reasonable and supportable forecasts and discounted using the loan's effective yield. The discounted sum of expected cash flows is then compared to the amortized cost and any shortfall is recorded as a component of the ACL. The quantitative allowance is adjusted by qualitative factors, including items such as changes in lending policies or procedures and economic uncertainty in forward-looking forecasts. The same methods and assumptions used to determine the quantitative and qualitative allowance were applied to the FMB acquired loans since the merger date. A significant amount of management judgment is required to determine the reasonable and supportable forecasts and the qualitative factors for the ACL, and the model design for FMB acquired loans at the merger date.

------

We identified auditing the reasonable and supportable forecasts and the qualitative factors for the ACL, and the model design for FMB acquired loans used in developing the ACL at the merger date, as a critical audit matter because of the extent of auditor judgment applied and significant audit effort required to evaluate the especially subjective and complex judgments made by management, including the need for specialized skills. The principal considerations resulting in our determination included the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Significant auditor judgment and audit effort required to evaluate the determination of the reasonable and supportable forecast and qualitative factors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Significant auditor judgment and audit effort required to evaluate the model design for FMB acquired loans, including the evaluation of the method, significant assumptions, and data used in the model design.

The primary procedures performed to address the critical audit matter included:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Testing the effectiveness of management's internal controls over the determination of the reasonable and supportable forecast, the qualitative factors, and model design for FMB acquired loans, including controls addressing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Management's review of the appropriateness of the reasonable and supportable forecasts and qualitative factors applied in the estimate of ACL, including the review of relevance and reliability of data used in the estimate

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Management's review of the appropriateness of the models and reasonableness of the significant assumptions used to establish the ACL for FMB acquired loans, including the review of relevance and reliability of data used in the estimate

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Management's review of the results of the model validation related to the ACL for FMB acquired loans

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Substantively testing management's process for the determination of reasonable and supportable forecast, the qualitative factors, and model design for FMB acquired loans, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Evaluating management's judgments in the selection and application of reasonable and supportable forecasts and qualitative factors, including the relevance and reliability of data used in the estimate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Evaluating the relevance and reliability of data used in the models for the FMB acquired loans

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Evaluating, with the assistance of internal valuation specialists, the reasonableness of the conceptual design of the models and the significant assumptions applied in the ACL for FMB acquired loans

*Merger - Fair Value of Loans Acquired*

As described in Note 2 to the consolidated financial statements, the Company completed the merger transaction with FMB on February 15, 2022. The merger transaction was accounted for as a business combination and accordingly, the assets acquired and liabilities assumed from FMB were recorded at fair value as of the merger date. The merger date fair value of loans acquired from FMB was approximately $14.6 billion. Accounting for the merger date fair value of loans acquired requires management to make significant judgments about the selection and application of assumptions.

We identified auditing the merger date fair value of loans acquired as a critical audit matter because it required especially subjective auditor judgment. The principal considerations resulting in our determination included the significant auditor judgment and effort required to evaluate the reasonableness of management's assumptions used, including the need for specialized skills.

------

The primary procedures performed to address the critical audit matter included:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Testing the effectiveness of management's internal controls over the determination of merger date fair value of loans acquired, including controls addressing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Evaluation of the reasonableness of methods and significant assumptions applied in the estimate of merger date fair value of loans acquired

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Evaluation of the relevance and reliability of data used in the valuation of merger date fair value of loans acquired

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Substantively testing management's process for developing the merger date fair value of loans acquired, which included:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Testing the relevance and reliability of data used as a basis for the valuation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Evaluating, with the assistance of our internal valuation specialists, the reasonableness of the methods and significant assumptions applied in the estimate of the fair value of loans acquired, including the application of the significant assumptions used in the valuation

![onb-20221231_g3.jpg](onb-20221231_g3.jpg)

Crowe LLP

We have served as the Company's auditor since 2005, which is the year the engagement letter was signed for the audit of the 2006 financial statements.

Louisville, Kentucky

February 22, 2023

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**OLD NATIONAL BANCORP**

**CONSOLIDATED BALANCE SHEETS**

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| | | |
|:---|:---|:---|
| | **December 31,** | **December 31,** |
|<br>(dollars and shares in thousands, except per share data) | **2022** | **2021** |
| **Assets** |  |  |
| Cash and due from banks | $**453432** | $172663 |
| Money market and other interest-earning investments | **274980** | 649356 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total cash and cash equivalents | **728412** | 822019 |
| Equity securities, at fair value | **52507** | 13211 |
| Investment securities - available-for-sale, at fair value (amortized cost<br>&nbsp;&nbsp;&nbsp;&nbsp;$7,772,603 and $7,384,033, respectively) | **6773712** | 7382066 |
| Investment securities - held-to-maturity, at amortized cost (fair value<br>&nbsp;&nbsp;&nbsp;&nbsp;$2,643,682 and $0, respectively) | **3089147** |  |
| Federal Home Loan Bank/Federal Reserve Bank stock, at cost | **314168** | 169375 |
| Loans held for sale, at fair value | **11926** | 35458 |
| Loans: |  |  |
| &nbsp;&nbsp;&nbsp;Commercial | **9508904** | 3391769 |
| &nbsp;&nbsp;&nbsp;Commercial real estate | **12457070** | 6380674 |
| &nbsp;&nbsp;&nbsp;Residential real estate | **6460441** | 2255289 |
| &nbsp;&nbsp;&nbsp;Consumer credit, net of unearned income | **2697226** | 1574114 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total loans, net of unearned income | **31123641** | 13601846 |
| Allowance for credit losses on loans | **(303671)** | (107341) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loans | **30819970** | 13494505 |
| Premises and equipment, net | **557307** | 476186 |
| Operating lease right-of-use assets | **189714** | 69560 |
| Accrued interest receivable | **190521** | 84109 |
| Goodwill | **1998716** | 1036994 |
| Other intangible assets | **126405** | 34678 |
| Company-owned life insurance | **768552** | 463324 |
| Other assets | **1142315** | 372079 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | $**46763372** | $24453564 |
| **Liabilities** |  |  |
| Deposits: |  |  |
| &nbsp;&nbsp;&nbsp;Noninterest-bearing demand | $**11930798** | $6303106 |
| &nbsp;&nbsp;&nbsp;Interest-bearing: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Checking and NOW | **8340955** | 5338022 |
| &nbsp;&nbsp;&nbsp;&nbsp;Savings | **6326158** | 3798494 |
| &nbsp;&nbsp;&nbsp;&nbsp;Money market | **5389139** | 2169160 |
| &nbsp;&nbsp;&nbsp;&nbsp;Time deposits | **3013780** | 960413 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deposits | **35000830** | 18569195 |
| Federal funds purchased and interbank borrowings | **581489** | 276 |
| Securities sold under agreements to repurchase | **432804** | 392275 |
| Federal Home Loan Bank advances | **3829018** | 1886019 |
| Other borrowings | **743003** | 296670 |
| Operating lease liabilities | **211964** | 76236 |
| Accrued expenses and other liabilities | **835669** | 220875 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | **41634777** | 21441546 |
| Commitments and contingencies (Note 20) |  |  |
| **Shareholders' Equity** |  |  |
| Preferred stock, 2,000 shares authorized, 231 and 0 shares issued and outstanding, respectively | **230500** |  |
| Common stock, $1.00 per share stated value, 600,000 shares authorized, 292,903<br>&nbsp;&nbsp;&nbsp;&nbsp;and 165,838 shares issued and outstanding, respectively | **292903** | 165838 |
| Capital surplus | **4174265** | 1880545 |
| Retained earnings | **1217349** | 968010 |
| Accumulated other comprehensive income (loss), net of tax | **(786422)** | (2375) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total shareholders' equity | **5128595** | 3012018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and shareholders' equity | $**46763372** | $24453564 |

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The accompanying notes to consolidated financial statements are an integral part of these statements.

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**OLD NATIONAL BANCORP**

**CONSOLIDATED STATEMENTS OF INCOME**

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| | | | |
|:---|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|<br>(dollars and shares in thousands, except per share data) | **2022** | **2021** | **2020** |
| **Interest Income** |  |  |  |
| Loans including fees: |  |  |  |
| &nbsp;&nbsp;&nbsp;Taxable | $**1177816** | $490042 | $515980 |
| &nbsp;&nbsp;&nbsp;Nontaxable | **25931** | 12392 | 13908 |
| Investment securities: |  |  |  |
| &nbsp;&nbsp;&nbsp;Taxable | **204004** | 98031 | 98953 |
| &nbsp;&nbsp;&nbsp;Nontaxable | **43637** | 37595 | 33899 |
| Money market and other interest-earning investments | **2814** | 589 | 568 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest income | **1454202** | 638649 | 663308 |
| **Interest Expense** |  |  |  |
| Deposits | **49093** | 10954 | 28169 |
| Federal funds purchased and interbank borrowings | **5021** |  | 1296 |
| Securities sold under agreements to repurchase | **843** | 397 | 854 |
| Federal Home Loan Bank advances | **51524** | 21075 | 27274 |
| Other borrowings | **19785** | 9823 | 9621 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest expense | **126266** | 42249 | 67214 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net interest income | **1327936** | 596400 | 596094 |
| Provision for credit losses | **144799** | (29622) | 42879 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net interest income after provision for credit losses | **1183137** | 626022 | 553215 |
| **Noninterest Income** |  |  |  |
| Wealth management fees | **69102** | 40409 | 36806 |
| Service charges on deposit accounts | **72501** | 31658 | 32557 |
| Debit card and ATM fees | **40227** | 23766 | 22702 |
| Mortgage banking revenue | **23015** | 42558 | 62775 |
| Investment product fees | **31749** | 24639 | 21614 |
| Capital markets income | **25986** | 21997 | 22480 |
| Company-owned life insurance | **14564** | 10589 | 12031 |
| Debt securities gains (losses), net | **(88)** | 4327 | 10767 |
| Gain on sale of health savings accounts | **90673** |  |  |
| Other income | **32050** | 14276 | 17542 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total noninterest income | **399779** | 214219 | 239274 |
| **Noninterest Expense** |  |  |  |
| Salaries and employee benefits | **575626** | 284098 | 293590 |
| Occupancy | **100421** | 54834 | 55316 |
| Equipment | **27637** | 16704 | 16690 |
| Marketing | **32264** | 12684 | 10874 |
| Data processing | **84865** | 47047 | 41086 |
| Communication | **18846** | 10073 | 9731 |
| Professional fees | **39046** | 20077 | 15755 |
| FDIC assessment | **19332** | 6059 | 6722 |
| Amortization of intangibles | **25857** | 11336 | 14091 |
| Amortization of tax credit investments | **10961** | 6770 | 18788 |
| Property optimization | **26818** |  | 27050 |
| Other expense | **76510** | 31697 | 27240 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total noninterest expense | **1038183** | 501379 | 536933 |
| &nbsp;&nbsp;&nbsp;Income before income taxes | **544733** | 338862 | 255556 |
| Income tax expense | **116446** | 61324 | 29147 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | **428287** | 277538 | 226409 |
| Preferred dividends | **(14118)** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income applicable to common shareholders | $**414169** | $277538 | $226409 |
| Net income per common share - basic | $**1.51** | $1.68 | $1.37 |
| Net income per common share - diluted | **1.50** | 1.67 | 1.36 |
| Weighted average number of common shares outstanding - basic | **275179** | 165178 | 165509 |
| Weighted average number of common shares outstanding - diluted | **276688** | 165929 | 166177 |
| Dividends per common share | $**0.56** | $0.56 | $0.56 |

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The accompanying notes to consolidated financial statements are an integral part of these statements.

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**OLD NATIONAL BANCORP**

**CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)**

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| | | | |
|:---|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|<br>(dollars in thousands) | **2022** | **2021** | **2020** |
| Net income | $**428287** | $277538 | $226409 |
| Other comprehensive income (loss): |  |  |  |
| Change in debt securities available-for-sale: |  |  |  |
| &nbsp;&nbsp;&nbsp;Unrealized holding gains (losses) for the period | **(1004054)** | (187955) | 125214 |
| &nbsp;&nbsp;&nbsp;Reclassification for securities transferred to held-to-maturity | **165473** |  |  |
| &nbsp;&nbsp;&nbsp;Reclassification adjustment for securities (gains) losses realized<br>&nbsp;&nbsp;&nbsp;&nbsp;in income | **88** | (4327) | (10767) |
| &nbsp;&nbsp;&nbsp;Income tax effect | **199097** | 43997 | (25243) |
| &nbsp;&nbsp;&nbsp;Unrealized gains (losses) on available-for-sale debt securities | **(639396)** | (148285) | 89204 |
| Change in securities held-to-maturity: |  |  |  |
| &nbsp;&nbsp;&nbsp;Adjustment for securities transferred from available-for-sale | **(165473)** |  |  |
| &nbsp;&nbsp;Amortization of unrealized losses on securities transferred<br>&nbsp;&nbsp;&nbsp;&nbsp;from available-for-sale | **16612** |  |  |
| &nbsp;&nbsp;&nbsp;Income tax effect | **36197** |  |  |
| &nbsp;&nbsp;&nbsp;Changes from securities held-to-maturity | **(112664)** |  |  |
| Change in cash flow hedges: |  |  |  |
| &nbsp;&nbsp;&nbsp;Net unrealized derivative gains (losses) on cash flow hedges | **(45132)** | 1898 | 8261 |
| &nbsp;&nbsp;&nbsp;Reclassification adjustment for (gains) losses realized in net income | **2587** | (4605) | (5153) |
| &nbsp;&nbsp;&nbsp;Income tax effect | **10453** | 666 | (764) |
| &nbsp;&nbsp;&nbsp;Changes from cash flow hedges | **(32092)** | (2041) | 2344 |
| Change in defined benefit pension plans: |  |  |  |
| &nbsp;&nbsp;&nbsp;Amortization of net (gains) losses recognized in income | **139** | 239 | 21 |
| &nbsp;&nbsp;&nbsp;Income tax effect | **(34)** | (59) | (5) |
| &nbsp;&nbsp;&nbsp;Changes from defined benefit pension plans | **105** | 180 | 16 |
| Other comprehensive income (loss), net of tax | **(784047)** | (150146) | 91564 |
| Comprehensive income (loss) | $**(355760)** | $127392 | $317973 |

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The accompanying notes to consolidated financial statements are an integral part of these statements.

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**OLD NATIONAL BANCORP**

**CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| (dollars in thousands, except per<br> share data) | **Preferred Stock** | **Common<br>Stock** | **Capital<br>Surplus** | **Retained<br>Earnings** | **Accumulated<br>Other<br>Comprehensive<br>Income (Loss)** | **Total<br>Shareholders'<br>Equity** |
| **Balance, December 31, 2019** | $— | $169616 | $1944445 | $682185 | $56207 | $2852453 |
| Cumulative effect of change in accounting principles |  |  |  | (31150) |  | (31150) |
| **Balance, January 1, 2020** |  | 169616 | 1944445 | 651035 | 56207 | 2821303 |
| Net income |  |  |  | 226409 |  | 226409 |
| Other comprehensive income (loss) |  |  |  |  | 91564 | 91564 |
| Dividends - common stock<br>&nbsp;&nbsp;&nbsp;&nbsp;($0.56 per share) |  |  |  | (92946) |  | (92946) |
| Common stock issued |  | 43 | 534 |  |  | 577 |
| Common stock repurchased |  | (5115) | (77243) |  |  | (82358) |
| Share-based compensation expense |  |  | 7707 |  |  | 7707 |
| Stock activity under incentive<br> compensation plans |  | 823 | 183 | (606) |  | 400 |
| **Balance, December 31, 2020** |  | 165367 | 1875626 | 783892 | 147771 | 2972656 |
| Net income |  |  |  | 277538 |  | 277538 |
| Other comprehensive income (loss) |  |  |  |  | (150146) | (150146) |
| Dividends - common stock<br>&nbsp;&nbsp;&nbsp;&nbsp;($0.56 per share) |  |  |  | (92829) |  | (92829) |
| Common stock issued |  | 35 | 548 |  |  | 583 |
| Common stock repurchased |  | (208) | (3523) |  |  | (3731) |
| Share-based compensation expense |  |  | 7497 |  |  | 7497 |
| Stock activity under incentive<br> compensation plans |  | 644 | 397 | (591) |  | 450 |
| **Balance, December 31, 2021** | **—** | **165838** | **1880545** | **968010** | **(2375)** | **3012018** |
| Net income | **—** | **—** | **—** | **428287** | **—** | **428287** |
| Other comprehensive income (loss) | **—** | **—** | **—** | **—** | **(784047)** | **(784047)** |
| First Midwest Bancorp, Inc. merger: |  |  |  |  |  |  |
| &nbsp;&nbsp;Issuance of common stock | **—** | **129365** | **2316947** | **—** | **—** | **2446312** |
| &nbsp;&nbsp;Issuance of preferred stock, net of<br> issuance costs | **230500** | **—** | **13219** | **—** | **—** | **243719** |
| Cash dividends: |  |  |  |  |  | **—** |
| &nbsp;&nbsp;Common ($0.56 per share) | **—** | **—** | **—** | **(163505)** | **—** | **(163505)** |
| &nbsp;&nbsp;Preferred dividends | **—** | **—** |  | **(14118)** | **—** | **(14118)** |
| Common stock issued | **—** | **52** | **757** |  | **—** | **809** |
| Common stock repurchased | **—** | **(3960)** | **(67222)** |  | **—** | **(71182)** |
| Share-based compensation expense | **—** | **—** | **28656** |  | **—** | **28656** |
| Stock activity under incentive<br> compensation plans | **—** | **1608** | **1363** | **(1325)** | **—** | **1646** |
| **Balance, December 31, 2022** | $**230500** | $**292903** | $**4174265** | $**1217349** | $**(786422)** | $**5128595** |

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The accompanying notes to consolidated financial statements are an integral part of these statements.

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**OLD NATIONAL BANCORP**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

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| | | | |
|:---|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|<br>(dollars in thousands) | **2022** | **2021** | **2020** |
| **Cash Flows From Operating Activities** |  |  |  |
| Net income | $**428287** | $277538 | $226409 |
| Adjustments to reconcile net income to cash provided by operating activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation | **36436** | 27276 | 28911 |
| &nbsp;&nbsp;&nbsp;Amortization of other intangible assets | **25857** | 11336 | 14091 |
| &nbsp;&nbsp;&nbsp;Amortization of tax credit investments | **10961** | 6770 | 18788 |
| &nbsp;&nbsp;&nbsp;Net premium amortization on investment securities | **18684** | 16305 | 18798 |
| &nbsp;&nbsp;&nbsp;Accretion income related to acquired loans | **(72007)** | (16747) | (23331) |
| &nbsp;&nbsp;&nbsp;Share-based compensation expense | **28656** | 7497 | 7707 |
| &nbsp;&nbsp;&nbsp;Provision for credit losses | **144799** | (29622) | 42879 |
| &nbsp;&nbsp;&nbsp;Debt securities (gains) losses, net | **88** | (4327) | (10767) |
| &nbsp;&nbsp;&nbsp;Gain on sale of health savings accounts business | **(90673)** |  |  |
| &nbsp;&nbsp;&nbsp;Net (gains) losses on sales of loans and other assets | **13114** | (36677) | (23787) |
| &nbsp;&nbsp;&nbsp;Increase in cash surrender value of company-owned life insurance | **(14564)** | (10589) | (12031) |
| &nbsp;&nbsp;&nbsp;Residential real estate loans originated for sale | **(570111)** | (1215015) | (1432488) |
| &nbsp;&nbsp;&nbsp;Proceeds from sales of residential real estate loans | **620958** | 1274812 | 1455067 |
| &nbsp;&nbsp;&nbsp;(Increase) decrease in interest receivable | **(52911)** | 1198 | (183) |
| &nbsp;&nbsp;&nbsp;(Increase) decrease in other assets | **(40518)** | 2641 | (105969) |
| &nbsp;&nbsp;&nbsp;Increase (decrease) in accrued expenses and other liabilities | **327369** | 17984 | 15726 |
| &nbsp;&nbsp;&nbsp;Net cash flows provided by (used in) operating activities | **814425** | 330380 | 219820 |
| **Cash Flows From Investing Activities** |  |  |  |
| Cash received (paid) from merger, net | **1912629** |  |  |
| Sale of health savings accounts | **(290857)** |  |  |
| Purchases of investment securities available-for-sale | **(1438572)** | (3321653) | (2803406) |
| Purchases of investment securities held-to-maturity | **(170675)** |  |  |
| Purchases of Federal Home Loan Bank/Federal Reserve Bank stock | **(147394)** |  | (10025) |
| Purchases of equity securities | **(6348)** | (11000) |  |
| Proceeds from maturities, prepayments, and calls of investment securities<br> available-for-sale | **1284814** | 1511510 | 1990383 |
| Proceeds from sales of investment securities available-for-sale | **20032** | 198886 | 299885 |
| Proceeds from maturities, prepayments, and calls of investment securities held-to-maturity | **83962** |  |  |
| Proceeds from sales of Federal Home Loan Bank/Federal Reserve Bank stock | **108698** | 58 | 4691 |
| Proceeds from sales of equity securities | **53029** | 544 | 39296 |
| Loan originations and payments, net | **(3071765)** | 206145 | (1644119) |
| Proceeds from company-owned life insurance death benefits | **10361** | 3375 | 4888 |
| Proceeds from sale of premises and equipment and other assets | **4480** | 29244 | 7826 |
| Purchases of premises and equipment and other assets | **(37901)** | (48692) | (30871) |
| &nbsp;&nbsp;&nbsp;Net cash flows provided by (used in) investing activities | **(1685507)** | (1431583) | (2141452) |
| **Cash Flows From Financing Activities** |  |  |  |
| Net increase (decrease) in: |  |  |  |
| &nbsp;&nbsp;&nbsp;Deposits | **(435717)** | 1531742 | 2484056 |
| &nbsp;&nbsp;&nbsp;Federal funds purchased and interbank borrowings | **581213** | (890) | (349248) |
| &nbsp;&nbsp;&nbsp;Securities sold under agreements to repurchase | **(94665)** | (38891) | 103384 |
| &nbsp;&nbsp;&nbsp;Other borrowings | **177146** | 36187 | 4171 |
| Payments for maturities of Federal Home Loan Bank advances | **(2102506)** | (146505) | (751505) |
| Payments for modification of Federal Home Loan Bank advances | **—** | (2156) | (31124) |
| Proceeds from Federal Home Loan Bank advances | **2900000** | 50000 | 950000 |
| Cash dividends paid | **(177623)** | (92829) | (92946) |
| Common stock repurchased | **(71182)** | (3731) | (82358) |
| Common stock issued | **809** | 583 | 577 |
| &nbsp;&nbsp;&nbsp;Net cash flows provided by (used in) financing activities | **777475** | 1333510 | 2235007 |
| &nbsp;&nbsp;&nbsp;Net increase (decrease) in cash and cash equivalents | **(93607)** | 232307 | 313375 |
| Cash and cash equivalents at beginning of period | **822019** | 589712 | 276337 |
| **Cash and cash equivalents at end of period** | $**728412** | $822019 | $589712 |

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The accompanying notes to consolidated financial statements are an integral part of these statements.

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**OLD NATIONAL BANCORP**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**NATURE OF OPERATIONS**

Old National Bancorp, a financial holding company headquartered in Evansville, Indiana with commercial and consumer banking operations headquartered in Chicago, Illinois. Its principal subsidiary is Old National Bank. Through its bank and non-bank affiliates, Old National Bancorp provides to its clients a wide range of services throughout the Midwest region, including commercial and consumer loan and depository services, private banking, brokerage, trust, investment advisory, and other traditional banking services.

**NOTE 1 – BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES**

**Basis of Presentation**

The accompanying consolidated financial statements include the accounts of Old National Bancorp and its wholly-owned subsidiaries (hereinafter collectively referred to as "Old National") and have been prepared in conformity with accounting principles generally accepted in the United States of America and prevailing practices within the banking industry. Such principles require management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and the disclosures of contingent assets and liabilities at the date of the financial statements and amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

All significant intercompany transactions and balances have been eliminated. Certain prior year amounts have been reclassified to conform to the current presentation. Such reclassifications had no effect on prior year net income or shareholders' equity and were insignificant amounts.

**Equity Securities**

Equity securities consist of mutual funds for Community Reinvestment Act qualified investments and diversified investment securities held in a grantor trust for participants in the Company's nonqualified deferred compensation plan. Equity securities are recorded at fair value with changes in fair value recognized in other income.

**Investment Securities**

Old National classifies debt investment securities as available-for-sale or held-to-maturity on the date of purchase. Debt securities classified as available-for-sale are recorded at fair value with the unrealized gains and losses recorded in other comprehensive income (loss), net of tax. Realized gains and losses affect income and the prior fair value adjustments are reclassified within shareholders' equity. Debt securities classified as held-to-maturity, which management has the intent and ability to hold to maturity, are reported at amortized cost. Interest income includes amortization of purchase premiums or discounts. Premiums and discounts are amortized on the level-yield method. Anticipated prepayments are considered when amortizing premiums and discounts on mortgage-backed securities. Gains and losses on the sale of available-for-sale debt securities are determined using the specific-identification method.

Available-for-sale securities in unrealized loss positions are evaluated at least quarterly to determine if a decline in fair value should be recorded through income or other comprehensive income (loss). For available-for sale securities in an unrealized loss position, we first assess whether we intend to sell, or it is more likely than not that we will be required to sell the security, before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through income. For available-for-sale securities that do not meet the criteria, we evaluate whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security and the issuer, among other factors. If this assessment indicates that a credit loss exists, we compare the present value of cash flows expected to be collected from the security with the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis for the security, a credit loss exists and an allowance for credit losses is recorded, limited to the amount that the fair value of the security is less than its amortized cost basis. Any decline in fair value that has not been recorded through an allowance for credit losses is recognized in other comprehensive income (loss), net of

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applicable taxes. Accrued interest receivable on the securities portfolio is excluded from the estimate of credit losses.

**Federal Home Loan Bank/Federal Reserve Bank Stock**

Old National is a member of the FHLB system and its regional Federal Reserve Bank. Members are required to own a certain amount of stock based on the level of borrowings and other factors. FHLB and Federal Reserve Bank stock are carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income.

**Loans Held for Sale**

Loans that Old National has originated with an intent to sell are classified as loans held for sale and are recorded at fair value, determined individually, as of the balance sheet date. The loan's fair value includes the servicing value of the loans as well as any accrued interest. Conventional mortgage production is sold with servicing rights retained. Certain loans, such as government guaranteed mortgage loans are sold on servicing released basis.

**Loans**

Loans that Old National intends to hold are classified as held for investment. Loans held for investment are carried at the principal balance outstanding, net of earned interest, purchase premiums or discounts, deferred loan fees and costs, and an allowance for credit losses. Interest income is accrued on the principal balances of loans outstanding. For all loan classes, a loan is generally placed on nonaccrual status when principal or interest becomes 90 days past due unless it is well secured and in the process of collection, or earlier when concern exists as to the ultimate collectability of principal or interest. Interest accrued but not received is reversed against earnings. Cash interest received on these loans is applied to the principal balance until the principal is recovered or until the loan returns to accrual status. Loans may be returned to accrual status when all the principal and interest amounts contractually due are brought current, remain current for a prescribed period, and future payments are reasonably assured.

Old National has purchased loans, some of which have experienced more than insignificant credit deterioration since origination. Evidence of credit deterioration was evaluated using various indicators, such as past due and nonaccrual status, as well as asset quality rating. PCD loans are recorded at the amount paid. An allowance for credit losses is determined using the same methodology as other loans held for investment. The initial allowance for credit losses determined on a collective basis is allocated to individual loans. The sum of the loan's purchase price and initial allowance for credit losses becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium, which is accreted or amortized into interest income over the life of the loan. Subsequent changes to the allowance for credit losses are recorded through provision for credit losses.

**Allowance for Credit Losses on Loans**

Credit quality within the loans held for investment portfolio is continuously monitored by management and is reflected within the allowance for credit losses on loans. The allowance for credit losses is an estimate of expected losses inherent within the Company's loans held for investment portfolio. Credit quality is assessed and monitored by evaluating various attributes and the results of those evaluations are utilized in underwriting new loans and in our process for estimating expected credit losses. Expected credit loss inherent in non-cancelable off-balance-sheet credit exposures is accounted for as a separate liability included in other liabilities on the balance sheet. The allowance for credit losses on loans held for investment is adjusted by a credit loss expense, which is reported in provision for credit losses, and reduced by the charge-off of loan amounts, net of recoveries within the provision for credit losses. Old National has made a policy election to report accrued interest receivable as a separate line item on the balance sheet.

The allowance for credit loss estimation process involves procedures to consider the unique characteristics of our loan portfolio segments. These segments are further disaggregated into loan classes based on the level at which credit risk is monitored. When computing the level of expected credit losses, credit loss assumptions are estimated using a model that categorizes loan pools based on loss history, delinquency status, and other credit trends and risk characteristics, including current conditions and reasonable and supportable forecasts about the future. Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. Evaluations of the overall loan portfolio in future periods, in light of the factors and

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forecasts then prevailing, may result in significant changes in the allowance and credit loss expense in those future periods.

The allowance level is influenced by loan volumes, loan AQR migration or delinquency status, changes in historical loss experience, and other conditions influencing loss expectations, such as reasonable and supportable forecasts of economic conditions. The methodology for estimating the amount of expected credit losses reported in the allowance for credit losses has two basic components: first, an asset-specific component involving individual loans that do not share risk characteristics with other loans and the measurement of expected credit losses for such individual loans; and second, a pooled component for estimated expected credit losses for pools of loans that share similar risk characteristics.

We utilize a discounted cashflow approach to determine the allowance for credit losses for performing loans and nonperforming loans. Expected cashflows are created for each loan and discounted using the effective yield method. The discounted sum of expected cashflows is then compared to the amortized cost and any shortfall is recorded as an allowance. Expected cashflows are created using a combination of contractual payment schedules, calculated PDs, LGD, and prepayment assumptions as well as qualitative factors. For commercial and commercial real estate loans, the PD is forecasted using a regression model to determine the likelihood of a loan moving into nonaccrual within the time horizon. For residential and consumer loans, the PD is forecasted using a regression model to determine the likelihood of a loan being charged-off within the time horizon. The regression models use combinations of variables to assess systematic and unsystematic risk. Variables used for unsystematic risk are borrower specific and help to gauge the risk of default from an individual borrower. Variables for systematic risk, risk inherent to all borrowers, come from the use of forward-looking economic forecasts and include variables such as unemployment rate, gross domestic product, and house price index. The LGD is defined as credit loss incurred when an obligor of the bank defaults. Qualitative factors include items such as changes in lending policies or procedures and economic uncertainty in forward-looking forecasts.

Further information regarding Old National's policies and methodology used to estimate the allowance for credit losses on loans is presented in Note 4 to the consolidated financial statements.

**Premises and Equipment**

Premises and equipment are stated at cost less accumulated depreciation. Land is stated at cost. Depreciation is charged to operating expense over the useful lives of the assets, principally on the straight-line method. Useful lives for premises and equipment are as follows: buildings and building improvements – 10 to 39 years; and furniture and equipment – 3 to 7 years. Leasehold improvements are depreciated over the lesser of their useful lives or the term of the lease. Maintenance and repairs are expensed as incurred while major additions and improvements are capitalized. Interest costs on construction of qualifying assets are capitalized.

Premises and equipment are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are adjusted to fair value. Such impairments are included in other expense.

**Goodwill and Other Intangible Assets**

Goodwill arises from business combinations and is determined as the excess of the cost of acquired entities over the fair value of identifiable assets acquired less liabilities assumed as of the merger or acquisition date. Amortization of goodwill and indefinite-lived assets is not recorded. However, the recoverability of goodwill and other intangible assets are tested for impairment at least annually or more frequently if events and circumstances exist that indicate that a goodwill impairment test should be performed. Other intangible assets, including core deposits and customer business relationships, are amortized primarily on an accelerated basis over their estimated useful lives, generally over a period of 5 to 15 years.

**Company-Owned Life Insurance**

Old National has purchased, as well as obtained through mergers and acquisitions, life insurance policies on certain key executives. Old National records company-owned life insurance at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement.

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**Loan Servicing Rights**

When loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in gain on sales of loans. Fair value is based on market prices for comparable servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Loan servicing rights are included in other assets on the balance sheet.

Loan servicing rights are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. Impairment is determined by stratifying rights into groupings based on predominant risk characteristics, such as interest rate, loan type, term, and investor type. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If Old National later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the allowance may be recorded as an increase to income. Changes in valuation allowances are reported with mortgage banking revenue on the income statement. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses. Servicing fee income, which is reported on the income statement as mortgage banking revenue, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal, or a fixed amount per loan and are recorded as income when earned.

**Derivative Financial Instruments**

As part of Old National's overall interest rate risk management, Old National uses derivative instruments, including agreements that are commonly referred to as TBA (to be announced) forward agreements and interest rate swaps, collars, caps, and floors. All derivative instruments are recognized on the balance sheet at their fair value. At the inception of the derivative contract, Old National designates the derivative as (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment ("fair value hedge"), (2) a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability ("cash flow hedge"), or (3) an instrument with no hedging designation ("stand-alone derivative"). For a fair value hedge, the change in value of the derivative, as well as the offsetting change in value of the hedged item attributable to the hedged risk, are recognized in current earnings during the period of the change in fair values. For a cash flow hedge, the gain or loss on the derivative is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, in noninterest income.

Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in noninterest income.

Old National formally documents all relationships between derivatives and hedged items, as well as the risk-management objective and strategy for undertaking various hedge transactions. This documentation includes linking fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. Old National also formally assesses, both at the hedge's inception and on an ongoing basis, whether the derivative instruments that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of the hedged items. Old National discontinues hedge accounting prospectively when it is determined that (1) the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item; (2) the derivative expires, is sold, or terminated; (3) the derivative instrument is de-designated as a hedge because the forecasted transaction is no longer probable of occurring; (4) a hedged firm commitment no longer meets the definition of a firm commitment; or (5) management otherwise determines that designation of the derivative as a hedging instrument is no longer appropriate.

When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as noninterest income. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transaction is still expected to occur, changes in value that were accumulated in other comprehensive income (loss) are amortized or accreted into earnings over the same periods which the hedged transactions will affect earnings.

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Old National enters into various stand-alone mortgage-banking derivatives in order to hedge the risk associated with the fluctuation of interest rates. Changes in fair value are recorded as mortgage banking revenue. Old National also enters into various stand-alone derivative contracts to provide derivative products to clients, which are carried at fair value with changes in fair value recorded as other noninterest income.

Old National is exposed to losses if a counterparty fails to make its payments under a contract in which Old National is in the net receiving position. Old National anticipates that the counterparties will be able to fully satisfy their obligations under the agreements. In addition, Old National obtains collateral above certain thresholds of the fair value of its hedges for each counterparty based upon their credit standing. All of the contracts to which Old National is a party settle monthly, quarterly, or semiannually. Further, Old National has netting agreements with the dealers with which it does business.

**Credit-Related Financial Instruments**

In the ordinary course of business, Old National's bank subsidiary has entered into credit-related financial instruments consisting of commitments to extend credit, commercial letters of credit, and standby letters of credit. The notional amount of these commitments is not reflected in the consolidated financial statements until they are funded. Old National maintains an allowance for credit losses on unfunded loan commitments to provide for the risk of loss inherent in these arrangements. The allowance is computed using a methodology similar to that used to determine the allowance for credit losses on loans, modified to take into account the probability of a drawdown on the commitment. The allowance for credit losses on unfunded loan commitments is classified as a liability account on the balance sheet and is adjusted as a provision for unfunded loan commitments included in the provision for credit losses.

**Repossessed Collateral**

Other real estate owned and repossessed personal property are initially recorded at the fair value of the property less estimated cost to sell and are included in other assets on the balance sheet. Physical possession of residential real estate property collateralizing a consumer mortgage loan occurs when legal title is obtained upon completion of foreclosure or when the borrower conveys all interest in the property to satisfy the loan through the completion of a deed in lieu of foreclosure or through a similar legal agreement. Any excess recorded investment over the fair value of the property received is charged to the allowance for credit losses. Any subsequent write-downs are recorded in noninterest expense, as are the costs of operating the properties. Gains or losses resulting from the sale of collateral are recognized in noninterest expense at the date of sale.

**Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase**

We purchase certain securities, generally U.S. government-sponsored entity and agency securities, under agreements to resell. The amounts advanced under these agreements represent short-term secured loans and are reflected as assets in the accompanying consolidated balance sheets. We also sell certain securities under agreements to repurchase. These agreements are treated as collateralized financing transactions. These secured borrowings are reflected as liabilities in the accompanying consolidated balance sheets and are recorded at the amount of cash received in connection with the transaction. Short-term securities sold under agreements to repurchase generally mature within one to four days from the transaction date. Securities, generally U.S. government and federal agency securities, pledged as collateral under these financing arrangements can be repledged by the secured party. Additional collateral may be required based on the fair value of the underlying securities.

**Share-Based Compensation**

Compensation cost is recognized for stock options, stock appreciation rights, and restricted stock awards and units issued to employees based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options and appreciation rights, while the market price of our Common Stock at the date of grant is used for restricted stock awards. The market price of our Common Stock at the date of grant less the present value of dividends expected to be paid during the performance period is used for restricted stock units where the performance measure is based on an internal performance measure. A third-party provider is used to value certain restricted stock units where the performance measure is based on total shareholder return. Compensation expense is recognized over the required service period. Forfeitures are recognized as they occur.

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**Income Taxes**

Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized.

We recognize a tax position as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the "more likely than not" test, no tax benefit is recorded.

We recognize interest and/or penalties related to income tax matters in income tax expense.

Old National is a limited partner in several tax-advantaged limited partnerships whose purpose is to invest in approved qualified affordable housing, renewable energy, or other renovation or community revitalization projects. These investments are included in other assets on the balance sheet, with any unfunded commitments included with other liabilities. Certain of these assets qualify for the proportional amortization method and are amortized over the period that Old National expects to receive the tax credits, with the expense included within income tax expense on the consolidated statements of income. The other investments are accounted for under the equity method, with the expense included within noninterest expense on the consolidated statements of income. All of our tax credit investments are evaluated for impairment at the end of each reporting period.

**Loss Contingencies**

Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. See Note 20 to the consolidated financial statements for further disclosure.

**Cash Equivalents and Cash Flows**

For the purpose of presentation in the accompanying consolidated statement of cash flows, cash and cash equivalents are defined as cash, due from banks, federal funds sold and resell agreements, and money market investments, which have maturities less than 90 days. Cash flows from loans, either originated or acquired, are classified at that time according to management's intent to either sell or hold the loan for the foreseeable future. When management's intent is to sell the loan, the cash flows of that loan are presented as operating cash flows. When management's intent is to hold the loan for the foreseeable future, the cash flows of that loan are presented as investing cash flows.

The following table summarizes supplemental cash flow information:

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| | | | |
|:---|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|<br>(dollars in thousands) | **2022** | **2021** | **2020** |
| **Cash payments:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest | $**118165** | $42196 | $70043 |
| &nbsp;&nbsp;&nbsp;Income taxes, net of refunds | **66109** | 31875 | 24436 |
| **Noncash Investing and Financing Activities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Securities transferred from available-for-sale to held-to-maturity | **2986736** |  |  |
| &nbsp;&nbsp;&nbsp;Transfer of premises and equipment to assets held for sale | **7905** | 9539 | 16661 |
| &nbsp;&nbsp;&nbsp;Operating lease right-of-use assets obtained in exchange for lease obligations | **28265** | 776 | (116) |
| &nbsp;&nbsp;&nbsp;Finance lease right-of-use assets obtained in exchange for lease obligations | **(966)** | 7477 | 5225 |

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There were 129.4 million shares of Common Stock issued in conjunction with the merger with First Midwest in February of 2022 totaling $2.4 billion in shareholders' equity. In addition, Old National issued 108,000 shares of Old National Series A Preferred Stock and 122,500 shares of Old National Series C Preferred Stock totaling $243.7 million in shareholders' equity.

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**Business Combinations**

Old National accounts for business combinations using the acquisition method of accounting. The accounts of an acquired entity are included as of the date of merger or acquisition, and any excess of purchase price over the fair value of the net assets acquired is capitalized as goodwill. Alternatively, a gain is recorded if the fair value of the net assets acquired exceeds the purchase price. Old National typically issues Common Stock and/or pays cash for a merger or acquisition, depending on the terms of the agreement. The value of Common Stock issued is determined based on the market price of the stock as of the closing of the merger or acquisition. Merger and acquisition costs are expensed when incurred.

**Revenue From Contracts With Customers**

Old National's revenue from contracts with customers in the scope of ASC 606 is recognized within noninterest income. A description of the Company's significant revenue streams accounted for under ASC 606 follows:

<u>Wealth management fees</u>: Old National earns wealth management fees based upon asset custody and investment management services provided to individual and institutional customers. Most of these customers receive monthly or quarterly billings for services rendered based upon the market value of assets in custody. Fees that are transaction based are recognized at the point in time that the transaction is executed.

<u>Service charges on deposit accounts</u>: Old National earns fees from deposit customers for transaction-based, account maintenance, and overdraft services. Transaction-based fees and overdraft fees are recognized at a point in time, since the customer generally has a right to cancel the depository arrangement at any time. The arrangement is considered a day-to-day contract with ongoing renewals and optional purchases, so the duration of the contract does not extend beyond the services already performed. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which Old National satisfies its performance obligation.

<u>Debit card and ATM fees</u>: Debit card and ATM fees include ATM usage fees and debit card interchange income. As with the transaction-based fees on deposit accounts, the ATM fees are recognized at the point in time that Old National fulfills the customer's request. Old National earns interchange fees from cardholder transactions processed through card association networks. Interchange rates are generally set by the card associations based upon purchase volumes and other factors. Interchange fees represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder.

<u>Investment product fees</u>: Investment product fees are the commissions and fees received from a registered broker/dealer and investment adviser that provide those services to Old National customers. Old National acts as an agent in arranging the relationship between the customer and the third-party service provider. These fees are recognized monthly from the third-party broker based upon services already performed, net of the processing fees charged to Old National by the broker.

**Impact of Accounting Changes**

**Accounting Guidance Adopted in 2022**

***FASB ASC 470 and 815*** – In August 2020, the FASB issued ASU 2020-06, *Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity*, to clarify the accounting for certain financial instruments with characteristics of liabilities and equity. The amendments in this update reduce the number of accounting models for convertible debt instruments and convertible preferred stock by removing the cash conversion model and the beneficial conversion feature model. In addition, this ASU improves disclosure requirements for convertible instruments and earnings-per-share guidance. The amendments in this update are effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. The adoption of this guidance on January 1, 2022 did not have a material impact on the consolidated financial statements.

***FASB ASC 842*** – In July 2021, the FASB issued ASU 2021-05, *Leases (Topic 842): Lessors—Certain Leases with Variable Lease Payments*, to amend the lease classification requirements for lessors to align them with practice under ASC Topic 840. The amendments in this update are effective for fiscal years beginning after December 15,

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2021, and interim periods within those fiscal years. The adoption of this guidance on January 1, 2022 did not have a material impact on the consolidated financial statements.

***FASB ASC 848*** – In March 2020, the FASB issued ASU 2020-04, *Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting*, which provides temporary, optional guidance to ease the potential burden in accounting for, or recognizing the effects of, the transition away from the LIBOR or other interbank offered rate on financial reporting. The guidance is applicable only to contracts or hedge accounting relationships that reference LIBOR or another reference rate expected to be discontinued.

In December 2022, the FASB issued ASU 2022-06, *Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848*, which defers the sunset date of relief provisions within Topic 848 from December 31, 2022 to December 31, 2024. The objective of the guidance in Topic 848 is to provide relief during the transition period.

The amendments in this ASU are effective March 12, 2020 through December 31, 2024. Old National believes the adoption of this guidance on activities subsequent to December 31, 2022 will not have a material impact on the consolidated financial statements.

**Accounting Guidance Pending Adoption**

***FASB ASC 805*** – In October 2021, the FASB issued ASU 2021-08, *Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities From Contracts With Customers*, to address diversity in practice and inconsistency related to the accounting for revenue contracts with customers acquired in a business combination. The amendments require that the acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. At the acquisition date, an acquirer should account for the related revenue contracts in accordance with Topic 606 as if it had originated the contracts. The ASU also provides certain practical expedients for acquirers when recognizing and measuring acquired contract assets and liabilities. The amendments in this update are effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. Entities should apply the amendments prospectively to business combinations that occur after the effective date. Early adoption is permitted, including in any interim period. The new guidance is not expected to have a material impact on the consolidated financial statements.

***FASB ASC 815*** – In March 2022, the FASB issued ASU 2022-01, *Derivatives and Hedging (Topic 815): Fair Value Hedging—Portfolio Layer Method*, to expand the current single-layer method of electing hedge accounting to allow multiple hedged layers of a single closed portfolio under the method and renames the last-of-layer method the portfolio layer method. The amendments in this update are effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. Early adoption is permitted for any entity that has adopted the amendments in ASU No. 2017-12 for the corresponding period. If an entity adopts the amendments in an interim period, the effect of adopting the amendments related to basis adjustments should be reflected as of the beginning of the fiscal year of adoption (i.e., the initial application date). Old National is currently evaluating the impact of adopting the new guidance on the consolidated financial statements.

***FASB ASC 326*** – In March 2022, the FASB issued ASU 2022-02, *Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures*, to eliminate the TDR recognition and measurement guidance and, instead, require that an entity evaluate (consistent with the accounting for other loan modifications) whether the modification represents a new loan or a continuation of an existing loan. The amendments also enhance existing disclosure requirements and introduce new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. The amendments require that an entity disclose current-period gross charge-offs by year of origination for financing receivables and net investment in leases within the vintage disclosures required by ASC 326. The amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. These amendments should be applied prospectively, except for the transition method related to the recognition and measurement of TDRs, which an entity has the option to apply a modified retrospective transition method resulting in a cumulative-effect adjustment to retained earnings in the period of adoption. Early adoption is permitted if an entity has adopted ASU No. 2016-13, including adoption in an interim period. If an entity elects to early adopt ASU No. 2022-02 in an interim period, the guidance should be applied as of the beginning of the fiscal year that includes the interim period. An entity may elect to early adopt the amendments about TDRs and related disclosure enhancements separately from the amendments related to vintage disclosures. Old National is currently evaluating the impact of adopting the new guidance on the consolidated financial statements.

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***FASB ASC 820*** – In June 2022, the FASB issued ASU 2022-03, *Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions*, to clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. Early adoption is permitted. Old National is currently evaluating the impact of adopting the new guidance on the consolidated financial statements.

**NOTE 2 – MERGER, ACQUISITION, AND DIVESTITURE ACTIVITY**

**Merger**

*First Midwest Bancorp, Inc.*

On February 15, 2022, Old National completed its previously announced merger of equals transaction with First Midwest pursuant to an agreement and plan of merger, dated as of May 30, 2021, to combine in an all-stock transaction. Following the merger, the new organization is operating under the Old National Bancorp and Old National Bank names, with the corporate headquarters and principal office located in Evansville, Indiana and commercial and consumer banking operations headquartered in Chicago, Illinois. Old National believes that it will be able to achieve synergies and cost savings by integrating the operations of the two companies. The combined organization has a presence in additional Midwestern markets, strong commercial banking capabilities, a robust retail footprint, a significant wealth platform, and an enhanced ability to attract talent. The combined organization also creates the scale and profitability to accelerate digital and technological capabilities to drive future investments in consumer and commercial banking, as well as wealth management services.

Pursuant to the terms of the merger agreement, each First Midwest common stockholder received 1.1336 shares of Old National common stock for each share of First Midwest common stock such stockholder owned, plus, if applicable, cash in lieu of fractional shares of Old National common stock resulting from the exchange ratio. Each outstanding share of 7.000% fixed-rate non-cumulative perpetual preferred stock, Series A, no par value, and each outstanding share of 7.000% fixed-rate non-cumulative perpetual preferred stock, Series C, no par value, of First Midwest was converted into the right to receive one share of an applicable newly created series of Old National preferred stock, no par value "Old National Series A Preferred Stock" and "Old National Series C Preferred Stock," and collectively, the "Old National Preferred Stock". In this regard, Old National issued 108,000 shares of Old National Series A Preferred Stock and 122,500 shares of Old National Series C Preferred Stock. Old National entered into two deposit agreements, each dated as of February 15, 2022, by and among Old National, Continental Stock Transfer & Trust Company, as depository, and the holders from time to time of the depositary receipts in connection with the issuance of the Old National Preferred Stock. Pursuant to the deposit agreements, Old National issued 4,320,000 depositary shares, each representing a 1/40th interest in a share of Old National Series A Preferred Stock, and 4,900,000 depositary shares, each representing a 1/40th interest in a share of Old National Series C Preferred Stock.

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The assets acquired and liabilities assumed, both intangible and tangible, in the merger were recorded at their estimated fair values as of the merger date and have been accounted for under the acquisition method of accounting. Subsequent to the initial valuation, Old National increased goodwill by $1.6 million to update the provisional valuation of the fair values of assets acquired and liabilities assumed. These adjustments affected goodwill, loans, premises and equipment, operating lease right-of-use assets, other assets, and accrued expenses and other liabilities. As of December 31, 2022, Old National finalized its valuation of all assets acquired and liabilities assumed. The following table presents a summary of the assets acquired and liabilities assumed, net of the fair value adjustments and the fair value of consideration as of the merger date:

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| | |
|:---|:---|
| (dollars and shares in thousands) | **February 15,<br>2022** |
| **Assets** |  |
| Cash and cash equivalents | $1912629 |
| Investment securities | 3526278 |
| FHLB/Federal Reserve Bank stock | 106097 |
| Loans held for sale | 13809 |
| Loans, net of allowance for credit losses | 14298873 |
| Premises and equipment | 111867 |
| Operating lease right-of-use assets | 129698 |
| Accrued interest receivable | 53502 |
| Goodwill | 961722 |
| Other intangible assets | 117584 |
| Company-owned life insurance | 301025 |
| Other assets | 317258 |
| &nbsp;&nbsp;Total assets | $21850342 |
| **Liabilities** |  |
| Deposits | $17249404 |
| Securities sold under agreements to repurchase | 135194 |
| Federal Home Loan Bank advances | 1158623 |
| Other borrowings | 274569 |
| Accrued expenses and other liabilities | 342369 |
| &nbsp;&nbsp;&nbsp;Total liabilities | $19160159 |
| **Fair value of consideration** |  |
| Preferred stock | $243870 |
| Common stock (129,365 shares issued at $18.92 per share) | 2446312 |
| &nbsp;&nbsp;&nbsp;Total consideration | $2690182 |

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Goodwill related to this merger will not be deductible for tax purposes.

Other intangible assets acquired included core deposit intangibles and customer trust relationships. The estimated fair value of the core deposit intangible was $77.9 million and is being amortized over an estimated useful life of 10 years. The estimated fair value of customer trust relationships was $39.7 million and is being amortized over an estimated useful life of 13 years.

The fair value of purchased financial assets with credit deterioration was $1.4 billion on the date of the merger. The gross contractual amounts receivable relating to the purchased financial assets with credit deterioration was $1.5 billion. Old National estimates, on the date of the merger, that $89.1 million of the contractual cash flows specific to the purchased financial assets with credit deterioration will not be collected.

Transaction costs totaling $120.9 million associated with the merger have been expensed in 2022 and additional transaction and integration costs will be expensed in future periods as incurred.

As a result of the merger, Old National assumed sponsorship of First Midwest's defined benefit pension plan (the "Pension Plan") under which both plan participation and benefit accruals had been previously frozen. The Pension Plan was terminated in November 2022, which included the settlement of benefit obligations associated with the Pension Plan. At December 31, 2022, the fair value of Pension Plan assets was $16.6 million. Pension costs were not material in 2022.

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*Summary of Unaudited Pro-Forma Financial Information*

The following table presents supplemental unaudited pro-forma financial information as if the First Midwest merger had occurred on January 1, 2021. The pro-forma financial information is not necessarily indicative of the results of operations that would have occurred had the transaction been effective as of this assumed date.

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| | | |
|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** |
|<br>(dollars in thousands) | **2022** | **2021** |
| Total revenues <sup>(1)</sup> | $**1812333** | $1564287 |
| Income before income taxes | **749009** | 382102 |

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(1)&nbsp;&nbsp;&nbsp;&nbsp;Includes net interest income and total noninterest income.

Supplemental pro-forma earnings for the year ended December 31, 2022 were adjusted to exclude $120.9 million of merger-related costs, $11.0 million of provision for credit losses on unfunded loan commitments, and $96.3 million of provision for credit losses to establish an allowance for credit losses on non-PCD loans acquired in the transaction. Supplemental pro-forma earnings for the year ended December 31, 2021 were adjusted to include these costs.

**Divestitures**

On November 18, 2022, Old National completed its previously announced transaction with UMB, pursuant to which UMB acquired Old National's business of acting as a qualified custodian for, and administering, health savings accounts. Old National served as custodian for health savings accounts comprised of both investment accounts and deposit accounts. At closing, the health savings accounts held in deposit accounts that were transferred totaled approximately $382 million and resulted in a $90.7 million pre-tax gain.

During the fourth quarter of 2022, Old National initiated certain property optimization actions that included the closure and consolidation of certain branches as well as other real estate repositioning across our footprint. These actions resulted in pre-tax charges of $26.8 million that are associated with valuation adjustments related to these locations and are recorded in noninterest expense.

During 2020, we consolidated 31 banking centers located throughout our footprint, reflecting an ongoing shift among our clients toward digital banking solutions. Many of the facilities consolidated were in smaller markets, several of which were added in recent years through acquisition and partnership activity. These actions resulted in pre-tax charges of $27.1 million associated with valuation adjustments related to these locations and were recorded in noninterest expense.

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**NOTE 3 – INVESTMENT SECURITIES**

The following table summarizes the amortized cost and fair value of the available-for-sale and held-to-maturity investment securities portfolios and the corresponding amounts of gross unrealized gains, unrealized losses, and basis adjustments in AOCI and gross unrecognized gains and losses. The Company held no securities classified as held-to-maturity as of December 31, 2021.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| (dollars in thousands) | **Amortized<br>Cost** | **Unrealized<br>Gains** | **Unrealized<br>Losses** | **Basis**<br>**Adjustments** <sup>(1)</sup> | **Fair<br>Value** |
| **December 31, 2022** |  |  |  |  |  |
| **Available-for-Sale** |  |  |  |  |  |
| U.S. Treasury | $**253148** | $**5** | $**(5189)** | $**(47037)** | $**200927** |
| U.S. government-sponsored entities and agencies | **1451736** | **—** | **(169248)** | **(107408)** | **1175080** |
| Mortgage-backed securities - Agency | **4986354** | **976** | **(617428)** | **—** | **4369902** |
| States and political subdivisions | **688159** | **1789** | **(26096)** | **—** | **663852** |
| Pooled trust preferred securities | **13783** | **—** | **(2972)** | **—** | **10811** |
| Other securities | **379423** | **258** | **(26541)** | **—** | **353140** |
| &nbsp;&nbsp;&nbsp;Total available-for-sale securities | $**7772603** | $**3028** | $**(847474)** | $**(154445)** | $**6773712** |
| **Held-to-Maturity** |  |  |  |  |  |
| U.S. government-sponsored entities and agencies | $**819168** | $**—** | $**(162810)** | $**—** | $**656358** |
| Mortgage-backed securities - Agency | **1106817** | **—** | **(123854)** | **—** | **982963** |
| States and political subdivisions | **1163312** | **221** | **(159022)** | **—** | **1004511** |
| Allowance for securities held-to-maturity | **(150)** | **—** | **—** | **—** | **(150)** |
| &nbsp;&nbsp;&nbsp;Total held-to-maturity securities | $**3089147** | $**221** | $**(445686)** | $**—** | $**2643682** |
| **December 31, 2021** |  |  |  |  |  |
| **Available-for-Sale** |  |  |  |  |  |
| U.S. Treasury | $234555 | $1233 | $(7751) | $7547 | $235584 |
| U.S. government-sponsored entities and agencies | 1575994 | 7354 | (37014) | (3561) | 1542773 |
| Mortgage-backed securities - Agency | 3737484 | 27421 | (66074) |  | 3698831 |
| States and political subdivisions | 1587172 | 69696 | (1882) |  | 1654986 |
| Pooled trust preferred securities | 13756 |  | (4260) |  | 9496 |
| Other securities | 235072 | 6578 | (1254) |  | 240396 |
| &nbsp;&nbsp;&nbsp;Total available-for-sale securities | $7384033 | $112282 | $(118235) | $3986 | $7382066 |

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(1)&nbsp;&nbsp;&nbsp;&nbsp;Basis adjustments represent the cumulative fair value adjustments included in the carrying amounts of fixed-rate investment securities assets in fair value hedging arrangements.

During 2022, U.S government-sponsored entity and agency securities, agency mortgage-backed securities, and state and political subdivision securities with a fair value of $3.0 billion were transferred from the available-for-sale portfolio to the held-to-maturity portfolio. The $125.2 million unrealized holding loss, net of tax, at the date of transfer will continue to be reported as a separate component of shareholders' equity and is being amortized over the remaining term of the securities as an adjustment to yield. The corresponding discount on these securities will offset this adjustment to yield as it is amortized.

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Proceeds from sales or calls of available-for-sale investment securities and the resulting realized gains and realized losses were as follows:

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| | | | |
|:---|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|<br>(dollars in thousands) | **2022** | **2021** | **2020** |
| Proceeds from sales of available-for-sale debt securities | $**20032** | $198886 | $299885 |
| Proceeds from calls of available-for-sale debt securities | **70808** | 158818 | 465179 |
| &nbsp;&nbsp;&nbsp;Total | $**90840** | $357704 | $765064 |
| Realized gains on sales of available-for-sale debt securities | $**344** | $4188 | $11172 |
| Realized gains on calls of available-for-sale debt securities | **187** | 317 | 121 |
| Realized losses on sales of available-for-sale debt securities | **(377)** | (145) | (500) |
| Realized losses on calls of available-for-sale debt securities | **(242)** | (33) | (26) |
| &nbsp;&nbsp;&nbsp;Debt securities gains (losses), net | $**(88)** | $4327 | $10767 |

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Investment securities pledged to secure public and other funds had a carrying value of $6.1 billion at December 31, 2022 and $2.7 billion at December 31, 2021.

At December 31, 2022, Old National had a concentration of investment securities issued by Indiana and its political subdivisions. The only aggregate market value of the Company's investment securities greater than 10% of shareholders' equity were issued by Indiana and its political subdivisions totaling $628.6 million, which represented 12.3% of shareholders' equity. Of the bonds issued by Indiana, 99.7% are rated "BBB+" or better, and the remaining 0.3% generally represent pre-refunded positions.

Substantially all of the mortgage-backed securities in the investment portfolio are residential mortgage-backed securities. The table below shows the amortized cost and fair value of the investment securities portfolio by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Weighted average yield is based on amortized cost.

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| | | | |
|:---|:---|:---|:---|
| | **At December 31, 2022** | **At December 31, 2022** | **At December 31, 2022** |
| (dollars in thousands) | **Amortized<br>Cost** | **Fair<br>Value** | **Weighted<br>Average<br>Yield** |
| **Maturity** | **Amortized<br>Cost** | **Fair<br>Value** | **Weighted<br>Average<br>Yield** |
| **Available-for-Sale** |  |  |  |
| Within one year | $**108432** | $**106803** | **2.67%** |
| One to five years | **1821584** | **1697506** | **2.83%** |
| Five to ten years | **4289711** | **3722857** | **2.32%** |
| Beyond ten years | **1552876** | **1246546** | **2.52%** |
| &nbsp;&nbsp;&nbsp;Total | $**7772603** | $**6773712** | **2.48%** |
| **Held-to-Maturity** |  |  |  |
| One to five years | $**71144** | $**65481** | **3.56%** |
| Five to ten years | **1211517** | **1079532** | **2.73%** |
| Beyond ten years | **1806486** | **1498669** | **2.83%** |
| &nbsp;&nbsp;&nbsp;Total | $**3089147** | $**2643682** | **2.81%** |

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The following table summarizes the available-for-sale investment securities with unrealized losses for which an allowance for credit losses has not been recorded by aggregated major security type and length of time in a continuous unrealized loss position:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Less than 12 months** | **Less than 12 months** | **12 months or longer** | **12 months or longer** | **Total** | **Total** |
|<br>(dollars in thousands) | **Fair<br>Value** | **Unrealized<br>Losses** | **Fair<br>Value** | **Unrealized<br>Losses** | **Fair<br>Value** | **Unrealized Losses** |
| **December 31, 2022** |  |  |  |  |  |  |
| **Available-for-Sale** |  |  |  |  |  |  |
| U.S. Treasury | $**130967** | $**(3264)** | $**66992** | $**(1925)** | $**197959** | $**(5189)** |
| U.S. government-sponsored entities<br> and agencies | **454854** | **(75795)** | **720226** | **(93453)** | **1175080** | **(169248)** |
| Mortgage-backed securities - Agency | **3207319** | **(358507)** | **1116205** | **(258921)** | **4323524** | **(617428)** |
| States and political subdivisions | **414813** | **(25555)** | **2703** | **(541)** | **417516** | **(26096)** |
| Pooled trust preferred securities | **—** | **—** | **10811** | **(2972)** | **10811** | **(2972)** |
| Other securities | **257775** | **(17045)** | **75309** | **(9496)** | **333084** | **(26541)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Total available-for-sale | $**4465728** | $**(480166)** | $**1992246** | $**(367308)** | $**6457974** | $**(847474)** |
| **December 31, 2021** |  |  |  |  |  |  |
| **Available-for-Sale** |  |  |  |  |  |  |
| U.S. Treasury | $91063 | $(7751) | $— | $— | $91063 | $(7751) |
| U.S. government-sponsored entities<br> and agencies | 1032566 | (21167) | 312949 | (15847) | 1345515 | (37014) |
| Mortgage-backed securities - Agency | 2415923 | (59277) | 163685 | (6797) | 2579608 | (66074) |
| States and political subdivisions | 178570 | (1849) | 2729 | (33) | 181299 | (1882) |
| Pooled trust preferred securities |  |  | 9496 | (4260) | 9496 | (4260) |
| Other securities | 56976 | (943) | 21133 | (311) | 78109 | (1254) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total available-for-sale | $3775098 | $(90987) | $509992 | $(27248) | $4285090 | $(118235) |

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The following table summarizes the held-to-maturity investment securities with unrecognized losses aggregated by major security type and length of time in a continuous loss position:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Less than 12 months** | **Less than 12 months** | **12 months or longer** | **12 months or longer** | **Total** | **Total** |
|<br>(dollars in thousands) | **Fair<br>Value** | **Unrecognized<br>Losses** | **Fair<br>Value** | **Unrecognized<br>Losses** | **Fair<br>Value** | **Unrecognized<br>Losses** |
| **December 31, 2022** |  |  |  |  |  |  |
| **Held-to-Maturity** |  |  |  |  |  |  |
| U.S. government-sponsored entities<br> and agencies | $**354293** | $**(110523)** | $**302066** | $**(52287)** | $**656359** | $**(162810)** |
| Mortgage-backed securities - Agency | **367849** | **(42438)** | **615114** | **(81416)** | **982963** | **(123854)** |
| States and political subdivisions | **838689** | **(127355)** | **135573** | **(31667)** | **974262** | **(159022)** |
| &nbsp;&nbsp;&nbsp;Total held-to-maturity | $**1560831** | $**(280316)** | $**1052753** | $**(165370)** | $**2613584** | $**(445686)** |

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The unrecognized losses on held-to-maturity investment securities presented in the table above do not include unrecognized losses on securities that were transferred from available-for-sale to held-for-maturity totaling $148.9 million at December 31, 2022 that are included as a separate component of shareholders' equity and are being amortized over the remaining term of the securities.

No allowance for credit losses for available-for-sale debt securities was needed at December 31, 2022 or December 31, 2021.

An allowance on held-to-maturity debt securities is maintained for certain municipal bonds to account for expected lifetime credit losses. Substantially all of the U.S. government-sponsored entities and agencies and agency mortgage-backed securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major credit rating agencies, and have a long history of no credit losses. Therefore, for those securities, we do not record expected credit losses. The allowance for credit losses on held-to-maturity debt securities was $0.2 million at December 31, 2022.

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Accrued interest receivable on securities portfolio is excluded from the estimate of credit losses and totaled $50.9 million at December 31, 2022 and $35.5 million at December 31, 2021.

At December 31, 2022, Old National's securities portfolio consisted of 3,150 securities, 2,803 of which were in an unrealized loss position. The unrealized losses attributable to our U.S. Treasury, U.S. government-sponsored entities and agencies, agency mortgage-backed securities, states and political subdivisions, and other securities are the result of fluctuations in interest rates and temporary market movements. Old National's pooled trust preferred securities are evaluated using collateral-specific assumptions to estimate the expected future interest and principal cash flows. At December 31, 2022, we had no intent to sell any securities that were in an unrealized loss position nor is it expected that we would be required to sell the securities prior to their anticipated recovery.

Old National's pooled trust preferred securities have experienced credit defaults. However, we believe that the value of the instruments lies in the full and timely interest payments that will be received through maturity, the steady amortization that will be experienced until maturity, and the full return of principal by the final maturity of the collateralized debt obligations. Old National did not recognize any losses on these securities for the years ended December 31, 2022 or December 31, 2021.

**Equity Securities**

Old National's equity securities with readily determinable fair values totaled $52.5 million at December 31, 2022 and $13.2 million at December 31, 2021. There were losses on equity securities of $4.9 million during 2022, gains on equity securities of $0.2 million during 2021, and gains on equity securities of $1.4 million during 2020.

**Alternative Investments**

Old National has alternative investments without readily determinable fair values that are included in other assets totaling $396.8 million at December 31, 2022, consisting of $240.1 million of illiquid investments of partnerships, limited liability companies, and other ownership interests that support affordable housing and $156.8 million of economic development and community revitalization initiatives in low-to-moderate income neighborhoods. These alternative investments totaled $186.0 million at December 31, 2021. There were no impairments or adjustments on equity securities without readily determinable fair values, except for amortization of tax credit investments during 2022 and 2021. There were impairments on these securities totaling $0.1 million in 2020.

**NOTE 4 – LOANS AND ALLOWANCE FOR CREDIT LOSSES**

**Loans**

Old National's loans consist primarily of loans made to consumers and commercial clients in many diverse industries, including real estate rental and leasing, manufacturing, healthcare, wholesale trade, construction, and agriculture, among others. Most of Old National's lending activity occurs within our principal geographic markets in the Midwest region. Old National manages concentrations of credit exposure by industry, product, geography, client relationship, and loan size.

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The loan categories used to monitor and analyze interest income and yields are different than the portfolio segments used to determine the allowance for credit losses on loans. The allowance for credit losses was calculated by pooling loans of similar credit risk characteristics and credit monitoring procedures. The four loan portfolios used to monitor and analyze interest income and yields – commercial, commercial real estate, residential real estate, and consumer – are reclassified into seven segments of loans – commercial, commercial real estate, BBCC, residential real estate, indirect, direct, and home equity for purposes of determining the allowance for credit losses on loans. The commercial and commercial real estate loan categories shown on the balance sheet include the same pool of loans as the commercial, commercial real estate, and BBCC portfolio segments. The consumer loan category shown on the balance sheet is comprised of the same loans in the indirect, direct, and home equity portfolio segments. The portfolio segment reclassifications follow:

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| | | | |
|:---|:---|:---|:---|
| | **Statement<br>Balance** | **Portfolio<br>Segment<br>Reclassifications** | **After<br>Reclassifications** |
| | **Statement<br>Balance** | **Portfolio<br>Segment<br>Reclassifications** | **After<br>Reclassifications** |
|<br>(dollars in thousands) | **Statement<br>Balance** | **Portfolio<br>Segment<br>Reclassifications** | **After<br>Reclassifications** |
| **December 31, 2022** |  |  |  |
| Commercial | $**9508904** | $**(210280)** | $**9298624** |
| Commercial real estate | **12457070** | **(158322)** | **12298748** |
| BBCC | **N/A** | **368602** | **368602** |
| Residential real estate | **6460441** | **—** | **6460441** |
| Consumer | **2697226** | **(2697226)** | **N/A** |
| Indirect | **N/A** | **1034257** | **1034257** |
| Direct | **N/A** | **629186** | **629186** |
| Home equity | **N/A** | **1033783** | **1033783** |
| &nbsp;&nbsp;Total | $**31123641** | $**—** | $**31123641** |
| **December 31, 2021** |  |  |  |
| Commercial | $3391769 | $(191557) | $3200212 |
| Commercial real estate | 6380674 | (159190) | 6221484 |
| BBCC | N/A | 350747 | 350747 |
| Residential real estate | 2255289 |  | 2255289 |
| Consumer | 1574114 | (1574114) | N/A |
| Indirect | N/A | 873139 | 873139 |
| Direct | N/A | 140385 | 140385 |
| Home equity | N/A | 560590 | 560590 |
| &nbsp;&nbsp;Total | $13601846 | $— | $13601846 |

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The composition of loans by portfolio segment follows:

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| | | |
|:---|:---|:---|
| | **December 31,** | **December 31,** |
|<br>(dollars in thousands) | **2022** | **2021** |
| Commercial <sup>(1) (2)</sup> | $**9298624** | $3200212 |
| Commercial real estate | **12298748** | 6221484 |
| BBCC | **368602** | 350747 |
| Residential real estate | **6460441** | 2255289 |
| Indirect | **1034257** | 873139 |
| Direct | **629186** | 140385 |
| Home equity | **1033783** | 560590 |
| Total loans | **31123641** | 13601846 |
| Allowance for credit losses on loans | **(303671)** | (107341) |
| &nbsp;&nbsp;Net loans | $**30819970** | $13494505 |

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(1)&nbsp;&nbsp;&nbsp;&nbsp;Includes direct finance leases of $188.1 million at December 31, 2022 and $25.1 million at December 31, 2021.

(2)&nbsp;&nbsp;&nbsp;&nbsp;Includes remaining PPP loans of $32.5 million at December 31, 2022 and $169.0 million December 31, 2021.

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The risk characteristics of each loan portfolio segment are as follows:

***Commercial***

Commercial loans are classified primarily on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee; however, some loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its clients.

***Commercial Real Estate***

Commercial real estate loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts, and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be adversely affected by conditions in the real estate markets or in the general economy. The properties securing Old National's commercial real estate portfolio are diverse in terms of type and geographic location. Management monitors and evaluates commercial real estate loans based on collateral, geography, and risk grade criteria. In addition, management tracks the level of owner-occupied commercial real estate loans versus non-owner occupied loans.

Included with commercial real estate are construction loans, which are underwritten utilizing independent appraisal reviews, sensitivity analysis of absorption and lease rates, financial analysis of the developers and property owners, and feasibility studies, if available. Construction loans are generally based on estimates of costs and value associated with the complete project. These estimates may be inaccurate. Construction loans often involve the disbursement of substantial funds with repayment substantially dependent on the success of the ultimate project. Sources of repayment for these types of loans may be pre-committed permanent loans from approved long-term lenders (including Old National), sales of developed property, or an interim loan commitment from Old National until permanent financing is obtained. These loans are closely monitored by on-site inspections and are considered to have higher risks than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, governmental regulation of real property, general economic conditions, and the availability of long-term financing.

At 227%, Old National Bank's commercial real estate loans as a percentage of its risk-based capital remained well below the regulatory guideline limit of 300% at December 31, 2022.

***BBCC***

BBCC loans are typically granted to small businesses with gross revenues of less than $5 million and aggregate debt of less than $1 million. Old National has established minimum debt service coverage ratios, minimum FICO scores for owners and guarantors, and the ability to show relatively stable earnings as criteria to help mitigate risk. Repayment of these loans depends on the personal income of the borrowers and the cash flows of the business. These factors can be affected by factors such as changes in economic conditions and unemployment levels.

***Residential***

With respect to residential loans that are secured by 1 - 4 family residences and are generally owner occupied, Old National typically establishes a maximum loan-to-value ratio and generally requires private mortgage insurance if that ratio is exceeded. Repayment of these loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Repayment can also be impacted by changes in residential property values. Portfolio risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers.

***Indirect***

Indirect loans are secured by automobile collateral, generally new and used cars and trucks from auto dealers that operate within our footprint. Old National typically mitigates the risk of indirect loans by establishing minimum FICO scores, maximum loan-to-value ratios, and maximum debt-to-income ratios. Repayment of these loans depends largely on the personal income of the borrowers, which can be affected by changes in economic conditions

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such as unemployment levels. Portfolio risk is mitigated by the fact that the loans are of smaller amounts spread over many borrowers, conservative credit policies, and ongoing reviews of dealer relationships.

***Direct***

Direct loans are typically secured by collateral such as auto or real estate or are unsecured. Old National has established conservative underwriting standards such as minimum FICO scores, maximum loan-to-value ratios, and maximum debt-to-income ratios. Repayment of these loans depends largely on the personal income of the borrowers, which can be affected by changes in economic conditions such as unemployment levels. Portfolio risk is mitigated by the fact that the loans are of smaller amounts spread over many borrowers along with conservative credit policies.

***Home Equity***

Home equity loans are generally secured by 1 - 4 family residences that are owner occupied. Old National has established conservative underwriting standards such as minimum FICO scores, maximum loan-to-value ratios, and maximum debt-to-income ratios. Repayment of these loans depends largely on the personal income of the borrowers, which can be affected by changes in economic conditions such as unemployment levels. Portfolio risk is mitigated by the fact that the loans are of smaller amounts spread over many borrowers, along with conservative credit policies as well as monitoring of updated borrower credit scores.

***Related Party Loans***

In the ordinary course of business, Old National grants loans to certain executive officers, directors, and significant subsidiaries (collectively referred to as "related parties"). The aggregate amount of loans to related parties was not greater than 5% of the Company's shareholders' equity at December 31, 2022 or 2021.

**Allowance for Credit Losses**

***Loans***

Credit quality within the loans held for investment portfolio is continuously monitored by management and is reflected within the allowance for credit losses on loans. The allowance for credit losses is an estimate of expected losses inherent within the Company's loans held for investment portfolio. Credit quality is assessed and monitored by evaluating various attributes and the results of those evaluations are utilized in underwriting new loans and in our process for estimating expected credit losses. Expected credit loss inherent in non-cancelable off-balance-sheet credit exposures is accounted for as a separate liability included in other liabilities on the balance sheet. The allowance for credit losses on loans held for investment is adjusted by a credit loss expense, which is reported in earnings, and reduced by the charge-off of loan amounts, net of recoveries. Old National has made a policy election to report accrued interest receivable as a separate line item on the balance sheet. Accrued interest receivable on loans is excluded from the estimate of credit losses and totaled $137.7 million at December 31, 2022 and $47.6 million at December 31, 2021.

The allowance for credit loss estimation process involves procedures to appropriately consider the unique characteristics of our loan portfolio segments. These segments are further disaggregated into loan classes based on the level at which credit risk is monitored. When computing the level of expected credit losses, credit loss assumptions are estimated using a model that categorizes loan pools based on loss history, delinquency status, and other credit trends and risk characteristics, including current conditions and reasonable and supportable forecasts about the future. Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. In future periods evaluations of the overall loan portfolio, in light of the factors and forecasts then prevailing, may result in significant changes in the allowance and credit loss expense in those future periods.

The allowance level is influenced by loan volumes, loan AQR migration or delinquency status, changes in historical loss experience, and other conditions influencing loss expectations, such as reasonable and supportable forecasts of economic conditions. The methodology for estimating the amount of expected credit losses reported in the allowance for credit losses has two basic components: first, an asset-specific component involving individual loans that do not share risk characteristics with other loans and the measurement of expected credit losses for such individual loans; and second, a pooled component for estimated expected credit losses for pools of loans that share similar risk characteristics.

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The base forecast scenario considers unemployment, gross domestic product, and the BBB ratio (BBB spread to the 10-year U.S. Treasury rate). In addition to the quantitative inputs, several qualitative factors are considered. These factors include the risk that unemployment, gross domestic product, housing product index, and the BBB ratio prove to be more severe and/or prolonged than our baseline forecast due to a variety of factors including monetary actions to control inflation, conflict in Ukraine, and global supply chain issues. Old National's activity in the allowance for credit losses on loans by portfolio segment was as follows:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| (dollars in thousands) | **Balance at<br>Beginning of<br>Period** | **Allowance<br>Established<br>for Acquired<br>PCD Loans** | **Impact of<br>Adopting<br>ASC 326** | **Charge-offs** | **Recoveries** | **Provision<br>for Loan<br>Losses** | **Balance at<br>End of<br>Period** |
| **Year Ended**<br>**December 31, 2022** |  |  |  |  |  |  |  |
| Commercial | $**27232** | $**38780** | $**—** | $**(6885)** | $**4610** | $**56875** | $**120612** |
| Commercial real estate | **64004** | **49419** | **—** | **(6519)** | **1095** | **30245** | **138244** |
| BBCC | **2458** | **—** | **—** | **(85)** | **281** | **(223)** | **2431** |
| Residential real estate | **9347** | **136** | **—** | **(344)** | **760** | **12017** | **21916** |
| Indirect | **1743** | **—** | **—** | **(2525)** | **1263** | **1051** | **1532** |
| Direct | **528** | **31** | **—** | **(10799)** | **2557** | **19799** | **12116** |
| Home equity | **2029** | **723** | **—** | **(124)** | **616** | **3576** | **6820** |
| &nbsp;&nbsp;Total | $**107341** | $**89089** | $**—** | $**(27281)** | $**11182** | $**123340** | $**303671** |
| **Year Ended**<br>**December 31, 2021** |  |  |  |  |  |  |  |
| Commercial | $30567 | $— | $— | $(1228) | $791 | $(2898) | $27232 |
| Commercial real estate | 75810 |  |  | (264) | 4403 | (15945) | 64004 |
| BBCC | 6120 |  |  | (144) | 105 | (3623) | 2458 |
| Residential real estate | 12608 |  |  | (346) | 339 | (3254) | 9347 |
| Indirect | 3580 |  |  | (1087) | 1682 | (2432) | 1743 |
| Direct | 855 |  |  | (1159) | 777 | 55 | 528 |
| Home equity | 1848 |  |  | (82) | 978 | (715) | 2029 |
| &nbsp;&nbsp;Total | $131388 | $— | $— | $(4310) | $9075 | $(28812) | $107341 |
| **Year Ended**<br>**December 31, 2020** |  |  |  |  |  |  |  |
| Commercial | $21359 | $— | $7150 | $(5593) | $3629 | $4022 | $30567 |
| Commercial real estate | 20535 |  | 25548 | (4323) | 4515 | 29535 | 75810 |
| BBCC | 2279 |  | 3702 | (95) | 140 | 94 | 6120 |
| Residential real estate | 2299 |  | 6986 | (824) | 633 | 3514 | 12608 |
| Indirect | 5319 |  | (1669) | (2754) | 1922 | 762 | 3580 |
| Direct | 1863 |  | (1059) | (1763) | 819 | 995 | 855 |
| Home equity | 965 |  | 689 | (201) | 922 | (527) | 1848 |
| &nbsp;&nbsp;Total | $54619 | $— | $41347 | $(15553) | $12580 | $38395 | $131388 |

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The allowance for credit losses on loans increased for the year ended December 31, 2022 primarily due to $89.1 million of allowance for credit losses on acquired PCD loans established through acquisition accounting adjustments on or after the merger date with First Midwest and $96.3 million of provision for credit losses to establish an allowance for credit losses on non-PCD loans acquired in the First Midwest merger.

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***Unfunded Loan Commitments***

Old National maintains an allowance for credit losses on unfunded loan commitments to provide for the risk of loss inherent in these arrangements. The allowance is computed using a methodology similar to that used to determine the allowance for credit losses on loans, modified to take into account the probability of a drawdown on the commitment. The allowance for credit losses on unfunded loan commitments is classified as a liability account on the balance sheet within accrued expenses and other liabilities, while the corresponding provision for unfunded loan commitments is included in the provision for credit losses. Old National's activity in the allowance for credit losses on unfunded loan commitments was as follows:

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| | | | |
|:---|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|<br>(dollars in thousands) | **2022** | **2021** | **2020** |
| Balance at beginning of period | $**10879** | $11689 | $2656 |
| &nbsp;&nbsp;Provision for credit losses on unfunded loan commitments<br> acquired during the period | **11013** |  |  |
| &nbsp;&nbsp;Impact of adopting ASC 326 | **—** |  | 4549 |
| &nbsp;&nbsp;Provision for unfunded loan commitments | **10296** | (810) | 4484 |
| Balance at end of period | $**32188** | $10879 | $11689 |

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***Credit Quality***

Old National's management monitors the credit quality of its loans on an ongoing basis with the AQR for commercial loans reviewed annually or at renewal and the performance of its residential and consumer loans based upon the accrual status refreshed at least quarterly. Internally, management assigns an AQR to each non-homogeneous commercial, commercial real estate, and BBCC loan in the portfolio. The primary determinants of the AQR are the reliability of the primary source of repayment and the past, present, and projected financial condition of the borrower. The AQR will also consider current industry conditions. Major factors used in determining the AQR can vary based on the nature of the loan, but commonly include factors such as debt service coverage, internal cash flow, liquidity, leverage, operating performance, debt burden, FICO scores, occupancy, interest rate sensitivity, and expense burden. Old National uses the following definitions for risk ratings:

**Criticized**. Special mention loans that have a potential weakness that deserves management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution's credit position at some future date.

**Classified – Substandard**. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

**Classified – Nonaccrual**. Loans classified as nonaccrual have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection in full, on the basis of currently existing facts, conditions, and values, in doubt.

**Classified – Doubtful**. Loans classified as doubtful have all the weaknesses inherent in those classified as nonaccrual, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Pass rated loans are those loans that are other than criticized, classified – substandard, classified – nonaccrual, or classified – doubtful.

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The following table summarizes the amortized cost of term loans by risk category of commercial, commercial real estate, and BBCC loans by loan portfolio segment, class of loan, and origination year:

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Origination Year** | **Origination Year** | **Origination Year** | **Origination Year** | **Origination Year** | **Origination Year** | | **Revolving to Term** | |
|<br>(dollars in thousands) | **2022** | **2021** | **2020** | **2019** | **2018** | **Prior** |<br>**Revolving** | **Revolving to Term** |<br>**Total** |
| **December 31, 2022** | **December 31, 2022** |  |  |  |  |  |  |  |  |
| **Commercial:** |  |  |  |  |  |  |  |  |  |
| Risk Rating: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Pass | $**2388618** | $**1754364** | $**796340** | $**738208** | $**362986** | $**388617** | $**1988763** | $**329119** | $**8747015** |
| &nbsp;&nbsp;&nbsp;Criticized | **40856** | **30661** | **63557** | **33490** | **9195** | **5312** | **61036** | **4327** | **248434** |
| &nbsp;&nbsp;&nbsp;Classified: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Substandard | **37223** | **47522** | **16540** | **22925** | **4844** | **21204** | **67402** | **25143** | **242803** |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonaccrual | **3627** | **1453** | **566** | **—** | **—** | **—** | **1634** | **6623** | **13903** |
| &nbsp;&nbsp;&nbsp;&nbsp;Doubtful | **2821** | **17604** | **3720** | **8005** | **5968** | **8351** | **—** | **—** | **46469** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $**2473145** | $**1851604** | $**880723** | $**802628** | $**382993** | $**423484** | $**2118835** | $**365212** | $**9298624** |
| **Commercial real estate:** | **Commercial real estate:** |  |  |  |  |  |  |  |  |
| Risk Rating: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Pass | $**3066960** | $**2828758** | $**1989000** | $**1219025** | $**675572** | $**1018719** | $**57818** | $**689553** | $**11545405** |
| &nbsp;&nbsp;Criticized | **75306** | **34422** | **22569** | **82637** | **86504** | **56864** | **—** | **23282** | **381584** |
| &nbsp;&nbsp;Classified: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Substandard | **46231** | **16928** | **24319** | **78468** | **57824** | **21591** | **—** | **4108** | **249469** |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonaccrual | **3151** | **9541** | **5014** | **—** | **2312** | **22155** | **—** | **3257** | **45430** |
| &nbsp;&nbsp;&nbsp;&nbsp;Doubtful | **1934** | **38386** | **10011** | **4605** | **1523** | **20401** | **—** | **—** | **76860** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $**3193582** | $**2928035** | $**2050913** | $**1384735** | $**823735** | $**1139730** | $**57818** | $**720200** | $**12298748** |
| **BBCC:** |  |  |  |  |  |  |  |  |  |
| Risk Rating: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Pass | $**90341** | $**64161** | $**52304** | $**36868** | $**23618** | $**11333** | $**60016** | $**18881** | $**357522** |
| &nbsp;&nbsp;Criticized | **1504** | **525** | **368** | **692** | **353** | **—** | **1006** | **1603** | **6051** |
| &nbsp;&nbsp;Classified: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Substandard | **811** | **143** | **—** | **421** | **—** | **—** | **543** | **682** | **2600** |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonaccrual | **42** | **37** | **118** | **—** | **429** | **284** | **—** | **639** | **1549** |
| &nbsp;&nbsp;&nbsp;&nbsp;Doubtful | **40** | **107** | **439** | **157** | **64** | **73** | **—** | **—** | **880** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $**92738** | $**64973** | $**53229** | $**38138** | $**24464** | $**11690** | $**61565** | $**21805** | $**368602** |

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Origination Year** | **Origination Year** | **Origination Year** | **Origination Year** | **Origination Year** | **Origination Year** | | **Revolving to Term** | |
|<br>(dollars in thousands) | **2021** | **2020** | **2019** | **2018** | **2017** | **Prior** |<br>**Revolving** | **Revolving to Term** |<br>**Total** |
| **December 31, 2021** | **December 31, 2021** |  |  |  |  |  |  |  |  |
| **Commercial:** |  |  |  |  |  |  |  |  |  |
| Risk Rating: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Pass | $918456 | $563869 | $271158 | $98468 | $156136 | $235639 | $667628 | $130470 | $3041824 |
| &nbsp;&nbsp;&nbsp;Criticized | 9998 | 7885 | 6660 |  | 7809 | 2658 | 14601 | 10076 | 59687 |
| &nbsp;&nbsp;&nbsp;Classified: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Substandard | 14773 | 14468 | 10200 | 9849 | 5521 | 945 | 6883 | 10322 | 72961 |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonaccrual | 1069 | 3507 | 1276 | 3721 | 1448 |  | 845 | 7796 | 19662 |
| &nbsp;&nbsp;&nbsp;&nbsp;Doubtful |  | 178 |  | 288 | 337 | 5275 |  |  | 6078 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $944296 | $589907 | $289294 | $112326 | $171251 | $244517 | $689957 | $158664 | $3200212 |
| **Commercial real estate:** | **Commercial real estate:** |  |  |  |  |  |  |  |  |
| Risk Rating: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Pass | $1555880 | $1474271 | $846921 | $481508 | $462176 | $611680 | $42609 | $451544 | $5926589 |
| &nbsp;&nbsp;Criticized | 27622 | 24790 | 39914 |  | 21614 | 22157 |  | 34387 | 170484 |
| &nbsp;&nbsp;Classified: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Substandard | 4706 | 12118 | 9933 | 9058 | 18165 | 11351 | 2291 | 4339 | 71961 |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonaccrual | 1620 | 2997 |  | 1627 | 3419 | 8905 | 315 | 871 | 19754 |
| &nbsp;&nbsp;&nbsp;&nbsp;Doubtful | 6653 |  | 1970 | 342 | 11218 | 12513 |  |  | 32696 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $1596481 | $1514176 | $898738 | $492535 | $516592 | $666606 | $45215 | $491141 | $6221484 |
| **BBCC:** |  |  |  |  |  |  |  |  |  |
| Risk Rating: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Pass | $81710 | $69749 | $54580 | $34461 | $25113 | $8296 | $47571 | $18778 | $340258 |
| &nbsp;&nbsp;Criticized | 1320 | 1170 | 841 | 160 |  |  | 670 | 1578 | 5739 |
| &nbsp;&nbsp;Classified: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Substandard | 284 | 24 | 79 | 7 | 187 | 465 | 103 | 239 | 1388 |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonaccrual |  | 88 |  |  | 66 | 162 |  | 1136 | 1452 |
| &nbsp;&nbsp;&nbsp;&nbsp;Doubtful |  | 25 | 284 | 1391 |  | 210 |  |  | 1910 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $83314 | $71056 | $55784 | $36019 | $25366 | $9133 | $48344 | $21731 | $350747 |

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For residential real estate and consumer loan classes, Old National evaluates credit quality based on the aging status of the loan and by payment activity. The performing or nonperforming status is updated on an on-going basis dependent upon improvement and deterioration in credit quality. The following table presents the amortized cost of term residential real estate and consumer loans based on payment activity and origination year:

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Origination Year** | **Origination Year** | **Origination Year** | **Origination Year** | **Origination Year** | **Origination Year** | | **Revolving to Term** | |
|<br>(dollars in thousands) | **2022** | **2021** | **2020** | **2019** | **2018** | **Prior** |<br>**Revolving** | **Revolving to Term** |<br>**Total** |
| **December 31, 2022** | **December 31, 2022** |  |  |  |  |  |  |  |  |
| **Residential real estate:** | **Residential real estate:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Performing | $**1327168** | $**1945792** | $**1825762** | $**478529** | $**136260** | $**712175** | $**7** | $**88** | $**6425781** |
| &nbsp;&nbsp;Nonperforming | **59** | **529** | **861** | **873** | **1826** | **30512** | **—** | **—** | **34660** |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $**1327227** | $**1946321** | $**1826623** | $**479402** | $**138086** | $**742687** | $**7** | $**88** | $**6460441** |
| **Indirect:** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Performing | $**504410** | $**249407** | $**144265** | $**82304** | $**31484** | $**19095** | $**—** | $**62** | $**1031027** |
| &nbsp;&nbsp;Nonperforming | **348** | **1074** | **645** | **531** | **304** | **328** | **—** | **—** | **3230** |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $**504758** | $**250481** | $**144910** | $**82835** | $**31788** | $**19423** | $**—** | $**62** | $**1034257** |
| **Direct:** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Performing | $**132934** | $**164126** | $**77406** | $**57919** | $**45299** | $**59212** | $**87622** | $**671** | $**625189** |
| &nbsp;&nbsp;Nonperforming | **115** | **851** | **614** | **205** | **327** | **1526** | **5** | **354** | **3997** |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $**133049** | $**164977** | $**78020** | $**58124** | $**45626** | $**60738** | $**87627** | $**1025** | $**629186** |
| **Home equity:** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Performing | $**919** | $**896** | $**1849** | $**1497** | $**983** | $**11646** | $**990001** | $**14792** | $**1022583** |
| &nbsp;&nbsp;Nonperforming | **166** | **160** | **166** | **446** | **794** | **4308** | **1698** | **3462** | **11200** |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $**1085** | $**1056** | $**2015** | $**1943** | $**1777** | $**15954** | $**991699** | $**18254** | $**1033783** |
|  | **Origination Year** | **Origination Year** | **Origination Year** | **Origination Year** | **Origination Year** | **Origination Year** |  | **Revolving to Term** |  |
|  | **2021** | **2020** | **2019** | **2018** | **2017** | **Prior** | **Revolving** | **Revolving to Term** | **Total** |
| **December 31, 2021** | **December 31, 2021** |  |  |  |  |  |  |  |  |
| **Residential real estate:** | **Residential real estate:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Performing | $625582 | $632705 | $272600 | $72766 | $103866 | $529293 | $12 | $105 | $2236929 |
| &nbsp;&nbsp;Nonperforming | 96 | 165 | 166 | 350 | 855 | 16728 |  |  | 18360 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $625678 | $632870 | $272766 | $73116 | $104721 | $546021 | $12 | $105 | $2255289 |
| **Indirect:** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Performing | $361485 | $231156 | $146978 | $68513 | $41598 | $20819 | $— | $9 | $870558 |
| &nbsp;&nbsp;Nonperforming | 262 | 524 | 614 | 510 | 430 | 241 |  |  | 2581 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $361747 | $231680 | $147592 | $69023 | $42028 | $21060 | $— | $9 | $873139 |
| **Direct:** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Performing | $34058 | $16135 | $14396 | $14579 | $7432 | $15831 | $36812 | $192 | $139435 |
| &nbsp;&nbsp;Nonperforming | 13 | 53 | 130 | 133 | 35 | 536 | 42 | 8 | 950 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $34071 | $16188 | $14526 | $14712 | $7467 | $16367 | $36854 | $200 | $140385 |
| **Home equity:** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Performing | $— | $— | $633 | $349 | $535 | $— | $539057 | $16768 | $557342 |
| &nbsp;&nbsp;Nonperforming |  |  | 16 | 9 | 41 | 1 | 258 | 2923 | 3248 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $— | $— | $649 | $358 | $576 | $1 | $539315 | $19691 | $560590 |

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***Nonaccrual and Past Due Loans***

Old National does not record interest on nonaccrual loans until principal is recovered. For all loan classes, a loan is generally placed on nonaccrual status when principal or interest becomes 90 days past due unless it is well secured and in the process of collection, or earlier when concern exists as to the ultimate collectability of principal or interest. Interest accrued but not received is reversed against earnings. Cash interest received on these loans is applied to the principal balance until the principal is recovered or until the loan returns to accrual status. Loans may be returned to accrual status when all the principal and interest amounts contractually due are brought current, remain current for a prescribed period, and future payments are reasonably assured.

The following table presents the aging of the amortized cost basis in past due loans by class of loans:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| (dollars in thousands) | **30-59 Days<br>Past Due** | **60-89 Days<br>Past Due** | **Past Due<br>90 Days or<br>More** | **Total<br>Past Due** | **Current** | **Total<br>Loans** |
| **December 31, 2022** |  |  |  |  |  |  |
| Commercial | $**14147** | $**4801** | $**11080** | $**30028** | $**9268596** | $**9298624** |
| Commercial real estate | **47240** | **1312** | **32892** | **81444** | **12217304** | **12298748** |
| BBCC | **730** | **365** | **603** | **1698** | **366904** | **368602** |
| Residential | **24181** | **5033** | **11753** | **40967** | **6419474** | **6460441** |
| Indirect | **6302** | **2118** | **958** | **9378** | **1024879** | **1034257** |
| Direct | **5404** | **2118** | **1928** | **9450** | **619736** | **629186** |
| Home equity | **6585** | **1966** | **4707** | **13258** | **1020525** | **1033783** |
| &nbsp;&nbsp;Total | $**104589** | $**17713** | $**63921** | $**186223** | $**30937418** | $**31123641** |
| **December 31, 2021** |  |  |  |  |  |  |
| Commercial | $2723 | $617 | $1603 | $4943 | $3195269 | $3200212 |
| Commercial real estate | 1402 | 280 | 7042 | 8724 | 6212760 | 6221484 |
| BBCC | 747 | 162 | 109 | 1018 | 349729 | 350747 |
| Residential | 8273 | 2364 | 4554 | 15191 | 2240098 | 2255289 |
| Indirect | 3888 | 867 | 554 | 5309 | 867830 | 873139 |
| Direct | 687 | 159 | 162 | 1008 | 139377 | 140385 |
| Home equity | 693 | 199 | 777 | 1669 | 558921 | 560590 |
| &nbsp;&nbsp;Total | $18413 | $4648 | $14801 | $37862 | $13563984 | $13601846 |

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The following table presents the amortized cost basis of loans on nonaccrual status and loans past due 90 days or more and still accruing by class of loan:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|<br>(dollars in thousands) | **Nonaccrual<br>Amortized<br>Cost** | **Nonaccrual<br>With No<br>Related<br>Allowance** | **Past Due<br>90 Days or<br>More and<br>Accruing** | **Nonaccrual<br>Amortized<br>Cost** | **Nonaccrual<br>With No<br>Related<br>Allowance** | **Past Due<br>90 Days or<br>More and<br>Accruing** |
| Commercial | $**60372** | $**7873** | $**152** | $25740 | $9574 | $— |
| Commercial real estate | **122290** | **33445** | **—** | 52450 | 25139 |  |
| BBCC | **2429** | **—** | **—** | 3362 |  |  |
| Residential | **34660** | **—** | **1808** | 18360 |  |  |
| Indirect | **3230** | **—** | **28** | 2581 |  | 4 |
| Direct | **3997** | **—** | **133** | 950 |  | 3 |
| Home equity | **11200** | **—** | **529** | 3248 |  |  |
| &nbsp;&nbsp;Total | $**238178** | $**41318** | $**2650** | $106691 | $34713 | $7 |

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Interest income recognized on nonaccrual loans was insignificant during the years ended December 31, 2022 and 2021.

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When management determines that foreclosure is probable, expected credit losses for collateral dependent loans are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. A loan is considered collateral dependent when the borrower is experiencing financial difficulty and the loan is expected to be repaid substantially through the operation or sale of the collateral. The class of loan represents the primary collateral type associated with the loan. Significant quarter-over-quarter changes are reflective of changes in nonaccrual status and not necessarily associated with credit quality indicators like appraisal value. The following table presents the amortized cost basis of collateral dependent loans by class of loan:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Type of Collateral** | **Type of Collateral** | **Type of Collateral** | **Type of Collateral** | **Type of Collateral** |
|<br>(dollars in thousands) | **Real<br>Estate** | **Blanket<br>Lien** | **Investment<br>Securities/Cash** | **Auto** | **Other** |
| **December 31, 2022** |  |  |  |  |  |
| Commercial | $**8962** | $**42754** | $**2690** | $**1611** | $**980** |
| Commercial Real Estate | **108871** | **—** | **1718** | **—** | **6411** |
| BBCC | **1939** | **478** | **—** | **12** | **—** |
| Residential | **34660** | **—** | **—** | **—** | **—** |
| Indirect | **—** | **—** | **—** | **3230** | **—** |
| Direct | **2991** | **13** | **—** | **232** | **23** |
| Home equity | **11200** | **—** | **—** | **—** | **—** |
| &nbsp;&nbsp;Total | $**168623** | $**43245** | $**4408** | $**5085** | $**7414** |
| **December 31, 2021** |  |  |  |  |  |
| Commercial | $8100 | $13816 | $3394 | $80 | $302 |
| Commercial Real Estate | 38657 |  | 961 |  | 6653 |
| BBCC | 1895 | 1331 | 43 | 93 |  |
| Residential | 18360 |  |  |  |  |
| Indirect |  |  |  | 2581 |  |
| Direct | 724 |  | 1 | 152 | 20 |
| Home equity | 3248 |  |  |  |  |
| &nbsp;&nbsp;Total | $70984 | $15147 | $4399 | $2906 | $6975 |

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***Loan Participations***

Old National has loan participations, which qualify as participating interests, with other financial institutions. At December 31, 2022, these loans totaled $2.3 billion, of which $1.1 billion had been sold to other financial institutions and $1.2 billion was retained by Old National. The loan participations convey proportionate ownership rights with equal priority to each participating interest holder; involve no recourse (other than ordinary representations and warranties) to, or subordination by, any participating interest holder; all cash flows are divided among the participating interest holders in proportion to each holder's share of ownership; and no holder has the right to pledge the entire financial asset unless all participating interest holders agree.

***Troubled Debt Restructurings***

Old National may choose to restructure the contractual terms of certain loans. The decision to restructure a loan, versus aggressively enforcing the collection of the loan, may benefit Old National by increasing the ultimate probability of collection.

Any loans that are modified are reviewed by Old National to identify if a TDR has occurred, which is when for economic or legal reasons related to a borrower's financial difficulties, Old National Bank grants a concession to the borrower that it would not otherwise consider. Terms may be modified to fit the ability of the borrower to repay in line with its current financial status. The modification of the terms of such loans includes one or a combination of the following: a reduction of the stated interest rate of the loan, an extension of the maturity date at a stated rate of interest lower than the current market rate of new debt with similar risk, or a permanent reduction of the recorded investment of the loan.

Loans modified in a TDR are typically placed on nonaccrual status until we determine the future collection of principal and interest is reasonably assured, which generally requires that the borrower demonstrate a period of performance according to the restructured terms for six months.

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If we are unable to resolve a nonperforming loan issue, the credit will be charged off when it is apparent there will be a loss. For large commercial type loans, each relationship is individually analyzed for evidence of apparent loss based on quantitative benchmarks or subjectively based upon certain events or particular circumstances. For residential and consumer loans, a charge off is recorded at the time foreclosure is initiated or when the loan becomes 120 to 180 days past due, whichever is earlier.

For commercial TDRs, an allocation is established within the allowance for credit losses on loans for the difference between the carrying value of the loan and its computed value. To determine the computed value of the loan, one of the following methods is selected: (1) the present value of expected cash flows discounted at the loan's original effective interest rate, (2) the loan's observable market price, or (3) the fair value of the collateral, if the loan is collateral dependent. The allocation is established as the difference between the carrying value of the loan and the collectable value. If there are significant changes in the amount or timing of the loan's expected future cash flows, the allowance allocation is recalculated and adjusted accordingly.

When a residential or consumer loan is identified as a TDR, the loan is typically written down to its collateral value less selling costs.

The following table presents activity in TDRs:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| (dollars in thousands) | **Beginning Balance** | **(Charge-offs)/ Recoveries** | **(Payments)/ Disbursements** | **Additions** | **Ending Balance** |
| **Year Ended December 31, 2022** |  |  |  |  |  |
| Commercial | $**7456** | $**—** | $**(6880)** | $**5194** | $**5770** |
| Commercial real estate | **17158** | **4** | **(10908)** | **21982** | **28236** |
| BBCC | **87** | **3** | **(16)** | **—** | **74** |
| Residential | **2435** | **—** | **(169)** | **—** | **2266** |
| Indirect | **—** | **1** | **(1)** | **—** | **—** |
| Direct | **2704** | **—** | **(58)** | **194** | **2840** |
| Home equity | **199** | **1** | **(84)** | **—** | **116** |
| &nbsp;&nbsp;Total | $**30039** | $**9** | $**(18116)** | $**27370** | $**39302** |
| **Year Ended December 31, 2021** |  |  |  |  |  |
| Commercial | $11090 | $— | $(4535) | $901 | $7456 |
| Commercial real estate | 17606 | 24 | (2166) | 1694 | 17158 |
| BBCC | 112 | 8 | (33) |  | 87 |
| Residential | 2824 | (4) | (385) |  | 2435 |
| Indirect |  | 3 | (3) |  |  |
| Direct | 739 | 2 | (101) | 2064 | 2704 |
| Home equity | 282 | 3 | (86) |  | 199 |
| &nbsp;&nbsp;Total | $32653 | $36 | $(7309) | $4659 | $30039 |
| **Year Ended December 31, 2020** |  |  |  |  |  |
| Commercial | $12412 | $633 | $(4557) | $2602 | $11090 |
| Commercial real estate | 14277 | 4801 | (8502) | 7030 | 17606 |
| BBCC | 578 | (19) | (447) |  | 112 |
| Residential | 3107 |  | (283) |  | 2824 |
| Indirect |  | 9 | (9) |  |  |
| Direct | 983 | 23 | (267) |  | 739 |
| Home equity | 381 | 3 | (102) |  | 282 |
| &nbsp;&nbsp;Total | $31738 | $5450 | $(14167) | $9632 | $32653 |

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TDRs included within nonaccrual loans totaled $24.0 million at December 31, 2022 and $11.7 million at December 31, 2021. Old National has established specific allowances for credit losses for clients whose loan terms have been modified as TDRs totaling $4.5 million at December 31, 2022 and $0.7 million at December 31, 2021. Old National had not committed to lend any additional funds to clients with outstanding loans that were classified as TDRs at December 31, 2022 or December 31, 2021.

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The pre-modification and post-modification outstanding recorded investments of loans modified as TDRs during the years ended December 31, 2022, 2021, and 2020 are the same except for when the loan modifications involve the forgiveness of principal. The following table presents loans modified as TDRs that occurred during the years ended December 31, 2022, 2021, and 2020:

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| | |
|:---|:---|
| (dollars in thousands) | **Total** |
| **Year Ended December 31, 2022** |  |
| TDR: |  |
| &nbsp;&nbsp;&nbsp;Number of loans | **8** |
| &nbsp;&nbsp;&nbsp;Pre-modification outstanding recorded investment | $**27370** |
| &nbsp;&nbsp;&nbsp;Post-modification outstanding recorded investment | **27370** |
| **Year Ended December 31, 2021** |  |
| TDR: |  |
| &nbsp;&nbsp;&nbsp;Number of loans | 3 |
| &nbsp;&nbsp;&nbsp;Pre-modification outstanding recorded investment | $4659 |
| &nbsp;&nbsp;&nbsp;Post-modification outstanding recorded investment | 4659 |
| **Year Ended December 31, 2020** |  |
| TDR: |  |
| &nbsp;&nbsp;&nbsp;Number of loans | 4 |
| &nbsp;&nbsp;&nbsp;Pre-modification outstanding recorded investment | $9632 |
| &nbsp;&nbsp;&nbsp;Post-modification outstanding recorded investment | 9632 |

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The TDRs that occurred during 2022 increased the allowance for credit losses on loans by $3.8 million and resulted in nominal charge-offs during 2022. The TDRs that occurred during 2021 decreased the allowance for credit losses on loans by $0.9 million and resulted in no charge-offs during 2021. The TDRs that occurred during 2020 increased the allowance for loan losses by $0.3 million and resulted in no charge-offs during 2020.

A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms.

TDRs for which there was a payment default within twelve months following the modification during the year were insignificant in 2022, 2021, and 2020.

The terms of certain other loans were modified during 2022 and 2021 that did not meet the definition of a TDR. It is our process to review all classified and criticized loans that, during the period, have been renewed, have entered into a forbearance agreement, have gone from principal and interest to interest only, or have extended the maturity date. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on its debt in the foreseeable future without the modification. The evaluation is performed under our internal underwriting policy. We also evaluate whether a concession has been granted or if we were adequately compensated through a market interest rate, additional collateral, or a bona fide guarantee. We also consider whether the modification was insignificant relative to the other terms of the agreement or the delay in a payment.

In general, once a modified loan is considered a TDR, the loan will always be considered a TDR until it is paid in full, otherwise settled, sold, or charged off. However, guidance also permits for loans to be removed from TDR status when subsequently restructured under these circumstances: (1) at the time of the subsequent restructuring, the borrower is not experiencing financial difficulties, and this is documented by a current credit evaluation at the time of the restructuring, (2) under the terms of the subsequent restructuring agreement, the institution has granted no concession to the borrower; and (3) the subsequent restructuring agreement includes market terms that are no less favorable than those that would be offered for a comparable new loan. For loans subsequently restructured that have cumulative principal forgiveness, the loan should continue to be measured in accordance with ASC 310-10, *Receivables – Overall*. However, consistent with ASC 310-40-50-2, *Troubled Debt Restructurings by Creditors, Creditor Disclosure of Troubled Debt Restructurings*, the loan would not be required to be reported in the years following the restructuring if the subsequent restructuring meets both of these criteria: (1) has an interest rate at the time of the subsequent restructuring that is not less than a market interest rate; and (2) is performing in compliance with its modified terms after the subsequent restructuring.

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***Purchased Credit Deteriorated Loans***

Old National has purchased loans, for which there was, at acquisition, evidence of more than insignificant deterioration of credit quality since origination. The carrying amount of those loans is as follows:

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| | |
|:---|:---|
| (dollars in thousands) | **First Midwest** <sup>(1)</sup> |
| Purchase price of loans at acquisition | $**1390273** |
| Allowance for credit losses at acquisition | **89089** |
| Non-credit discount/(premium) at acquisition | **9003** |
| &nbsp;&nbsp;Par value of acquired loans at acquisition | $**1488365** |

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(1)Old National merged with First Midwest effective February 15, 2022.

**NOTE 5 – PREMISES AND EQUIPMENT**

The composition of premises and equipment was as follows:

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| | | |
|:---|:---|:---|
| | **December 31,** | **December 31,** |
|<br>(dollars in thousands) | **2022** | **2021** |
| Land | $**91568** | $71014 |
| Buildings | **419596** | 394400 |
| Furniture, fixtures, and equipment | **154719** | 118124 |
| Leasehold improvements | **69412** | 46330 |
| Total | **735295** | 629868 |
| Accumulated depreciation | **(177988)** | (153682) |
| &nbsp;&nbsp;&nbsp;Premises and equipment, net | $**557307** | $476186 |

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During 2022, Old National recorded $111.9 million of premises and equipment associated with the merger with First Midwest. See Note 2 to the consolidated financial statements for additional detail regarding this transaction.

Depreciation expense was $36.4 million in 2022, $27.3 million in 2021, and $28.9 million in 2020.

**Finance Leases**

Old National leases certain banking center buildings and equipment under finance leases that are included in premises and equipment. See Notes 6 and 13 to the consolidated financial statements for detail regarding these leases.

**NOTE 6 – LEASES**

Old National determines if an arrangement is or contains a lease at contract inception. Operating leases are included in operating lease right-of-use assets and operating lease liabilities in our consolidated balance sheets. Finance leases are included in premises and equipment and other borrowings in our consolidated balance sheets.

Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. In determining the present value of lease payments, we use the implicit lease rate when readily determinable. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date. The incremental borrowing rate is the rate of interest that we would have to pay to borrow on a collateralized basis over a similar term in an amount equal to the lease payments in a similar economic environment.

Old National has operating and finance leases for land, office space, banking centers, and equipment. These leases are generally for periods of 5 to 20 years with various renewal options. We include certain renewal options in the measurement of our right-of-use assets and lease liabilities if they are reasonably certain to be exercised. Variable lease payments that are dependent on an index or a rate are initially measured using the index or rate at the commencement date and are included in the measurement of the lease liability. Variable lease payments that are not dependent on an index or a rate are excluded from the measurement of the lease liability and are recognized in profit

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and loss when incurred. Variable lease payments are defined as payments made for the right to use an asset that vary because of changes in facts or circumstances occurring after the commencement date, other than the passage of time.

Old National has lease agreements with lease and non-lease components, which are generally accounted for separately. For real estate leases, non-lease components and other non-components, such as common area maintenance charges, real estate taxes, and insurance are not included in the measurement of the lease liability since they are generally able to be segregated. For certain equipment leases, Old National accounts for the lease and non-lease components as a single lease component using the practical expedient available for that class of assets.

Old National does not have any material sub-lease agreements.

The components of lease expense were as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Affected Line <br>Item in the <br>Statement of Income** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|<br>(dollars in thousands) | **Affected Line <br>Item in the <br>Statement of Income** | **2022** | **2021** | **2020** |
| Operating lease cost | Occupancy/Equipment expense | $**29368** | $12336 | $23548 |
| Finance lease cost: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Amortization of right-of-use assets | Occupancy expense | **2672** | 2356 | 1044 |
| &nbsp;&nbsp;&nbsp;Interest on lease liabilities | Interest expense | **415** | 431 | 364 |
| Sub-lease income | Occupancy expense | **(448)** | (438) | (512) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total |  | $**32007** | $14685 | $24444 |

---

Supplemental balance sheet information related to leases was as follows:

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| | | |
|:---|:---|:---|
| | **December 31,** | **December 31,** |
|<br>(dollars in thousands) | **2022** | **2021** |
| **Operating Leases** |  |  |
| &nbsp;&nbsp;&nbsp;Operating lease right-of-use assets | $**189714** | $69560 |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities | **211964** | 76236 |
| **Finance Leases** |  |  |
| &nbsp;&nbsp;&nbsp;Premises and equipment, net | **10799** | 16451 |
| &nbsp;&nbsp;&nbsp;Other borrowings | **13469** | 17233 |
| **Weighted-Average Remaining Lease Term (in Years)** |  |  |
| &nbsp;&nbsp;&nbsp;Operating leases | **9.1** | 10.4 |
| &nbsp;&nbsp;&nbsp;Finance leases | **7.2** | 7.6 |
| **Weighted-Average Discount Rate** |  |  |
| &nbsp;&nbsp;&nbsp;Operating leases | **2.88%** | 3.34% |
| &nbsp;&nbsp;&nbsp;Finance leases | **3.30%** | 3.02% |

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Supplemental cash flow information related to leases was as follows:

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| | | | |
|:---|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|<br>(dollars in thousands) | **2022** | **2021** | **2020** |
| Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating cash flows from operating leases | $**30340** | $13823 | $15906 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating cash flows from finance leases | **415** | 431 | 364 |
| &nbsp;&nbsp;&nbsp;&nbsp;Financing cash flows from finance leases | **2475** | 2057 | 819 |

---

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The following table presents a maturity analysis of the Company's lease liability by lease classification at December 31, 2022:

---

| | | |
|:---|:---|:---|
| (dollars in thousands) | **Operating<br>Leases** | **Finance <br>Leases** |
| 2023 | $30951 | $2600 |
| 2024 | 29939 | 2643 |
| 2025 | 28635 | 2645 |
| 2026 | 27639 | 1400 |
| 2027 | 26604 | 1381 |
| Thereafter | 98539 | 4525 |
| &nbsp;&nbsp;&nbsp;Total undiscounted lease payments | 242307 | 15194 |
| Amounts representing interest | (30343) | (1725) |
| &nbsp;&nbsp;&nbsp;Lease liability | $211964 | $13469 |

---

**NOTE 7 – GOODWILL AND OTHER INTANGIBLE ASSETS**

The following table presents the changes in the carrying amount of goodwill:

---

| | | | |
|:---|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|<br>(dollars in thousands) | **2022** | **2021** | **2020** |
| Balance at beginning of period | $**1036994** | $1036994 | $1036994 |
| &nbsp;&nbsp;&nbsp;Acquisitions and adjustments | **961722** |  |  |
| Balance at end of period | $**1998716** | $1036994 | $1036994 |

---

During 2022, Old National recorded $961.7 million of goodwill associated with the First Midwest merger. See Note 2 to the consolidated financial statements for additional detail regarding this transaction.

Old National performed the required annual goodwill impairment test as of August 31, 2022 and there was no impairment. No events or circumstances since the August 31, 2022 annual impairment test were noted that would indicate it was more likely than not a goodwill impairment exists.

The gross carrying amounts and accumulated amortization of other intangible assets were as follows:

---

| | | | |
|:---|:---|:---|:---|
| (dollars in thousands) | **Gross<br>Carrying<br>Amount** | **Accumulated<br>Amortization<br>and Impairment** | **Net<br>Carrying<br>Amount** |
| **December 31, 2022** |  |  |  |
| Core deposit | $**170642** | $**(80951)** | $**89691** |
| Customer trust relationships | **56243** | **(19529)** | **36714** |
| &nbsp;&nbsp;&nbsp;Total intangible assets | $**226885** | $**(100480)** | $**126405** |
| **December 31, 2021** |  |  |  |
| Core deposit | $92754 | $(60036) | $32718 |
| Customer trust relationships | 16547 | (14587) | 1960 |
| &nbsp;&nbsp;&nbsp;Total intangible assets | $109301 | $(74623) | $34678 |

---

Other intangible assets consist of core deposit intangibles and customer relationship intangibles and are being amortized primarily on an accelerated basis over their estimated useful lives, generally over a period of 5 to 15 years. During 2022, Old National recorded $77.9 million of core deposit intangibles and $39.7 million of customer trust relationships intangible associated with the First Midwest merger.

Old National reviews other intangible assets for possible impairment whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. No impairment charges were recorded in 2022, 2021, or

------

2020. Total amortization expense associated with intangible assets was $25.9 million in 2022, $11.3 million in 2021, and $14.1 million in 2020.

Estimated amortization expense for future years is as follows:

---

| | |
|:---|:---|
| (dollars in thousands) |  |
| 2023 | $24214 |
| 2024 | 21298 |
| 2025 | 18417 |
| 2026 | 15614 |
| 2027 | 12926 |
| Thereafter | 33936 |
| &nbsp;&nbsp;&nbsp;Total | $126405 |

---

**NOTE 8 – LOAN SERVICING RIGHTS**

Loan servicing rights are included in other assets on the balance sheet. At December 31, 2022, loan servicing rights derived from mortgage loans sold with servicing retained totaled $37.3 million, compared to $30.0 million at December 31, 2021. Loans serviced for others are not reported as assets. The principal balance of mortgage loans serviced for others was $4.3 billion at December 31, 2022, compared to $3.7 billion at December 31, 2021. Custodial escrow balances maintained in connection with serviced loans were $27.0 million at December 31, 2022 and $18.2 million at December 31, 2021.

The following table summarizes the carrying values and activity related to loan servicing rights and the related valuation allowance:

---

| | | | |
|:---|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|<br>(dollars in thousands) | **2022** | **2021** | **2020** |
| Balance at beginning of period | $**30085** | $28124 | $25399 |
| &nbsp;&nbsp;Additions <sup>(1)</sup> | **13080** | 11759 | 12810 |
| &nbsp;&nbsp;&nbsp;Amortization | **(5898)** | (9798) | (10085) |
| Balance before valuation allowance at end of period | **37267** | 30085 | 28124 |
| Valuation allowance: |  |  |  |
| Balance at beginning of period | **(46)** | (1407) | (31) |
| &nbsp;&nbsp;&nbsp;(Additions)/recoveries | **46** | 1361 | (1376) |
| Balance at end of period | **—** | (46) | (1407) |
| Loan servicing rights, net | $**37267** | $30039 | $26717 |

---

(1)Additions in 2022 include loan servicing rights of $7.7 million acquired in the First Midwest merger on February 15, 2022.

At December 31, 2022, the fair value of servicing rights was $48.4 million, which was determined using a discount rate of 9% and a conditional prepayment rate of 9%. At December 31, 2021, the fair value of servicing rights was $33.8 million, which was determined using a discount rate of 9% and a conditional prepayment rate of 10%.

**NOTE 9 – QUALIFIED AFFORDABLE HOUSING PROJECTS AND OTHER TAX CREDIT INVESTMENTS**

Old National is a limited partner in several tax-advantaged limited partnerships whose purpose is to invest in approved qualified affordable housing, renewable energy, or other renovation or community revitalization projects. These investments are included in other assets on the balance sheet, with any unfunded commitments included with other liabilities. As of December 31, 2022, Old National expects to recover its remaining investments through the use of the tax credits that are generated by the investments.

------

The following table summarizes Old National's investments in qualified affordable housing projects and other tax credit investments:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| (dollars in thousands) | (dollars in thousands) | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** |
| **Investment** | **Accounting Method** | **Investment** | **Unfunded Commitment (1)** | **Investment** | **Unfunded Commitment** |
| LIHTC | Proportional amortization | $**84428** | $**55754** | $68989 | $41355 |
| FHTC | Equity | **19316** | **9588** | 21241 | 15252 |
| NMTC | Consolidation | **51912** | **—** | 18727 |  |
| Renewable Energy | Equity | **1099** | **—** | 1985 |  |
| &nbsp;&nbsp;&nbsp;Total |  | $**156755** | $**65342** | $110942 | $56607 |

---

(1)All commitments will be paid by Old National by December 31, 2027.

The following table summarizes the amortization expense and tax benefit recognized for Old National's qualified affordable housing projects and other tax credit investments:

---

| | | |
|:---|:---|:---|
| (dollars in thousands) | **Amortization**<br>**Expense** <sup>(1)</sup> | **Tax Expense**<br>**(Benefit)**<br>**Recognized** <sup>(2)</sup> |
| **Year Ended December 31, 2022** |  |  |
| LIHTC | $**4974** | $**(6613)** |
| FHTC | **1925** | **(2227)** |
| NMTC | **8197** | **(10225)** |
| Renewable Energy | **839** | **—** |
| &nbsp;&nbsp;&nbsp;Total | $**15935** | $**(19065)** |
| **Year Ended December 31, 2021** |  |  |
| LIHTC | $3450 | $(4543) |
| FHTC | 2557 | (2884) |
| NMTC | 2887 | (3625) |
| Renewable Energy | 1326 | (562) |
| &nbsp;&nbsp;&nbsp;Total | $10220 | $(11614) |
| **Year Ended December 31, 2020** |  |  |
| LIHTC | $3105 | $(4071) |
| FHTC | 13237 | (15582) |
| NMTC | 900 | (1100) |
| Renewable Energy | 4651 | (4122) |
| &nbsp;&nbsp;&nbsp;Total | $21893 | $(24875) |

---

(1)The amortization expense for the LIHTC investments is included in our income tax expense. The amortization expense for the FHTC, NMTC, and Renewable Energy tax credits is included in noninterest expense.

(2)All of the tax benefits recognized are included in our income tax expense. The tax benefit recognized for the FHTC, NMTC, and Renewable Energy investments primarily reflects the tax credits generated from the investments and excludes the net tax expense (benefit) and deferred tax liability of the investments' income (loss).

------

**NOTE 10 – DEPOSITS**

At December 31, 2022, the scheduled maturities of total time deposits were as follows:

---

| | |
|:---|:---|
| (dollars in thousands) |  |
| Due in 2023 | $2099157 |
| Due in 2024 | 684377 |
| Due in 2025 | 118776 |
| Due in 2026 | 64207 |
| Due in 2027 | 41794 |
| Thereafter | 5469 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $3013780 |

---

The aggregate amount of time deposits in denominations that met or exceeded the FDIC insurance limit of $250,000 totaled $793.4 million at December 31, 2022 and $252.8 million at December 31, 2021.

**NOTE 11 – SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE**

Securities sold under agreements to repurchase are secured borrowings. Old National pledges investment securities to secure these borrowings. The following table presents securities sold under agreements to repurchase and related weighted-average interest rates for each of the years ended December 31:

---

| | | |
|:---|:---|:---|
| (dollars in thousands) | **2022** | **2021** |
| Outstanding at year-end | $**432804** | $392275 |
| Average amount outstanding | **440619** | 392777 |
| Maximum amount outstanding at any month-end | **509275** | 405278 |
| Weighted-average interest rate: |  |  |
| &nbsp;&nbsp;&nbsp;During year | **0.19%** | 0.10% |
| &nbsp;&nbsp;&nbsp;End of year | **1.31** | 0.10 |

---

The following table presents the contractual maturity of our secured borrowings and class of collateral pledged:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **At December 31, 2022** | **At December 31, 2022** | **At December 31, 2022** | **At December 31, 2022** | **At December 31, 2022** |
| | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** |
| (dollars in thousands) | **Overnight and<br>Continuous** | **Up to<br>30 Days** | **30-90 Days** | **Greater Than<br>90 days** | **Total** |
| Repurchase Agreements: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. Treasury and agency securities | $**432804** | $**—** | $**—** | $**—** | $**432804** |
| &nbsp;&nbsp;Total | $**432804** | $**—** | $**—** | $**—** | $**432804** |

---

The fair value of securities pledged to secure repurchase agreements may decline. Old National has pledged securities valued at 110% of the gross outstanding balance of repurchase agreements at December 31, 2022 to manage this risk.

**NOTE 12 – FEDERAL HOME LOAN BANK ADVANCES**

The following table summarizes Old National Bank's FHLB advances:

---

| | | |
|:---|:---|:---|
| | **December 31,** | **December 31,** |
|<br>(dollars in thousands) | **2022** | **2021** |
| FHLB advances (fixed rates 0.00% to 4.96% and<br>&nbsp;&nbsp;&nbsp;&nbsp;variable rates 3.90% to 4.17%) maturing<br>&nbsp;&nbsp;&nbsp;&nbsp;January 2023 to September 2042 | $**3850677** | $1902655 |
| Fair value hedge basis adjustments and unamortized<br> prepayment fees | **(21659)** | (16636) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other borrowings | $**3829018** | $1886019 |

---

------

FHLB advances had weighted-average rates of 3.15% at December 31, 2022 and 1.30% at December 31, 2021. Certain FHLB advances are collateralized with residential real estate loans at 140%.

At December 31, 2022, total unamortized prepayment fees related to all debt modifications completed in prior years totaled $20.2 million, compared to $26.2 million at December 31, 2021.

Contractual maturities of FHLB advances at December 31, 2022 were as follows:

---

| | |
|:---|:---|
| (dollars in thousands) |  |
| Due in 2023 | $950149 |
| Due in 2024 | 25243 |
| Due in 2025 | 550285 |
| Due in 2026 | 100000 |
| Thereafter | 2225000 |
| Fair value hedge basis adjustments and unamortized prepayment fees | (21659) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $3829018 |

---

**NOTE 13 – OTHER BORROWINGS**

The following table summarizes Old National's other borrowings:

---

| | | |
|:---|:---|:---|
| | **December 31,** | **December 31,** |
|<br>(dollars in thousands) | **2022** | **2021** |
| **Old National Bancorp:** |  |  |
| &nbsp;&nbsp;Senior unsecured notes (fixed rate 4.125%) maturing August 2024 | $**175000** | $175000 |
| &nbsp;&nbsp;Unamortized debt issuance costs related to senior unsecured notes | **(247)** | (403) |
| &nbsp;&nbsp;Subordinated debentures (fixed rate 5.875%) maturing September 2026 | **150000** |  |
| &nbsp;&nbsp;Junior subordinated debentures (variable rates of<br>&nbsp;&nbsp;&nbsp;&nbsp;5.68% to 7.99%) maturing July 2031 to September 2037 | **136643** | 42000 |
| &nbsp;&nbsp;&nbsp;Other basis adjustments | **23363** | (3044) |
| **Old National Bank:** |  |  |
| &nbsp;&nbsp;&nbsp;Finance lease liabilities | **13469** | 17233 |
| &nbsp;&nbsp;Subordinated debentures (variable rate 8.77%) maturing October 2025 | **12000** | 12000 |
| &nbsp;&nbsp;Leveraged loans for NMTC (fixed rates of 1.00% to 1.43%) <br>&nbsp;&nbsp;&nbsp;&nbsp;maturing December 2046 to June 2060 | **143187** | 51045 |
| &nbsp;&nbsp;Other <sup>(1)</sup> | **89588** | 2839 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other borrowings | $**743003** | $296670 |

---

(1)Includes overnight borrowings to collateralize certain derivative positions totaling $88.0 million at December 31, 2022.

Contractual maturities of other borrowings at December 31, 2022 were as follows:

---

| | |
|:---|:---|
| (dollars in thousands) |  |
| Due in 2023 | $90276 |
| Due in 2024 | 177335 |
| Due in 2025 | 14389 |
| Due in 2026 | 151188 |
| Due in 2027 | 1209 |
| Thereafter | 283934 |
| Unamortized debt issuance costs and other basis adjustments | 24672 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $743003 |

---

**Senior Notes**

In August 2014, Old National issued $175.0 million of senior unsecured notes with a 4.125% interest rate. These notes pay interest on February 15 and August 15. The notes mature on August 15, 2024.

------

**Junior Subordinated Debentures**

Junior subordinated debentures related to trust preferred securities are classified in "other borrowings." Junior subordinated debentures qualify as Tier 2 capital for regulatory purposes, subject to certain limitations.

Through various mergers and acquisitions, Old National assumed junior subordinated debenture obligations related to various trusts that issued trust preferred securities. Old National guarantees the payment of distributions on the trust preferred securities issued by the trusts. Proceeds from the issuance of each of these securities were used to purchase junior subordinated debentures with the same financial terms as the securities issued by the trusts.

Old National, at any time, may redeem the junior subordinated debentures at par and, thereby cause a redemption of the trust preferred securities in whole or in part.

The following table summarizes the terms of our outstanding junior subordinated debentures as of December 31, 2022:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| (dollars in thousands)<br>**Name of Trust** | **Issuance Date** | **Issuance<br>Amount** | **Rate** | **Rate at**<br>**December 31,<br>2022** | **Maturity Date** |
| Bridgeview Statutory Trust I | July 2001 | $15464 | 3-month LIBOR plus 3.58% | 7.99% | July 31, 2031 |
| Bridgeview Capital Trust II | December 2002 | 15464 | 3-month LIBOR plus 3.35% | 7.43% | January 7, 2033 |
| First Midwest Capital Trust I | November 2003 | 37825 | 6.95% fixed | 6.95% | December 1, 2033 |
| St. Joseph Capital Trust II | March 2005 | 5155 | 3-month LIBOR plus 1.75% | 6.49% | March 17, 2035 |
| Northern States Statutory Trust I | September 2005 | 10310 | 3-month LIBOR plus 1.80% | 6.57% | September 15, 2035 |
| Anchor Capital Trust III | August 2005 | 5000 | 3-month LIBOR plus 1.55% | 6.30% | September 30, 2035 |
| Great Lakes Statutory Trust II | December 2005 | 6186 | 3-month LIBOR plus 1.40% | 6.17% | December 15, 2035 |
| Home Federal Statutory<br> Trust I | September 2006 | 15464 | 3-month LIBOR plus 1.65% | 6.42% | September 15, 2036 |
| Monroe Bancorp Capital<br> Trust I | July 2006 | 3093 | 3-month LIBOR plus 1.60% | 5.68% | October 7, 2036 |
| Tower Capital Trust 3 | December 2006 | 9279 | 3-month LIBOR plus 1.69% | 6.45% | March 1, 2037 |
| Monroe Bancorp Statutory<br> Trust II | March 2007 | 5155 | 3-month LIBOR plus 1.60% | 6.37% | June 15, 2037 |
| Great Lakes Statutory Trust III | June 2007 | 8248 | 3-month LIBOR plus 1.70% | 6.47% | September 15, 2037 |
| &nbsp;&nbsp;&nbsp;Total |  | $136643 |  |  |  |

---

**Subordinated Debentures**

On November 1, 2017, Old National assumed $12.0 million of subordinated fixed-to-floating notes related to the acquisition of Anchor Bancorp, Inc. (MN). The subordinated debentures had a 5.75% fixed rate of interest through October 29, 2020. From October 30, 2020 to the October 30, 2025 maturity date, the debentures have a floating rate of interest equal to the three-month LIBOR rate plus 4.356%.

On February 15, 2022, Old National assumed $150.0 million of subordinated fixed rate notes related to the First Midwest merger. The subordinated debentures have a 5.875% fixed rate of interest through the September 29, 2026 maturity date.

**Leveraged Loans**

The leveraged loans are directly related to the NMTC structure. As part of the transaction structure, Old National has the right to sell its interest in the entity that received the leveraged loans at an agreed upon price to the leveraged lender at the end of the NMTC seven-year compliance period. See Note 9 to the consolidated financial statements for additional information on the Company's NMTC investments.

**Finance Lease Liabilities**

Old National has long-term finance lease liabilities for certain banking centers and equipment totaling $13.5 million at December 31, 2022. See Note 6 to the consolidated financial statements for a maturity analysis of the Company's finance lease liabilities.

------

**NOTE 14 – ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)**

The following table summarizes the changes within each classification of AOCI, net of tax:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| (dollars in thousands) | **Unrealized<br>Gains and<br>Losses on<br>Available-<br>for-Sale<br>Debt<br>Securities** | **Unrealized<br>Gains and<br>Losses on<br>Held-to-<br>Maturity<br>Securities** | **Gains and<br>Losses on<br>Cash Flow<br>Hedges** | **Defined<br>Benefit<br>Pension<br>Plans** | **Total** |
| **Year Ended December 31, 2022** |  |  |  |  |  |
| Balance at beginning of period | $**(2950)** | $**—** | $**543** | $**32** | $**(2375)** |
| &nbsp;&nbsp;Other comprehensive income (loss) before<br>&nbsp;&nbsp;&nbsp;&nbsp; reclassifications | **(639463)** | **(125229)** | **(34043)** | **—** | **(798735)** |
| &nbsp;&nbsp;Amounts reclassified from AOCI to income <sup>(1)</sup> | **67** | **12565** | **1951** | **105** | **14688** |
| Balance at end of period | $**(642346)** | $**(112664)** | $**(31549)** | $**137** | $**(786422)** |
| **Year Ended December 31, 2021** |  |  |  |  |  |
| Balance at beginning of period | $145335 | $— | $2584 | $(148) | $147771 |
| &nbsp;&nbsp;Other comprehensive income (loss) before<br>&nbsp;&nbsp;&nbsp;&nbsp; reclassifications | (144948) |  | 1433 |  | (143515) |
| &nbsp;&nbsp;Amounts reclassified from AOCI to income <sup>(1)</sup> | (3337) |  | (3474) | 180 | (6631) |
| Balance at end of period | $(2950) | $— | $543 | $32 | $(2375) |
| **Year Ended December 31, 2020** |  |  |  |  |  |
| Balance at beginning of period | $56131 | $— | $240 | $(164) | $56207 |
| &nbsp;&nbsp;Other comprehensive income (loss) before<br>&nbsp;&nbsp;&nbsp;&nbsp; reclassifications | 97596 |  | 6230 |  | 103826 |
| &nbsp;&nbsp;Amounts reclassified from AOCI to income <sup>(1)</sup> | (8392) |  | (3886) | 16 | (12262) |
| Balance at end of period | $145335 | $— | $2584 | $(148) | $147771 |

---

(1)See table below for details about reclassifications to income.

The following table summarizes the significant amounts reclassified out of each component of AOCI:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | |
| (dollars in thousands) | **2022** | **2021** | **2020** |  |
| **Details about AOCI Components** | **Amount Reclassified<br>from AOCI** | **Amount Reclassified<br>from AOCI** | **Amount Reclassified<br>from AOCI** | **Affected Line Item in the<br>Statement of Income** |
| Unrealized gains and losses on<br> available-for-sale debt securities | $**(88)** | $4327 | $10767 | Debt securities gains (losses), net |
|  | **21** | (990) | (2375) | Income tax (expense) benefit |
|  | $**(67)** | $3337 | $8392 | Net income |
| Unrealized gains and losses on<br> held-to-maturity securities | $**(16612)** | $— | $— | Interest income (expense) |
|  | **4047** |  |  | Income tax (expense) benefit |
|  | $**(12565)** | $— | $— | Net income |
| Gains and losses on cash flow hedges<br> Interest rate contracts | $**(2587)** | $4605 | $5153 | Interest income (expense) |
|  | **636** | (1131) | (1267) | Income tax (expense) benefit |
|  | $**(1951)** | $3474 | $3886 | Net income |
| Amortization of defined benefit<br> pension items |  |  |  |  |
| Actuarial gains (losses) | $**(139)** | $(239) | $(21) | Salaries and employee benefits |
|  | **34** | 59 | 5 | Income tax (expense) benefit |
|  | $**(105)** | $(180) | $(16) | Net income |
| Total reclassifications for the period | $**(14688)** | $6631 | $12262 | Net income |

---

------

**NOTE 15 – INCOME TAXES**

Following is a summary of the major items comprising the differences in taxes from continuing operations computed at the federal statutory rate and as recorded in the consolidated statement of income:

---

| | | | |
|:---|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|<br>(dollars in thousands) | **2022** | **2021** | **2020** |
| Provision at statutory rate of 21% | $**114394** | $71161 | $53667 |
| Tax-exempt income: |  |  |  |
| &nbsp;&nbsp;&nbsp;Tax-exempt interest | **(14588)** | (11066) | (10776) |
| &nbsp;&nbsp;&nbsp;Section 291/265 interest disallowance | **363** | 114 | 189 |
| &nbsp;&nbsp;&nbsp;Company-owned life insurance income | **(2891)** | (2138) | (2290) |
| &nbsp;&nbsp;&nbsp;Tax-exempt income | **(17116)** | (13090) | (12877) |
| State income taxes | **20837** | 9308 | 4840 |
| Tax credit investments - federal | **(9140)** | (5212) | (15159) |
| Officer compensation limitation | **5903** | 564 | 598 |
| Other, net | **1568** | (1407) | (1922) |
| &nbsp;&nbsp;&nbsp;Income tax expense | $**116446** | $61324 | $29147 |
| Effective tax rate | **21.4%** | 18.1% | 11.4% |

---

The higher effective tax rate in 2022 when compared to 2021 reflected the increase in pre-tax book income and higher post-merger estimated state effective tax rates. An increase in non-deductible officer compensation also contributed to the higher tax rate, the majority of which was merger related.

The higher effective tax rate in 2021 when compared to 2020 was primarily the result of an increase in pre-tax book income and lower tax credits.

The provision for income taxes consisted of the following components:

---

| | | | |
|:---|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|<br>(dollars in thousands) | **2022** | **2021** | **2020** |
| Current expense: |  |  |  |
| &nbsp;&nbsp;&nbsp;Federal | $**106918** | $31943 | $19223 |
| &nbsp;&nbsp;&nbsp;State | **32898** | 8461 | 6498 |
| Deferred expense: |  |  |  |
| &nbsp;&nbsp;&nbsp;Federal | **(16216)** | 17514 | 3188 |
| &nbsp;&nbsp;&nbsp;State | **(7154)** | 3406 | 238 |
| &nbsp;&nbsp;&nbsp;Deferred income tax expense | **(23370)** | 20920 | 3426 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax expense | $**116446** | $61324 | $29147 |

---

------

**Net Deferred Tax Assets**

Net deferred tax assets are included in other assets on the balance sheet. Significant components of net deferred tax assets (liabilities) were as follows:

---

| | | |
|:---|:---|:---|
| | **December 31,** | **December 31,** |
|<br>(dollars in thousands) | **2022** | **2021** |
| **Deferred Tax Assets** |  |  |
| Allowance for credit losses on loans, net of recapture | $**85619** | $28843 |
| Benefit plan accruals | **38038** | 18348 |
| Net operating loss carryforwards | **25135** | 14823 |
| Acquired loans | **40723** | 8039 |
| Operating lease liabilities | **58288** | 22961 |
| Unrealized losses on available-for-sale investment securities | **202101** | 3003 |
| Unrealized losses on held-to-maturity investment securities | **36197** |  |
| Unrealized losses on hedges | **10277** |  |
| Purchase accounting | **20063** |  |
| Other, net | **4962** | 3430 |
| &nbsp;&nbsp;&nbsp;Total deferred tax assets | **521403** | 99447 |
| **Deferred Tax Liabilities** |  |  |
| Deferred loan origination fees | **(3566)** |  |
| Purchase accounting | **—** | (18524) |
| Loan servicing rights | **(9636)** | (7379) |
| Premises and equipment | **(14844)** | (16972) |
| Prepaid expenses | **(2774)** | (796) |
| Operating lease right-of-use assets | **(51845)** | (21129) |
| Unrealized gains on hedges | **—** | (177) |
| Other, net | **(2983)** | (1564) |
| &nbsp;&nbsp;&nbsp;Total deferred tax liabilities | **(85648)** | (66541) |
| &nbsp;&nbsp;&nbsp;Net deferred tax assets | $**435755** | $32906 |

---

The increase in net deferred tax assets was driven by $238.3 million of deferred tax assets related to the market value adjustments of certain investments and $133.9 million related to the merger with First Midwest.

The Company's retained earnings at December 31, 2022 included an appropriation for acquired thrifts' tax bad debt allowances totaling $58.6 million for which no provision for federal or state income taxes has been made. If, in the future, this portion of retained earnings were distributed as a result of the liquidation of the Company or its subsidiaries, federal and state income taxes would be imposed at the then applicable rates.

No valuation allowance was recorded at December 31, 2022 or 2021 because, based on current expectations, Old National believes it will generate sufficient income in future years to realize deferred tax assets. Old National has federal net operating loss carryforwards totaling $81.5 million at December 31, 2022 and $36.7 million at December 31, 2021. This federal net operating loss was acquired from the acquisition of Anchor BanCorp Wisconsin Inc. in 2016 and First Midwest in 2022. If not used, the federal net operating loss carryforwards will begin expiring in 2030 and later. Old National has recorded state net operating loss carryforwards totaling $124.4 million at December 31, 2022 and $116.1 million at December 31, 2021. If not used, the state net operating loss carryforwards will expire from 2027 to 2036.

The federal and recorded state net operating loss carryforwards are subject to an annual limitation under Internal Revenue Code section 382. Old National believes that all of the federal and recorded state net operating loss carryforwards will be used prior to expiration.

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**Unrecognized Tax Benefits**

Old National has unrecognized tax benefits at December 31, 2022 due to the merger with First Midwest. The following table presents the changes in the carrying amount of unrecognized tax benefits:

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| | | | |
|:---|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|<br>(dollars in thousands) | **2022** | **2021** | **2020** |
| Balance at beginning of period | $**—** | $— | $— |
| Additions for acquired uncertain tax positions | **14897** |  |  |
| Reductions for tax positions relating to prior years | **(2751)** |  |  |
| Reductions due to statute of limitations expiring | **(1139)** |  |  |
| Balance at end of period | $**11007** | $— | $— |

---

If recognized, approximately $8.8 million of unrecognized tax benefits, net of interest, would favorably affect the effective income tax rate in future periods. Old National expects the $8.8 million of unrecognized tax benefits to be reduced to $7.9 million in the next twelve months.

It is our policy to recognize interest and penalties accrued relative to unrecognized tax benefits in their respective federal or state income tax accounts. Interest and penalties recorded and accrued in 2022 were immaterial.

Old National reversed $3.9 million in 2022 related to uncertain tax positions accounted for under FASB ASC 740-10 (FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes). The income tax reversal related to the 2018 statute of limitations expiring in the third quarter of 2022 totaled $1.1 million. The income tax reversal related to reductions for tax positions in prior years totaled $2.8 million.

Old National and its subsidiaries file a consolidated U.S. federal income tax return, as well as filing various state returns. The 2019 through 2022 tax years are open and subject to examination.

**NOTE 16 – SHARE-BASED COMPENSATION AND OTHER EMPLOYEE BENEFIT PLANS**

Our Amended and Restated 2008 Incentive Compensation Plan (the "ICP"), which was shareholder-approved, permits the grant of share-based awards to its employees. An amendment to increase the number of shares authorized for issuance under the ICP by 9.0 million was approved by our Board of Directors and then by our shareholders on May 18, 2022. At December 31, 2022, 9.1 million shares were available for issuance. The granting of awards to key employees is typically in the form of restricted stock awards or units. We believe that such awards better align the interests of our employees with those of our shareholders. Total compensation cost that has been charged against income for the ICP was $28.7 million in 2022, $7.5 million in 2021, and $7.7 million in 2020. The total income tax benefit was $7.1 million in 2022, $1.8 million in 2021, and $1.9 million in 2020.

**Restricted Stock Awards**

Restricted stock awards require certain service requirements and shares generally vest, depending on the award terms, annually over a three-year period, cliff vest in three years from the grant date, or vest 50% on the second anniversary of the grant date and 50% on the third anniversary of the grant date. Compensation expense is recognized on a straight-line basis over the vesting period. Shares are subject to certain restrictions and risk of forfeiture by the participants.

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A summary of changes in our nonvested shares for the year follows:

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| | | |
|:---|:---|:---|
| (shares in thousands) | **Shares** | **Weighted<br>Average<br>Grant-Date<br>Fair Value** |
| **Year Ended December 31, 2022** |  |  |
| Unvested balance at beginning of period | **554** | **$16.16** |
| &nbsp;&nbsp;Granted during the year <sup>(1)</sup> | **1916** | **18.12** |
| &nbsp;&nbsp;&nbsp;Vested during the year | **(453)** | **17.29** |
| &nbsp;&nbsp;&nbsp;Forfeited during the year | **(148)** | **17.88** |
| Unvested balance at end of period | **1869** | **$17.76** |

---

(1)In connection with the First Midwest merger, each restricted stock award of First Midwest common stock that was outstanding, unvested, and unsettled at the merger date was assumed and converted into a number of Old National restricted stock relating to a number of shares of Old National common stock equal to the number of First Midwest restricted stock multiplied by the exchange ratio (rounded up to the nearest whole number) subject to the same vesting terms and conditions, resulting in an issuance of an aggregate 0.9 million restricted stock awards of Old National common stock.

As of December 31, 2022, there was $16.1 million of total unrecognized compensation cost related to unvested restricted stock awards. The cost is expected to be recognized over a weighted-average period of 1.8 years. The total fair value of the shares vested was $7.9 million in 2022, $4.3 million in 2021, and $2.9 million in 2020.

**Performance-Based Restricted Stock Units**

Restricted stock units require certain performance requirements and shares vest at the end of a 24 or 36 month period based on the achievement of certain targets. If targets are achieved prior to the end of the 24 month performance period, vesting can be accelerated. Compensation expense is recognized on a straight-line basis over the performance period of the award. For certain awards, the level of performance could increase or decrease the number of shares earned. Shares are subject to certain restrictions and risk of forfeiture by the participants.

A summary of changes in our unvested shares for the year follows:

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| | | |
|:---|:---|:---|
| (shares in thousands) | **Shares** | **Weighted<br>Average<br>Grant-Date<br>Fair Value** |
| **Year Ended December 31, 2022** |  |  |
| Unvested balance at beginning of period | **886** | **$14.80** |
| &nbsp;&nbsp;Granted during the year <sup>(1)</sup> | **1935** | **17.66** |
| &nbsp;&nbsp;&nbsp;Vested during the year | **(720)** | **15.41** |
| &nbsp;&nbsp;&nbsp;Forfeited during the year | **(73)** | **16.73** |
| &nbsp;&nbsp;&nbsp;Dividend equivalents adjustment | **53** | **16.82** |
| Unvested balance at end of period | **2081** | **$17.23** |

---

(1)In connection with the First Midwest merger, each performance-based restricted stock unit award of First Midwest that was outstanding, unvested, and unsettled at the merger date was assumed and converted into a time-based restricted stock unit award of Old National common stock subject to the same vesting terms and conditions (other than performance conditions), resulting in an issuance of an aggregate 0.7 million restricted stock units of Old National common stock. The performance components of the First Midwest equity awards were deemed earned at target.

As of December 31, 2022, there was $13.9 million of total unrecognized compensation cost related to unvested restricted stock units. The cost is expected to be recognized over a weighted-average period of 1.3 years.

**Stock Options and Appreciation Rights**

Option awards are generally granted with an exercise price equal to the market price of our Common Stock at the date of grant; these option awards have vesting periods ranging from 3 to 5 years and have 10-year contractual terms.

Old National has not granted stock options since 2009. However, Old National did acquire stock options and stock appreciation rights through its prior acquisitions. Old National recorded no incremental expense associated with the conversion of these options and stock appreciation rights.

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As of December 31, 2022, all options were fully vested and all compensation costs had been expensed. At December 31, 2022, the outstanding shares consisted of stock appreciation rights acquired through prior acquisitions.

A summary of the activity in stock appreciation rights in 2022 follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| (shares in thousands) | **Shares** | **Weighted<br>Average<br>Exercise<br>Price** | **Weighted<br>Average<br>Remaining<br>Contractual<br>Term in Years** | **Aggregate<br>Intrinsic<br>Value<br>(in thousands)** |
| **Year Ended December 31, 2022** |  |  |  |  |
| Outstanding at beginning of period | **28** | **$4.30** |  |  |
| Exercised | **(22)** | **3.95** |  |  |
| Outstanding at end of period | **6** | **$5.67** | **0.18** | **$71.2** |
| Options exercisable at end of year | **6** | **$5.67** | **0.18** | **$71.2** |

---

Information related to stock option and appreciation rights follows:

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| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>(dollars in thousands) | **2022** | **2021** | **2020** |
| Intrinsic value of options/appreciation rights exercised | $**331** | $171 | $213 |
| Tax benefit realized from options/appreciation rights exercises | **132** | 68 | 85 |

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**Non-employee Director Stock Compensation**

Compensation paid to Old National's non-employee directors includes a stock component. Compensation shares are earned annually. Any shares awarded to directors are anticipated to be issued from the ICP. In 2022, 19 thousand shares were issued to directors, compared to 25 thousand shares in 2021, and 28 thousand shares in 2020.

**Employee Stock Ownership Plan**

The Employee Stock Ownership and Savings Plan (the "401(k) Plan") permits employees to participate the first month following one month of service. Old National matches 100% of employee compensation deferral contributions of the first 5% of compensation. In addition to matching contributions, Old National may make discretionary contributions to the 401(k) Plan in the form of Old National stock or cash. There were no designated discretionary profit sharing contributions in 2022, 2021, or 2020. All contributions vest immediately and plan participants may elect to redirect funds among any of the investment options provided under the 401(k) Plan. The number of Old National shares in the 401(k) Plan were 1.2 million at December 31, 2022 and 0.5 million at December 31, 2021. All shares owned through the 401(k) Plan are included in the calculation of weighted-average shares outstanding for purposes of calculating diluted and basic earnings per share. Contribution expense under the 401(k) Plan was $17.9 million in 2022, $9.8 million in 2021, and $9.5 million in 2020.

**NOTE 17 – SHAREHOLDERS' EQUITY**

**Stock Purchase and Dividend Reinvestment Plan**

Old National has a stock purchase and dividend reinvestment plan under which common shares issued may be either repurchased shares or authorized and previously unissued shares. A new plan became effective on August 12, 2021, with total authorized and unissued common shares reserved for issuance of 3.3 million. At December 31, 2022, 3.3 million authorized and unissued common shares were available for issuance under the plan.

**Employee Stock Purchase Plan**

Old National has an employee stock purchase plan under which eligible employees can purchase common shares at a price not less than 95% of the fair market value of the common shares on the purchase date. The amount of common shares purchased cannot exceed 10% of the employee's compensation. In 2022, 52,000 shares were issued related to this plan with proceeds of approximately $809,000. In 2021, 35,000 shares were issued related to this plan with proceeds of approximately $583,000.

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**Share Repurchase Plan**

In the first quarter of 2022, the Board of Directors approved a stock repurchase program that authorized the Company to repurchase up to $200 million of the Company's outstanding shares of Common Stock, as conditions warrant, through January 31, 2023. During 2022 and through January 31, 2023, 3.5 million common shares were repurchased under the plan, which reduced equity by $63.8 million.

**Net Income per Common Share**

Basic and diluted net income per common share are calculated using the two-class method. Net income applicable to common shares is divided by the weighted-average number of common shares outstanding during the period. Adjustments to the weighted-average number of common shares outstanding are made only when such adjustments will dilute net income per common share. Net income applicable to common shares is then divided by the weighted-average number of common shares and common share equivalents during the period.

The following table presents the calculation of basic and diluted net income per common share:

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| | | | |
|:---|:---|:---|:---|
| (dollars and shares in thousands,<br>except per share data) | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| (dollars and shares in thousands,<br>except per share data) | **2022** | **2021** | **2020** |
| Net income | $**428287** | $277538 | $226409 |
| Preferred dividends | **(14118)** |  |  |
| &nbsp;&nbsp;Net income applicable to common shares | $**414169** | $277538 | $226409 |
| Weighted average common shares outstanding: |  |  |  |
| Weighted average common shares outstanding (basic) | **275179** | 165178 | 165509 |
| Effect of dilutive securities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted stock | **1502** | 729 | 632 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock appreciation rights | **7** | 22 | 36 |
| Weighted average diluted shares outstanding | **276688** | 165929 | 166177 |
| **Basic Net Income Per Common Share** | $**1.51** | $1.68 | $1.37 |
| **Diluted Net Income Per Common Share** | $**1.50** | $1.67 | $1.36 |

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**NOTE 18 – FAIR VALUE**

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values:

&nbsp;&nbsp;&nbsp;&nbsp;• Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

&nbsp;&nbsp;&nbsp;&nbsp;• Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

&nbsp;&nbsp;&nbsp;&nbsp;• Level 3 – Significant unobservable inputs that reflect a company's own assumptions about the assumptions that market participants would use in pricing an asset or liability.

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Old National used the following methods and significant assumptions to estimate the fair value of each type of financial instrument:

<u>Investment securities and equity securities</u>: The fair values for investment securities and equity securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Discounted cash flows are calculated using swap and LIBOR curves plus spreads that adjust for loss severities, volatility, credit risk, and optionality. During times when trading is more liquid, broker quotes are used (if available) to validate the model. Rating agency and industry research reports as well as defaults and deferrals on individual securities are reviewed and incorporated into the calculations.

<u>Residential loans held for sale</u>: The fair value of loans held for sale is determined using quoted prices for a similar asset, adjusted for specific attributes of that loan (Level 2).

<u>Derivative financial instruments</u>: The fair values of derivative financial instruments are based on derivative valuation models using market data inputs as of the valuation date (Level 2).

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**Recurring Basis**

Assets and liabilities measured at fair value on a recurring basis, including financial assets and liabilities for which we have elected the fair value option, are summarized below:

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| | | | | |
|:---|:---|:---|:---|:---|
| | | **Fair Value Measurements at December 31, 2022 Using** | **Fair Value Measurements at December 31, 2022 Using** | **Fair Value Measurements at December 31, 2022 Using** |
|<br>(dollars in thousands) |<br>**Carrying Value** | **Quoted Prices in<br>Active Markets for<br>Identical Assets<br>(Level 1)** | **Significant<br>Other<br>Observable<br>Inputs<br>(Level 2)** | **Significant<br>Unobservable<br>Inputs<br>(Level 3)** |
| **Financial Assets** |  |  |  |  |
| Equity securities | $**52507** | $**52507** | $**—** | $**—** |
| Investment securities available-for-sale: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury | **200927** | **200927** | **—** | **—** |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. government-sponsored entities and agencies | **1175080** | **—** | **1175080** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortgage-backed securities - Agency | **4369902** | **—** | **4369902** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;States and political subdivisions | **663852** | **—** | **663852** | **—** |
| &nbsp;&nbsp;&nbsp;&nbsp;Pooled trust preferred securities | **10811** | **—** | **10811** | **—** |
| &nbsp;&nbsp;&nbsp;&nbsp;Other securities | **353140** | **—** | **353140** | **—** |
| Residential loans held for sale | **11926** | **—** | **11926** | **—** |
| Derivative assets | **169001** | **—** | **169001** | **—** |
| **Financial Liabilities** |  |  |  |  |
| Derivative liabilities | **380704** | **—** | **380704** | **—** |
|  |  | **Fair Value Measurements at December 31, 2021 Using** | **Fair Value Measurements at December 31, 2021 Using** | **Fair Value Measurements at December 31, 2021 Using** |
| (dollars in thousands) | **Carrying<br>Value** | **Quoted Prices in<br>Active Markets for<br>Identical Assets<br>(Level 1)** | **Significant<br>Other<br>Observable<br> Inputs<br>(Level 2)** | **Significant<br>Unobservable<br>Inputs<br> (Level 3)** |
| **Financial Assets** |  |  |  |  |
| Equity securities | $13211 | $13211 | $— | $— |
| Investment securities available-for-sale: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury | 235584 | 235584 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. government-sponsored entities and agencies | 1542773 |  | 1542773 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortgage-backed securities - Agency | 3698831 |  | 3698831 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;States and political subdivisions | 1654986 |  | 1654986 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pooled trust preferred securities | 9496 |  |  | 9496 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other securities | 240396 |  | 240396 |  |
| Residential loans held for sale | 35458 |  | 35458 |  |
| Derivative assets | 74226 |  | 74226 |  |
| **Financial Liabilities** |  |  |  |  |
| Derivative liabilities | 41872 |  | 41872 |  |

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The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3):

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| | | |
|:---|:---|:---|
| (dollars in thousands) | **Pooled Trust<br>Preferred<br>Securities** | **States and<br>Political<br>Subdivisions** |
| **Year Ended December 31, 2022** |  |  |
| Balance at beginning of period | $**9496** | $**—** |
| &nbsp;&nbsp;&nbsp;Accretion (amortization) of discount or premium | **12** | **—** |
| &nbsp;&nbsp;&nbsp;Increase (decrease) in fair value of securities | **1593** | **—** |
| &nbsp;&nbsp;&nbsp;Transfers out of Level 3 | **(11101)** | **—** |
| Balance at end of period | $**—** | $**—** |
| **Year Ended December 31, 2021** |  |  |
| Balance at beginning of period | $7913 | $— |
| &nbsp;&nbsp;&nbsp;Accretion (amortization) of discount or premium | 20 |  |
| &nbsp;&nbsp;&nbsp;Sales/payments received | (27) |  |
| &nbsp;&nbsp;&nbsp;Increase (decrease) in fair value of securities | 1590 |  |
| Balance at end of period | $9496 | $— |
| **Year Ended December 31, 2020** |  |  |
| Balance at beginning of period | $8222 | $40 |
| &nbsp;&nbsp;&nbsp;Accretion (amortization) of discount or premium | 15 |  |
| &nbsp;&nbsp;&nbsp;Sales/payments received | (64) | (40) |
| &nbsp;&nbsp;&nbsp;Increase (decrease) in fair value of securities | (260) |  |
| Balance at end of period | $7913 | $— |

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The accretion of discounts or amortization of premiums on securities in the table above is included in interest income. The increase or decrease in the fair value of securities in the table above is included in the unrealized holding gains (losses) for the period in the statement of other comprehensive income (loss). An increase in fair value is reflected in the balance sheet as an increase in the fair value of investment securities available-for-sale, an increase in AOCI, which is included in shareholders' equity, and a decrease in other assets related to the tax impact. A decrease in fair value is reflected in the balance sheet as a decrease in the fair value of investment securities available-for-sale, a decrease in AOCI, which is included in shareholders' equity, and an increase in other assets related to the tax impact. During 2022, Old National's pooled trust preferred securities with a fair value of $11.1 million were transferred out of Level 3 and into Level 2 because of available observable market data for these investments.

The table below provides quantitative information about significant unobservable inputs used in fair value measurements within Level 3 of the fair value hierarchy:

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| | | | | |
|:---|:---|:---|:---|:---|
| (dollars in thousands) | **Fair Value** | **Valuation<br>Techniques** | **Unobservable Input** | **Range (Weighted**<br>**Average)** <sup>(4)</sup> |
| **December 31, 2021** |  |  |  |  |
| Pooled trust preferred securities | $9496 | Discounted cash flow | Constant prepayment rate <sup>(1)</sup> | 0.0% |
|  |  |  | Additional asset defaults <sup>(2)</sup> | 5.7% - 8.5% (6.5%) |
|  |  |  | Expected asset recoveries <sup>(3)</sup> | 0.0% - 46.0% (14.1%) |

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(1)Assuming no prepayments.

(2)Each currently performing pool asset is assigned a default probability based on the banking environment, which is adjusted for specific issuer evaluation, of 0%, 50%, or 100%.

(3)Each currently defaulted pool asset is assigned a recovery probability based on specific issuer evaluation of 0%, 25%, or 100%.

(4)Unobservable inputs are weighted by the estimated number of defaults and current performing collateral of the instruments.

Significant changes in any of the unobservable inputs used in the fair value measurement in isolation would have resulted in a significant change to the fair value measurement. The pooled trust preferred securities Old National owns are subordinate note classes that rely on an ongoing cash flow stream to support their values. The senior note classes receive the benefit of prepayments to the detriment of subordinate note classes since the ongoing interest

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cash flow stream is reduced by the early redemption. Generally, a change in prepayment rates or additional pool asset defaults would have an impact that is directionally opposite from a change in the expected recovery of a defaulted pool asset.

**Non-Recurring Basis**

Assets measured at fair value on a non-recurring basis are summarized below:

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| | | | | |
|:---|:---|:---|:---|:---|
| | | **Fair Value Measurements at December 31, 2022 Using** | **Fair Value Measurements at December 31, 2022 Using** | **Fair Value Measurements at December 31, 2022 Using** |
|<br>(dollars in thousands) |<br>**Carrying<br>Value** | **Quoted Prices in Active Markets for Identical Assets (Level 1)** | **Significant<br>Other<br>Observable<br>Inputs<br>(Level 2)** | **Significant Unobservable Inputs<br>(Level 3)** |
| Collateral Dependent Loans: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial loans | $**22562** | $**—** | $**—** | $**22562** |
| &nbsp;&nbsp;&nbsp;Commercial real estate loans | **48026** | **—** | **—** | **48026** |

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Commercial and commercial real estate loans that are deemed collateral dependent are valued using the discounted cash flows. The liquidation amounts are based on the fair value of the underlying collateral using the most recently available appraisals with certain adjustments made based on the type of property, age of appraisal, current status of the property, and other related factors to estimate the current value of the collateral. These commercial and commercial real estate loans had a principal amount of $92.0 million, with a valuation allowance of $21.5 million at December 31, 2022. Old National recorded provision expense associated with commercial and commercial real estate loans that were deemed collateral dependent totaling $20.3 million in 2022.

Other real estate owned and other repossessed property is measured at fair value less costs to sell on a non-recurring basis. Old National did not have any other real estate owned or repossessed property measured at fair value on a non-recurring basis at December 31, 2022. There were write-downs of other real estate owned of $0.6 million in 2022.

Loan servicing rights are evaluated for impairment based upon the fair value of the rights as compared to the carrying amount. If the carrying amount of an individual tranche exceeds fair value, impairment is recorded on that tranche so that the servicing asset is carried at fair value. Fair value is determined at a tranche level, based on market prices for comparable mortgage servicing contracts when available, or alternatively based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model utilizes a discount rate, weighted average prepayment speed, and other economic factors that market participants would use in estimating future net servicing income and that can be validated against available market data (Level 2). There was no valuation allowance for loan servicing rights with impairments at December 31, 2022. Old National recorded recoveries associated with these loan servicing rights totaling $46 thousand in 2022.

Assets measured at fair value on a non-recurring basis at December 31, 2021 are summarized below:

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| | | | | |
|:---|:---|:---|:---|:---|
| | | **Fair Value Measurements at December 31, 2021 Using** | **Fair Value Measurements at December 31, 2021 Using** | **Fair Value Measurements at December 31, 2021 Using** |
|<br>(dollars in thousands) |<br>**Carrying<br>Value** | **Quoted Prices in<br>Active Markets for<br>Identical Assets<br>(Level 1)** | **Significant<br>Other<br>Observable<br>Inputs<br>(Level 2)** | **Significant<br>Unobservable<br>Inputs<br>(Level 3)** |
| Collateral Dependent Loans: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial loans | $2364 | $— | $— | $2364 |
| &nbsp;&nbsp;&nbsp;Commercial real estate loans | 16308 |  |  | 16308 |
| Loan servicing rights | 140 |  | 140 |  |

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At December 31, 2021, commercial and commercial real estate loans that were deemed collateral dependent had a principal amount of $21.0 million, with a valuation allowance of $2.1 million. Old National recorded provision recapture associated with these loans totaling $0.1 million in 2021.

The valuation allowance for loan servicing rights with impairments at December 31, 2021 totaled $46 thousand. Old National recorded recoveries associated with these loan servicing rights totaling $1.4 million in 2021.

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The table below provides quantitative information about significant unobservable inputs used in fair value measurements within Level 3 of the fair value hierarchy:

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| | | | | |
|:---|:---|:---|:---|:---|
| (dollars in thousands) | **Fair<br>Value** | **Valuation<br>Techniques** | **Unobservable<br>Input** | **Range (Weighted**<br>**Average)**<sup>(1)</sup> |
| **December 31, 2022** |  |  |  |  |
| **Collateral Dependent Loans** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial loans | $**22562** | Discounted<br>cash flow | Discount for type of property,<br>age of appraisal, and current status | 10% - 47% (28%) |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial real estate loans | **48026** | Discounted<br>cash flow | Discount for type of property,<br>age of appraisal, and current status | 1% -26% (11%) |
| **December 31, 2021** |  |  |  |  |
| **Collateral Dependent Loans** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial loans | $2364 | Discounted<br>cash flow | Discount for type of property,<br>age of appraisal, and current status | 14% - 15% (14%) |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial real estate loans | 16308 | Discounted<br>cash flow | Discount for type of property,<br>age of appraisal, and current status | 6% - 10% (8%) |

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(1)Unobservable inputs were weighted by the relative fair value of the instruments.

**Fair Value Option**

Old National may elect to report most financial instruments and certain other items at fair value on an instrument-by-instrument basis with changes in fair value reported in net income. After the initial adoption, the election is made at the acquisition of an eligible financial asset, financial liability, or firm commitment or when certain specified reconsideration events occur. The fair value election may not be revoked once an election is made.

***Residential Loans Held For Sale***

Old National has elected the fair value option for residential loans held for sale. For these loans, interest income is recorded in the consolidated statements of income based on the contractual amount of interest income earned on the financial assets (except any that are on nonaccrual status). None of these loans are 90 days or more past due, nor are any on nonaccrual status. Included in the income statement is interest income for loans held for sale totaling $1.8 million in 2022, $1.5 million in 2021, and $2.0 million in 2020.

Newly originated conforming fixed-rate and adjustable-rate first mortgage loans are intended for sale and are hedged with derivative instruments. Old National has elected the fair value option to mitigate accounting mismatches in cases where hedge accounting is complex and to achieve operational simplification. The fair value option was not elected for loans held for investment.

The difference between the aggregate fair value and the aggregate remaining principal balance for loans for which the fair value option has been elected was as follows:

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| | | | |
|:---|:---|:---|:---|
| (dollars in thousands) | **Aggregate<br>Fair Value** | **Difference** | **Contractual<br>Principal** |
| **December 31, 2022** |  |  |  |
| Residential loans held for sale | $**11926** | $**221** | $**11705** |
| **December 31, 2021** |  |  |  |
| Residential loans held for sale | $35458 | $1342 | $34116 |

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Accrued interest at period end is included in the fair value of the instruments.

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The following table presents the amount of gains and losses from fair value changes included in income before income taxes for financial assets carried at fair value:

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| | | | | |
|:---|:---|:---|:---|:---|
| (dollars in thousands) | **Other<br>Gains and<br>(Losses)** | **Interest<br>Income** | **Interest<br>(Expense)** | **Total Changes<br>in Fair Values<br>Included in<br>Current Period<br>Earnings** |
| **Year Ended December 31, 2022** |  |  |  |  |
| Residential loans held for sale | $**(1127)** | $**10** | $**(4)** | $**(1121)** |
| **Year Ended December 31, 2021** |  |  |  |  |
| Residential loans held for sale | $(2139) | $2 | $(6) | $(2143) |

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**Financial Instruments Not Carried at Fair Value**

The carrying amounts and estimated fair values of financial instruments not carried at fair value were as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| | | **Fair Value Measurements at December 31, 2022 Using** | **Fair Value Measurements at December 31, 2022 Using** | **Fair Value Measurements at December 31, 2022 Using** |
|<br>(dollars in thousands) |<br>**Carrying<br>Value** | **Quoted Prices in<br>Active Markets for<br>Identical Assets<br>(Level 1)** | **Significant<br>Other<br>Observable<br>Inputs<br>(Level 2)** | **Significant<br>Unobservable<br>Inputs<br>(Level 3)** |
| **Financial Assets** |  |  |  |  |
| Cash, due from banks, money market,<br> and other interest-earning investments | $**728412** | $**728412** | $**—** | $**—** |
| Investment securities held-to-maturity: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. government-sponsored entities and agencies | **819168** | **—** | **656358** | **—** |
| &nbsp;&nbsp;&nbsp;Mortgage-backed securities - Agency | **1106817** | **—** | **982963** | **—** |
| &nbsp;&nbsp;&nbsp;State and political subdivisions | **1163162** | **—** | **1004361** | **—** |
| Loans, net: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial | **9386862** | **—** | **—** | **9066583** |
| &nbsp;&nbsp;&nbsp;Commercial real estate | **12317825** | **—** | **—** | **11867851** |
| &nbsp;&nbsp;&nbsp;Residential real estate | **6438525** | **—** | **—** | **5372491** |
| &nbsp;&nbsp;&nbsp;Consumer credit | **2676758** | **—** | **—** | **2557115** |
| Accrued interest receivable | **190521** | **758** | **52081** | **137682** |
| **Financial Liabilities** |  |  |  |  |
| Deposits: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Noninterest-bearing demand deposits | $**11930798** | $**11930798** | $**—** | $**—** |
| &nbsp;&nbsp;Checking, NOW, savings, and money market<br>&nbsp;&nbsp;&nbsp;&nbsp;interest-bearing deposits | **20056252** | **20056252** | **—** | **—** |
| &nbsp;&nbsp;&nbsp;Time deposits | **3013780** | **—** | **2976389** | **—** |
| Federal funds purchased and interbank borrowings | **581489** | **581489** | **—** | **—** |
| Securities sold under agreements to repurchase | **432804** | **432804** | **—** | **—** |
| FHLB advances | **3829018** | **—** | **3739780** | **—** |
| Other borrowings | **743003** | **—** | **703156** | **—** |
| Accrued interest payable | **19547** | **—** | **19547** | **—** |
| Standby letters of credit | **755** | **—** | **—** | **755** |
| **Off-Balance Sheet Financial Instruments** |  |  |  |  |
| Commitments to extend credit | $**—** | $**—** | $**—** | $**3666** |

---

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---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **Fair Value Measurements at December 31, 2021 Using** | **Fair Value Measurements at December 31, 2021 Using** | **Fair Value Measurements at December 31, 2021 Using** |
|<br>(dollars in thousands) |<br>**Carrying<br>Value** | **Quoted Prices in<br>Active Markets for<br>Identical Assets<br>(Level 1)** | **Significant<br>Other<br>Observable<br>Inputs<br>(Level 2)** | **Significant<br>Unobservable<br>Inputs<br>(Level 3)** |
| **Financial Assets** |  |  |  |  |
| Cash, due from banks, money market,<br> and other interest-earning investments | $822019 | $822019 | $— | $— |
| Loans, net: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial | 3363175 |  |  | 3335009 |
| &nbsp;&nbsp;&nbsp;Commercial real estate | 6315574 |  |  | 6211854 |
| &nbsp;&nbsp;&nbsp;Residential real estate | 2245942 |  |  | 2216900 |
| &nbsp;&nbsp;&nbsp;Consumer credit | 1569814 |  |  | 1582600 |
| Accrued interest receivable | 84109 | 688 | 35790 | 47631 |
| **Financial Liabilities** |  |  |  |  |
| Deposits: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Noninterest-bearing demand deposits | $6303106 | $6303106 | $— | $— |
| &nbsp;&nbsp;Checking, NOW, savings, and money market<br>&nbsp;&nbsp;&nbsp;&nbsp;interest-bearing deposits | 11305676 | 11305676 |  |  |
| &nbsp;&nbsp;&nbsp;Time deposits | 960413 |  | 968658 |  |
| Federal funds purchased and interbank borrowings | 276 | 276 |  |  |
| Securities sold under agreements to repurchase | 392275 | 392275 |  |  |
| FHLB advances | 1886019 |  | 1935140 |  |
| Other borrowings | 296670 |  | 311532 |  |
| Accrued interest payable | 5496 |  | 5496 |  |
| Standby letters of credit | 454 |  |  | 454 |
| **Off-Balance Sheet Financial Instruments** |  |  |  |  |
| Commitments to extend credit | $— | $— | $— | $4678 |

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The methods utilized to measure the fair value of financial instruments at December 31, 2022 and 2021 represent an approximation of exit price, however, an actual exit price may differ.

**NOTE 19 – DERIVATIVE FINANCIAL INSTRUMENTS**

As part of our overall interest rate risk management, Old National uses derivative instruments, including interest rate swaps, collars, caps, and floors. The notional amount does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual agreements. Derivative instruments are recognized on the balance sheet at their fair value and are not reported on a net basis.

Credit risk arises from the possible inability of counterparties to meet the terms of their contracts. Old National's exposure is limited to the termination value of the contracts rather than the notional, principal, or contract amounts. There are provisions in our agreements with the counterparties that allow for certain unsecured credit exposure up to an agreed threshold. Exposures in excess of the agreed thresholds are collateralized. In addition, we minimize credit risk through credit approvals, limits, and monitoring procedures.

**Derivatives Designated as Hedges**

Subsequent changes in fair value for a hedging instrument that has been designated and qualifies as part of a hedging relationship are accounted for in the following manner:

*Cash flow hedges*: changes in fair value are recognized as a component in other comprehensive income (loss).

*Fair value hedges*: changes in fair value are recognized concurrently in earnings.

As long as a hedging instrument is designated and the results of the effectiveness testing support that the instrument qualifies for hedge accounting treatment, 100% of the periodic changes in fair value of the hedging instrument are accounted for as outlined above. This is the case whether or not economic mismatches exist in the hedging relationship. As a result, there is no periodic measurement or recognition of ineffectiveness. Rather, the full impact of hedge gains and losses is recognized in the period in which the hedged transactions impact earnings.

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The change in fair value of the hedging instrument that is included in the assessment of hedge effectiveness is presented in the same income statement line item that is used to present the earnings effect of the hedged item.

***Cash Flow Hedges***

Interest rate swaps of certain borrowings were designated as cash flow hedges totaling $150.0 million notional amount at both December 31, 2022 and December 31, 2021. Interest rate collars and floors related to variable-rate commercial loan pools were designated as cash flow hedges totaling $1.9 billion notional amount at December 31, 2022 and $600.0 million notional amount at December 31, 2021. The hedges were determined to be effective during all periods presented and we expect them to remain effective during the remaining terms.

Old National has designated its interest rate collars as cash flow hedges. The structure of these instruments is such that Old National pays the counterparty an incremental amount if the collar index exceeds the cap rate. Conversely, Old National receives an incremental amount if the index falls below the floor rate. No payments are required if the collar index falls between the cap and floor rates.

Old National has designated its interest rate floor transactions as cash flow hedges. The structure of these instruments is such that Old National receives an incremental amount if the index falls below the floor strike rate. No payments are required if the index remains above the floor strike rate.

***Fair Value Hedges***

Interest rate swaps of certain borrowings were designated as fair value hedges totaling $300.0 million notional amount at December 31, 2022 and $377.5 million notional amount at December 31, 2021. Interest rate swaps of certain available-for-sale investment securities were designated as fair value hedges totaling $910.0 million notional amount at both December 31, 2022 and December 31, 2021. The hedges were determined to be effective during all periods presented and we expect them to remain effective during the remaining terms.

The following table summarizes Old National's derivatives designated as hedges:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| | | **Fair Value** | **Fair Value** | | **Fair Value** | **Fair Value** |
|<br>(dollars in thousands) |<br>**Notional** | **Assets** <sup>(1)</sup> | **Liabilities** <sup>(2)</sup> |<br>**Notional** | **Assets** <sup>(1)</sup> | **Liabilities** <sup>(2)</sup> |
| Cash flow hedges: |  |  |  |  |  |  |
| &nbsp;&nbsp;Interest rate collars and floors on loan pools | $**1900000** | $**11764** | $**47859** | $600000 | $459 | $2173 |
| &nbsp;&nbsp;Interest rate swaps on borrowings <sup>(3)</sup> | **150000** | **—** | **—** | 150000 | 4316 |  |
| Fair value hedges: |  |  |  |  |  |  |
| &nbsp;&nbsp;Interest rate swaps on investment securities <sup>(3)</sup> | **909957** | **—** | **—** | 909957 | 10961 | 14643 |
| &nbsp;&nbsp;Interest rate swaps on borrowings <sup>(3)</sup> | **300000** | **—** | **—** | 377500 | 2475 | 96 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total |  | $**11764** | $**47859** |  | $18211 | $16912 |

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(1)Derivative assets are included in other assets on the balance sheet.

(2)Derivative liabilities are included in other liabilities on the balance sheet.

(3)The fair values of certain counterparty interest rate swaps are zero due to the settlement of centrally cleared variation margin rules.

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The effect of derivative instruments in fair value hedging relationships on the consolidated statements of income were as follows:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| (dollars in thousands) |  |  |  |  | **Gain (Loss)<br>Recognized<br>in Income on<br>Related<br>Hedged<br>Items** |
| **Derivatives in <br>Fair Value Hedging<br>Relationships** | **Location of Gain or <br>(Loss) Recognized in <br>Income on Derivative** | **Gain (Loss)<br>Recognized<br>in Income on<br>Derivative** | **Hedged Items <br>in Fair Value<br>Hedging<br>Relationships** | **Location of Gain or <br>(Loss) Recognized in <br>in Income on Related <br>Hedged Item** | **Gain (Loss)<br>Recognized<br>in Income on<br>Related<br>Hedged<br>Items** |
| **Year Ended<br>December 31, 2022** |  |  |  |  |  |
| Interest rate contracts | Interest income/(expense) | $**(6245)** | Fixed-rate debt | Interest income/(expense) | $**6585** |
| Interest rate contracts | Interest income/(expense) | **157741** | Fixed-rate<br>investment<br>securities | Interest income/(expense) | **(158431)** |
| &nbsp;&nbsp;Total |  | $**151496** |  |  | $**(151846)** |
| **Year Ended<br>December 31, 2021** |  |  |  |  |  |
| Interest rate contracts | Interest income/(expense) | $(6413) | Fixed-rate debt | Interest income/(expense) | $6296 |
| Interest rate contracts | Interest income/(expense) | (4656) | Fixed-rate<br>investment<br>securities | Interest income/(expense) | 4954 |
| &nbsp;&nbsp;Total |  | $(11069) |  |  | $11250 |
| **Year Ended<br>December 31, 2020** |  |  |  |  |  |
| Interest rate contracts | Interest income/(expense) | $7238 | Fixed-rate debt | Interest income/(expense) | $(7283) |
| Interest rate contracts | Interest income/(expense) | 973 | Fixed-rate<br>investment<br>securities | Interest income/(expense) | (967) |
| &nbsp;&nbsp;Total |  | $8211 |  |  | $(8250) |

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The effect of derivative instruments in cash flow hedging relationships on the consolidated statements of income were as follows:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| | | **2022** | **2021** | **2020** | **2022** | **2021** | **2020** |
|<br>**Derivatives in<br>Cash Flow Hedging<br>Relationships** |<br>**Location of Gain or<br>(Loss) Reclassified<br>from AOCI into Income** | **Gain (Loss)<br>Recognized in Other<br>Comprehensive<br>Income on Derivative** | **Gain (Loss)<br>Recognized in Other<br>Comprehensive<br>Income on Derivative** | **Gain (Loss)<br>Recognized in Other<br>Comprehensive<br>Income on Derivative** | **Gain (Loss)<br>Reclassified from<br>AOCI into<br>Income** | **Gain (Loss)<br>Reclassified from<br>AOCI into<br>Income** | **Gain (Loss)<br>Reclassified from<br>AOCI into<br>Income** |
| Interest rate contracts | Interest income/(expense) | $**(45132)** | $1898 | $8261 | $**(2587)** | $4605 | $5153 |

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Amounts reported in AOCI related to cash flow hedges will be reclassified to interest income or interest expense as interest payments are received or paid on Old National's derivative instruments. During the next 12 months, we estimate that $4.5 million will be reclassified to interest income and $24.6 million will be reclassified to interest expense.

**Derivatives Not Designated as Hedges**

Commitments to fund certain mortgage loans (interest rate lock commitments) and forward commitments for the future delivery of mortgage loans to third party investors are considered derivatives. These derivative contracts do not qualify for hedge accounting. At December 31, 2022, the notional amounts of the interest rate lock commitments were $21.4 million and forward commitments were $30.3 million. At December 31, 2021, the notional amounts of the interest rate lock commitments were $90.7 million and forward commitments were $126.1 million. It is our practice to enter into forward commitments for the future delivery of residential mortgage loans to third party investors when interest rate lock commitments are entered into in order to economically hedge the effect of changes in interest rates resulting from our commitment to fund the loans.

Old National also enters into derivative instruments for the benefit of its clients. The notional amounts of these customer derivative instruments and the offsetting counterparty derivative instruments were $5.2 billion at December 31, 2022. The notional amounts of these customer derivative instruments and the offsetting counterparty derivative instruments were $2.4 billion at December 31, 2021. These derivative contracts do not qualify for hedge

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accounting. These instruments include interest rate swaps, caps, and collars. Commonly, Old National will economically hedge significant exposures related to these derivative contracts entered into for the benefit of clients by entering into offsetting contracts with approved, reputable, independent counterparties with substantially matching terms.

Old National enters into derivative financial instruments as part of its foreign currency risk management strategies. These derivative instruments consist of foreign currency forward contracts to accommodate the business needs of its clients. Old National does not designate these foreign currency forward contracts for hedge accounting treatment.

The following table summarizes Old National's derivatives not designated as hedges:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| | | **Fair Value** | **Fair Value** | | **Fair Value** | **Fair Value** |
|<br>(dollars in thousands) |<br>**Notional** | **Assets** <sup>(1)</sup> | **Liabilities** <sup>(2)</sup> |<br>**Notional** | **Assets** <sup>(1)</sup> | **Liabilities** <sup>(2)</sup> |
| Interest rate lock commitments | $**21401** | $**93** | $**—** | $90731 | $2352 | $— |
| Forward mortgage loan contracts | **30330** | **32** | **—** | 126107 | 242 |  |
| Customer interest rate swaps | **5220363** | **5676** | **326924** | 2433177 | 52439 | 11658 |
| Counterparty interest rate swaps <sup>(3)</sup> | **5220363** | **151111** | **5711** | 2433177 | 583 | 12956 |
| Customer foreign currency forward contracts | **8341** | **253** | **42** | 10292 | 399 |  |
| Counterparty foreign currency forward contracts | **8297** | **72** | **168** | 10205 |  | 346 |
| &nbsp;&nbsp;Total |  | $**157237** | $**332845** |  | $56015 | $24960 |

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(1)Derivative assets are included in other assets on the balance sheet.

(2)Derivative liabilities are included in other liabilities on the balance sheet.

(3)The fair values of certain counterparty interest rate swaps are zero due to the settlement of centrally-cleared variation margin rules.

The effect of derivatives not designated as hedging instruments on the consolidated statements of income were as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| | | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| (dollars in thousands) |  | **2022** | **2021** | **2020** |
| **Derivatives Not Designated as<br>Hedging Instruments** | **Location of Gain or (Loss)<br>Recognized in Income on<br>Derivative** | **Gain (Loss)<br>Recognized in Income on<br>Derivative** | **Gain (Loss)<br>Recognized in Income on<br>Derivative** | **Gain (Loss)<br>Recognized in Income on<br>Derivative** |
| Interest rate contracts <sup>(1)</sup> | Other income/(expense) | $**883** | $279 | $(551) |
| Mortgage contracts | Mortgage banking revenue | **(2468)** | (4446) | 5692 |
| Foreign currency contracts | Other income/(expense) | **98** | (104) | 13 |
| &nbsp;&nbsp;&nbsp;Total |  | $**(1487)** | $(4271) | $5154 |

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(1)Includes the valuation differences between the customer and offsetting swaps.

**NOTE 20 – COMMITMENTS, CONTINGENCIES, AND FINANCIAL GUARANTEES**

**Litigation**

In the normal course of business, Old National Bancorp and its subsidiaries are subject to pending and threatened litigation, claims, investigations, and legal and administrative cases and proceedings. Certain of the actual or threatened legal actions may include claims for compensatory damages or claims for indeterminate amounts of damages.

Old National contests liability and/or the amount of damages as appropriate in each pending matter. In view of the inherent difficulty of predicting the outcome of such matters, particularly in cases where claimants seek indeterminate damages or where investigations and proceedings are in the early stages, Old National cannot predict with certainty the loss or range of loss, if any, related to such matters, how or if such matters will be resolved, when they will ultimately be resolved, or what the eventual settlement, or other relief, if any, might be. Subject to the foregoing, Old National believes, based on current knowledge and after consultation with counsel, that the outcome of such pending matters are not expected to have a material adverse effect on the consolidated financial condition of Old National, although the outcome of such matters could be material to Old National's operating results and cash

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flows for a particular future period, depending on, among other things, the level of Old National's revenues or income for such period. Old National will accrue for a loss contingency if (1) it is probable that a future event will occur and confirm the loss and (2) the amount of the loss can be reasonably estimated.

Old National is not currently involved in any material litigation.

**Credit-Related Financial Instruments**

Old National holds instruments, in the normal course of business with clients, that are considered financial guarantees and are recorded at fair value. Standby letters of credit guarantees are issued in connection with agreements made by clients to counterparties. Standby letters of credit are contingent upon failure of the client to perform the terms of the underlying contract. Credit risk associated with standby letters of credit is essentially the same as that associated with extending loans to clients and is subject to normal credit policies. The term of these standby letters of credit is typically one year or less. These commitments are not recorded in the consolidated financial statements.

The following table summarizes Old National Bank's unfunded loan commitments and standby letters of credit:

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| | | |
|:---|:---|:---|
| | **December 31,** | **December 31,** |
|<br>(dollars in thousands) | **2022** | **2021** |
| Unfunded loan commitments | $**8979334** | $4489238 |
| Standby letters of credit <sup>(1)</sup> | **174070** | 75726 |

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(1)Notional amount, which represents the maximum amount of future funding requirements. The carrying value was $0.8 million at December 31, 2022 and $0.5 million at December 31, 2021.

At December 31, 2022, approximately 5% of the unfunded loan commitments had fixed rates, with the remainder having floating rates ranging from 0% to 21%. The allowance for unfunded loan commitments totaled $32.2 million at December 31, 2022 and $10.9 million at December 31, 2021. The increase in the allowance for credit losses on unfunded loan commitments was driven by the merger with First Midwest as well as organic loan growth.

Old National is a party in risk participation transactions of interest rate swaps, which had total notional amounts of $398.9 million at December 31, 2022 and $97.7 million at December 31, 2021.

**Visa Class B Restricted Shares**

In 2008, Old National received Visa Class B restricted shares as part of Visa's initial public offering. These shares are transferable only under limited circumstances until they can be converted into the publicly traded Class A common shares. This conversion will not occur until the final settlement of certain litigation for which Visa is indemnified by the holders of Visa's Class B shares, including Old National. Visa funded an escrow account from its initial public offering to settle these litigation claims. Increases in litigation claims requiring Visa to fund the escrow account due to insufficient funds will result in a reduction of the conversion ratio of each Visa Class B share to unrestricted Class A shares. As of December 31, 2022, the conversion ratio was 1.5991. Based on the existing transfer restriction and the uncertainty of the outcome of the Visa litigation, the 65,466 Class B shares that Old National owns at December 31, 2022 are carried at a zero cost basis and are included in other assets with our equity securities that have no readily determinable fair value.

**NOTE 21 – REGULATORY RESTRICTIONS**

**Restrictions on Cash and Due from Banks**

Prior to March 2020, Old National's subsidiary bank was required to maintain reserve balances on hand and with the Federal Reserve Bank that are interest-bearing and unavailable for investment purposes. The Federal Reserve Board reduced reserve requirement ratios to 0% effective March 26, 2020. This action effectively eliminated reserve requirements for all depository institutions. Old National had no cash and due from banks which was held as collateral for collateralized swap positions at December 31, 2022 and $14.6 million at December 31, 2021.

**Restrictions on Transfers from Bank Subsidiary**

Regulations limit the amount of dividends a bank subsidiary can declare in any calendar year without obtaining prior regulatory approval. Prior regulatory approval is required if dividends to be declared in any calendar year would

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exceed the total of net income of the current year combined with retained net income for the preceding two years. Prior regulatory approval to pay dividends was not required in 2020, 2021, or 2022 and is not currently required. A bank subsidiary is prohibited from paying a dividend, if, after making the dividend, the bank would be considered "undercapitalized" (as defined by reference to the OCC's capital regulations).

**Restrictions on the Payment of Dividends**

Old National has traditionally paid a quarterly dividend to common shareholders. The payment of dividends is subject to legal and regulatory restrictions. Any payment of dividends in the future will depend, in large part, on Old National's earnings, capital requirements, financial condition, and other factors considered relevant by our Board of Directors.

**Capital Adequacy**

Old National and Old National Bank are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can elicit certain mandatory actions by regulators that, if undertaken, could have a direct material effect on Old National's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, Old National and Old National Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to bank holding companies. Quantitative measures established by regulation to ensure capital adequacy require Old National and Old National Bank to maintain minimum amounts and ratios as set forth in the following tables.

At December 31, 2022, Old National and Old National Bank each exceeded the capital ratios required to be considered "well-capitalized" under applicable regulations.

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The following table summarizes capital ratios for Old National and Old National Bank:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Actual** | **Actual** | **Regulatory Minimum** <sup>(1)</sup> | **Regulatory Minimum** <sup>(1)</sup> | **Prompt Corrective Action**<br>**"Well Capitalized"**<br>**Guidelines** <sup>(2)</sup> | **Prompt Corrective Action**<br>**"Well Capitalized"**<br>**Guidelines** <sup>(2)</sup> |
| (dollars in thousands) | **Amount** | **Ratio** | **Amount** | **Ratio** | **Amount** | **Ratio** |
| **December 31, 2022** |  |  |  |  |  |  |
| Total capital to risk-weighted<br> assets |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Old National Bancorp | $**4321716** | **12.02%** | $**3774845** | **10.50%** | $**3595090** | **10.00%** |
| &nbsp;&nbsp;&nbsp;&nbsp;Old National Bank | **4063363** | **11.35** | **3759671** | **10.50** | **3580639** | **10.00** |
| Common equity Tier 1 capital<br> to risk-weighted assets |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Old National Bancorp | **3605393** | **10.03** | **2516563** | **7.00** | **N/A** | **N/A** |
| &nbsp;&nbsp;&nbsp;&nbsp;Old National Bank | **3817402** | **10.66** | **2506448** | **7.00** | **2327416** | **6.50** |
| Tier 1 capital to risk-weighted<br> assets |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Old National Bancorp | **3849112** | **10.71** | **3055827** | **8.50** | **2157054** | **6.00** |
| &nbsp;&nbsp;&nbsp;&nbsp;Old National Bank | **3817402** | **10.66** | **3043544** | **8.50** | **2864512** | **8.00** |
| Tier 1 capital to average assets |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Old National Bancorp | **3849112** | **8.52** | **1808108** | **4.00** | **N/A** | **N/A** |
| &nbsp;&nbsp;&nbsp;&nbsp;Old National Bank | **3817402** | **8.47** | **1803426** | **4.00** | **2254282** | **5.00** |
| **December 31, 2021** |  |  |  |  |  |  |
| Total capital to risk-weighted<br> assets |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Old National Bancorp | $2119176 | 12.77% | $1741789 | 10.50% | $1658847 | 10.00% |
| &nbsp;&nbsp;&nbsp;&nbsp;Old National Bank | 2119405 | 12.82 | 1735385 | 10.50 | 1652748 | 10.00 |
| Common equity Tier 1 capital<br> to risk-weighted assets |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Old National Bancorp | 1998056 | 12.04 | 1161193 | 7.00 | N/A | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;Old National Bank | 2040285 | 12.34 | 1156923 | 7.00 | 1074286 | 6.50 |
| Tier 1 capital to risk-weighted<br> assets |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Old National Bancorp | 1998056 | 12.04 | 1410020 | 8.50 | 995308 | 6.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;Old National Bank | 2040285 | 12.34 | 1404835 | 8.50 | 1322198 | 8.00 |
| Tier 1 capital to average assets |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Old National Bancorp | 1998056 | 8.59 | 930318 | 4.00 | N/A | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;Old National Bank | 2040285 | 8.81 | 926821 | 4.00 | 1158526 | 5.00 |

---

(1)"Regulatory Minimum" capital ratios include the 2.5% "capital conservation buffer" required under the Basel III Capital Rules.

(2)"Well-capitalized" minimum common equity Tier 1 capital to risk-weighted assets and Tier 1 capital to average assets ratios are not formally defined under applicable banking regulations for bank holding companies.

During 2020, the OCC, the Board of Governors of the Federal Reserve System, and the FDIC issued final rules to delay the estimated impact on regulatory capital stemming from the implementation of CECL. The final rules provide banking organizations the option to delay for two years an estimate of CECL's effect on regulatory capital, relative to the incurred loss methodology's effect on regulatory capital, followed by a three-year transition period (five-year transition option). Old National adopted the capital transition relief over the permissible five-year period.

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**NOTE 22 – PARENT COMPANY FINANCIAL STATEMENTS**

The following are the condensed parent company only financial statements of Old National:

---

| | | |
|:---|:---|:---|
| **OLD NATIONAL BANCORP (PARENT COMPANY ONLY)<br>CONDENSED BALANCE SHEETS** | | |
| | **December 31,** | **December 31,** |
|<br>(dollars in thousands) | **2022** | **2021** |
| **Assets** |  |  |
| Deposits in affiliate bank | $**418959** | $102953 |
| Equity securities | **30717** | 3257 |
| Investment securities - available-for-sale | **16814** | 13888 |
| Investment in affiliates: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Banking subsidiaries | **5000153** | 3053575 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-banks | **44938** | 4949 |
| Goodwill | **59506** |  |
| Other assets | **135025** | 83531 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | $**5706112** | $3262153 |
| **Liabilities and Shareholders' Equity** |  |  |
| Other liabilities | $**92758** | $36582 |
| Other borrowings | **484759** | 213553 |
| Shareholders' equity | **5128595** | 3012018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and shareholders' equity | $**5706112** | $3262153 |

---

---

| | | | |
|:---|:---|:---|:---|
| **OLD NATIONAL BANCORP (PARENT COMPANY ONLY)<br>CONDENSED STATEMENTS OF INCOME** | | | |
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|<br>(dollars in thousands) | **2022** | **2021** | **2020** |
| **Income** |  |  |  |
| Dividends from affiliates | $**—** | $125000 | $230000 |
| Other income | **1733** | 3364 | 4196 |
| Other income from affiliates | **5** | 5 | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total income | **1738** | 128369 | 234201 |
| **Expense** |  |  |  |
| Interest on borrowings | **16662** | 8285 | 8649 |
| Other expenses | **37629** | 13951 | 16351 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total expense | **54291** | 22236 | 25000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income (loss) before income taxes and equity&nbsp;&nbsp;&nbsp;&nbsp;in undistributed earnings of affiliates | **(52553)** | 106133 | 209201 |
| Income tax expense (benefit) | **(9901)** | (5113) | (5317) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income (loss) before equity in undistributed&nbsp;&nbsp;&nbsp;&nbsp;earnings of affiliates | **(42652)** | 111246 | 214518 |
| Equity in undistributed earnings of affiliates | **470939** | 166292 | 11891 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | **428287** | 277538 | 226409 |
| Preferred dividends | **(14118)** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income applicable to common shareholders | $**414169** | $277538 | $226409 |

---

------

---

| | | | |
|:---|:---|:---|:---|
| **OLD NATIONAL BANCORP (PARENT COMPANY ONLY)<br>CONDENSED STATEMENT OF CASH FLOWS** | | | |
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|<br>(dollars in thousands) | **2022** | **2021** | **2020** |
| **Cash Flows From Operating Activities** |  |  |  |
| Net income | $**428287** | $277538 | $226409 |
| Adjustments to reconcile net income to cash<br> provided by operating activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation | **26** | 30 | 46 |
| &nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation expense | **28656** | 7497 | 7707 |
| &nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in other assets | **(40620)** | 10213 | (625) |
| &nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in other liabilities | **10455** | (4918) | 1084 |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity in undistributed earnings of affiliates | **(470939)** | (166292) | (11891) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash flows provided by (used in) operating activities | **(44135)** | 124068 | 222730 |
| **Cash Flows From Investing Activities** |  |  |  |
| Net cash and cash equivalents of acquisitions | **573099** |  |  |
| Proceeds from sales of investment securities | **—** | 1000 |  |
| Proceeds from sales of equity securities | **44038** | 540 | 4431 |
| Purchases of investment securities | **(9000)** | (15) | (10073) |
| Proceeds from sales of premises and equipment | **—** |  | 354 |
| Purchases of premises and equipment | **—** | (3) | (354) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash flows provided by (used in) investing activities | **608137** | 1522 | (5642) |
| **Cash Flows From Financing Activities** |  |  |  |
| Payments for maturities/redemptions of other borrowings | **—** |  | (10310) |
| Cash dividends paid | **(177623)** | (92829) | (92946) |
| Common stock repurchased | **(71182)** | (3731) | (82358) |
| Common stock issued | **809** | 583 | 577 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash flows provided by (used in) financing activities | **(247996)** | (95977) | (185037) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net increase (decrease) in cash and cash equivalents | **316006** | 29613 | 32051 |
| Cash and cash equivalents at beginning of period | **102953** | 73340 | 41289 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Cash and cash equivalents at end of period** | $**418959** | $102953 | $73340 |

---

**NOTE 23 – SEGMENT INFORMATION**

Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Old National Bank, Old National's bank subsidiary, is the only significant subsidiary upon which management makes decisions regarding how to allocate resources and assess performance. Each of the banking centers of Old National Bank provide a group of similar community banking services, including such products and services as commercial, real estate and consumer loans; time deposits; checking and savings accounts; cash management; and brokerage, trust, and investment advisory services. The individual banking centers located throughout our Midwest region footprint have similar operating and economic characteristics. While the chief decision maker monitors the revenue streams of the various products, services, and regional locations, operations are managed, and financial performance is evaluated on a Company-wide basis. Accordingly, all of the community banking services and banking center locations are considered by management to be aggregated into one reportable operating segment, community banking.

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**ITEM 9.&nbsp;&nbsp;&nbsp;&nbsp;CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE**

Not applicable.

**ITEM 9A.&nbsp;&nbsp;&nbsp;&nbsp;CONTROLS AND PROCEDURES**

**Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures**

<u>Evaluation of Disclosure Controls and Procedures.</u> Old National's principal executive officer and principal financial officer have concluded that Old National's disclosure controls and procedures (as defined in Exchange Act Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended), based on their evaluation of these controls and procedures as of the end of the period covered by this annual report on Form 10-K, are effective at the reasonable assurance level as discussed below to ensure that information required to be disclosed by Old National in the reports it files under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC and that such information is accumulated and communicated to Old National's management, including its principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

Management's report on internal control over financial reporting and the attestation report of Crowe LLP, Old National's independent registered public accounting firm, on Old National's internal control over financial reporting are set forth in Part II, Item 8 of this Annual Report on Form 10-K.

<u>Limitations on the Effectiveness of Controls.</u> Management, including the principal executive officer and principal financial officer, does not expect that Old National's disclosure controls and internal controls will prevent all error and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of a simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people or by management override of the controls.

The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be only reasonable assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, the system of controls may become inadequate because of changes in conditions or the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

<u>Changes in Internal Control over Financial Reporting.</u> There were no changes in Old National's internal control over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, Old National's internal control over financial reporting.

**ITEM 9B.&nbsp;&nbsp;&nbsp;&nbsp;OTHER INFORMATION**

**Annual Incentive Compensation Plan** 

On February 21, 2023, the Talent Development and Compensation Committee approved and recommended to the Board for approval, and on February 22, 2023, the Board approved, the Annual Incentive Compensation Plan ("AICP"). The purpose of the AICP is to provide an incentive to attract, retain, and reward selected employees of the Company to contribute to the Company's growth, profitability, and success. The AICP replaces the Old National Bancorp Short-Term Incentive Compensation Plan for Key Executives. The AICP will be used as the Company's annual bonus plan for executives in 2023 and in future years.

**ITEM 9C.&nbsp;&nbsp;&nbsp;&nbsp;DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS**

Not applicable.

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**PART III**

**ITEM 10.&nbsp;&nbsp;&nbsp;&nbsp;DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE**

The Company's executive officers are elected annually by the Board of Directors. Certain information regarding the Company's executive officers is set forth below:

---

| | | |
|:---|:---|:---|
| **Name** | **Positions and Offices** | **Age** |
| Chady M. AlAhmar | Chief Executive Officer, Wealth Management of the Company since January 2020. Previously, Senior Vice President and Head of Strategy and Business Development of U.S. Bank from December 2013 to January 2020. | 48 |
| Nicholas J. Chulos | Chief Legal Officer and Corporate Secretary of the Company since February 2022. Previously, Executive Vice President, General Counsel and Corporate Secretary of First Midwest from January 2013 to February 2022. | 63 |
| Scott J. Evernham | Chief Risk Officer of the Company since August 2019. Previously, Executive Vice President, Wealth Management from May 2016 to August 2019. President of Old National Insurance from December 2014 to May 2016. Senior Vice President, Assistant General Counsel from October 2012 to December 2014. | 45 |
| Brendon B. Falconer | Chief Financial Officer of the Company since May 2019. Previously, Senior Vice President and Treasurer of the Company from November 2016 to May 2019. Senior Vice President and Director of Credit Operations from March 2013 to November 2016. Loss Share President from January 2012 to March 2013. Vice President and Bank Controller from April 2009 to January 2012. | 47 |
| John V. Moran, IV | Chief Strategy Officer of the Company since 2021. Previously, Chief Financial Officer for NBT Bancorp from 2019 to 2021. Director of Corporate Development and Strategy of the Company from 2017 to 2019. Senior Equity Analyst at Macquarie Capital (USA) from 2010 to 2017. | 47 |
| Angela L. Putnam | Chief Accounting Officer of the Company since February 2022. Previously, Senior Vice President and Chief Accounting Officer of First Midwest from December 2014 to February 2022. Vice President and Financial Reporting Manager of First Midwest from April 2013 to November 2014. Director in the Assurance Services practice of McGladrey LLP from September 2006 to April 2013. | 44 |
| James C. Ryan, III | Chief Executive Officer of the Company since May 2019. Chairman and CEO of the Company from May 2019 to February 2022. Senior Executive Vice President and Chief Financial Officer of the Company from May 2016 to May 2019. Director of Corporate Development and Mortgage Banking of the Company from July 2009 to May 2016, Integration Executive of the Company from February 2006 to July 2009. Treasurer of the Company from March 2005 to February 2007. | 51 |
| Mark G. Sander | President and Chief Operating Officer of the Company since February 2022. Previously, President and Chief Operating Officer of First Midwest from 2019 to February 2022. Director at First Midwest from 2014 to February 2022. Senior Executive Vice President and Chief Operating Officer of First Midwest from 2011 to 2019. Previously held executive level positions in Commercial Banking with Associated Banc-Corp, Bank of America, and LaSalle Bank. | 64 |
| James A. Sandgren | Chief Executive Officer, Commercial Banking of the Company since February 2022. Previously, President and Chief Operating Officer of the Company from May 2016 to February 2022. Executive Vice President and Chief Banking Officer of the Company from April 2014 to May 2016. Executive Vice President and Regional CEO of the Company from May 2007 to April 2014. Executive Vice President and Southern Division Chief Credit Officer from January 2004 to May 2007. | 56 |
| Michael L. Scudder | Executive Chairman of the Board of Directors of the Company since February 2022. Previously, Chairman and CEO of First Midwest from November 2017 to February 2022. President and Chief Executive Officer of First Midwest from September 2008 to November 2017. President and Chief Operating Officer of First Midwest from May 2007 to September 2008. Executive Vice President and Chief Financial Officer of First Midwest from January 2002 to May 2007. | 62 |
| Brent R. Tischler | Chief Executive Officer, Community Banking of the Company since August 2022. Previously, Executive Vice President and Head of Retail Banking at Associated Bank from June 2016 to August 2022. Executive Vice President and Head of Payments & Direct Channels at Associated Bank from February 2014 to May 2016. Senior Vice President and Director of Channel Optimization at Associated Bank from April 2011 to January 2014. | 47 |
| Kendra L. Vanzo | Chief Administrative Officer of the Company since March 2021. Executive Vice President, Chief Administrative Officer of the Company from January 2020 to March 2021. Executive Vice President and Chief People Officer from May 2018 to January 2020. Executive Vice President, Associate Engagement and Integrations Officer from June 2014 to May 2018. Executive Vice President and Chief Human Resources Officer from January 2010 to June 2014. Senior Vice President and Chief Human Resources Officer from March 2007 to January 2010. | 56 |

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Additional information required in response has been omitted from this report pursuant to General Instruction G(3) of Form 10-K as Old National will file with the SEC its definitive Proxy Statement pursuant to Regulation 14A of the Securities Exchange Act of 1934, as amended, not later than 120 days after December 31, 2022. The applicable information appearing in the Proxy Statement for the 2023 annual meeting is incorporated by reference.

Old National has adopted a code of ethics that applies to directors, officers, and all other employees including Old National's principal executive officer, principal financial officer, and principal accounting officer. The text of the code of ethics is available on Old National's Internet website at <u>www.oldnational.com</u> or in print to any shareholder who requests it. Old National intends to post information regarding any amendments to, or waivers from, its code of ethics on its Internet website.

**ITEM 11.&nbsp;&nbsp;&nbsp;&nbsp;EXECUTIVE COMPENSATION**

This information is omitted from this report pursuant to General Instruction G(3) of Form 10-K as Old National will file with the SEC its definitive Proxy Statement pursuant to Regulation 14A of the Securities Exchange Act of 1934, as amended, not later than 120 days after December 31, 2022. The applicable information appearing in our Proxy Statement for the 2023 annual meeting is incorporated by reference.

**ITEM 12.&nbsp;&nbsp;&nbsp;&nbsp;SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS**

This information is omitted from this report (with the exception of the "Equity Compensation Plan Information") pursuant to General Instruction G(3) of Form 10-K as Old National will file with the SEC its definitive Proxy Statement pursuant to Regulation 14A of the Securities Exchange Act of 1934, as amended, not later than 120 days after December 31, 2022. The applicable information appearing in the Proxy Statement for the 2023 annual meeting is incorporated by reference.

**EQUITY COMPENSATION PLAN INFORMATION**

The following table contains information concerning the ICP approved by the Company's shareholders, as of December 31, 2022.

---

| | | | |
|:---|:---|:---|:---|
| | **Number of securities to<br>be issued upon exercise<br>of outstanding options,<br>warrants, and rights** | **Weighted-average<br>exercise price of<br>outstanding options,<br>warrants, and rights** | **Number of securities<br>remaining available for<br>future issuance under<br>equity compensation plans<br>(excluding securities<br>reflected in column (a))** |
| **Plan Category** | **(a)** | **(b)** | **(c)** |
| Equity compensation plans<br> approved by security holders | 3955153 | $17.46 | 9103611 |
| Equity compensation plans not<br> approved by security holders |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 3955153 | $17.46 | 9103611 |

---

At December 31, 2022, 9.1 million shares remain available for issuance under the ICP.

**ITEM 13.&nbsp;&nbsp;&nbsp;&nbsp;CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE**

This information is omitted from this report pursuant to General Instruction G(3) of Form 10-K as Old National will file with the SEC its definitive Proxy Statement pursuant to Regulation 14A of the Securities Exchange Act of 1934, as amended, not later than 120 days after December 31, 2022. The applicable information appearing in the Proxy Statement for the 2023 annual meeting is incorporated by reference.

**ITEM 14.&nbsp;&nbsp;&nbsp;&nbsp;PRINCIPAL ACCOUNTANT FEES AND SERVICES**

This information is omitted from this report pursuant to General Instruction G(3) of Form 10-K as Old National will file with the SEC its definitive Proxy Statement pursuant to Regulation 14A of the Securities Exchange Act of 1934, as amended, not later than 120 days after December 31, 2022. The applicable information appearing in the Proxy Statement for the 2023 annual meeting is incorporated by reference.

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**PART IV**

**ITEM 15.&nbsp;&nbsp;&nbsp;&nbsp;EXHIBITS AND FINANCIAL STATEMENT SCHEDULES**

1. Financial Statements:

The following consolidated financial statements of the registrant and its subsidiaries are filed as part of this report under "Item 8. Financial Statements and Supplementary Data."

Report of Independent Registered Public Accounting Firm

Consolidated Balance Sheets – December 31, 2022 and 2021

Consolidated Statements of Income – Years Ended December 31, 2022, 2021, and 2020

Consolidated Statements of Comprehensive Income (Loss) – Years Ended December 31, 2022, 2021, and 2020

Consolidated Statements of Changes in Shareholders' Equity – Years Ended December 31, 2022, 2021, and 2020

Consolidated Statements of Cash Flows – Years Ended December 31, 2022, 2021, and 2020

Notes to Consolidated Financial Statements

2. Financial Statements Schedules

The schedules for Old National and its subsidiaries are omitted because of the absence of conditions under which they are required, or because the information is set forth in the consolidated financial statements or the notes thereto.

3. Exhibits

The exhibits filed as part of this report and exhibits incorporated herein by reference to other documents are as follows:

---

| | |
|:---|:---|
| **Exhibit<br>Number** | |
| 2.1 | <u>[Agreement and Plan of Merger dated as of May 30, 2021 by and between Old National and First Midwest Bancorp, Inc. (the schedules have been omitted pursuant to Item 601(a)(5) of Regulation S-K) (incorporated by reference to Exhibit 2.1 of Old National's Current Report on Form 8-K filed with the Securities and Exchange Commission on June 2, 2021).](https://www.sec.gov/Archives/edgar/data/0000707179/000114036121019539/nt10025327x8_ex2-1.htm)</u> |
| 3.1 | <u>[Fifth Amended and Restated Articles of Incorporation of Old National, amended April 30, 2020 (incorporated by reference to Exhibit 3.1 of Old National's Current Report on Form 8-K filed with the Securities and Exchange Commission on May 18, 2020).](https://www.sec.gov/Archives/edgar/data/707179/000156459020026024/onb-ex31_29.htm)</u> |
| 3.2 | <u>[Articles of Amendment to the Fifth Amended and Restated Articles of Incorporation of Old National authorizing additional shares of Old National capital stock (incorporated by reference to Exhibit 3.2 of Old National's Current Report on Form 8-K filed with the Securities and Exchange Commission on February 16, 2022).](https://www.sec.gov/Archives/edgar/data/707179/000114036122005787/ny20002365x21_ex3-2.htm)</u> |
| 3.3 | <u>[Articles of Amendment to the Fifth Amended and Restated Articles of Incorporation of Old National designating the New Old National Series A Preferred Stock (incorporated by reference to Exhibit 3.3 of Old National's Current Report on Form 8-K filed with the Securities and Exchange Commission on February 16, 2022).](https://www.sec.gov/Archives/edgar/data/707179/000114036122005787/ny20002365x21_ex3-3.htm)</u> |
| 3.4 | <u>[Articles of Amendment to the Fifth Amended and Restated Articles of Incorporation of Old National designating the New Old National Series C Preferred Stock (incorporated by reference to Exhibit 3.4 of Old National's Current Report on Form 8-K filed with the Securities and Exchange Commission on February 16, 2022).](https://www.sec.gov/Archives/edgar/data/707179/000114036122005787/ny20002365x21_ex3-4.htm)</u> |
| 3.5 | <u>[Amended and Restated By-Laws of Old National, amended April 30, 2020 (incorporated by reference to Exhibit 3.2 of Old National's Current Report on Form 8-K filed with the Securities and Exchange Commission on May 18, 2020).](https://www.sec.gov/Archives/edgar/data/707179/000156459020026024/onb-ex32_10.htm)</u> |
| 3.6 | <u>[By-Laws Amendment to Amended and Restated By-Laws of Old National (incorporated by reference to Exhibit 3.6 of Old National's Current Report on Form 8-K filed with the Securities and Exchange Commission on February 16, 2022).](https://www.sec.gov/Archives/edgar/data/707179/000114036122005787/ny20002365x21_ex3-6.htm)</u> |

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&nbsp;&nbsp;&nbsp;&nbsp;

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| | |
|:---|:---|
| 4.1 | <u>[Description of Old National Bancorp capital stock.](onbexhibit4110-k2022.htm)</u> |
| 4.2 | <u>Description of Old National Bancorp debt securities [(incorporated by reference to Exhibit 4.2 of Old National's Annual Report on Form 10-K for the year ended December 31, 2019)](https://www.sec.gov/Archives/edgar/data/707179/000156459020004289/onb-ex42_411.htm).</u> |
| 4.3 | <u>[Deposit Agreement (Series A), dated February 15, 2022, among Old National, Continental Stock Transfer & Trust Company, acting as depositary, and the holders from time to time of the depositary receipts described therein (incorporated by reference to Exhibit 4.1 of Old National's Current Report on Form 8-K filed with the Securities and Exchange Commission on February 16, 2022).](https://www.sec.gov/Archives/edgar/data/707179/000114036122005787/ny20002365x21_ex4-1.htm)</u> |
| 4.4 | <u>[Deposit Agreement (Series C), dated February 15, 2022, among Old National, Continental Stock Transfer & Trust Company, acting as depositary, and the holders from time to time of the depositary receipts described therein (incorporated by reference to Exhibit 4.2 of Old National's Current Report on Form 8-K filed with the Securities and Exchange Commission on February 16, 2022).](https://www.sec.gov/Archives/edgar/data/707179/000114036122005787/ny20002365x21_ex4-2.htm)</u> |
| 4.5 | <u>[Form of Depositary Receipt-Series A (incorporated by reference to Exhibit 4.3 (included as part of Exhibit 4.1) of Old National's Current Report on Form 8-K filed with the Securities and Exchange Commission on February 16, 2022).](https://www.sec.gov/Archives/edgar/data/707179/000114036122005787/ny20002365x21_ex4-1.htm)</u> |
| 4.6 | <u>[Form of Depositary Receipt-Series C (incorporated by reference to Exhibit 4.4 (included as part of Exhibit 4.2) of Old National's Current Report on Form 8-K filed with the Securities and Exchange Commission on February 16, 2022).](https://www.sec.gov/Archives/edgar/data/707179/000114036122005787/ny20002365x21_ex4-2.htm)</u> |
| 4.7 | Certain instruments defining the rights of holders of long-term debt securities of Old National and its subsidiaries are omitted pursuant to Item 601(b)(4)(iii) of Regulation S-K. The Registrant hereby undertakes to furnish to the SEC, upon request, copies of any such instruments. |
| 10.1<sup>(1)</sup> | <u>[Form of 2019 Internal Performance Units Award Agreement between Old National and certain key associates (incorporated by reference to Exhibit 10(r) of Old National's Annual Report on Form 10-K for the year ended December 31, 2018).](https://www.sec.gov/Archives/edgar/data/707179/000156459019002651/onb-ex10r_11.htm)</u> |
| 10.2<sup>(1)</sup> | <u>[Form of 2019 Relative Performance Units Award Agreement between Old National and certain key associates (incorporated by reference to Exhibit 10(s) of Old National's Annual Report on Form 10-K for the year ended December 31, 2018).](https://www.sec.gov/Archives/edgar/data/707179/000156459019002651/onb-ex10s_13.htm)</u> |
| 10.3<sup>(1)</sup> | <u>[Form of 2019 Restricted Stock Award Agreement between Old National and certain key associates (incorporated by reference to Exhibit 10(t) of Old National's Annual Report on Form 10-K for the year ended December 31, 2018).](https://www.sec.gov/Archives/edgar/data/707179/000156459019002651/onb-ex10t_7.htm)</u> |
| 10.4<sup>(1)</sup> | <u>[Form of 2020 Internal Performance Units Award Agreement between Old National and certain key associates (incorporated by reference to Exhibit 10.20 of Old National's Annual Report on Form 10-K for the year ended December 31, 2019).](https://www.sec.gov/Archives/edgar/data/707179/000156459020004289/onb-ex1020_332.htm)</u> |
| 10.5<sup>(1)</sup> | <u>[Form of 2020 Relative Performance Units Award Agreement between Old National and certain key associates (incorporated by reference to Exhibit 10.21 of Old National's Annual Report on Form 10-K for the year ended December 31, 2019).](https://www.sec.gov/Archives/edgar/data/707179/000156459020004289/onb-ex1021_331.htm)</u> |
| 10.6<sup>(1)</sup> | <u>[Form of 2020 Restricted Stock Award Agreement between Old National and certain key associates (incorporated by reference to Exhibit 10.22 of Old National's Annual Report on Form 10-K for the year ended December 31, 2019).](https://www.sec.gov/Archives/edgar/data/707179/000156459020004289/onb-ex1022_330.htm)</u> |
| 10.7<sup>(1)</sup> | <u>[Old National Bancorp Amended and Restated 2020 Director](https://www.sec.gov/Archives/edgar/data/707179/000156459020004289/onb-ex1023_367.htm)[s](https://www.sec.gov/Archives/edgar/data/707179/000156459020004289/onb-ex1023_367.htm)[Deferred Compensation Plan (incorporated by reference to Exhibit 10.23 of Old National's Annual Report on Form 10-K for the year ended December 31, 2019).](https://www.sec.gov/Archives/edgar/data/707179/000156459020004289/onb-ex1023_367.htm)</u> |
| 10.8<sup>(1)</sup> | <u>[First Amendment of the Old National Bancorp Amended and Restated 2020 Director](onbexhibit10810-k2022.htm)[s](onbexhibit10810-k2022.htm)[Deferred Compensation Plan.](onbexhibit10810-k2022.htm)</u> |
| 10.9<sup>(1)</sup> | <u>[Second Amendment of the Old National Bancorp Amended and Restated 2020 Director](onbexhibit10910-k2022.htm)[s](onbexhibit10910-k2022.htm)[Deferred Compensation Plan.](onbexhibit10910-k2022.htm)</u> |
| 10.10<sup>(1)</sup> | <u>[Old National Bancorp Amended and Restated 2020 Executive Deferred Compensation Plan (incorporated by reference to Exhibit 10.24 of Old National's Annual Report on Form 10-K for the year ended December 31, 2019).](https://www.sec.gov/Archives/edgar/data/707179/000156459020004289/onb-ex1024_366.htm)</u> |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| 10.11<sup>(1)</sup> | <u>[First Amendment of the Old National Bancorp Amended and Restated 2020 Executive Deferred Compensation Plan.](onbexhibit101110-k2022.htm)</u> |
| 10.12<sup>(1)</sup> | <u>[Second Amendment of the Old National Bancorp Amended and Restated 2020 Executive Deferred Compensation Plan.](onbexhibit101210-k2022.htm)</u> |
| 10.13<sup>(1)</sup> | <u>[Third Amendment of the Old National Bancorp Amended and Restated 2020 Executive Deferred Compensation Plan.](onbexhibit101310-k2022.htm)</u> |
| 10.14<sup>(1)</sup> | <u>[First Midwest Bancorp, Inc. Deferred Compensation Plan for Nonemployee Directors.](onbexhibit101410-k2022.htm)</u> |
| 10.15<sup>(1)</sup> | <u>[Amendment of the First Midwest Bancorp, Inc. Deferred Compensation Plan for Nonemployee Directors.](onbexhibit101510-k2022.htm)</u> |
| 10.16<sup>(1)</sup> | <u>[First Midwest Bancorp, Inc. Nonqualified Retirement Plan.](onbexhibit101610-k2022.htm)</u> |
| 10.17<sup>(1)</sup> | <u>[Amendment of the First Midwest Bancorp, Inc. Nonqualified Retirement Plan.](onbexhibit101710-k2022.htm)</u> |
| 10.18<sup>(1)</sup> | <u>[First Midwest Bancorp, Inc. Nonqualified Stock Option Gain Deferral Plan.](onbexhibit101810-k2022.htm)</u> |
| 10.19<sup>(1)</sup> | <u>[Old National Bancorp Amended and Restated 2008 Incentive Compensation Plan (incorporated by reference to Exhibit 10.1 of Old National's Current Report on Form 8-K filed with the Securities and Exchange Commission on April 27, 2017).](https://www.sec.gov/Archives/edgar/data/707179/000129993317000430/exhibit1.htm)</u> |
| 10.20<sup>(1)</sup> | <u>[Amendment of the Old National Bancorp Amended and Restated 2008 Incentive Compensation Plan (incorporated by reference to Appendix I of Old National's Definitive Proxy Statement filed with the Securities and Exchange Commission on March 8, 2021).](https://www.sec.gov/Archives/edgar/data/707179/000114036121007633/nc10019817x3_def14a.htm#tA1)</u> |
| 10.21<sup>(1)</sup> | <u>[Second Amendment of the Old National Bancorp Amended and Restated 2008 Incentive Compensation Plan (incorporated by reference to Appendix III of Old National's Definitive Proxy Statement filed with the Securities and Exchange Commission on April 8, 2022).](https://www.sec.gov/Archives/edgar/data/707179/000114036122013826/ny20002453x1_def14a.htm#AppendixIII)</u> |
| 10.22<sup>(1)</sup> | <u>[Old National Bancorp Annual Incentive Compensation Plan.](onbexhibit102210-k2022.htm)</u> |
| 10.23<sup>(1)</sup> | <u>[Form of Employment Agreement dated as of March 10, 2021 between Old National and each of its named executive officers, James C. Ryan III; James A. Sandgren; Brendon B. Falconer; Jeffrey L. Knight; and Kendra L. Vanzo (incorporated by reference to Exhibit 10.1 of Old National's Current Report on Form 8-K filed with the Securities and Exchange Commission on March 11, 2021).](https://www.sec.gov/Archives/edgar/data/707179/000070717921000019/form-employmentagreementfo.htm)</u> |
| 10.24<sup>(1)</sup> | <u>[Form of 2021 Internal Performance Units Award Agreement between Old National and certain key associates (incorporated by reference to Exhibit 10.1 of Old National's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on April 28, 2021).](https://www.sec.gov/Archives/edgar/data/707179/000070717921000032/onb_exhibit101.htm)</u> |
| 10.25<sup>(1)</sup> | <u>[Form of 2021 Relative Performance Units Award Agreement between Old National and certain key associates (incorporated by reference to Exhibit 10.2 of Old National's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on April 28, 2021).](https://www.sec.gov/Archives/edgar/data/707179/000070717921000032/onb_exhibit102.htm)</u> |
| 10.26<sup>(1)</sup> | <u>[Form of 2021 Restricted Stock Award Agreement between Old National and certain key associates (incorporated by reference to Exhibit 10.3 of Old National's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on April 28, 2021).](https://www.sec.gov/Archives/edgar/data/707179/000070717921000032/onb_exhibit103.htm)</u> |
| 10.27<sup>(1)</sup> | <u>[Stock Purchase and Dividend Reinvestment Plan (incorporated by reference to Old National's Registration Statement on Form S-3, Registration No. 333-258774 filed with the Securities and Exchange Commission on August 13, 2021).](https://www.sec.gov/Archives/edgar/data/707179/000070717921000057/oldnationalbancorp-formsx3.htm)</u> |
| 10.28<sup>(1)</sup> | <u>[Form of 2022 Relative TSR Performance Units Award Agreement between Old National and certain key associates pursuant to the Old National Bancorp Amended and Restated 2008 Incentive Compensation Plan](https://www.sec.gov/Archives/edgar/data/707179/000070717922000021/ex101final2022rtsrperforma.htm)[, as further amended](https://www.sec.gov/Archives/edgar/data/707179/000070717922000021/ex101final2022rtsrperforma.htm)[(incorporated by reference to Exhibit 10.](https://www.sec.gov/Archives/edgar/data/707179/000070717922000021/ex101final2022rtsrperforma.htm)[1](https://www.sec.gov/Archives/edgar/data/707179/000070717922000021/ex101final2022rtsrperforma.htm)[of Old National's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on](https://www.sec.gov/Archives/edgar/data/707179/000070717922000021/ex101final2022rtsrperforma.htm)[May 4](https://www.sec.gov/Archives/edgar/data/707179/000070717922000021/ex101final2022rtsrperforma.htm)[, 202](https://www.sec.gov/Archives/edgar/data/707179/000070717922000021/ex101final2022rtsrperforma.htm)[2](https://www.sec.gov/Archives/edgar/data/707179/000070717922000021/ex101final2022rtsrperforma.htm)[)](https://www.sec.gov/Archives/edgar/data/707179/000070717922000021/ex101final2022rtsrperforma.htm)[.](https://www.sec.gov/Archives/edgar/data/707179/000070717922000021/ex101final2022rtsrperforma.htm)</u> |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| 10.29<sup>(1)</sup> | <u>[Form of 2022 ROATCE Performance Units Award Agreement between Old National and certain key associates pursuant to the Old National Bancorp Amended and Restated 2008 Incentive Compensation Plan, as further amended](https://www.sec.gov/Archives/edgar/data/707179/000070717922000021/ex102final2022roatceperfor.htm)</u> <u>[(incorporated by reference to Exhibit 10.2 of Old National's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on May 4, 2022)](https://www.sec.gov/Archives/edgar/data/707179/000070717922000021/ex102final2022roatceperfor.htm)[.](https://www.sec.gov/Archives/edgar/data/707179/000070717922000021/ex102final2022roatceperfor.htm)</u> |
| 10.30<sup>(1)</sup> | <u>[Form of 2022 Restricted Stock Award Agreements between Old National and certain key associates pursuant to the Old National Bancorp Amended and Restated 2008 Incentive Compensation Plan, as further amended](https://www.sec.gov/Archives/edgar/data/707179/000070717922000021/ex103final2022servicebased.htm)[(incorporated by reference to Exhibit 10.](https://www.sec.gov/Archives/edgar/data/707179/000070717922000021/ex103final2022servicebased.htm)[3](https://www.sec.gov/Archives/edgar/data/707179/000070717922000021/ex103final2022servicebased.htm)[of Old National's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on May 4, 2022)](https://www.sec.gov/Archives/edgar/data/707179/000070717922000021/ex103final2022servicebased.htm)[.](https://www.sec.gov/Archives/edgar/data/707179/000070717922000021/ex103final2022servicebased.htm)</u> |
| 10.31<sup>(1)</sup> | <u>[Form of 2022 Performance Units Integration Award Agreement between Old National and certain key associates pursuant to the Old National Bancorp Amended and Restated 2008 Incentive Compensation Plan, as further amended](https://www.sec.gov/Archives/edgar/data/707179/000070717922000021/ex104final2022perfunitinte.htm)[(incorporated by reference to Exhibit 10.](https://www.sec.gov/Archives/edgar/data/707179/000070717922000021/ex104final2022perfunitinte.htm)[4](https://www.sec.gov/Archives/edgar/data/707179/000070717922000021/ex104final2022perfunitinte.htm)[of Old National's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on May 4, 2022)](https://www.sec.gov/Archives/edgar/data/707179/000070717922000021/ex104final2022perfunitinte.htm)[.](https://www.sec.gov/Archives/edgar/data/707179/000070717922000021/ex104final2022perfunitinte.htm)</u> |
| 10.32<sup>(1)</sup> | <u>[Form of 2022 Letter Agreement between Old National and certain key employees providing for a cash retention and integration award](https://www.sec.gov/Archives/edgar/data/707179/000070717922000021/ex105cashretentionletterin.htm)[(incorporated by reference to Exhibit 10.](https://www.sec.gov/Archives/edgar/data/707179/000070717922000021/ex105cashretentionletterin.htm)[5](https://www.sec.gov/Archives/edgar/data/707179/000070717922000021/ex105cashretentionletterin.htm)[of Old National's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on May 4, 2022)](https://www.sec.gov/Archives/edgar/data/707179/000070717922000021/ex105cashretentionletterin.htm)[.](https://www.sec.gov/Archives/edgar/data/707179/000070717922000021/ex105cashretentionletterin.htm)</u> |
| 10.33<sup>(1)</sup> | <u>[Letter Agreement, dated May 30, 2021, by and between Old National Bancorp and James C. Ryan III (incorporated by reference to Exhibit 10.1 of Old National's Current Report on Form 8-K filed with the Securities and Exchange Commission on June 2, 2021).](https://www.sec.gov/Archives/edgar/data/707179/000114036121019539/nt10025327x8_ex10-1.htm)</u> |
| 10.34<sup>(1)</sup> | <u>[Letter Agreement, dated May 30, 2021, by and between Old National Bancorp and James A. Sandgren (incorporated by reference to Exhibit 10.2 of Old National's Current Report on Form 8-K filed with the Securities and Exchange Commission on June 2, 2021).](https://www.sec.gov/Archives/edgar/data/707179/000114036121019539/nt10025327x8_ex10-2.htm)</u> |
| 10.35<sup>(1)</sup> | <u>[Employment Agreement, amended and restated as of January 18, 2019, by and between First Midwest Bancorp, Inc. (as predecessor to Old National Bancorp) and Michael L. Scudder.](onbexhibit103510-k2022.htm)</u> |
| 10.36<sup>(1)</sup> | <u>[Confidentiality and Restrictive Covenants Agreement, dated as of June 18, 2018, by and between the First Midwest Bancorp, Inc. (as predecessor to Old National Bancorp) and Michael L. Scudder.](onbexhibit103610-k2022.htm)</u> |
| 10.37<sup>(1)</sup> | <u>[Letter Agreement, dated May 30, 2021, by and between First Midwest Bancorp, Inc. (as predecessor to Old National Bancorp) and Michael L. Scudder](onbexhibit103710-k2022.htm)[.](onbexhibit103710-k2022.htm)</u> |
| 10.38<sup>(1)</sup> | <u>[Employment Agreement, dated as of January 18, 2019, by and between First Midwest Bancorp, Inc. (as predecessor to Old National Bancorp) and Mark G. Sander.](onbexhibit103810-k2022.htm)</u> |
| 10.39<sup>(1)</sup> | <u>[Confidentiality and Restrictive Covenants Agreement, dated as of January 18, 2019, by and between the First Midwest Bancorp, Inc. (as predecessor to Old National Bancorp) and Mark G. Sander.](onbexhibit103910-k2022.htm)</u> |
| 10.40<sup>(1)</sup> | <u>[Letter Agreement, dated May 30, 2021, by and between First Midwest Bancorp, Inc. (as predecessor to Old National Bancorp) and Mark G. Sander.](onbexhibit104010-k2022.htm)</u> |
| 21 | <u>[Subsidiaries of Old National Bancorp](onbexhibit2110-k2022.htm)</u> |
| 23.1 | <u>[Consent of Crowe LLP](onbexhibit23110-k2022.htm)</u> |
| 31.1 | <u>[Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](onbexhibit31110-k2022.htm)</u> |
| 31.2 | <u>[Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](onbexhibit31210-k2022.htm)</u> |
| 32.1 | <u>[Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](onbexhibit32110-k2022.htm)</u> |
| 32.2 | <u>[Certification of Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](onbexhibit32210-k2022.htm)</u> |

---

------

---

| | |
|:---|:---|
| 101 | The following materials from Old National Bancorp's Annual Report on Form 10-K Report for the year ended December 31, 2022, formatted in inline XBRL: (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income (Loss), (iv) the Consolidated Statements of Changes in Shareholders' Equity, (v) the Consolidated Statements of Cash Flows, and (vi) the Notes to Consolidated Financial Statements. |
| 104 | The cover page from Old National's Annual Report on Form 10-K Report for the year ended December 31, 2022, formatted in inline XBRL and contained in Exhibit 101. |
|  | (1) Management contract or compensatory plan or arrangement |

---

**ITEM 16.&nbsp;&nbsp;&nbsp;&nbsp;FORM 10-K SUMMARY**

None.

------

**SIGNATURES**

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, Old National has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

OLD NATIONAL BANCORP

---

| | | | |
|:---|:---|:---|:---|
| By: | &nbsp;&nbsp;&nbsp;/s/ James C. Ryan, III | Date: | &nbsp;&nbsp;February 22, 2023 |
|  | James C. Ryan, III, |  |  |
|  | Chief Executive Officer |  |  |
|  | (Principal Executive Officer) |  |  |

---

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below on February 22, 2023, by the following persons on behalf of Old National and in the capacities indicated.

---

| | | | |
|:---|:---|:---|:---|
| By: | &nbsp;&nbsp;&nbsp;/s/ Brendon B. Falconer | By: | &nbsp;&nbsp;&nbsp;/s/ Thomas E. Salmon |
|  | Brendon B. Falconer, |  | Thomas E. Salmon, Director |
|  | Senior Executive Vice President and Chief |  |  |
|  | Financial Officer (Principal Financial Officer) | By: | &nbsp;&nbsp;&nbsp;/s/ Michael L. Scudder |
|  |  |  | Michael L. Scudder, Executive Chairman |
| By: | &nbsp;&nbsp;&nbsp;/s/ Barbara A. Boigegrain |  |  |
|  | Barbara A. Boigegrain, Director | By: | &nbsp;&nbsp;&nbsp;/s/ Rebecca S. Skillman |
|  |  |  | Rebecca S. Skillman, Lead Independent |
| By: | &nbsp;&nbsp;&nbsp;/s/ Thomas L. Brown |  | Director |
|  | Thomas L. Brown, Director |  |  |
|  |  | By: | &nbsp;&nbsp;&nbsp;/s/ Michael J. Small |
| By: | &nbsp;&nbsp;&nbsp;/s/ Kathryn J. Hayley |  | Michael J. Small, Director |
|  | Kathryn J. Hayley, Director |  |  |
|  |  | By: | &nbsp;&nbsp;&nbsp;/s/ Derrick J. Stewart |
| By: | &nbsp;&nbsp;&nbsp;/s/ Peter J. Henseler |  | Derrick J. Stewart, Director |
|  | Peter J. Henseler, Director |  |  |
|  |  | By: | &nbsp;&nbsp;&nbsp;/s/ Stephen C. Van Arsdell |
| By: | &nbsp;&nbsp;&nbsp;/s/ Daniel S. Hermann |  | Stephen C. Van Arsdell, Director |
|  | Daniel S. Hermann, Director |  |  |
|  |  | By: | &nbsp;&nbsp;&nbsp;/s/ Katherine E. White |
| By: | &nbsp;&nbsp;&nbsp;/s/ Ryan C. Kitchell |  | Katherine E. White, Director |
|  | Ryan C. Kitchell, Director |  |  |
|  |  | By: | &nbsp;&nbsp;&nbsp;/s/ Angela L. Putnam |
| By: | &nbsp;&nbsp;&nbsp;/s/ Austin M. Ramirez |  | Angela L. Putnam, |
|  | Austin M. Ramirez, Director |  | Senior Vice President and Chief Accounting |
|  |  |  | Officer (Principal Accounting Officer) |
| By: | &nbsp;&nbsp;&nbsp;/s/ Ellen A. Rudnick |  |  |
|  | Ellen A. Rudnick, Director |  |  |
| By: | &nbsp;&nbsp;&nbsp;/s/ James C. Ryan, III |  |  |
|  | James C. Ryan, III, |  |  |
|  | Director and Chief Executive Officer |  |  |
|  | (Principal Executive Officer) |  |  |

---

## Exhibit 4.1

**Exhibit 4.1**

**Description of Capital Stock**

&nbsp;&nbsp;&nbsp;&nbsp;*The following is a summary of information concerning capital stock of Old National Bancorp (the "Company"). The summaries and descriptions below do not purport to be complete. It is subject to and qualified in its entirety by reference to our Articles of Incorporation and By-laws, each of which are incorporated by reference as an exhibit to the Annual Report on Form 10-K of which this Exhibit 4.1 is a part. We encourage you to read our Articles of Incorporation, our By-laws and the applicable provisions of the Indiana Code.*

Pursuant to the Company's Articles of Incorporation, the Company is authorized to issue six hundred million (600,000,000) shares of common stock, without par value (the "Common Stock"), and two million (2,000,000) shares of preferred stock, without par value (the "Preferred Stock"). The Company has three classes of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended: (1) its Common Stock; (2) its Depositary Shares, Each Representing a 1/40th Interest in a Share of 7.000% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A (the "Series A Preferred Stock"); and (3) its Depositary Shares, Each Representing a 1/40th Interest in a Share of 7.000% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series C (the "Series C Preferred Stock").

Because the Company is a holding company, the rights of the Company to participate in any distribution of assets of any subsidiary upon its liquidation or reorganization or otherwise (and thus the ability of the Company's shareholders to benefit indirectly from such distribution) would be subject to the prior claims of creditors of that subsidiary, except to the extent that the Company itself may be a creditor of that subsidiary with recognized claims. Claims on the Company's subsidiaries by creditors other than the Company will include substantial obligations with respect to deposit liabilities and purchased funds.

**COMMON STOCK**

&nbsp;&nbsp;&nbsp;&nbsp;<u>Issuance of Common Stock</u>. The Company is authorized to issue up to 600,000,000 shares of Common Stock without shareholder approval. However, the Common Stock is listed on the Nasdaq Stock Market, which requires shareholder approval of the issuance of additional shares of common stock under certain circumstances.&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;<u>Dividends</u>. Holders of shares of Common Stock are entitled to receive dividends when, as and if declared by the Company's Board of Directors (the "Board") out of funds legally available for that purpose, subject to the rights of any outstanding series of preferred stock.

&nbsp;&nbsp;&nbsp;&nbsp;<u>Voting Rights</u>. Each share of Common Stock is entitled to one vote on all matters submitted to a vote of shareholders. Except as otherwise required by law or provided in any resolution adopted by the Board with respect to any series of preferred stock, the holders of Common Stock possess all voting power. Holders of shares of Common Stock do not have cumulative voting rights. This means a holder of a single share of Common Stock cannot cast more than one vote for each position to be filled on the Board. It also means the holders of a majority of the shares of Common Stock entitled to vote in the election of directors can elect all directors standing for election and the holders of the remaining shares will not be able to elect any directors.

&nbsp;&nbsp;&nbsp;&nbsp;<u>Preemptive and Conversion Rights</u>. Holders of the Common Stock have no preemptive rights and no right to convert their stock into any other securities.

------

&nbsp;&nbsp;&nbsp;&nbsp;<u>Redemption and Sinking Fund</u>. There are no redemption or sinking fund provisions applicable to the Common Stock. Holders of the Common Stock will have no liability for further calls or assessments and will not be personally liable for the payment of the Company's debts except as they may be liable by reason of their own conduct or acts.

&nbsp;&nbsp;&nbsp;&nbsp;<u>Liquidation Rights</u>. In the event of any liquidation, dissolution or winding up of the Company, holders of shares of Common Stock are entitled to ratable distribution of the remaining assets available for distribution to shareholders, subject to the rights of any outstanding series of preferred stock.

&nbsp;&nbsp;&nbsp;&nbsp;<u>Fully Paid</u>. The issued and outstanding shares of Common Stock are fully paid and non-assessable. This means the full purchase price for the outstanding shares of Common Stock has been paid and the holders of such shares will not be assessed any additional amounts for such shares. Any additional shares of Common Stock that the Company may issue in the future will also be fully paid and non-assessable.

&nbsp;&nbsp;&nbsp;&nbsp;<u>Transfer Agent</u>. The transfer agent for the Common Stock is Continental Stock Transfer & Trust Company.

&nbsp;&nbsp;&nbsp;&nbsp;<u>Listing</u>. The Common Stock is listed for trading on the Nasdaq Stock Market under the ticker symbol "ONB."

**PREFERRED STOCK**

The Company is authorized to issue up to 2,000,000 shares of Preferred Stock, without shareholder approval, from time to time in one or more series. The Board is authorized to divide the Preferred Stock into series and, subject to applicable law, to fix for any series of Preferred Stock the number of shares of such series and the voting powers (if any), designations and preferences, priorities, qualifications, privileges, limitations, restrictions, options, conversion rights, dividend features, retirement features, liquidation features, redemption features and any other special or relative rights that may be desired for any such series.

The Company has two series of preferred stock outstanding, the Series A Preferred Stock and the Series C Preferred Stock. A description of these series of Preferred Stock is provided below. Additionally, if and when any additional Preferred Stock is issued, the holders of such Preferred Stock may have a preference over holders of Common Stock in the payment of dividends, upon liquidation of the Company, in respect of voting rights and in the redemption of the capital stock of the Company. Similarly, such Preferred Stock may be on a parity with or, subject to required consents of the Series A Preferred Stock and Series C Preferred Stock, senior to the Series A Preferred Stock and Series C Preferred Stock in the payment of dividends, upon liquidation of the Company, in respect of voting rights and in the redemption of the capital stock of the Company.

4856-2617-6592 v.2

------

**DEPOSITARY SHARES, EACH REPRESENTING A 1/40TH INTEREST<br>IN A SHARE OF SERIES A PREFERRED STOCK**

**DESCRIPTION OF THE PREFERRED STOCK**

**General**

The Series A Preferred Stock is a single series of the Company's authorized Preferred Stock. The depositary is the sole holder of shares of the Series A Preferred Stock, and all references herein to the holders of the Series A Preferred Stock shall mean the depositary. The holders of depositary shares are entitled through the depositary to exercise their proportional rights and preferences of the Series A Preferred Stock, as described below under "Description of the Depositary Shares".

The Series A Preferred Stock is not convertible into, or exchangeable for, shares of Common Stock or any other class or series of other securities of the Company. The Series A Preferred Stock has no stated maturity and is not subject to any sinking fund or other obligation of the Company to redeem, retire or repurchase the Series A Preferred Stock.

**Ranking**

With respect to the payment of dividends by, and distributions of assets upon any liquidation, dissolution or winding up of, the Company, the Series A Preferred Stock will rank:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• senior to the Company's common stock and any class or series of stock that ranks junior to the Series A Preferred Stock in the payment of dividends or in the distribution of assets upon the Company's liquidation, dissolution or winding up ("junior stock");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• on a parity with Series C Preferred Stock and senior to or on a parity with each other series of Preferred Stock the Company may issue (except for any senior series that may be issued upon the requisite vote or consent of the holders of at least two-thirds of the shares of the Series A Preferred Stock at the time outstanding and entitled to vote, voting together as a single class with any other series of Preferred Stock entitled to vote thereon (to the exclusion of all other series of Preferred Stock)), as provided in the Articles of Amendment designating such Preferred Stock or otherwise; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• junior to all existing and future indebtedness and other non-equity claims on the Company.

**Dividends**

Dividends on the Series A Preferred Stock are not cumulative or mandatory. If the Board, or a duly authorized committee thereof, does not declare a dividend on the Series A Preferred Stock in respect of a dividend period, then no dividend shall be deemed to be payable for such dividend period, or be cumulative, and the Company will have no obligation to pay any dividend for that dividend period, whether or not the Board, or a duly authorized committee thereof, declares a dividend on the Series A Preferred Stock or any other class or series of capital stock for any future dividend period. A "dividend period" is the period from and including a dividend payment date to but excluding the next dividend payment date.

Holders of Series A Preferred Stock will be entitled to receive, when, as and if declared by the Board, or a duly authorized committee thereof, only out of funds legally available for the payment of dividends, non-cumulative cash dividends payable on the stated amount of $1,000 per share at a rate of 7.000% per annum, and no more, payable quarterly in arrears on February

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20, May 20, August 20 and November 20 of each year (each such date, a "dividend payment date"), with respect to the dividend period (or portion thereof) ending on the day preceding such respective dividend payment date. In the event that the Company issues additional shares of Series A Preferred Stock after the original issue date, those shares will be entitled to dividends that are declared on or after the date they are issued.

If any dividend payment date is not a business day, then the applicable dividend will be paid on the next business day without any adjustment to, or interest on, the amount of dividends paid. The Company will not pay interest or any sum of money instead of interest on any dividend, or in lieu of dividends not declared. A business day means any day, other than a Saturday or Sunday, that is neither a legal holiday in New York, New York nor a day on which banking institutions are authorized or required by law or regulation to close in New York, New York or Evansville, Indiana.

Dividends will be payable to holders of record of Series A Preferred Stock as they appear on the Company's stock register on the applicable record date, which is the 15th calendar day before the applicable dividend payment date, or such other record date, not exceeding 30 days nor less than 10 days before the applicable dividend payment date, as shall be fixed by the Board, or a duly authorized committee thereof, in advance of payment of each particular dividend. The corresponding record dates for the depositary shares will be the same as the record dates for the Series A Preferred Stock.

Dividends payable on the Series A Preferred Stock are calculated for each dividend period (or portion thereof) on the basis of a 360-day year consisting of twelve 30-day months. Dollar amounts resulting from that calculation are rounded to the nearest cent, with one-half cent being rounded upward. Dividends on the Series A Preferred Stock will cease to accrue on the redemption date, if any, as described below under "—Redemption," unless the Company defaults in the payment of the redemption price of the shares of the Series A Preferred Stock called for redemption.

**Restrictions on Dividends, Redemptions and Repurchases**

The Company's ability to pay dividends on the Series A Preferred Stock depends on the ability of the Old National Bank (the "Bank") to pay dividends to the Company. The ability of the Company and the Bank to pay dividends in the future is subject to bank regulatory requirements and capital guidelines and policies established by the Federal Reserve and the Office of the Comptroller of the Currency, respectively.

So long as any share of Series A Preferred Stock remains outstanding, unless dividends on all outstanding shares of Series A Preferred Stock for the most recently completed dividend period have been paid in full or declared and a sum sufficient for the payment thereof has been set aside for payment:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• no dividend shall be declared or paid or set aside for payment and no distribution shall be declared or made or set aside for payment on any junior stock (other than (i) a dividend payable solely in junior stock or (ii) any dividend in connection with the implementation of a shareholders' rights plan, or the redemption or repurchase of any rights under any such plan);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• no monies may be paid or made available for a sinking fund for the redemption or retirement of any junior stock nor shall any shares of junior stock be repurchased, redeemed or otherwise acquired for consideration by the Company, directly or indirectly, during a dividend period (other than (i) as a result of a reclassification of junior stock for or into other junior stock, (ii) the exchange or conversion of one share of junior stock for

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or into another share of junior stock, (iii) through the use of the proceeds of a substantially contemporaneous sale of other shares of junior stock, (iv) purchases, redemptions or other acquisitions of shares of the junior stock in connection with any employment contract, benefit plan or other similar arrangement with or for the benefit of employees, officers, directors or consultants, (v) purchases of shares of junior stock pursuant to a contractually binding requirement to buy junior stock existing prior to or during the most recently completed preceding dividend period, including under a contractually binding stock repurchase plan, (vi) the purchase of fractional interests in shares of junior stock pursuant to the conversion or exchange provisions of such stock or the security being converted or exchanged, (vii) purchases by any of the Company's broker-dealer subsidiaries of the Company's capital stock for resale pursuant to an offering by the Company of such capital stock underwritten by such broker-dealer subsidiary or (viii) the acquisition by the Company or any of the Company's subsidiaries of record ownership in junior stock for the beneficial ownership of any other persons (other than for the beneficial ownership by the Company or any of the Company's subsidiaries, including as trustees or custodians), nor shall any monies be paid to or made available for a sinking fund for the redemption of any such securities by the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• no monies may be paid or made available for a sinking fund for the redemption or retirement of any parity stock nor shall any shares of parity stock, if any, be repurchased, redeemed or otherwise acquired for consideration by the Company, directly or indirectly, during a dividend period (other than (i) any purchase or other acquisition of shares of Series A Preferred Stock and parity stock in accordance with a purchase offer made in writing or by publication (as determined by the Board, or a duly authorized committee thereof), to all holders of such shares on such terms as the Board (or a duly authorized committee thereof), after consideration of the respective annual dividend rates and other relative rights and preferences of the respective series and classes, shall determine in good faith will result in fair and equitable treatment among the respective series or classes, (ii) as a result of a reclassification of parity stock for or into other parity stock, (iii) the exchange or conversion of parity stock for or into other parity stock or junior stock, (iv) through the use of the proceeds of a substantially contemporaneous sale of other shares of parity stock, (v) purchases of shares of parity stock pursuant to a contractually binding requirement to buy parity stock existing prior to or during the preceding dividend period, including under a contractually binding stock repurchase plan, (vi) the purchase of fractional interests in shares of parity stock pursuant to the conversion or exchange provisions of such stock or the security being converted or exchanged, (vii) purchases by any of the Company's broker-dealer subsidiaries of the Company's capital stock for resale pursuant to an offering by the Company of such capital stock underwritten by such broker-dealer subsidiary or (viii) the acquisition by the Company or any of the Company's subsidiaries of record ownership in parity stock for the beneficial ownership of any other persons (other than for the beneficial ownership by the Company or any of the Company's subsidiaries, including as trustees or custodians).

If the Board (or a duly authorized committee thereof) elects to declare only partial instead of full dividends for a dividend payment date and the related dividend period on the shares of Series A Preferred Stock or any class or series of the Company's stock that ranks on a parity with the Series A Preferred Stock in the payment of current dividends, then, to the extent permitted by the terms of the Series A Preferred Stock and each outstanding series of dividend parity stock, such partial dividends shall be declared on shares of Series A Preferred Stock and dividend parity stock, and dividends so declared shall be paid, as to any such dividend payment date and related dividend period in amounts such that the ratio of the partial dividends declared and paid on each such series to full dividends on each such series is the same. As used in this paragraph, "full dividends" means, as to any dividend parity stock that bears dividends on a cumulative basis, the

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amount of dividends that would need to be declared and paid to bring such dividend parity stock current in dividends, including undeclared dividends for past dividend periods. To the extent a dividend period with respect to the Series A Preferred Stock or any series of dividend parity stock (in either case, the "first series") coincides with more than one dividend period with respect to another series as applicable (in either case, a "second series"), then, for purposes of this paragraph, the Board (or a duly authorized committee thereof) may, to the extent permitted by the terms of each affected series, treat such dividend period for the first series as two or more consecutive dividend periods, none of which coincides with more than one dividend period with respect to the second series, or may treat such dividend period(s) with respect to any dividend parity stock and dividend period(s) with respect to the Series A Preferred Stock in any other manner that it deems to be fair and equitable in order to achieve ratable payments of dividends on such dividend parity stock and the Series A Preferred Stock.

As used in this description of the Series A Preferred Stock, "parity stock" means any class or series of stock of the Company that ranks on a parity with the Series A Preferred Stock in the payment of dividends and in the distribution of assets on any liquidation, dissolution or winding up of the Company, including the Series C Preferred Stock.

As used in this description of the Series A Preferred Stock, "dividend parity stock" means any class or series of the Company's stock that ranks on a parity with the Series A Preferred Stock in the payment of current dividends, including the Series C Preferred Stock.

As used in this description of the Series A Preferred Stock, "senior stock" means any other class or series of stock of the Company ranking senior to the Series A Preferred Stock with respect to payment of dividends or the distribution of assets upon liquidation, dissolution or winding up of the Company.

Subject to the considerations described above, and not otherwise, dividends (payable in cash, stock or otherwise), as may be determined by the Board, or a duly authorized committee thereof, may be declared and paid on the Company's common stock and any other junior stock from time to time out of any assets legally available for such payment, and the holders of Series A Preferred Stock shall not be entitled to participate in any such dividend.

Dividends on the Series A Preferred Stock will not be declared, paid or set aside for payment to the extent such act would cause the Company to fail to comply with applicable laws and regulations, including applicable capital adequacy rules.

**Redemption**

*Optional Redemption*

The Series A Preferred Stock is perpetual and has no maturity date. The Series A Preferred Stock is not subject to any mandatory redemption, sinking fund or other similar provisions.

The Company may redeem the Series A Preferred Stock at the Company's option, in whole or in part, from time to time, on any dividend payment date on or after February 15, 2027, at a redemption price equal to the stated amount of $1,000 per share (equivalent to $25 per depositary share), together (except as otherwise provided herein) with any declared and unpaid dividends, without regard to any undeclared dividends, to but excluding the redemption date. Neither the holders of Series A Preferred Stock nor holders of depositary shares will have the right to require the redemption or repurchase of the Series A Preferred Stock, and should not expect such redemption or repurchase. Notwithstanding the foregoing, the Company may not redeem shares of the Series A Preferred Stock without having received the prior approval of the "appropriate federal banking agency" with respect to the Company, as defined in Section 3(q) of the Federal

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Deposit Insurance Act, or any successor provision (the "appropriate federal banking agency"), if then required under capital rules applicable to the Company. The Company's appropriate federal banking agency is the Federal Reserve.

*Redemption Following a Regulatory Capital Treatment Event*

The Company may redeem shares of the Series A Preferred Stock at any time within 90 days following a regulatory capital treatment event, in whole but not in part, at a redemption price equal to $1,000 per share (equivalent to $25 per depositary share), together (except as otherwise provided herein) with any declared and unpaid dividends, without regard to any undeclared dividends, to but excluding the redemption date. Such redemption shall be subject to prior approval of the Federal Reserve, if the Series A Preferred Stock is capital for bank regulatory purposes or such approval is otherwise required.

A "regulatory capital treatment event" means the good faith determination by the Company that, as a result of (i) any amendment to, or change (including any announced prospective change) in, the laws or regulations of the United States or any political subdivision of or in the United States that is enacted or becomes effective after the initial issuance of any share of Series A Preferred Stock; (ii) any proposed change in those laws or regulations that is announced or becomes effective after the initial issuance of any share of Series A Preferred Stock; or (iii) any official administrative decision or judicial decision or administrative action or other official pronouncement interpreting or applying those laws or regulations that is announced after the initial issuance of any share of Series A Preferred Stock, there is more than an insubstantial risk that the Company will not be entitled to treat the full stated amount of $1,000 per share of Series A Preferred Stock then outstanding as Tier 1 Capital (or its equivalent) for purposes of the capital adequacy rules of the Federal Reserve (or, as and if applicable, the capital adequacy rules or regulations of any successor appropriate federal banking agency), as then in effect and applicable, for as long as any share of Series A Preferred Stock is outstanding. Dividends will cease to accrue on those shares on the redemption date. Notwithstanding the foregoing, the Company may not redeem shares of the Series A Preferred Stock without having received the prior approval of the appropriate federal banking agency, if then required under capital rules applicable to the Company.

*Redemption Procedures*

If shares of the Series A Preferred Stock are to be redeemed, the notice of redemption shall be given by first class mail, postage prepaid, addressed to the holders of record of the shares to be redeemed at their respective last addresses appearing on the Company's books, mailed not less than 30 days nor more than 60 days prior to the date fixed for redemption thereof (provided that, if the Series A Preferred Stock or any depositary shares representing interests in the Preferred Stock are held in book-entry form through The Depository Trust Company or any other similar facility, the Company may give such notice at such time and in any manner permitted by such facility). Any notice mailed in this manner shall be conclusively presumed to have been duly given, whether or not the holder receives such notice, but failure duly to give such notice by mail, or any defect in such notice or in the mailing thereof, to any holder of shares of Series A Preferred Stock designated for redemption shall not affect the validity of the proceedings for the redemption of any other shares of Series A Preferred Stock. Each notice of redemption will include a statement setting forth:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the redemption date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the number of shares of the Series A Preferred Stock to be redeemed and, if less than all the shares held by the holder are to be redeemed, the number of shares of Series A Preferred Stock to be redeemed from the holder;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the redemption price;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the place or places where the certificates evidencing shares of Series A Preferred Stock are to be surrendered for payment of the redemption price; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• that dividends on such shares will cease to accrue on the redemption date.

If notice of redemption of any shares of Series A Preferred Stock has been duly given and if on or before the redemption date specified in the notice all funds necessary for such redemption have been irrevocably set aside by the Company separate and apart from the Company's other assets, in trust for the pro rata benefit of the holders of any shares of Series A Preferred Stock so called for redemption so as to be and continue to be available therefor, then, notwithstanding that any certificate for any share so called for redemption has not been surrendered for cancellation in the case that the shares of Series A Preferred Stock are issued in certificated form, on and after the redemption date, unless we default in the payment of the redemption price of the shares of the Series A Preferred Stock called for redemption, dividends will cease to accrue on all shares of Series A Preferred Stock so called for redemption, and all such shares of Series A Preferred Stock so called for redemption shall no longer be deemed outstanding and all rights of the holders of such shares with respect to such shares will terminate, including rights described under "—Voting Rights" below, except the right to receive the amount payable on such redemption, without interest. Any funds unclaimed at the end of two years from the redemption date, to the extent permitted by law, shall be released from the trust so established and may be commingled with the Company's other funds, and after that time the holders of the shares so called for redemption shall look only to the Company for payment of the redemption price of such shares.

The redemption price for any shares of Series A Preferred Stock shall be payable on the redemption date to the holder of such shares against surrender of the certificate(s) evidencing such shares to the Company or the Company's agent, if the shares of Series A Preferred Stock are issued in certificated form. Any declared but unpaid dividends payable on a redemption date that occurs subsequent to the applicable record date for a dividend period shall not be paid to the holder entitled to receive the redemption price on the redemption date, but rather shall be paid to the holder of record of the redeemed shares on such record date relating to the applicable dividend payment date.

In case of any redemption of only part of the shares of the Series A Preferred Stock at the time outstanding, the shares to be redeemed shall be selected pro rata or by lot. Subject to the provisions described above, the Board, or a duly authorized committee thereof, shall have full power and authority to prescribe the terms and conditions upon which shares of Series A Preferred Stock shall be redeemed from time to time. If the Company shall have issued certificates for the Series A Preferred Stock and fewer than all shares represented by any certificates are redeemed, new certificates shall be issued representing the unredeemed shares without charge to the holders thereof.

Under the Federal Reserve's current capital regulations applicable to bank holding companies, any redemption of the Series A Preferred Stock is subject to prior approval by the Federal Reserve and the Company must either replace the shares to be redeemed with an equal amount of Tier 1 Capital or additional Tier 1 Capital or demonstrate to the Federal Reserve that the Company will continue to hold capital commensurate with its risk. Any redemption of the Series A Preferred Stock is subject to the Company's receipt of any required prior approval by the Federal Reserve and to the satisfaction of any conditions set forth by the Federal Reserve applicable to redemption of the Series A Preferred Stock.

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**Liquidation Rights**

In the event the Company liquidates, dissolves or winds-up its business and affairs, either voluntarily or involuntarily, before any distribution or payment out of the Company's assets may be made to or set aside for the holders of any junior stock, holders of the Series A Preferred Stock are entitled to receive out of the Company's assets legally available for distribution to the Company's shareholders (i.e., after satisfaction of all of the Company's liabilities to creditors, if any) an amount equal to the stated amount of $1,000 per share (equivalent to $25 per depositary share), together with any declared and unpaid dividends, without regard to any undeclared dividends, to but excluding the date of such payment (the "liquidation preference"). Holders of the Series A Preferred Stock will not be entitled to any other amounts from the Company after they have received their full liquidating distribution.

In any such distribution, if the assets of the Company are not sufficient to pay the liquidation preference in full to all holders of the Series A Preferred Stock and all holders of any class or series of our stock that ranks on parity with the Series A Preferred Stock in the distribution of assets on liquidation ("liquidation preference parity stock"), the amounts paid to the holders of Series A Preferred Stock and to the holders of all liquidation preference parity stock will be paid pro rata in accordance with the respective aggregate liquidation preferences of the Series A Preferred Stock and all such liquidation preference parity stock. In any such distribution, the "liquidation preference" of any holder of the Company's stock other than the Series A Preferred Stock means the amount otherwise payable to such holder in such distribution (assuming no limitation on the Company's assets available for such distribution), including an amount equal to any declared but unpaid dividends in the case of any holder or stock on which dividends accrue on a noncumulative basis and, in the case of any holder of stock on which dividends accrue on a cumulative basis, an amount equal to any unpaid, accrued, cumulative dividends, whether or not earned or declared, as applicable. If the liquidation preference has been paid in full to all holders of Series A Preferred Stock and all holders of any liquidation preference parity stock, the holders of our junior stock will be entitled to receive all remaining assets of the Company according to their respective rights and preferences.

For these purposes, the merger, consolidation or other business combination of the Company with any other entity, including a transaction in which the holders of Series A Preferred Stock receive cash, securities or property for their shares, or the sale, lease, conveyance, transfer or exchange of all or substantially all of the Company's assets for cash, securities or other property, shall not constitute a liquidation, dissolution or winding up of the Company.

Because the Company is a holding company, the Company's rights and the rights of its creditors and its shareholders, including the holders of the Series A Preferred Stock, to participate in the distribution of assets of any of the Company's subsidiaries upon that subsidiary's liquidation or recapitalization may be subject to the prior claims of that subsidiary's creditors, except to the extent that the Company is a creditor with recognized claims against the subsidiary.

**Voting Rights**

Except as provided below or otherwise required by law, the holders of the Series A Preferred Stock have no voting rights.

*Right to Elect Two Directors upon Nonpayment of Dividends*

If and whenever dividends payable on Series A Preferred Stock or any class or series of parity stock having voting rights equivalent to those described in this paragraph ("voting parity stock") have not been declared and paid (or, in the case of voting parity stock bearing dividends on a cumulative basis, shall be in arrears) in an aggregate amount equal to full dividends for at least

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six quarterly dividend periods or their equivalent, whether or not consecutive (a "nonpayment event"), the number of directors on the Board shall automatically be increased by two and the holders of Series A Preferred Stock, together with the holders of any outstanding voting parity stock then entitled to vote for additional directors, voting together as a single class in proportion to their respective stated amounts, shall be entitled to elect the two additional directors (the "preferred stock directors"); provided that the election of any such directors shall not cause the Company to violate the corporate governance requirements of NASDAQ (or any other exchange on which the Company's securities may be listed) that listed companies must have a majority of independent directors and provided further that the Board shall at no time include more than two preferred stock directors (including, for purposes of this limitation, all directors that the holders of any series of voting preferred stock are entitled to elect pursuant to like voting rights).

In the event that the holders of Series A Preferred Stock and such other holders of voting parity stock shall be entitled to vote for the election of the preferred stock directors following a nonpayment event, such directors shall be initially elected following such nonpayment event only at a special meeting called at the request of the holders of record of at least 20% of the stated amount of the Series A Preferred Stock and each other series of voting parity stock then outstanding (unless such request for a special meeting is received less than 90 days before the date fixed for the next annual or special meeting of the Company's shareholders, in which event such election shall be held only at such next annual or special meeting of shareholders), and at each subsequent annual meeting of the Company's shareholders. Such request to call a special meeting for the initial election of the preferred stock directors after a nonpayment event shall be made by written notice, signed by the requisite holders of Series A Preferred Stock or voting parity stock, and delivered to the Company's Corporate Secretary in such manner as provided for in the Articles of Amendment designating the Series A Preferred Stock, or as may otherwise be required or permitted by applicable law. If the Company's Corporate Secretary fails to call a special meeting for the election of the preferred stock directors within 20 days of receiving proper notice, any holder of Series A Preferred Stock or voting parity stock may call such a meeting at the Company's expense solely for the election of the preferred stock directors, and for this purpose and no other (unless provided otherwise by applicable law) such Series A Preferred Stock holder shall have access to the Company's stock ledger.

Any preferred stock director may be removed at any time without cause by the holders of record of a majority of the outstanding shares of Series A Preferred Stock and voting parity stock, voting together as a single class in proportion to their respective stated amounts. The preferred stock directors elected at a special meeting shall hold office until the next annual meeting of the shareholders if such office shall not have previously terminated as described below. In case any vacancy shall occur among the preferred stock directors, a successor shall be elected by the Board to serve until the next annual meeting of the shareholders on the nomination of the then remaining preferred stock director or, if no preferred stock director remains in office, by the vote of the holders of record of a majority of the outstanding shares of Series A Preferred Stock and such voting parity stock for which dividends have not been paid, voting as a single class in proportion to their respective stated amounts, provided that the election of any such directors shall not cause the Company to violate the corporate governance requirement of NASDAQ (or any other exchange on which the Company's securities may be listed) that listed companies must have a majority of independent directors. The preferred stock directors shall each be entitled to one vote per director on any matter that shall come before the Board for a vote.

When (i) dividends have been paid (or declared and a sum sufficient for payment thereof set aside) in full on the Series A Preferred Stock on four consecutive dividend payment dates following a nonpayment event and (ii) the rights of holders of any voting parity stock to participate in electing the preferred stock directors shall have ceased, the right of holders of the Series A Preferred Stock to participate in the election of preferred stock directors shall cease (but subject always to the revesting of such voting rights in the case of any future nonpayment event),

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the terms of office of all the preferred stock directors shall immediately terminate, and the number of directors constituting the Board shall automatically be reduced accordingly. In determining whether dividends have been paid for at least four consecutive quarterly dividend periods following a nonpayment event, the Company may take account of any dividend it elects to pay for any dividend period after the regular dividend payment date for that period has passed.

In addition, if and when the rights of holders of Series A Preferred Stock terminate for any reason, including under circumstances described above under "—Redemption," such voting rights shall terminate along with the other rights (except, if applicable, the right to receive the redemption price, together with any declared and unpaid dividends, without regard to any undeclared dividends, to but excluding the redemption date) and the terms of any additional directors elected by the holders of Series A Preferred Stock and any voting parity stock shall terminate automatically and the number of directors reduced by two, assuming that the rights of holders of voting parity stock have similarly terminated.

Under regulations adopted by the Federal Reserve, if the holders of any series of preferred stock (including the Series A Preferred Stock) are or become entitled to vote for the election of directors, such series, along with any other holders of stock that are entitled to vote for the election of directors with that series, will be deemed a class of voting securities. A company holding 25% or more of that class, or less if it otherwise exercises a "controlling influence" over the Company, will be subject to regulation as a bank holding company under the Bank Holding Company Act of 1956, as amended (the "BHC Act"). In addition, at the time the series is deemed a class of voting securities, any other bank holding company will be required to obtain the prior approval of the Federal Reserve under the BHC Act to acquire or retain more than 5% of that class. Any other person (other than a bank holding company) will be required to obtain the non-objection of the Federal Reserve under the Change in Bank Control Act of 1978, as amended, to acquire or retain 10% or more of that class.

*Other Voting Rights*

So long as any shares of Series A Preferred Stock remain outstanding, in addition to any other vote or consent of shareholders required by law or the Company's Articles of Incorporation, the affirmative vote or consent of the holders of at least two-thirds of all outstanding shares of the Series A Preferred Stock, voting together with any other series of preferred stock that would be adversely affected in substantially the same manner and entitled to vote as a single class in proportion to their respective stated amounts (to the exclusion of all other series of preferred stock), given in person or by proxy, either in writing without a meeting or by vote at any meeting called for the purpose, will be necessary to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• amend or alter the Company's Articles of Incorporation to authorize or increase the authorized amount of, or issue shares of, any class or series of the Company's capital stock ranking prior to the Series A Preferred Stock in the payment of dividends or in the distribution of assets on any liquidation, dissolution or winding up of the Company, or issue any obligation or security convertible into or evidencing the right to purchase any such shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• amend, alter or repeal the provisions of the Company's Articles of Incorporation so as to materially and adversely affect the powers, preferences, privileges or rights of the Series A Preferred Stock, taken as a whole; provided, however, that any amendment to authorize or create, or increase the authorized amount of, any class or series of stock that does not rank senior to the Series A Preferred Stock in either payment of dividends (whether such dividends are cumulative or non-cumulative) or in the distribution of assets upon liquidation, dissolution or winding up of the Company will not be deemed to affect adversely the powers, preferences, privileges or rights of the Series A Preferred Stock; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• consummate (i) a binding share-exchange or reclassification involving the Series A Preferred Stock or (ii) a merger or consolidation of the Company with or into another entity (whether or not a corporation), unless in each case (A) the shares of the Series A Preferred Stock remain outstanding or, in the case of any such merger or consolidation with respect to which the Company is not the surviving or resulting entity, the Series A Preferred Stock is converted into or exchanged for preference securities of the surviving or resulting entity or its ultimate parent and (B) such shares remaining outstanding or such preference securities, as the case may be, have such rights, preferences, privileges and voting powers, and limitations and restrictions thereof, taken as a whole, as are not materially less favorable to the holders thereof than the rights, preferences, privileges and voting powers, and restrictions and limitations thereof, of the Series A Preferred Stock immediately prior to such consummation, taken as a whole.

If an amendment, alteration, repeal, share exchange, reclassification, merger or consolidation described above would adversely affect one or more but not all series of preferred stock (including the Series A Preferred Stock for this purpose), then only the series affected and entitled to vote shall vote to the exclusion of all other series of preferred stock. If all series of preferred stock are not equally affected by the proposed amendment, alteration, repeal, share exchange, reclassification, merger or consolidation described above, there shall be required a two-thirds approval of each series that will have a diminished status.

Without the consent of the holders of the Series A Preferred Stock, so long as such action does not adversely affect the rights, preferences, privileges and voting powers of the Series A Preferred Stock, the Company may amend, alter, supplement or repeal any terms of the Series A Preferred Stock:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to cure any ambiguity, or to cure, correct or supplement any provision contained in the Articles of Amendment designating the Series A Preferred Stock that may be defective or inconsistent; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to make any provision with respect to matters or questions arising with respect to the Series A Preferred Stock that is not inconsistent with the provisions of the Articles of Amendment designating the Series A Preferred Stock.

The foregoing voting provisions will not apply if, at or prior to the time when the act with respect to which such vote would otherwise be required shall be effected, all outstanding shares of Series A Preferred Stock shall have been redeemed or called for redemption on proper notice and sufficient funds have been set aside by the Company for the benefit of the holders of the Series A Preferred Stock to effect the redemption.

**Preemptive and Conversion Rights**

The holders of the Series A Preferred Stock do not have any preemptive rights. The Series A Preferred Stock is not convertible into or exchangeable for property or shares of any other series or class of Old National capital stock.

**Depositary Agent, Transfer Agent and Registrar**

Continental Stock Transfer & Trust Company is the depositary and transfer agent and registrar for the Series A Preferred Stock. The Company may, in its sole discretion, remove the depositary in accordance with the agreement between the Company and the depositary; provided that the Company will use its best efforts to ensure that there is, at all relevant times when the Series A Preferred Stock is outstanding, a person or entity appointed and serving as transfer

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agent and/or registrar. The transfer agent and/or registrar may be a person or entity affiliated with the Company.

**DESCRIPTION OF THE DEPOSITARY SHARES**

*The following description summarizes specific terms and provisions of the depositary shares relating to the Series A Preferred Stock.*

**General**

Each depositary share represents a 1/40th ownership interest in a share of Series A Preferred Stock and is evidenced by depositary receipts. The underlying shares of the Series A Preferred Stock have been deposited with a depositary pursuant to a deposit agreement among the Company, Continental Stock Transfer & Trust Company, acting as depositary, and the holders from time to time of the depositary receipts evidencing the depositary shares (the "Deposit Agreement"). Subject to the terms of the Deposit Agreement, each holder of a depositary share is entitled, through the depositary, in proportion to the applicable fraction of a share of Series A Preferred Stock represented by such depositary share, to all the rights and preferences of the Series A Preferred Stock represented thereby (including dividend, voting, redemption and liquidation rights).

In this description of the depositary shares, references to "holders" of depositary shares mean those who own depositary shares registered in their own names on the books that the Company or the depositary maintain for this purpose, and not indirect holders who own beneficial interests in depositary shares registered in street name or issued in book-entry form.

**Amendment and Termination of the Deposit Agreement**

The Company may amend the form of depositary receipt evidencing the depositary shares and any provision of the Deposit Agreement at any time and from time to time by agreement with the depositary without the consent of the holders of depositary receipts. However, any amendment that will materially and adversely alter the rights of the holders of depositary receipts will not be effective unless the holders of at least two-thirds (2/3) of the affected depositary shares then outstanding approve the amendment. Every holder of an outstanding depositary receipt at the time any such amendment becomes effective shall be deemed, by continuing to hold such depositary receipts, to consent and agree to such amendment and to be bound by the Depositary Agreement as amended thereby.

The Company will make no amendment that impairs the right of any holder of depositary shares to receive shares of the Series A Preferred Stock and any money or other property represented by those depositary shares, except in order to comply with mandatory provisions of applicable law or the rules and regulations of any governmental body, agency, or commission, or applicable securities exchange.

The Deposit Agreement may be terminated:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if all outstanding depositary shares have been redeemed pursuant to the Deposit Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if there shall have been a final distribution made in respect of the Series A Preferred Stock in connection with any liquidation, dissolution or winding up of the Company and such distribution shall have been distributed to the holders of depositary receipts representing depositary shares pursuant to the terms of the Deposit Agreement; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• upon the consent of holders of depositary receipts representing in the aggregate not less than two-thirds (2/3) of the depositary shares outstanding.

The Company may terminate the Deposit Agreement at any time, and the depositary will give notice of that termination to the holders of all outstanding depositary receipts not less than thirty (30) days before the termination date. In that event, the depositary will deliver or make available for delivery to holders of depositary shares, upon surrender of the depositary receipts evidencing the depositary shares, the number of whole or fractional shares of the Series A Preferred Stock as are represented by those depositary shares.

**Dividends and Other Distributions**

Each dividend payable on a depositary share will be in an amount equal to 1/40th of the dividend declared and payable on the related share of the Series A Preferred Stock.

The depositary will distribute any cash dividends or other cash distributions received in respect of the deposited Series A Preferred Stock to the record holders of depositary shares relating to the underlying Series A Preferred Stock in proportion to the number of depositary shares held by the holders. If the Company makes a distribution other than in cash, the depositary will distribute any property received by it to the record holders of depositary shares entitled to those distributions, unless it determines that the distribution cannot be made proportionally among those holders or that it is not feasible to make a distribution. In that event, the depositary may, with the Company's approval, sell the property and distribute the net proceeds from the sale to the holders of the depositary shares.

Record dates for the payment of dividends and other matters relating to the depositary shares will be the same as the corresponding record dates for the Series A Preferred Stock.

The amounts distributed to holders of depositary shares will be reduced by any amounts required to be withheld by the depositary or by the Company on account of taxes or other governmental charges. The depositary may refuse to make any payment or distribution, or any transfer, exchange or withdrawal of any depositary shares or the shares of the Series A Preferred Stock until such taxes or other governmental charges are paid.

**Redemption of Depositary Shares**

If the Company redeems the Series A Preferred Stock represented by the depositary shares, the depositary shares will be redeemed from the proceeds received by the depositary resulting from the redemption of the Series A Preferred Stock held by the depositary. The redemption price per depositary share is expected to be equal to 1/40th of the redemption price per share payable with respect to the Series A Preferred Stock (or $25 per depositary share), plus any declared and unpaid dividends, without regard to any undeclared dividends, to, but excluding, the redemption date, on the shares of the Series A Preferred Stock.

Whenever the Company redeems shares of Series A Preferred Stock held by the depositary, the depositary will redeem, as of the same redemption date, the number of depositary shares representing shares of Series A Preferred Stock so redeemed. If fewer than all of the outstanding depositary shares are redeemed, the depositary will select the depositary shares to be redeemed pro rata or by lot. In any case, the depositary will redeem the depositary shares only in increments of 40 depositary shares and any integral multiple thereof. The depositary will provide notice of redemption to record holders of the depositary receipts not less than 30 and not more than 60 days prior to the date fixed for redemption of the Series A Preferred Stock and the related depositary shares.

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**Voting of the Preferred Stock**

Because each depositary share represents a 1/40th interest in a share of the Series A Preferred Stock, holders of depositary receipts will be entitled to 1/40th of a vote per depositary share under those limited circumstances in which holders of the Series A Preferred Stock are entitled to a vote, as described above in "Description of Preferred Stock—Voting Rights."

When the depositary receives notice of any meeting at which the holders of the Series A Preferred Stock are entitled to vote, the depositary will mail (or otherwise transmit by an authorized method) the information contained in the notice to the record holders of the depositary shares relating to the Series A Preferred Stock. Each record holder of the depositary shares on the record date, which will be the same date as the record date for the Series A Preferred Stock, may instruct the depositary to vote the amount of the Series A Preferred Stock represented by the holder's depositary shares. To the extent possible, the depositary will vote the amount of the Series A Preferred Stock represented by depositary shares in accordance with the instructions it receives. The Company has agreed to take all reasonable actions that the depositary determines are necessary to enable the depositary to vote as instructed. If the depositary does not receive specific instructions from the holders of any depositary shares representing the Series A Preferred Stock, it will vote all depositary shares held by it proportionately with instructions received.

**Depositary Agent, Transfer Agent and Registrar**

Continental Stock Transfer & Trust Company is the depositary and transfer agent and registrar for the depositary shares. The Company may, in its sole discretion, remove the depositary in accordance with the Deposit Agreement; provided that the Company will appoint a successor depositary who will accept such appointment prior to the effectiveness of the prior depositary's removal.

**Form of Series A Preferred Stock and Depositary Shares**

The depositary shares are issued in book-entry form through The Depository Trust Company. The Series A Preferred Stock is issued in registered form to the depositary.

**Listing of Depositary Shares**

The depositary shares are listed on the NASDAQ Stock Market under the symbol "ONBPP."

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**DEPOSITARY SHARES, EACH REPRESENTING A 1/40TH INTEREST<br>IN A SHARE OF SERIES C PREFERRED STOCK**

**DESCRIPTION OF THE PREFERRED STOCK**

**General**

The Series C Preferred Stock is a single series of the Company's authorized Preferred Stock. The depositary is the sole holder of shares of the Series C Preferred Stock, and all references herein to the holders of the Series C Preferred Stock shall mean the depositary. The holders of depositary shares are entitled through the depositary to exercise their proportional rights and preferences of the Series C Preferred Stock, as described below under "Description of the Depositary Shares".

The Series C Preferred Stock is not convertible into, or exchangeable for, shares of Common Stock or any other class or series of other securities of the Company. The Series C Preferred Stock has no stated maturity and is not subject to any sinking fund or other obligation of the Company to redeem, retire or repurchase the Series C Preferred Stock.

**Ranking**

With respect to the payment of dividends by, and distributions of assets upon any liquidation, dissolution or winding up of, the Company, the Series C Preferred Stock will rank:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• senior to the Company's common stock and any class or series of stock that ranks junior to the Series C Preferred Stock in the payment of dividends or in the distribution of assets upon the Company's liquidation, dissolution or winding up ("junior stock");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• on a parity with Series A Preferred Stock and senior to or on a parity with each other series of Preferred Stock the Company may issue (except for any senior series that may be issued upon the requisite vote or consent of the holders of at least two-thirds of the shares of the Series C Preferred Stock at the time outstanding and entitled to vote, voting together as a single class with any other series of Preferred Stock entitled to vote thereon (to the exclusion of all other series of Preferred Stock)), as provided in the Articles of Amendment designating such Preferred Stock or otherwise; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• junior to all existing and future indebtedness and other non-equity claims on the Company.

**Dividends**

Dividends on the Series C Preferred Stock are not cumulative or mandatory. If the Board, or a duly authorized committee thereof, does not declare a dividend on the Series C Preferred Stock in respect of a dividend period, then no dividend shall be deemed to be payable for such dividend period, or be cumulative, and the Company will have no obligation to pay any dividend for that dividend period, whether or not the Board, or a duly authorized committee thereof, declares a dividend on the Series C Preferred Stock or any other class or series of capital stock for any future dividend period. A "dividend period" is the period from and including a dividend payment date to but excluding the next dividend payment date.

Holders of Series C Preferred Stock will be entitled to receive, when, as and if declared by the Board, or a duly authorized committee thereof, only out of funds legally available for the payment of dividends, non-cumulative cash dividends payable on the stated amount of $1,000 per share at a rate of 7.000% per annum, and no more, payable quarterly in arrears on February

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20, May 20, August 20 and November 20 of each year (each such date, a "dividend payment date"), with respect to the dividend period (or portion thereof) ending on the day preceding such respective dividend payment date. In the event that the Company issues additional shares of Series C Preferred Stock after the original issue date, those shares will be entitled to dividends that are declared on or after the date they are issued.

If any dividend payment date is not a business day, then the applicable dividend will be paid on the next business day without any adjustment to, or interest on, the amount of dividends paid. The Company will not pay interest or any sum of money instead of interest on any dividend, or in lieu of dividends not declared. A business day means any day, other than a Saturday or Sunday, that is neither a legal holiday in New York, New York nor a day on which banking institutions are authorized or required by law or regulation to close in New York, New York or Evansville, Indiana.

Dividends will be payable to holders of record of Series C Preferred Stock as they appear on the Company's stock register on the applicable record date, which is the 15th calendar day before the applicable dividend payment date, or such other record date, not exceeding 30 days nor less than 10 days before the applicable dividend payment date, as shall be fixed by the Board, or a duly authorized committee thereof, in advance of payment of each particular dividend. The corresponding record dates for the depositary shares will be the same as the record dates for the Series C Preferred Stock.

Dividends payable on the Series C Preferred Stock are calculated for each dividend period (or portion thereof) on the basis of a 360-day year consisting of twelve 30-day months. Dollar amounts resulting from that calculation are rounded to the nearest cent, with one-half cent being rounded upward. Dividends on the Series C Preferred Stock will cease to accrue on the redemption date, if any, as described below under "—Redemption," unless the Company defaults in the payment of the redemption price of the shares of the Series C Preferred Stock called for redemption.

**Restrictions on Dividends, Redemptions and Repurchases**

The Company's ability to pay dividends on the Series C Preferred Stock depends on the ability of the Old National Bank (the "Bank") to pay dividends to the Company. The ability of the Company and the Bank to pay dividends in the future is subject to bank regulatory requirements and capital guidelines and policies established by the Federal Reserve and the Office of the Comptroller of the Currency, respectively.

So long as any share of Series C Preferred Stock remains outstanding, unless dividends on all outstanding shares of Series C Preferred Stock for the most recently completed dividend period have been paid in full or declared and a sum sufficient for the payment thereof has been set aside for payment:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• no dividend shall be declared or paid or set aside for payment and no distribution shall be declared or made or set aside for payment on any junior stock (other than (i) a dividend payable solely in junior stock or (ii) any dividend in connection with the implementation of a shareholders' rights plan, or the redemption or repurchase of any rights under any such plan);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• no monies may be paid or made available for a sinking fund for the redemption or retirement of any junior stock nor shall any shares of junior stock be repurchased, redeemed or otherwise acquired for consideration by the Company, directly or indirectly, during a dividend period (other than (i) as a result of a reclassification of junior stock for or into other junior stock, (ii) the exchange or conversion of one share of junior stock for

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or into another share of junior stock, (iii) through the use of the proceeds of a substantially contemporaneous sale of other shares of junior stock, (iv) purchases, redemptions or other acquisitions of shares of the junior stock in connection with any employment contract, benefit plan or other similar arrangement with or for the benefit of employees, officers, directors or consultants, (v) purchases of shares of junior stock pursuant to a contractually binding requirement to buy junior stock existing prior to or during the most recently completed preceding dividend period, including under a contractually binding stock repurchase plan, (vi) the purchase of fractional interests in shares of junior stock pursuant to the conversion or exchange provisions of such stock or the security being converted or exchanged, (vii) purchases by any of the Company's broker-dealer subsidiaries of the Company's capital stock for resale pursuant to an offering by the Company of such capital stock underwritten by such broker-dealer subsidiary or (viii) the acquisition by the Company or any of the Company's subsidiaries of record ownership in junior stock for the beneficial ownership of any other persons (other than for the beneficial ownership by the Company or any of the Company's subsidiaries, including as trustees or custodians), nor shall any monies be paid to or made available for a sinking fund for the redemption of any such securities by the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• no monies may be paid or made available for a sinking fund for the redemption or retirement of any parity stock nor shall any shares of parity stock, if any, be repurchased, redeemed or otherwise acquired for consideration by the Company, directly or indirectly, during a dividend period (other than (i) any purchase or other acquisition of shares of Series C Preferred Stock and parity stock in accordance with a purchase offer made in writing or by publication (as determined by the Board, or a duly authorized committee thereof), to all holders of such shares on such terms as the Board (or a duly authorized committee thereof), after consideration of the respective annual dividend rates and other relative rights and preferences of the respective series and classes, shall determine in good faith will result in fair and equitable treatment among the respective series or classes, (ii) as a result of a reclassification of parity stock for or into other parity stock, (iii) the exchange or conversion of parity stock for or into other parity stock or junior stock, (iv) through the use of the proceeds of a substantially contemporaneous sale of other shares of parity stock, (v) purchases of shares of parity stock pursuant to a contractually binding requirement to buy parity stock existing prior to or during the preceding dividend period, including under a contractually binding stock repurchase plan, (vi) the purchase of fractional interests in shares of parity stock pursuant to the conversion or exchange provisions of such stock or the security being converted or exchanged, (vii) purchases by any of the Company's broker-dealer subsidiaries of the Company's capital stock for resale pursuant to an offering by the Company of such capital stock underwritten by such broker-dealer subsidiary or (viii) the acquisition by the Company or any of the Company's subsidiaries of record ownership in parity stock for the beneficial ownership of any other persons (other than for the beneficial ownership by the Company or any of the Company's subsidiaries, including as trustees or custodians).

If the Board (or a duly authorized committee thereof) elects to declare only partial instead of full dividends for a dividend payment date and the related dividend period on the shares of Series C Preferred Stock or any class or series of the Company's stock that ranks on a parity with the Series C Preferred Stock in the payment of current dividends, then, to the extent permitted by the terms of the Series C Preferred Stock and each outstanding series of dividend parity stock, such partial dividends shall be declared on shares of Series C Preferred Stock and dividend parity stock, and dividends so declared shall be paid, as to any such dividend payment date and related dividend period in amounts such that the ratio of the partial dividends declared and paid on each such series to full dividends on each such series is the same. As used in this paragraph, "full dividends" means, as to any dividend parity stock that bears dividends on a cumulative basis, the

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amount of dividends that would need to be declared and paid to bring such dividend parity stock current in dividends, including undeclared dividends for past dividend periods. To the extent a dividend period with respect to the Series C Preferred Stock or any series of dividend parity stock (in either case, the "first series") coincides with more than one dividend period with respect to another series as applicable (in either case, a "second series"), then, for purposes of this paragraph, the Board (or a duly authorized committee thereof) may, to the extent permitted by the terms of each affected series, treat such dividend period for the first series as two or more consecutive dividend periods, none of which coincides with more than one dividend period with respect to the second series, or may treat such dividend period(s) with respect to any dividend parity stock and dividend period(s) with respect to the Series C Preferred Stock in any other manner that it deems to be fair and equitable in order to achieve ratable payments of dividends on such dividend parity stock and the Series C Preferred Stock.

As used in this description of the Series C Preferred Stock, "parity stock" means any class or series of stock of the Company that ranks on a parity with the Series C Preferred Stock in the payment of dividends and in the distribution of assets on any liquidation, dissolution or winding up of the Company, including the Series A Preferred Stock.

As used in this description of the Series C Preferred Stock, "dividend parity stock" means any class or series of the Company's stock that ranks on a parity with the Series C Preferred Stock in the payment of current dividends, including the Series A Preferred Stock.

As used in this description of the Series C Preferred Stock, "senior stock" means any other class or series of stock of the Company ranking senior to the Series C Preferred Stock with respect to payment of dividends or the distribution of assets upon liquidation, dissolution or winding up of the Company.

Subject to the considerations described above, and not otherwise, dividends (payable in cash, stock or otherwise), as may be determined by the Board, or a duly authorized committee thereof, may be declared and paid on the Company's common stock and any other junior stock from time to time out of any assets legally available for such payment, and the holders of Series C Preferred Stock shall not be entitled to participate in any such dividend.

Dividends on the Series C Preferred Stock will not be declared, paid or set aside for payment to the extent such act would cause the Company to fail to comply with applicable laws and regulations, including applicable capital adequacy rules.

**Redemption**

*Optional Redemption*

The Series C Preferred Stock is perpetual and has no maturity date. The Series C Preferred Stock is not subject to any mandatory redemption, sinking fund or other similar provisions.

The Company may redeem the Series C Preferred Stock at the Company's option, in whole or in part, from time to time, on any dividend payment date on or after February 15, 2027, at a redemption price equal to the stated amount of $1,000 per share (equivalent to $25 per depositary share), together (except as otherwise provided herein) with any declared and unpaid dividends, without regard to any undeclared dividends, to but excluding the redemption date. Neither the holders of Series C Preferred Stock nor holders of depositary shares will have the right to require the redemption or repurchase of the Series C Preferred Stock, and should not expect such redemption or repurchase. Notwithstanding the foregoing, the Company may not redeem shares of the Series C Preferred Stock without having received the prior approval of the "appropriate federal banking agency" with respect to the Company, as defined in Section 3(q) of the Federal

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Deposit Insurance Act, or any successor provision (the "appropriate federal banking agency"), if then required under capital rules applicable to the Company. The Company's appropriate federal banking agency is the Federal Reserve.

*Redemption Following a Regulatory Capital Treatment Event*

The Company may redeem shares of the Series C Preferred Stock at any time within 90 days following a regulatory capital treatment event, in whole but not in part, at a redemption price equal to $1,000 per share (equivalent to $25 per depositary share), together (except as otherwise provided herein) with any declared and unpaid dividends, without regard to any undeclared dividends, to but excluding the redemption date. Such redemption shall be subject to prior approval of the Federal Reserve, if the Series C Preferred Stock is capital for bank regulatory purposes or such approval is otherwise required.

A "regulatory capital treatment event" means the good faith determination by the Company that, as a result of (i) any amendment to, or change (including any announced prospective change) in, the laws or regulations of the United States or any political subdivision of or in the United States that is enacted or becomes effective after the initial issuance of any share of Series C Preferred Stock; (ii) any proposed change in those laws or regulations that is announced or becomes effective after the initial issuance of any share of Series C Preferred Stock; or (iii) any official administrative decision or judicial decision or administrative action or other official pronouncement interpreting or applying those laws or regulations that is announced after the initial issuance of any share of Series C Preferred Stock, there is more than an insubstantial risk that the Company will not be entitled to treat the full stated amount of $1,000 per share of Series C Preferred Stock then outstanding as Tier 1 Capital (or its equivalent) for purposes of the capital adequacy rules of the Federal Reserve (or, as and if applicable, the capital adequacy rules or regulations of any successor appropriate federal banking agency), as then in effect and applicable, for as long as any share of Series C Preferred Stock is outstanding. Dividends will cease to accrue on those shares on the redemption date. Notwithstanding the foregoing, the Company may not redeem shares of the Series C Preferred Stock without having received the prior approval of the appropriate federal banking agency, if then required under capital rules applicable to the Company.

*Redemption Procedures*

If shares of the Series C Preferred Stock are to be redeemed, the notice of redemption shall be given by first class mail, postage prepaid, addressed to the holders of record of the shares to be redeemed at their respective last addresses appearing on the Company's books, mailed not less than 30 days nor more than 60 days prior to the date fixed for redemption thereof (provided that, if the Series C Preferred Stock or any depositary shares representing interests in the Preferred Stock are held in book-entry form through The Depository Trust Company or any other similar facility, the Company may give such notice at such time and in any manner permitted by such facility). Any notice mailed in this manner shall be conclusively presumed to have been duly given, whether or not the holder receives such notice, but failure duly to give such notice by mail, or any defect in such notice or in the mailing thereof, to any holder of shares of Series C Preferred Stock designated for redemption shall not affect the validity of the proceedings for the redemption of any other shares of Series C Preferred Stock. Each notice of redemption will include a statement setting forth:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the redemption date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the number of shares of the Series C Preferred Stock to be redeemed and, if less than all the shares held by the holder are to be redeemed, the number of shares of Series C Preferred Stock to be redeemed from the holder;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the redemption price;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the place or places where the certificates evidencing shares of Series C Preferred Stock are to be surrendered for payment of the redemption price; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• that dividends on such shares will cease to accrue on the redemption date.

If notice of redemption of any shares of Series C Preferred Stock has been duly given and if on or before the redemption date specified in the notice all funds necessary for such redemption have been irrevocably set aside by the Company separate and apart from the Company's other assets, in trust for the pro rata benefit of the holders of any shares of Series C Preferred Stock so called for redemption so as to be and continue to be available therefor, then, notwithstanding that any certificate for any share so called for redemption has not been surrendered for cancellation in the case that the shares of Series C Preferred Stock are issued in certificated form, on and after the redemption date, unless we default in the payment of the

redemption price of the shares of the Series C Preferred Stock called for redemption, dividends will cease to accrue on all shares of Series C Preferred Stock so called for redemption, and all such shares of Series C Preferred Stock so called for redemption shall no longer be deemed outstanding and all rights of the holders of such shares with respect to such shares will terminate, including rights described under "—Voting Rights" below, except the right to receive the amount payable on such redemption, without interest. Any funds unclaimed at the end of two years from the redemption date, to the extent permitted by law, shall be released from the trust so established and may be commingled with the Company's other funds, and after that time the holders of the shares so called for redemption shall look only to the Company for payment of the redemption price of such shares.

The redemption price for any shares of Series C Preferred Stock shall be payable on the redemption date to the holder of such shares against surrender of the certificate(s) evidencing such shares to the Company or the Company's agent, if the shares of Series C Preferred Stock are issued in certificated form. Any declared but unpaid dividends payable on a redemption date that occurs subsequent to the applicable record date for a dividend period shall not be paid to the holder entitled to receive the redemption price on the redemption date, but rather shall be paid to the holder of record of the redeemed shares on such record date relating to the applicable dividend payment date.

In case of any redemption of only part of the shares of the Series C Preferred Stock at the time outstanding, the shares to be redeemed shall be selected pro rata or by lot. Subject to the provisions described above, the Board, or a duly authorized committee thereof, shall have full power and authority to prescribe the terms and conditions upon which shares of Series C Preferred Stock shall be redeemed from time to time. If the Company shall have issued certificates for the Series C Preferred Stock and fewer than all shares represented by any certificates are redeemed, new certificates shall be issued representing the unredeemed shares without charge to the holders thereof.

Under the Federal Reserve's current capital regulations applicable to bank holding companies, any redemption of the Series C Preferred Stock is subject to prior approval by the Federal Reserve and the Company must either replace the shares to be redeemed with an equal amount of Tier 1 Capital or additional Tier 1 Capital or demonstrate to the Federal Reserve that the Company will continue to hold capital commensurate with its risk. Any redemption of the Series C Preferred Stock is subject to the Company's receipt of any required prior approval by the Federal Reserve and to the satisfaction of any conditions set forth by the Federal Reserve applicable to redemption of the Series C Preferred Stock.

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**Liquidation Rights**

In the event the Company liquidates, dissolves or winds-up its business and affairs, either voluntarily or involuntarily, before any distribution or payment out of the Company's assets may be made to or set aside for the holders of any junior stock, holders of the Series C Preferred Stock are entitled to receive out of the Company's assets legally available for distribution to the Company's shareholders (i.e., after satisfaction of all of the Company's liabilities to creditors, if any) an amount equal to the stated amount of $1,000 per share (equivalent to $25 per depositary share), together with any declared and unpaid dividends, without regard to any undeclared dividends, to but excluding the date of such payment (the "liquidation preference"). Holders of the Series C Preferred Stock will not be entitled to any other amounts from the Company after they have received their full liquidating distribution.

In any such distribution, if the assets of the Company are not sufficient to pay the liquidation preference in full to all holders of the Series C Preferred Stock and all holders of any class or series of our stock that ranks on parity with the Series C Preferred Stock in the distribution of assets on liquidation ("liquidation preference parity stock"), the amounts paid to the holders of Series C Preferred Stock and to the holders of all liquidation preference parity stock will be paid pro rata in accordance with the respective aggregate liquidation preferences of the Series C Preferred Stock and all such liquidation preference parity stock. In any such distribution, the "liquidation preference" of any holder of the Company's stock other than the Series C Preferred Stock means the amount otherwise payable to such holder in such distribution (assuming no limitation on the Company's assets available for such distribution), including an amount equal to any declared but unpaid dividends in the case of any holder or stock on which dividends accrue on a noncumulative basis and, in the case of any holder of stock on which dividends accrue on a cumulative basis, an amount equal to any unpaid, accrued, cumulative dividends, whether or not earned or declared, as applicable. If the liquidation preference has been paid in full to all holders of Series C Preferred Stock and all holders of any liquidation preference parity stock, the holders of our junior stock will be entitled to receive all remaining assets of the Company according to their respective rights and preferences.

For these purposes, the merger, consolidation or other business combination of the Company with any other entity, including a transaction in which the holders of Series C Preferred Stock receive cash, securities or property for their shares, or the sale, lease, conveyance, transfer or exchange of all or substantially all of the Company's assets for cash, securities or other property, shall not constitute a liquidation, dissolution or winding up of the Company.

Because the Company is a holding company, the Company's rights and the rights of its creditors and its shareholders, including the holders of the Series C Preferred Stock, to participate in the distribution of assets of any of the Company's subsidiaries upon that subsidiary's liquidation or recapitalization may be subject to the prior claims of that subsidiary's creditors, except to the extent that the Company is a creditor with recognized claims against the subsidiary.

**Voting Rights**

Except as provided below or otherwise required by law, the holders of the Series C Preferred Stock have no voting rights.

*Right to Elect Two Directors upon Nonpayment of Dividends*

If and whenever dividends payable on Series C Preferred Stock or any class or series of parity stock having voting rights equivalent to those described in this paragraph ("voting parity stock") have not been declared and paid (or, in the case of voting parity stock bearing dividends on a cumulative basis, shall be in arrears) in an aggregate amount equal to full dividends for at least

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six quarterly dividend periods or their equivalent, whether or not consecutive (a "nonpayment event"), the number of directors on the Board shall automatically be increased by two and the holders of Series C Preferred Stock, together with the holders of any outstanding voting parity stock then entitled to vote for additional directors, voting together as a single class in proportion to their respective stated amounts, shall be entitled to elect the two additional directors (the "preferred stock directors"); provided that the election of any such directors shall not cause the Company to violate the corporate governance requirements of NASDAQ (or any other exchange on which the Company's securities may be listed) that listed companies must have a majority of independent directors and provided further that the Board shall at no time include more than two preferred stock directors (including, for purposes of this limitation, all directors that the holders of any series of voting preferred stock are entitled to elect pursuant to like voting rights).

In the event that the holders of Series C Preferred Stock and such other holders of voting parity stock shall be entitled to vote for the election of the preferred stock directors following a nonpayment event, such directors shall be initially elected following such nonpayment event only at a special meeting called at the request of the holders of record of at least 20% of the stated amount of the Series C Preferred Stock and each other series of voting parity stock then outstanding (unless such request for a special meeting is received less than 90 days before the date fixed for the next annual or special meeting of the Company's shareholders, in which event such election shall be held only at such next annual or special meeting of shareholders), and at each subsequent annual meeting of the Company's shareholders. Such request to call a special meeting for the initial election of the preferred stock directors after a nonpayment event shall be made by written notice, signed by the requisite holders of Series C Preferred Stock or voting parity stock, and delivered to the Company's Corporate Secretary in such manner as provided for in the Articles of Amendment designating the Series C Preferred Stock, or as may otherwise be required or permitted by applicable law. If the Company's Corporate Secretary fails to call a special meeting for the election of the preferred stock directors within 20 days of receiving proper notice, any holder of Series C Preferred Stock or voting parity stock may call such a meeting at the Company's expense solely for the election of the preferred stock directors, and for this purpose and no other (unless provided otherwise by applicable law) such Series C Preferred Stock holder shall have access to the Company's stock ledger.

Any preferred stock director may be removed at any time without cause by the holders of record of a majority of the outstanding shares of Series C Preferred Stock and voting parity stock, voting together as a single class in proportion to their respective stated amounts. The preferred stock directors elected at a special meeting shall hold office until the next annual meeting of the shareholders if such office shall not have previously terminated as described below. In case any vacancy shall occur among the preferred stock directors, a successor shall be elected by the Board to serve until the next annual meeting of the shareholders on the nomination of the then remaining preferred stock director or, if no preferred stock director remains in office, by the vote of the holders of record of a majority of the outstanding shares of Series C Preferred Stock and such voting parity stock for which dividends have not been paid, voting as a single class in proportion to their respective stated amounts, provided that the election of any such directors shall not cause the Company to violate the corporate governance requirement of NASDAQ (or any other exchange on which the Company's securities may be listed) that listed companies must have a majority of independent directors. The preferred stock directors shall each be entitled to one vote per director on any matter that shall come before the Board for a vote.

When (i) dividends have been paid (or declared and a sum sufficient for payment thereof set aside) in full on the Series C Preferred Stock on four consecutive dividend payment dates following a nonpayment event and (ii) the rights of holders of any voting parity stock to participate in electing the preferred stock directors shall have ceased, the right of holders of the Series C Preferred Stock to participate in the election of preferred stock directors shall cease (but subject always to the revesting of such voting rights in the case of any future nonpayment event),

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the terms of office of all the preferred stock directors shall immediately terminate, and the number of directors constituting the Board shall automatically be reduced accordingly. In determining whether dividends have been paid for at least four consecutive quarterly dividend periods following a nonpayment event, the Company may take account of any dividend it elects to pay for any dividend period after the regular dividend payment date for that period has passed.

In addition, if and when the rights of holders of Series C Preferred Stock terminate for any reason, including under circumstances described above under "—Redemption," such voting rights shall terminate along with the other rights (except, if applicable, the right to receive the redemption price, together with any declared and unpaid dividends, without regard to any undeclared dividends, to but excluding the redemption date) and the terms of any additional directors elected by the holders of Series C Preferred Stock and any voting parity stock shall terminate automatically and the number of directors reduced by two, assuming that the rights of holders of voting parity stock have similarly terminated.

Under regulations adopted by the Federal Reserve, if the holders of any series of preferred stock (including the Series C Preferred Stock) are or become entitled to vote for the election of directors, such series, along with any other holders of stock that are entitled to vote for the election of directors with that series, will be deemed a class of voting securities. A company holding 25% or more of that class, or less if it otherwise exercises a "controlling influence" over the Company, will be subject to regulation as a bank holding company under the Bank Holding Company Act of 1956, as amended (the "BHC Act"). In addition, at the time the series is deemed a class of voting securities, any other bank holding company will be required to obtain the prior approval of the Federal Reserve under the BHC Act to acquire or retain more than 5% of that class. Any other person (other than a bank holding company) will be required to obtain the non-objection of the Federal Reserve under the Change in Bank Control Act of 1978, as amended, to acquire or retain 10% or more of that class.

*Other Voting Rights*

So long as any shares of Series C Preferred Stock remain outstanding, in addition to any other vote or consent of shareholders required by law or the Company's Articles of Incorporation, the affirmative vote or consent of the holders of at least two-thirds of all outstanding shares of the Series C Preferred Stock, voting together with any other series of preferred stock that would be adversely affected in substantially the same manner and entitled to vote as a single class in proportion to their respective stated amounts (to the exclusion of all other series of preferred stock), given in person or by proxy, either in writing without a meeting or by vote at any meeting called for the purpose, will be necessary to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• amend or alter the Company's Articles of Incorporation to authorize or increase the authorized amount of, or issue shares of, any class or series of the Company's capital stock ranking prior to the Series C Preferred Stock in the payment of dividends or in the distribution of assets on any liquidation, dissolution or winding up of the Company, or issue any obligation or security convertible into or evidencing the right to purchase any such shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• amend, alter or repeal the provisions of the Company's Articles of Incorporation so as to materially and adversely affect the powers, preferences, privileges or rights of the Series C Preferred Stock, taken as a whole; provided, however, that any amendment to authorize or create, or increase the authorized amount of, any class or series of stock that does not rank senior to the Series C Preferred Stock in either payment of dividends (whether such dividends are cumulative or non-cumulative) or in the distribution of assets upon liquidation, dissolution or winding up of the Company will not be deemed to affect adversely the powers, preferences, privileges or rights of the Series C Preferred Stock; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• consummate (i) a binding share-exchange or reclassification involving the Series C Preferred Stock or (ii) a merger or consolidation of the Company with or into another entity (whether or not a corporation), unless in each case (A) the shares of the Series C Preferred Stock remain outstanding or, in the case of any such merger or consolidation with respect to which the Company is not the surviving or resulting entity, the Series C Preferred Stock is converted into or exchanged for preference securities of the surviving or resulting entity or its ultimate parent and (B) such shares remaining outstanding or such preference securities, as the case may be, have such rights, preferences, privileges and voting powers, and limitations and restrictions thereof, taken as a whole, as are not materially less favorable to the holders thereof than the rights, preferences, privileges and voting powers, and restrictions and limitations thereof, of the Series C Preferred Stock immediately prior to such consummation, taken as a whole.

If an amendment, alteration, repeal, share exchange, reclassification, merger or consolidation described above would adversely affect one or more but not all series of preferred stock (including the Series C Preferred Stock for this purpose), then only the series affected and entitled to vote shall vote to the exclusion of all other series of preferred stock. If all series of preferred stock are not equally affected by the proposed amendment, alteration, repeal, share exchange, reclassification, merger or consolidation described above, there shall be required a two-thirds approval of each series that will have a diminished status.

Without the consent of the holders of the Series C Preferred Stock, so long as such action does not adversely affect the rights, preferences, privileges and voting powers of the Series C Preferred Stock, the Company may amend, alter, supplement or repeal any terms of the Series C Preferred Stock:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to cure any ambiguity, or to cure, correct or supplement any provision contained in the Articles of Amendment designating the Series C Preferred Stock that may be defective or inconsistent; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to make any provision with respect to matters or questions arising with respect to the Series C Preferred Stock that is not inconsistent with the provisions of the Articles of Amendment designating the Series C Preferred Stock.

The foregoing voting provisions will not apply if, at or prior to the time when the act with respect to which such vote would otherwise be required shall be effected, all outstanding shares of Series C Preferred Stock shall have been redeemed or called for redemption on proper notice and sufficient funds have been set aside by the Company for the benefit of the holders of the Series C Preferred Stock to effect the redemption.

**Preemptive and Conversion Rights**

The holders of the Series C Preferred Stock do not have any preemptive rights. The Series C Preferred Stock is not convertible into or exchangeable for property or shares of any other series or class of Old National capital stock.

**Depositary Agent, Transfer Agent and Registrar**

Continental Stock Transfer & Trust Company is the depositary and transfer agent and registrar for the Series C Preferred Stock. The Company may, in its sole discretion, remove the depositary in accordance with the agreement between the Company and the depositary; provided that the Company will use its best efforts to ensure that there is, at all relevant times when the Series C Preferred Stock is outstanding, a person or entity appointed and serving as transfer

4856-2617-6592 v.2

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agent and/or registrar. The transfer agent and/or registrar may be a person or entity affiliated with the Company.

**DESCRIPTION OF THE DEPOSITARY SHARES**

*The following description summarizes specific terms and provisions of the depositary shares relating to the Series C Preferred Stock.*

**General**

Each depositary share represents a 1/40th ownership interest in a share of Series C Preferred Stock and is evidenced by depositary receipts. The underlying shares of the Series C Preferred Stock have been deposited with a depositary pursuant to a deposit agreement among the Company, Continental Stock Transfer & Trust Company, acting as depositary, and the holders from time to time of the depositary receipts evidencing the depositary shares (the "Deposit Agreement"). Subject to the terms of the Deposit Agreement, each holder of a depositary share is entitled, through the depositary, in proportion to the applicable fraction of a share of Series C Preferred Stock represented by such depositary share, to all the rights and preferences of the Series C Preferred Stock represented thereby (including dividend, voting, redemption and liquidation rights).

In this description of the depositary shares, references to "holders" of depositary shares mean those who own depositary shares registered in their own names on the books that the Company or the depositary maintain for this purpose, and not indirect holders who own beneficial interests in depositary shares registered in street name or issued in book-entry form.

**Amendment and Termination of the Deposit Agreement**

The Company may amend the form of depositary receipt evidencing the depositary shares and any provision of the Deposit Agreement at any time and from time to time by agreement with the depositary without the consent of the holders of depositary receipts. However, any amendment that will materially and adversely alter the rights of the holders of depositary receipts will not be effective unless the holders of at least two-thirds (2/3) of the affected depositary shares then outstanding approve the amendment. Every holder of an outstanding depositary receipt at the time any such amendment becomes effective shall be deemed, by continuing to hold such depositary receipts, to consent and agree to such amendment and to be bound by the Depositary Agreement as amended thereby.

The Company will make no amendment that impairs the right of any holder of depositary shares to receive shares of the Series C Preferred Stock and any money or other property represented by those depositary shares, except in order to comply with mandatory provisions of applicable law or the rules and regulations of any governmental body, agency, or commission, or applicable securities exchange.

The Deposit Agreement may be terminated:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if all outstanding depositary shares have been redeemed pursuant to the Deposit Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if there shall have been a final distribution made in respect of the Series C Preferred Stock in connection with any liquidation, dissolution or winding up of the Company and such distribution shall have been distributed to the holders of depositary receipts representing depositary shares pursuant to the terms of the Deposit Agreement; or

4856-2617-6592 v.2

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• upon the consent of holders of depositary receipts representing in the aggregate not less than two-thirds (2/3) of the depositary shares outstanding.

The Company may terminate the Deposit Agreement at any time, and the depositary will give notice of that termination to the holders of all outstanding depositary receipts not less than thirty (30) days before the termination date. In that event, the depositary will deliver or make available for delivery to holders of depositary shares, upon surrender of the depositary receipts evidencing the depositary shares, the number of whole or fractional shares of the Series C Preferred Stock as are represented by those depositary shares.

**Dividends and Other Distributions**

Each dividend payable on a depositary share will be in an amount equal to 1/40th of the dividend declared and payable on the related share of the Series C Preferred Stock.

The depositary will distribute any cash dividends or other cash distributions received in respect of the deposited Series C Preferred Stock to the record holders of depositary shares relating to the underlying Series C Preferred Stock in proportion to the number of depositary shares held by the holders. If the Company makes a distribution other than in cash, the depositary will distribute any property received by it to the record holders of depositary shares entitled to those distributions, unless it determines that the distribution cannot be made proportionally among those holders or that it is not feasible to make a distribution. In that event, the depositary may, with the Company's approval, sell the property and distribute the net proceeds from the sale to the holders of the depositary shares.

Record dates for the payment of dividends and other matters relating to the depositary shares will be the same as the corresponding record dates for the Series C Preferred Stock.

The amounts distributed to holders of depositary shares will be reduced by any amounts required to be withheld by the depositary or by the Company on account of taxes or other governmental charges. The depositary may refuse to make any payment or distribution, or any transfer, exchange or withdrawal of any depositary shares or the shares of the Series C Preferred Stock until such taxes or other governmental charges are paid.

**Redemption of Depositary Shares**

If the Company redeems the Series C Preferred Stock represented by the depositary shares, the depositary shares will be redeemed from the proceeds received by the depositary resulting from the redemption of the Series C Preferred Stock held by the depositary. The redemption price per depositary share is expected to be equal to 1/40th of the redemption price per share payable with respect to the Series C Preferred Stock (or $25 per depositary share), plus any declared and unpaid dividends, without regard to any undeclared dividends, to, but excluding, the redemption date, on the shares of the Series C Preferred Stock.

Whenever the Company redeems shares of Series C Preferred Stock held by the depositary, the depositary will redeem, as of the same redemption date, the number of depositary shares representing shares of Series C Preferred Stock so redeemed. If fewer than all of the outstanding depositary shares are redeemed, the depositary will select the depositary shares to be redeemed pro rata or by lot. In any case, the depositary will redeem the depositary shares only in increments of 40 depositary shares and any integral multiple thereof. The depositary will provide notice of redemption to record holders of the depositary receipts not less than 30 and not more than 60 days prior to the date fixed for redemption of the Series C Preferred Stock and the related depositary shares.

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**Voting of the Preferred Stock**

Because each depositary share represents a 1/40th interest in a share of the Series C Preferred Stock, holders of depositary receipts will be entitled to 1/40th of a vote per depositary share under those limited circumstances in which holders of the Series C Preferred Stock are entitled to a vote, as described above in "Description of Preferred Stock—Voting Rights."

When the depositary receives notice of any meeting at which the holders of the Series C Preferred Stock are entitled to vote, the depositary will mail (or otherwise transmit by an authorized method) the information contained in the notice to the record holders of the depositary shares relating to the Series C Preferred Stock. Each record holder of the depositary shares on the record date, which will be the same date as the record date for the Series C Preferred Stock, may instruct the depositary to vote the amount of the Series C Preferred Stock represented by the holder's depositary shares. To the extent possible, the depositary will vote the amount of the Series C Preferred Stock represented by depositary shares in accordance with the instructions it receives. The Company has agreed to take all reasonable actions that the depositary determines are necessary to enable the depositary to vote as instructed. If the depositary does not receive specific instructions from the holders of any depositary shares representing the Series C Preferred Stock, it will vote all depositary shares held by it proportionately with instructions received.

**Depositary Agent, Transfer Agent and Registrar**

Continental Stock Transfer & Trust Company is the depositary and transfer agent and registrar for the depositary shares. The Company may, in its sole discretion, remove the depositary in accordance with the Deposit Agreement; provided that the Company will appoint a successor depositary who will accept such appointment prior to the effectiveness of the prior depositary's removal.

**Form of Series C Preferred Stock and Depositary Shares**

The depositary shares are issued in book-entry form through The Depository Trust Company. The Series C Preferred Stock is issued in registered form to the depositary.

**Listing of Depositary Shares**

The depositary shares are listed on the NASDAQ Stock Market under the symbol "ONBPO."

4856-2617-6592 v.2

## Exhibit 10.8

**Exhibit 10.8**

**FIRST AMENDMENT OF THE**

**OLD NATIONAL BANCORP**

**DIRECTORS DEFERRED COMPENSATION PLAN**

**(As Amended and Restated Generally Effective as of January 1, 2020)**

**WHEREAS**, Old National Bancorp (the "Corporation") maintains the Old National Bancorp Directors Deferred Compensation Plan (As Amended and Restated Generally Effective as of January 1, 2020) (the "Plan");

**WHEREAS**, pursuant to the authority contained in Article X of the Plan, the Corporation reserved the right to amend the Plan;

**WHEREAS**, the Board has delegated authority to amend the Plan to the Talent Development and Compensation Committee (the "Committee") pursuant to the Talent Development and Compensation Committee Charter (the "Charter"); and

**WHEREAS**, the Corporation now wishes to amend the Plan to reflect that a grantor trust may be established by the Company to fund contribution credits that accrue under the Plan.

**NOW, THEREFORE**, pursuant to the power reserved to the Corporation under Article X of the Plan and delegated to the Committee under the Charter, the Plan is hereby amended, effective September 1, 2022, unless otherwise specified herein, in the following particulars:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.**The definition of "Committee" at Section 2.01(k) of the Plan is deleted in its entirety and replaced with the following:**

"(k)&nbsp;&nbsp;&nbsp;&nbsp;"Committee" means the Talent Development and Compensation Committee of the Board"

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.**The definition of "Index Fund" at Section 2.01(aa) of the Plan is deleted in its entirety and replaced with the following:**

"(aa)&nbsp;&nbsp;&nbsp;&nbsp;"Index Fund" means the hypothetical investment fund or funds under which the Investment Credits are determined pursuant to Section 6.04(b)."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.**The following new Section 8.05 is hereby added to the Plan to read as follows:**

**"8.05&nbsp;&nbsp;&nbsp;&nbsp;Nonqualified Retirement Trust**.&nbsp;&nbsp;&nbsp;&nbsp;The Company may establish a grantor trust in connection with the Plan for the purpose of assisting the Company in the administration and payment of amounts under the Plan. If such a trust is established, the Company shall determine and transfer assets, in its sole discretion, as are necessary to provide, on a present value basis, for its future liabilities created with respect to the Plan. The provisions of the trust, if any, shall govern the rights of the Company, Participants, beneficiaries and creditors of the Company to the assets transferred to the Trust. The Company shall at all times remain liable to carry out its obligations under the Plan."

Page 1 of 2

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**IN WITNESS WHEREOF**, the Corporation caused this First Amendment to be executed on its behalf this 16<sup>th</sup> day of August 2022, but effective as provided herein.

**OLD NATIONAL BANCORP**

**By:&nbsp;&nbsp;&nbsp;&nbsp;**<u>/s/ Nicholas J. Chulos</u>

**Nicholas J. Chulos, Chief Legal Officer and Corporate Secretary**

Page 2 of 2

## Exhibit 10.9

**Exhibit 10.9**

**SECOND AMENDMENT OF THE**

**OLD NATIONAL BANCORP**

**DIRECTORS DEFERRED COMPENSATION PLAN**

**(As Amended and Restated Generally Effective as of January 1, 2020)**

**WHEREAS**, Old National Bancorp (the "Corporation") maintains the Old National Bancorp Directors Deferred Compensation Plan (As Amended and Restated Generally Effective as of January 1, 2020) (the "Plan");

**WHEREAS**, pursuant to the authority contained in Article X of the Plan, the Corporation reserved the right to amend the Plan; and

**WHEREAS**, the Corporation now wishes to amend the Plan to reflect a one-time opportunity for Participants to elect to reallocate deemed investments under the Plan.

**NOW, THEREFORE**, pursuant to the power reserved to the Corporation under Article X of the Plan, the Plan is hereby amended, effective November 1, 2022, in the following particulars:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.**The Section 6.04(a) of the Plan is restated in its entirety and replaced with the following:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of determining the earnings and losses credited to a Participant's Account, the Participant may elect for his Account to be deemed invested in Company Stock and/or deemed invested in the Index Fund. The portion of the Participant's Account deemed invested in either Company Stock or deemed invested in the Index Fund shall be a whole percentage, with the aggregate invested equal to 100% of the Participant's Account. To elect either Company Stock and/or the Index Fund in which he wishes for his Account to be deemed invested, accordingly, or to change an existing election (for future deferrals to the Participant's Account only), a Participant must file an Applicable Form with the Administrator specifying his election. The Participant's election shall become effective as soon as administratively practicable after it is received by the Administrator. In the absence of an effective election pursuant to this Section, the Participant's Accounts shall be deemed invested in the Index Fund. The Participant may not change a Company Stock deemed investment election for deferrals that have been contributed to his Account; provided, that Participants shall have a one-time opportunity to elect to change such elections as determined by the Administrator in conjunction with changes made to the Index Fund in 2022 and subject to the Company's Insider Trading and Compliance Procedure. Notwithstanding the preceding provisions, deferrals of a Participant's Stock Compensation shall be deemed invested in Company Stock and such investment cannot be changed.

Page 1 of 2

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**IN WITNESS WHEREOF**, the Corporation caused this Second Amendment to be executed on its behalf this 2<sup>nd</sup> day of November 2022, but effective as provided herein.

**OLD NATIONAL BANCORP**

**By:&nbsp;&nbsp;&nbsp;&nbsp;**<u>/s/ Nicholas J. Chulos</u>

**Nicholas J. Chulos, Chief Legal Officer and Corporate Secretary**

Page 2 of 2

## Exhibit 10.11

**Exhibit 10.11**

**FIRST AMENDMENT OF THE** 

**RESTATEMENT OF OLD NATIONAL BANCORP**

**EXECUTIVE DEFERRED COMPENSATION PLAN**

**(Effective January 1, 2018)**

**WHEREAS,** Old National Bancorp (the "Corporation") maintains the Restatement of Old National Bancorp Executive Deferred Compensation Plan (Effective January 1, 2018, as amended on April 19, 2018 and further amended on January 1, 2020) (the "Plan"); and

**WHEREAS,** the Corporation now wishes to amend the Plan to provide matching contributions that are consistent with the matching contributions provided under the Old National Bancorp Employee Stock Ownership and Savings Plan (the "Qualified Savings Plan") pursuant to the Fifth Amendment to the Qualified Savings Plan; and

**WHEREAS,** pursuant to the authority contained in Article X of the Plan, the Corporation reserved the right to amend the Plan; and

**WHEREAS,** the Board of Directors of the Corporation has delegated authority to amend the Plan to the Talent Development and Compensation Committee (the "Committee") pursuant to the Talent Development and Compensation Committee Charter (the "Charter"); and

**NOW, THEREFORE,** pursuant to the power reserved to the Corporation under Article X of the Plan and delegated to the Committee under the Charter, the Plan is hereby amended, effective January 1, 2022, unless otherwise specified herein, in the following particulars:

&nbsp;&nbsp;&nbsp;&nbsp;**1. Section 6.04 is deleted in its entirety and replaced with the following:**

Section 6.04 Matching Contribution Credits. The objective of this provision of the Plan is to provide a matching Contribution Credit for a Plan year, based on the same matching contribution formula used in the Qualified Savings Plan for such Plan Year, where the Eligible Participant's (i) elective salary deferral contributions under the Qualified Savings Plan do not exceed 5% of compensation and such Eligible Participant also makes Elective Deferrals under this Plan; or (ii) compensation and salary deferral contributions under the Qualified Savings Plan are reduced by the limits thereon imposed by Section 401(a)(l7) of the Code and such Eligible participant also makes Elective Deferrals under this Plan.

For each Plan Year, the Administrator shall credit to the Account of each Eligible Participant a Matching Contribution Credit equal to (A) minus (B), where (A) is the sum of (i) the amount of the elective salary deferral contributions, if any, made by the Eligible Participant to the Qualified Savings Plan for the Plan Year, plus (ii) the amount of the Elective Deferrals, if any, made by the Eligible Participant to this Plan for the Plan Year, such sum not to exceed 5% of the Eligible Participant's Compensation for the Plan Year; and (B) is the amount of the Employer's matching contribution, if any made to the Qualified Savings Plan on behalf of the Eligible Participant for the Plan Year. Matching Contribution Credits for a Plan Year shall be credited to an Eligible Participant's Account within a reasonable period, as determined by the Administrator, after the end of the Plan Year.

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The following examples illustrate the formula provided above:

**Example 1:**

A Participant's Compensation for a Plan Year is $200,000. He or she makes salary deferral contributions of $5,000 to the Qualified Savings Plan and $5,000 of Elective Deferrals to this Plan. The Participant's total deferrals therefore equal 5% of his Compensation and thus do not exceed the 5% cap for purposes of calculating the Matching Contribution Credit. The Participant receives a matching contribution under the Qualified Savings Plan of $5,000 using a matching contribution formula of 100% of the first 5% of deferrals. Under Section 6.04, the Participant would receive a Matching Contribution Credit of $5,000.

**Example 2:**

A Participant's Compensation for a Plan Year is $350,000. He or she makes salary deferral contribution of $19,500 to the Qualified Savings Plan (the maximum amount allowed by law for that Plan Year (2021)) and Elective Deferrals of $16,500 to this Plan. The Participant's total deferrals exceed the 5% cap; as a result, $17,500 will be considered in calculating the Matching Contribution Credit. The Participant receives a matching contribution under the Qualified Savings Plan of $14,500 using a matching contribution formula of 100% of the first 5% of compensation based on $290,000 of compensation (as limited under the Qualified Savings Plan pursuant to the Code Section 401(a)(17) 2021 limit of $290,000). Applying the formula above, the Participant would receive a Matching Contribution Credit of $3,000.

**IN WITNESS WHEREOF,** the Corporation caused this First Amendment to be executed on its behalf this 28<sup>th</sup> day of October, 2021, but effective as provided herein.

**OLD NATIONAL BANCORP**

**By: <u>/s/</u>** <u>Jeffrey L. Knight</u>

**&nbsp;&nbsp;&nbsp;&nbsp; Jeffrey L. Knight, Corporate Secretary**

**ATTEST:**

&nbsp;&nbsp;&nbsp;&nbsp;By: <u>/s/ Zachary A. LaGrange</u>

Page 2 of 2

## Exhibit 10.12

**Exhibit 10.12**

**SECOND AMENDMENT OF THE**

**OLD NATIONAL BANCORP**

**EXECUTIVE DEFERRED COMPENSATION PLAN**

**(As Amended and Restated Generally Effective as of January 1, 2020)**

**WHEREAS**, Old National Bancorp (the "Corporation") maintains the Old National Bancorp Executive Deferred Compensation Plan (As Amended and Restated Generally Effective as of January 1, 2020) (the "Plan");

**WHEREAS**, the Plan was amended effective January 1, 2022 by an amendment that was inadvertently entitled the Third Amendment to the Plan effective as of January 1, 2018, but was actually the First Amendment to the Plan as amended and restated generally effective as of January 1, 2020;

**WHEREAS**, pursuant to the authority contained in Article X of the Plan, the Corporation reserved the right to amend the Plan;

**WHEREAS**, the Board has delegated authority to amend the Plan to the Talent Development and Compensation Committee (the "Committee") pursuant to the Talent Development and Compensation Committee Charter (the "Charter"); and

**WHEREAS**, the Corporation now wishes to amend the Plan to (i) clarify that elections to defer Bonus Compensation only apply to that portion of the Participant's annual incentives payable under the Old National Executive Short Term Incentive Plans that are paid in cash, (ii) remove attainment of "Full Retirement Age" as determined under the Federal Old Age, Survivors, and Disability Insurance Benefit Program from being taken into account for prospective benefit commencement election purposes, (iii) reflect that a grantor trust may be established by the Company to fund contribution credits that accrue under the Plan, (iv) expand the small balance cash-out feature of the Plan to apply to all participants with a small balance, and (v) reflect that non-executive level employee eligibility determinations to participate in the Plan will be made by the most senior human resources officer of the Corporation.

**NOW, THEREFORE**, pursuant to the power reserved to the Corporation under Article X of the Plan and delegated to the Committee under the Charter, the Plan is hereby amended, effective September 1, 2022, unless otherwise specified herein, in the following particulars:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.The definition of "Bonus Compensation" at Section 2.01(i) of the Plan is deleted in its entirety and replaced with the following:**

"(i)&nbsp;&nbsp;&nbsp;&nbsp;"Bonus Compensation" means, with respect to a Participant for a Plan Year, the portion of his Compensation for services performed during that Plan Year that is paid in cash as an annual bonus under the Old National Executive Short Term Incentive Plans, even if paid in the Plan Year following the Plan Year in which the services were performed."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.The definition of "Committee" at Section 2.01(j) of the Plan is deleted in its entirety and replaced with the following:**

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"(j)&nbsp;&nbsp;&nbsp;&nbsp;"Committee" means the Talent Development and Compensation Committee of the Board"

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.The definition of "Designated Benefit Commencement Date" at Section 2.01(p) of the Plan is hereby amended by adding the following term to the end thereof:**

"Notwithstanding the above and anything in the Plan to the contrary, with regard to any new elections made by an Eligible Employee on or after September 1, 2022, a Designated Benefit Commencement Date must only be the first January 1 following the occurrence of a Distributable Event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.The definition of "Index Fund" at Section 2.01(dd) of the Plan is deleted in its entirety and replaced with the following:**

"(dd)&nbsp;&nbsp;&nbsp;&nbsp;"Index Fund" means the hypothetical investment fund or funds under which the Investment Credits are determined pursuant to Section 6.06(b)."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.The definition of "Eligible Employee" at Section 2.01(w) of the Plan is deleted in its entirety and replaced with the following:**

"(w)&nbsp;&nbsp;&nbsp;&nbsp;"Eligible Employee" means, with respect to a Plan Year, an Employee who has been designated by the Administrator as eligible to make a Deferral Election for the Plan Year. Notwithstanding the foregoing, all executive level employees have been designated by the Administrator to be Eligible Employees, and the most senior human resources officer of the Company shall make all such eligibility designations with regard to non-executive level Employees."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.Section 7.07 of the Plan is deleted in its entirety and replaced with the following:**

**"Section 7.07 Small Balance Cash-Out**. Notwithstanding any provision of the Plan to the contrary, if the vested Account balance, including all agreements, methods, programs or other arrangements which are aggregated with the Plan under Treasury Regulation 1.409A-1(c)(2), of any Participant is not greater than the applicable dollar limit under Code Section 402(g)(1)(B) ($20,500 for 2022) at any time on or after the Participant's Designated Benefit Commencement Date, then the Account balance of the Participant will be distributed in a single lump sum as soon as administratively practicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.The following new Section 8.05 is hereby added to the Plan to read as follows:**

**"8.05&nbsp;&nbsp;&nbsp;&nbsp;Nonqualified Retirement Trust**.&nbsp;&nbsp;&nbsp;&nbsp;The Company may establish a grantor trust in connection with the Plan for the purpose of assisting the Company in the administration and payment of amounts under the Plan. If such a trust is established, the Company shall determine and transfer assets, in its sole discretion, as are necessary to provide, on a present value basis, for its future liabilities created with respect to the Plan. The provisions of the trust, if any, shall govern the rights of the Company, Participants, beneficiaries and creditors of the Company to the assets transferred to the Trust. The Company shall at all times remain liable to carry out its obligations under the Plan."

**IN WITNESS WHEREOF**, the Corporation caused this Second Amendment to be executed on its behalf this 16<sup>th</sup> day of August 2022, but effective as provided herein.

Page 2 of 3

------

**OLD NATIONAL BANCORP**

**By:&nbsp;&nbsp;&nbsp;&nbsp;**<u>/s/ Nicholas J. Chulos</u>

**Nicholas J. Chulos, Chief Legal Officer and Corporate Secretary**

Page 3 of 3

## Exhibit 10.13

**Exhibit 10.13**

**THIRD AMENDMENT OF THE**

**OLD NATIONAL BANCORP**

**EXECUTIVE DEFERRED COMPENSATION PLAN**

**(As Amended and Restated Generally Effective as of January 1, 2020)**

**WHEREAS**, Old National Bancorp (the "Corporation") maintains the Old National Bancorp Executive Deferred Compensation Plan (As Amended and Restated Generally Effective as of January 1, 2020) (the "Plan");

**WHEREAS**, pursuant to the authority contained in Article X of the Plan, the Corporation reserved the right to amend the Plan;

**WHEREAS**, the Corporation now wishes to amend the Plan to reflect a one-time opportunity for Participants to elect to reallocate deemed investments under the Plan.

**NOW, THEREFORE**, pursuant to the power reserved to the Corporation under Article X of the Plan, the Plan is hereby amended, effective November 1, 2022, in the following particulars:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.**The Section 6.06(a) of the Plan is restated in its entirety and replaced with the following:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of determining the earnings and losses credited to a Participant's Account, the Participant may elect for his Account to be deemed invested in Company Stock and/or deemed invested in the Index Fund. The portion of the Participant's Account deemed invested in either Company Stock or deemed invested in the Index Fund shall be a whole percentage, with the aggregate invested equal to 100% of the Participant's Account. To elect either Company Stock and/or the Index Fund in which he wishes for his Account to be deemed invested, accordingly, or to change an existing election (for future deferrals to the Participant's Account only), a Participant must file an Applicable Form with the Administrator specifying his election. The Participant's election shall become effective as soon as administratively practicable after it is received by the Administrator. In the absence of an effective election pursuant to this Section, the Participant's Accounts shall be deemed invested in the Index Fund. The Participant may not change a Company Stock deemed investment election for deferrals that have been contributed to his Account; provided, that Participants shall have a one-time opportunity to elect to change such elections as determined by the Administrator in conjunction with changes made to the Index Fund in 2022 and subject to the Company's Insider Trading and Compliance Procedure. Notwithstanding the preceding provisions, deferrals of a Participant's Stock Compensation shall be deemed invested in Company Stock and such investment cannot be changed.

Page 1 of 2

------

**IN WITNESS WHEREOF**, the Corporation caused this Third Amendment to be executed on its behalf this 2<sup>nd</sup> day of November 2022, but effective as provided herein.

**OLD NATIONAL BANCORP**

**By:&nbsp;&nbsp;&nbsp;&nbsp;**<u>/s/ Nichols J. Chulos</u> 

**Nicholas J. Chulos, Chief Legal Officer and Corporate Secretary**

Page 2 of 2

## Exhibit 10.14

**Exhibit 10.14**

First Midwest Bancorp, Inc. Deferred Compensation Plan For Nonemployee Directors Master Plan Document

Amended and Restated Effective as of January 1, 2008

------

[SECTION 1](#i38d0384599fc4fb3aeaf7c84de1a5a62_7)[&nbsp;&nbsp;&nbsp;&nbsp;](#i38d0384599fc4fb3aeaf7c84de1a5a62_7)[ESTABLISHMENT AND PURPOSE](#i38d0384599fc4fb3aeaf7c84de1a5a62_7)[&nbsp;&nbsp;&nbsp;&nbsp;](#i38d0384599fc4fb3aeaf7c84de1a5a62_7)[1](#i38d0384599fc4fb3aeaf7c84de1a5a62_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1Establishment&nbsp;&nbsp;&nbsp;&nbsp;1

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2Purpose&nbsp;&nbsp;&nbsp;&nbsp;1

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3Coordination with Nonqualified Retirement Plan&nbsp;&nbsp;&nbsp;&nbsp;1

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4Effective Date&nbsp;&nbsp;&nbsp;&nbsp;1

[SECTION 2](#i38d0384599fc4fb3aeaf7c84de1a5a62_7)[&nbsp;&nbsp;&nbsp;&nbsp;](#i38d0384599fc4fb3aeaf7c84de1a5a62_7)[DEFINITIONS](#i38d0384599fc4fb3aeaf7c84de1a5a62_7)[&nbsp;&nbsp;&nbsp;&nbsp;](#i38d0384599fc4fb3aeaf7c84de1a5a62_7)[1](#i38d0384599fc4fb3aeaf7c84de1a5a62_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1Definitions&nbsp;&nbsp;&nbsp;&nbsp;1

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2Gender and Number&nbsp;&nbsp;&nbsp;&nbsp;2

[SECTION 3](#i38d0384599fc4fb3aeaf7c84de1a5a62_16)[&nbsp;&nbsp;&nbsp;&nbsp;](#i38d0384599fc4fb3aeaf7c84de1a5a62_16)[ELIGIBILITY AND PARTICIPATION](#i38d0384599fc4fb3aeaf7c84de1a5a62_16)[&nbsp;&nbsp;&nbsp;&nbsp;](#i38d0384599fc4fb3aeaf7c84de1a5a62_16)[2](#i38d0384599fc4fb3aeaf7c84de1a5a62_16)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1Eligibility&nbsp;&nbsp;&nbsp;&nbsp;2

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2Participation&nbsp;&nbsp;&nbsp;&nbsp;3

[SECTION 4](#i38d0384599fc4fb3aeaf7c84de1a5a62_19)[&nbsp;&nbsp;&nbsp;&nbsp;](#i38d0384599fc4fb3aeaf7c84de1a5a62_19)[ELECTION TO DEFER](#i38d0384599fc4fb3aeaf7c84de1a5a62_19)[&nbsp;&nbsp;&nbsp;&nbsp;](#i38d0384599fc4fb3aeaf7c84de1a5a62_19)[3](#i38d0384599fc4fb3aeaf7c84de1a5a62_19)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1Deferral Election&nbsp;&nbsp;&nbsp;&nbsp;3

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2Deferral Period&nbsp;&nbsp;&nbsp;&nbsp;3

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3Payment Election&nbsp;&nbsp;&nbsp;&nbsp;3

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4Chang of Control.&nbsp;&nbsp;&nbsp;&nbsp;4

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5Changing Elections&nbsp;&nbsp;&nbsp;&nbsp;4

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6Deferral Payment&nbsp;&nbsp;&nbsp;&nbsp;4

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7Payment Upon Death&nbsp;&nbsp;&nbsp;&nbsp;5

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8Credits&nbsp;&nbsp;&nbsp;&nbsp;5

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9Selection of Beneficiary&nbsp;&nbsp;&nbsp;&nbsp;5

[SECTION 5](#i38d0384599fc4fb3aeaf7c84de1a5a62_19)[&nbsp;&nbsp;&nbsp;&nbsp;](#i38d0384599fc4fb3aeaf7c84de1a5a62_19)[DEFERRED ACCOUNTS](#i38d0384599fc4fb3aeaf7c84de1a5a62_19)[&nbsp;&nbsp;&nbsp;&nbsp;](#i38d0384599fc4fb3aeaf7c84de1a5a62_19)[5](#i38d0384599fc4fb3aeaf7c84de1a5a62_19)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1Participant Accounts&nbsp;&nbsp;&nbsp;&nbsp;5

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2Credits and Debits&nbsp;&nbsp;&nbsp;&nbsp;5

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3Charges Against Accounts&nbsp;&nbsp;&nbsp;&nbsp;5

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4Contractual Obligation&nbsp;&nbsp;&nbsp;&nbsp;5

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5Unsecured Interest&nbsp;&nbsp;&nbsp;&nbsp;5

SECTION 6&nbsp;&nbsp;&nbsp;&nbsp;SHORT TERM PAYOUT; FINANCIAL EMERGENCY;

WITHDRAWAL ELECTION&nbsp;&nbsp;&nbsp;&nbsp;6

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1Short Term Payout&nbsp;&nbsp;&nbsp;&nbsp;6

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2Withdrawal Payout/Suspension for Unforeseeable Financial Emergencies&nbsp;&nbsp;&nbsp;&nbsp;6

[SECTION 7](#i38d0384599fc4fb3aeaf7c84de1a5a62_22)[&nbsp;&nbsp;&nbsp;&nbsp;](#i38d0384599fc4fb3aeaf7c84de1a5a62_22)[FORFEITURE](#i38d0384599fc4fb3aeaf7c84de1a5a62_22)[&nbsp;&nbsp;&nbsp;&nbsp;](#i38d0384599fc4fb3aeaf7c84de1a5a62_22)[6](#i38d0384599fc4fb3aeaf7c84de1a5a62_22)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1Forfeiture.&nbsp;&nbsp;&nbsp;&nbsp;6

[SECTION 8](#i38d0384599fc4fb3aeaf7c84de1a5a62_22)[&nbsp;&nbsp;&nbsp;&nbsp;](#i38d0384599fc4fb3aeaf7c84de1a5a62_22)[BENEFICIARY DESIGNATION](#i38d0384599fc4fb3aeaf7c84de1a5a62_22)[&nbsp;&nbsp;&nbsp;&nbsp;](#i38d0384599fc4fb3aeaf7c84de1a5a62_22)[6](#i38d0384599fc4fb3aeaf7c84de1a5a62_22)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1Beneficiary Designation.&nbsp;&nbsp;&nbsp;&nbsp;6

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2Change of Beneficiary&nbsp;&nbsp;&nbsp;&nbsp;6

------

[SECTION 9](#i38d0384599fc4fb3aeaf7c84de1a5a62_25)[&nbsp;&nbsp;&nbsp;&nbsp;](#i38d0384599fc4fb3aeaf7c84de1a5a62_25)[NONTRANSFERABILITY](#i38d0384599fc4fb3aeaf7c84de1a5a62_25)[&nbsp;&nbsp;&nbsp;&nbsp;](#i38d0384599fc4fb3aeaf7c84de1a5a62_25)[6](#i38d0384599fc4fb3aeaf7c84de1a5a62_25)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1Nontransferability&nbsp;&nbsp;&nbsp;&nbsp;6

[SECTION 10](#i38d0384599fc4fb3aeaf7c84de1a5a62_25)[&nbsp;&nbsp;&nbsp;&nbsp;](#i38d0384599fc4fb3aeaf7c84de1a5a62_25)[ADMINISTRATION](#i38d0384599fc4fb3aeaf7c84de1a5a62_25)[&nbsp;&nbsp;&nbsp;&nbsp;](#i38d0384599fc4fb3aeaf7c84de1a5a62_25)[7](#i38d0384599fc4fb3aeaf7c84de1a5a62_25)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1Administration&nbsp;&nbsp;&nbsp;&nbsp;7

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2Finality of Determination&nbsp;&nbsp;&nbsp;&nbsp;7

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3Expenses&nbsp;&nbsp;&nbsp;&nbsp;7

[SECTION 11](#i38d0384599fc4fb3aeaf7c84de1a5a62_25)[&nbsp;&nbsp;&nbsp;&nbsp;](#i38d0384599fc4fb3aeaf7c84de1a5a62_25)[AMENDMENT AND TERMINATION](#i38d0384599fc4fb3aeaf7c84de1a5a62_25)[&nbsp;&nbsp;&nbsp;&nbsp;](#i38d0384599fc4fb3aeaf7c84de1a5a62_25)[7](#i38d0384599fc4fb3aeaf7c84de1a5a62_25)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1Amendment and Termination&nbsp;&nbsp;&nbsp;&nbsp;7

[SECTION 12](#i38d0384599fc4fb3aeaf7c84de1a5a62_25)[&nbsp;&nbsp;&nbsp;&nbsp;](#i38d0384599fc4fb3aeaf7c84de1a5a62_25)[TRUST](#i38d0384599fc4fb3aeaf7c84de1a5a62_25)[&nbsp;&nbsp;&nbsp;&nbsp;](#i38d0384599fc4fb3aeaf7c84de1a5a62_25)[7](#i38d0384599fc4fb3aeaf7c84de1a5a62_25)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1Nonqualified Retirement Trust&nbsp;&nbsp;&nbsp;&nbsp;7

[SECTION 13](#i38d0384599fc4fb3aeaf7c84de1a5a62_25)[&nbsp;&nbsp;&nbsp;&nbsp;](#i38d0384599fc4fb3aeaf7c84de1a5a62_25)[SUCCESSORS](#i38d0384599fc4fb3aeaf7c84de1a5a62_25)[&nbsp;&nbsp;&nbsp;&nbsp;](#i38d0384599fc4fb3aeaf7c84de1a5a62_25)[8](#i38d0384599fc4fb3aeaf7c84de1a5a62_25)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1Successors and Assignees&nbsp;&nbsp;&nbsp;&nbsp;8

[SECTION 14](#i38d0384599fc4fb3aeaf7c84de1a5a62_25)[&nbsp;&nbsp;&nbsp;&nbsp;](#i38d0384599fc4fb3aeaf7c84de1a5a62_25)[SUBSIDIARIES](#i38d0384599fc4fb3aeaf7c84de1a5a62_25)[&nbsp;&nbsp;&nbsp;&nbsp;](#i38d0384599fc4fb3aeaf7c84de1a5a62_25)[8](#i38d0384599fc4fb3aeaf7c84de1a5a62_25)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1Subsidiaries&nbsp;&nbsp;&nbsp;&nbsp;8

[APPENDIX A…](#i38d0384599fc4fb3aeaf7c84de1a5a62_31)[&nbsp;&nbsp;&nbsp;&nbsp;](#i38d0384599fc4fb3aeaf7c84de1a5a62_31)[9](#i38d0384599fc4fb3aeaf7c84de1a5a62_31)

------

**FIRST MIDWEST BANCORP, INC.**

**<u>DEFERRED COMPENSATION PLAN FOR NONEMPLOYEE DIRECTORS</u>**

(As Amended and Restated Effective as of January 1, 2008)

SECTION 1&nbsp;&nbsp;&nbsp;&nbsp;ESTABLISHMENT AND PURPOSE.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1<u>Establishment</u>.&nbsp;&nbsp;&nbsp;&nbsp;First Midwest Bancorp, Inc., a Delaware Corporation,

hereby restates its "FIRST MIDWEST BANCORP, INC. DEFERRED COMPENSATION PLAN FOR NONEMPLOYEE DIRECTORS" (hereinafter called the "Plan").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2<u>Purpose</u>. The purpose of this Plan is to provide a means whereby a nonemployee member of the Board of Directors of the Company may defer, to some future period, all or one-half of the fees payable to the Director for services as a Director. The Plan is intended as a means of maximizing the effectiveness and flexibility of the Company's compensation arrangements for Directors and an aid in attracting and retaining individual of outstanding abilities for service as Directors. The Plan is intended to be an unfunded, nonqualified deferred compensation plan and shall be construed and administered accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3<u>Coordination with Nonqualified Retirement Plan</u>. It is intended that except to the extent provided otherwise herein, the provisions of this Plan relating to the time and manner of making elections, crediting and debiting accounts, and the payment thereof shall coordinate with and be governed by the applicable provisions of the Company's Nonqualified Retirement Plan (the "Nonqualified Retirement Plan"), as amended from time to time. Such provisions of the Nonqualified Retirement Plan shall be applicable to this Plan as if set forth in this Plan in full.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4<u>Effective Date</u>. The Plan, as amended and restated in this document, is effective as of January 1, 2008. The distribution of benefits vested as of December 31, 2004 (together with earnings thereon) ("Grandfathered Benefits") shall be governed solely by the terms of <u>Appendix A</u>.

SECTION 2&nbsp;&nbsp;&nbsp;&nbsp;DEFINITIONS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1<u>Definitions</u>. Whenever used hereinafter, the following terms shall have

the meaning set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)"Board" means the Board of Directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)"Change in Control" means a "change in control event" as defined

in Treasury Regulation §1.409A-3(i)(5).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)"Change of Control Election" shall have the meaning set forth in <u>Section 4.4</u>.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)"Code" shall mean the Internal Revenue Code of 1986, as it may

be amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)"Committee" has the meaning set forth in <u>Article 10</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)"Company" means First Midwest Bancorp, Inc., a Delaware Corporation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)"Deferral Amount" shall mean, as elected by the Director, all or

one-half of the Director Fees payable to the Director for a Year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)"Deferral Election" shall mean a Director's timely election of a

Deferral Amount pursuant to Article 4.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)"Deferral Period" shall have the meaning set forth in <u>Section 4.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)"Director" means a member of the Board of Directors of First Midwest Bancorp, Inc. and/or a member of the Board of Directors of First Midwest Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)"Director Fees" or "Fees" means any Board or Committee retainer,

attendance, consulting or other fees for services earned while a nonemployee Director. "Directors Fees" or "Fees" shall also mean any compensation, retainer, attendance, consulting or other fees for services earned in connection with service on the board of directors of any subsidiary of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)"Election Form" has the meaning set forth in <u>Section 4.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)"Payment Election" has the meaning set forth in <u>Section 4.3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)"Unforeseeable Financial Emergency" shall be determined in

accordance with Treasury Regulation 1.409A-3(i)(3).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <br>

"Year"&nbsp;&nbsp;&nbsp;&nbsp;means&nbsp;&nbsp;&nbsp;&nbsp;the&nbsp;&nbsp;&nbsp;&nbsp;fiscal&nbsp;&nbsp;&nbsp;&nbsp;year&nbsp;&nbsp;&nbsp;&nbsp;of&nbsp;&nbsp;&nbsp;&nbsp;the&nbsp;&nbsp;&nbsp;&nbsp;Company&nbsp;&nbsp;&nbsp;&nbsp;ending

December 31.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2<u>Gender and Number</u>.&nbsp;&nbsp;&nbsp;&nbsp;Except when otherwise indicated by the context,

any masculine terminology, when used in the Plan, shall also include the feminine gender, and the definition of any term herein in the singular shall also include the plural.

SECTION 3&nbsp;&nbsp;&nbsp;&nbsp;ELIGIBILITY AND PARTICIPATION.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1<u>Eligibility</u>. Any Director who is not an employee of the Company or any

of its subsidiaries on the date any Director Fees to be deferred under this Plan are earned, shall be eligible to participate in the Plan (each an "Eligible Director"). Any Director who is an employee of the Company or any of its subsidiaries, shall become an Eligible Director as of the first day upon which he or she ceases to be an employee of the Company and/or

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its subsidiaries.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2<u>Participation</u>. An Eligible Director may become a participant ("Participant") in the Plan by making a Deferral Election pursuant to <u>Section 4.1</u> hereof. If at any time a Participant no longer meets the requirements for participation in this Plan, he or she shall become an inactive Participant, retaining all the rights described under this Plan, except the right to make any further deferrals unless and until the time that he or she again becomes eligible to participate in the Plan and an active Participant.

SECTION 4&nbsp;&nbsp;&nbsp;&nbsp;ELECTION TO DEFER.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1<u>Deferral Election</u>. Each Year, an Eligible Director may elect to have the

payment of all or one-half of the Director Fees payable to the Director for such Year deferred pursuant to the terms of the Plan. Each Deferral Election shall be made on a deferral election form to be provided by the Company ("Election Form") and shall specify the Deferral Amount. Such election must be made by the last day of the Year preceding the Year during which the services as a Director are to be performed; <u>provided</u> <u>however</u>, that a Director who becomes an Eligible Director after the first day of the Year may, within 30 days of the date he or she becomes an Eligible Director, make an election which relates to Director Fees otherwise payable to the Director during the Year when made, provided such Fees relate to future services. Such election will be filed with the Secretary of the Company, or such other person designated by the Company, and continue in force with respect to subsequent Years, until timely terminated or modified by the Director in writing with respect to Fees that relate to services to be performed and are payable in the future. Any revocation or modification of a Deferral Election will become effective on the first day of the Year following the Year in which such revocation or modification was properly submitted to the Committee or its designated agent.

The Election Form for an Eligible Director's initial Deferral Election also shall specify the Director's Deferral Period and Payment Election. Such elections will continue to be in force with respect to subsequent Years, unless and until modified in accordance with the provisions of <u>Section 4.5</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2<u>Deferral Period</u>. If the Participant defers any amounts pursuant to <u>Section</u> <u>4.1</u>, the Participant shall select the deferral period ("Deferral Period") and the payment period to begin subsequent to one of the following dates:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The date the Director ceases to be a Director, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)A date specified by the Director.

If timely elected by the Director, pursuant to <u>Section 4.1</u> above, such payment commencement date may be delayed for up to five (5) years from the applicable date described in (a) or (b) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3<u>Payment Election</u>. If a Participant defers any amounts pursuant to <u>Section 4.1</u>, the Participant also shall elect the manner in which the deferred amount will be paid ("Payment Election"). The Participant shall choose to have payment made either in a lump sum or in a specified number of approximately equal annual or quarterly installments over a period not to exceed fifteen years. Such election must be made by

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last day of the Year preceding the Year during which Deferrals will begin to be made; <u>provided however</u>, that a Director who becomes an Eligible Director after the first day of the Year may, within 30 days of the date he or she becomes an Eligible Director, make such election.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4<u>Change of Control</u>. Notwithstanding a Director's Deferral Election made in accordance with <u>Section 4.1</u>, including the Deferral Period and Payment Election selected in accordance with <u>Sections 4.2</u> and <u>4.3</u>, a Participant, in connection with his or her commencement of participation in the Plan, may make an irrevocable election to receive all amounts deferred under the Plan in the form of a lump sum payment in the event that a Change in Control occurs ("Change of Control Election"). If a Participant does not make a Change of Control Election, or fails to make a timely Change of Control Election in connection with his or her commencement of participation in the Plan, all amounts deferred under the Plan shall be paid in accordance with the Director's Deferral Election made in accordance with <u>Section 4.1</u> including the Deferral Period and Payment Election selected in accordance with <u>Sections 4.2</u> and <u>4.3</u> and the other applicable provisions of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5<u>Changing Elections</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Subject to (b) immediately below, a Participant may make a one- time change to his or her initial Deferral Election made in accordance with <u>Section 4.1</u> with respect to <u>Section 4.2</u> (Deferral Period) and/or <u>4.3</u> (Payment Election) by submitting a new Election Form to the Secretary of the Company, <u>provided that</u>: (i) any such Election Form will not be effective for twelve (12) months after the date on which the Election Form is submitted to the Secretary of the Company; (ii) the date benefit payment(s) commence to the Participant shall be five (5) years after the date benefits would have otherwise commenced; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) new election must be made at least twelve (12) months prior to the date payment(s) would otherwise have started.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Notwithstanding the foregoing, in no event shall a change to a

Director's previous Deferral Election cause payments to commence later than the 30-day period following the end of the calendar quarter in which the 10th anniversary of the date a Director would have otherwise commenced receipt of benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Notwithstanding anything in this Plan to the contrary, effective

through December 31, 2008, a Participant may make new Deferral Elections with respect to benefits other than the Grandfathered Benefits; <u>provided that</u>, any new Deferral Election may not accelerate payments into, or delay payments out of the year in which such change is made. For example, any new Deferral Election made during the 2008 Year may not accelerate payments into or delay payments out of the 2008 Year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6<u>Deferral Payment</u>.&nbsp;&nbsp;&nbsp;&nbsp;The first installment (or the single payment if the Director has so elected) shall be paid on the first day of each calendar quarter or year, as

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the case may be, following the commencement date applicable under <u>Section 4.1</u> above, until the entire amount credited to the Director's account shall have been paid.

Notwithstanding the foregoing, if the amounts deferred by the Director after December 31, 2004 (including any credits or debits thereon, calculated and applied in accordance with the applicable provision of the Nonqualified Retirement Plan) are, at the time payments are to commence, less than the dollar limitation in effect under Code Section 402(g), then the entire amount shall be paid in a single lump sum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7<u>Payment Upon Death</u>. Notwithstanding a Director's Deferral Election made in accordance with <u>Section 4.1</u>, including the Deferral Period and Payment Election selected in accordance with <u>Sections 4.2</u> and <u>4.3</u>, if a Director should die before any or full payment of all amounts, the balance in his or her deferred account, together with credits computed to date of payout, shall be paid to the Director's estate or to a beneficiary or beneficiaries designated in writing by the Director. The amount payable shall be paid in a single lump sum or quarterly or annual installments as elected by the Director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8<u>Credits</u>. Credits shall be applied to amounts deferred under the Plan in accordance with the provisions stated in <u>Section 5.2</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9<u>Selection of Beneficiary</u>. At the time of deferral, the Participant shall designate a beneficiary or beneficiaries in accordance with the provisions stated in <u>Section 8.1</u>.

SECTION 5&nbsp;&nbsp;&nbsp;&nbsp;DEFERRED ACCOUNTS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1<u>Participant Accounts</u>.&nbsp;&nbsp;&nbsp;&nbsp;The Company shall establish and maintain a

bookkeeping account for each deferral made by a Participant.&nbsp;&nbsp;&nbsp;&nbsp;This account shall be credited as of the date of the deferral with the amount deferred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2<u>Credits and Debits</u>. The Company shall provide the opportunity for credits to be earned on, and debits to be deducted from any deferred amounts in a Participant's account, including remaining balances in an account during payout. The amount and timing of the crediting shall be made in the same manner as is done under the Crediting/Debiting of Account Balances provisions of the Nonqualified Retirement Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3<u>Charges Against Accounts</u>. There shall be charged against each Participant's account any payments made to the Participant or to his or her beneficiary in accordance with <u>Sections 4.6</u>, <u>4.7</u> and <u>6.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4<u>Contractual Obligation</u>. It is intended that the Company is under a contractual obligation to make payments from a Participant's account when due. However, this Plan shall not be funded in any respect. Payment of account balances shall be made out of the general funds of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5<u>Unsecured Interest</u>. No Participant or beneficiary shall have any interest whatsoever in any specific asset of the Company. To the extent that any person acquires

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a right to receive payments under this Plan, such right shall be no greater than the right of any unsecured general creditor of the Company.

SECTION 6&nbsp;&nbsp;&nbsp;&nbsp;SHORT TERM PAYOUT; FINANCIAL EMERGENCY; WITHDRAWAL ELECTION.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1<u>Short Term Payout</u>. In connection with a Deferral Election with respect to

a Year, a Director may irrevocably elect to receive a future Short Term Payout with respect to such amount. The election and payment of such Short Term Payout amount shall be made in the same manner applicable to Short Term Payouts under the Nonqualified Retirement Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2<u>Withdrawal Payout/Suspension for Unforeseeable Financial Emergencies</u>. If a Director experiences an Unforeseeable Financial Emergency, the Director may petition the Board to suspend any deferral election then in place and/or receive a full or partial payout from the Plan. The determination of whether the Director has experienced an Unforeseeable Financial Emergency and the actions taken with respect thereto shall be made by the Board in the same manner as applicable to Unforeseeable Financial Emergencies under the Nonqualified Retirement Plan.

SECTION 7&nbsp;&nbsp;&nbsp;&nbsp;FORFEITURE.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1<u>Forfeiture</u>. Amounts deferred or payable under the Plan are not forfeitable

under any circumstances.

SECTION 8&nbsp;&nbsp;&nbsp;&nbsp;BENEFICIARY DESIGNATION.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1<u>Beneficiary Designation</u>.&nbsp;&nbsp;&nbsp;&nbsp;A Participant shall designate a beneficiary or

beneficiaries who, upon his or her death, are to receive the distributions that otherwise would have been paid to him or her. All designations shall be in writing and shall be effective only if and then delivered to the Secretary of the Company during the lifetime of the Participant. If a Participant designates a beneficiary without providing in the designation that the beneficiary must be living at the time of such distribution, the designation shall vest in the beneficiary all of the distributions whether payable before or after the beneficiary's death, and any distributions remaining upon the beneficiary's death shall be made to the beneficiary's estate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2<u>Change of Beneficiary</u>. A Participant may, from time to time during his or her lifetime, change his or her beneficiary or beneficiaries by a written instrument delivered to the Secretary of the Company. In the event a Participant shall not designate a beneficiary or beneficiaries as aforesaid, or if for any reason such designation shall be ineffective, in whole or in part, the distribution that otherwise would have been paid to such Participant shall be paid to his or her estate and, in such event, the term "beneficiary" shall include his or her estate.

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SECTION 9&nbsp;&nbsp;&nbsp;&nbsp;NONTRANSFERABILITY.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1<u>Nontransferability</u>. Neither the Director nor any other person shall have

the right to sell, gift, transfer, assign, or hypothecate the right to receive payments under this Plan in any manner whatsoever.

SECTION 10 ADMINISTRATION.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1<u>Administration</u>.&nbsp;&nbsp;&nbsp;&nbsp;This Plan shall be administered by a committee

("Committee") which shall consist of the Board, or such committee as the Board shall appoint. Members of the Committee may be Participants under this Plan. The Committee shall also have the discretion and authority to (i) make, amend, interpret, and enforce all appropriate rules and regulations for the administration of this Plan and (ii) decide or resolve any and all questions including interpretations of this Plan, as may arise in connection with the Plan. Any individual serving on the Committee who is a Participant shall not vote or act on any matter relating solely to himself or herself. When making a determination or calculation, the Committee shall be entitled to rely on information furnished by a Participant or the Company. In the administration of this Plan, the Committee may, from time to time, employ agents and delegate to them such administrative duties as it sees fit (including acting through a duly appointed representative) and may from time to time consult with counsel who may be counsel to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2<u>Finality of Determination</u>. The determination of the Committee as to any disputed questions arising under this Plan, including questions or construction and interpretation, shall be final, binding, and conclusive upon all persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3<u>Expenses</u>. The expenses of administering the Plan shall be borne by the Company.

SECTION 11 AMENDMENT AND TERMINATION.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1<u>Amendment and Termination</u>. The Company expects to continue the Plan

indefinitely, but since future conditions affecting the Company cannot be anticipated or foreseen, the Company must necessarily and does hereby reserve the right to amend, modify, or terminate the Plan at any time by action of the Board or the Committee, including, but not limited to, by amendment of those provisions of the Nonqualified Retirement Plan which are applicable hereto as if set forth herein in their entirety. Notwithstanding the foregoing, the provisions, restrictions and limitations applicable to the Company's ability to amend, modify or terminate the Nonqualified Retirement Plan as set forth in the Nonqualified Retirement Plan shall apply to this Plan.

SECTION 12 TRUST.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1<u>Nonqualified Retirement Trust</u>. The Company has established a grantor

trust (the "Trust") in connection with the Nonqualified Retirement Plan for the purpose of assisting the Company in the administration and payment of amounts under the Nonqualified Retirement Plan and this Plan. The Company shall at least annually

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transfer over to the Nonqualified Retirement Trust such assets as the Company determines, in its sole discretion, are necessary to provide, on a present value basis, for its future liabilities created with respect to this Plan. The provisions of this Plan shall govern the right of a Director (or, after the Director's death, his or her beneficiaries) to receive distributions pursuant to the Plan. The provisions of the Trust shall govern the rights of the Company, directors, beneficiaries and creditors of the Company to the assets transferred to the Trust. The Company shall at all times remain liable to carry out its obligations under the Plan.

SECTION 13 SUCCESSORS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1<u>Successors and Assignees</u>. The provisions of this Plan shall be binding

upon and inure to the benefit of the Company and its successors and its assigns and the director and the director's beneficiaries. The Company shall require any successor or assignee, whether direct or indirect, by purchase, merger, consolidation or otherwise, to all or substantially all of the business assets of the Company, expressly and unconditionally to assume and agree to perform the obligations of the Company under this Plan, in the same manner and to the same extends that the Company would be required to perform if no such successor or assignee had taken place. In addition, the Company shall require the ultimate parent entity or any successor or assignee corporations or entities to expressly guaranty the prompt performance by such successor or assignee.

SECTION 14 SUBSIDIARIES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1<u>Subsidiaries</u>. If a Participant defers any amounts pursuant to <u>Section 4.1</u>

which are Director Fees earned with respect to service as a member of the board of directors of a subsidiary of the Company, then the provisions of this Plan relating to the establishment of a Deferred Account and the crediting and payment of amounts with respect thereto shall apply to such subsidiary as if the subsidiary was the Company hereunder. Notwithstanding the foregoing, the Plan shall be administered and may be amended and/or terminated by the Board or the Committee.

IN WITNESS WHEREOF, the Company has caused this restated Plan to be executed by its duly authorized officer effective as of the <u>28</u><sup>th</sup> day of <u>December</u>, 2007.

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| | |
|:---|:---|
| **ATTEST/WITNESS** | **FIRST MIDWEST BANCORP, INC.** |
| /s/ CYNTHIA A. LANCE | /s/ JOHN M. O'MEARA |
| Corporate Secretary<br>Date: December 28, 2007 | President and Chief Executive Officer<br>Date: December 28, 2007 |

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**APPENDIX A**

The following provisions govern the distribution of benefits that were earned and vested as of December 31, 2004 (including any earnings thereon) ("Grandfathered Benefits"). The provisions of this <u>Appendix A</u> are intended to be the same as the Plan provisions effective as of December 31, 2004 and should be interpreted accordingly.

A.1<u>Definitions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)"Unforeseeable Financial Emergency" shall mean an unanticipated emergency that is caused by an event beyond the control of the Participant that would result in severe financial hardship to the Participant resulting from (i) a sudden and unexpected illness or accident of the Participant or a dependent of the Participant, (ii) a loss of the Participant's property due to casualty, or (iii) such other extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant for which distribution is necessary to preserve the value of the benefits of this Plan to the Participant, all as determined in the sole discretion of the Committee.

Terms used in this Appendix but not defined above shall be defined under the terms of the Plan in effect as of December 31, 2004.

A.2<u>Payment of Benefits</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Withdrawal Payout/Suspension for Unforeseeable Financial Emergencies.

If a Director experiences an Unforeseeable Financial Emergency, the Director may petition the Board to suspend any deferral election then in place and/or receive a full or partial payout from the Plan. The determination of whether the Director has experienced an Unforeseeable Financial Emergency and the actions taken with respect thereto shall be made by the Board in the same manner as applicable to Unforeseeable Financial Emergencies under the Nonqualified Retirement Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Payment Events.&nbsp;&nbsp;&nbsp;&nbsp;Subject to (d) and (e) below, the payment of

Grandfathered Benefits shall be made in accordance with each Director's Election.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Changing Payment Election. The Participant may make and may revoke

in writing his or her election with respect to the form of payment (and, so long as he or she is a Director, the commencement thereof) at any time not later than the earlier of (a) December 31 prior to the date such payment is to commence or (b) the date which is six months (or such shorter period as the Board of Directors may approve) prior to the date such payment is to commence; provided, however, that an election in effect upon the expiration of such election period shall be irrevocable. Notwithstanding the foregoing, if a Director's Grandfathered Benefits at the time payments are to commence is less than $25,000, then the entire amount shall be paid in a single lump sum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Withdrawal Election. A Director (or, after a Director's death, his or her

beneficiary) may elect, at any time, to withdraw all of his or her amounts credited under the Plan, calculated as if the date for commencement of payments had occurred as of the day of the election, less a withdrawal penalty equal to 10% of such amount. The timing and manner of any

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such election and payment of such withdrawal shall be made in the same manner as applicable to similar withdrawals under the Nonqualified Retirement Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) &nbsp;&nbsp;&nbsp;&nbsp;Payment upon Death. Notwithstanding the election made in <u>Section 4.1</u>, if a Director should die before any or full payment of all amounts, the balance in his or her deferred account, together with growth additions computed to date of payout, shall be paid to the Director's estate or to a beneficiary or beneficiaries designated in writing by the Director. The amount payable shall be paid in a lump sum or quarterly or annual installments as elected by the Director. Notwithstanding the foregoing, if a Director's Grandfathered Benefits at the time payments are to commence is less $25,000, then the entire amount shall be paid in a single lump sum.

## Exhibit 10.15

**Exhibit 10.15**

**FREEZE AMENDMENT TO THE**

**FIRST MIDWEST BANCORP, INC. DEFERRED COMPENSATION PLAN FOR NONEMPLOYEE DIRECTORS** 

**(As Amended and Restated Generally Effective as of January 1, 2008)**

&nbsp;&nbsp;&nbsp;&nbsp;**WHEREAS**, Old National Bancorp (successor by merger to First Midwest Bancorp, Inc.) (the "Company") maintains the First Midwest Bancorp, Inc. Deferred Compensation Plan for Nonemployee Directors (the "Directors Plan") for the benefit of nonemployee members of the Company's Board of Directors (the "Board") who were formerly nonemployee members of the Board of Directors of First Midwest Bancorp, Inc. and/or First Midwest Bank; and

**WHEREAS**, on May 30, 2021, the Company entered into an Agreement and Plan of Merger with Old National Bancorp pursuant to which First Midwest Bancorp, Inc. merged with and into the Company effective as of February 15, 2022 (the "Merger"); and

**WHEREAS**, pursuant to Article 11 of the Directors Plan, the Company reserved the right to amend the Plan at any time and has delegated that authority to the Talent Development and Compensation Board Committee ("Committee"); and

**WHEREAS**, in connection with the Merger, the Committee has considered and deems it advisable to amend the Directors Plan to (i) include terms describing eligibility from February 15, 2022 through December 31, 2022, (ii) freeze participation to only those directors of the Company and of First Midwest Bank who are existing participants in the Directors Plan as of December 31, 2021, and (iii) cease all deferral contributions to the Directors Plan and terminate all deferral election agreements as of December 31, 2022.

**NOW, THEREFORE**, pursuant to the power delegated to the undersigned officer of the Company in accordance with the authorizations and directions of the Committee, the Directors Plan is hereby amended by adding the following new Section 1.5 as follows:

"1.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Plan Freeze</u>. Notwithstanding anything herein to the contrary, effective December 31, 2021, the Plan is frozen as to further participation ("Participation Freeze Date") such that participation is limited to only those Directors who are existing Participants in the Plan as of the Participation Freeze Date. Furthermore, as of the Participation Freeze Date all Deferral Elections shall terminate and no amounts shall thereafter be deferred or credited under the Plan. Finally, and for clarification purposes only, Directors who had made deferral elections for the 2022 Plan Year prior to February 15, 2022 ("Merger Date") when First Midwest Bancorp, Inc. merged with and into Old National Bancorp shall remain Participants in the Plan for the remainder of the 2022 Plan Year regardless of then becoming Directors of Old National Bancorp as of the Merger Date."

Page 1 of 2

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**IN WITNESS WHEREOF**, and in accordance with the authorizations and directions of the Talent Development and Compensation Board Committee of Old National Bancorp, the foregoing Freeze Amendment to the First Midwest Bancorp, Inc. Deferred Compensation Plan for Nonemployee Directors, is hereby adopted this 16<sup>th</sup> day of August 2022 by the undersigned duly authorized officer.

**OLD NATIONAL BANCORP**

**By:&nbsp;&nbsp;&nbsp;&nbsp;**<u>/s/ Nicholas J. Chulos</u>

**Nicholas J. Chulos, Chief Legal Officer and Corporate Secretary**

Page 2 of 2

## Exhibit 10.16

**Exhibit 10.16**

**First Midwest Bancorp, Inc.** Nonqualified Retirement Plan *Master Plan Document*

**Amended and Restated effective January 1, 2008**

------

**TABLE OF CONTENTS**

**Page**

Article 1&nbsp;&nbsp;&nbsp;&nbsp;Definitions.&nbsp;&nbsp;&nbsp;&nbsp;1

Article 2&nbsp;&nbsp;&nbsp;&nbsp;Selection, Enrollment, Eligibility&nbsp;&nbsp;&nbsp;&nbsp;9

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1Selection by Committee&nbsp;&nbsp;&nbsp;&nbsp;9

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2Enrollment Requirements&nbsp;&nbsp;&nbsp;&nbsp;9

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3Eligibility; Commencement of Participation&nbsp;&nbsp;&nbsp;&nbsp;9

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4Termination of Participation and/or Deferrals&nbsp;&nbsp;&nbsp;&nbsp;10

Article 3&nbsp;&nbsp;&nbsp;&nbsp;Deferral Commitments/Company Matching/Crediting/Taxes&nbsp;&nbsp;&nbsp;&nbsp;10

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1[Minimum Deferrals](#i5b29cada80884424b1f801927f8de50c_19)[&nbsp;&nbsp;&nbsp;&nbsp;](#i5b29cada80884424b1f801927f8de50c_19)[10](#i5b29cada80884424b1f801927f8de50c_19)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2[Maximum Deferral.](#i5b29cada80884424b1f801927f8de50c_19)[&nbsp;&nbsp;&nbsp;&nbsp;](#i5b29cada80884424b1f801927f8de50c_19)[10](#i5b29cada80884424b1f801927f8de50c_19)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3[Election to Defer; Effect of Election Form](#i5b29cada80884424b1f801927f8de50c_19)[&nbsp;&nbsp;&nbsp;&nbsp;](#i5b29cada80884424b1f801927f8de50c_19)[11](#i5b29cada80884424b1f801927f8de50c_19)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4Withholding of Annual Deferral Amounts&nbsp;&nbsp;&nbsp;&nbsp;11

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5Annual Company Contribution Amount&nbsp;&nbsp;&nbsp;&nbsp;11

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6Annual Company Matching Amount&nbsp;&nbsp;&nbsp;&nbsp;11

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7Annual Profit Sharing Restoration Amount&nbsp;&nbsp;&nbsp;&nbsp;12

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8Annual Pension Restoration Amount.&nbsp;&nbsp;&nbsp;&nbsp;12

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9Investment of Trust Assets.&nbsp;&nbsp;&nbsp;&nbsp;12

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.10[Vesting](#i5b29cada80884424b1f801927f8de50c_19)[&nbsp;&nbsp;&nbsp;&nbsp;](#i5b29cada80884424b1f801927f8de50c_19)[13](#i5b29cada80884424b1f801927f8de50c_19)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.11Crediting/Debiting of Account Balances&nbsp;&nbsp;&nbsp;&nbsp;13

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.12[FICA and Other Taxes](#i5b29cada80884424b1f801927f8de50c_25)[&nbsp;&nbsp;&nbsp;&nbsp;](#i5b29cada80884424b1f801927f8de50c_25)[15](#i5b29cada80884424b1f801927f8de50c_25)

Article 4&nbsp;&nbsp;&nbsp;&nbsp;Short-Term Payout; Unforeseeable Financial Emergencies&nbsp;&nbsp;&nbsp;&nbsp;16

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1Short-Term Payout&nbsp;&nbsp;&nbsp;&nbsp;16

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2Other Benefits Take Precedence Over Short-Term&nbsp;&nbsp;&nbsp;&nbsp;16

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3Withdrawal Payout/Suspensions for Unforeseeable Financial Emergencies&nbsp;&nbsp;&nbsp;&nbsp;16

Article 5&nbsp;&nbsp;&nbsp;&nbsp;Termination Benefit&nbsp;&nbsp;&nbsp;&nbsp;17

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1Termination Benefit&nbsp;&nbsp;&nbsp;&nbsp;17

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2[Payment of Termination Benefit](#i5b29cada80884424b1f801927f8de50c_28)[&nbsp;&nbsp;&nbsp;&nbsp;](#i5b29cada80884424b1f801927f8de50c_28)[17](#i5b29cada80884424b1f801927f8de50c_28)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3Death Benefit&nbsp;&nbsp;&nbsp;&nbsp;17

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4Death Prior to Completion of Termination Benefit&nbsp;&nbsp;&nbsp;&nbsp;17

Article 6&nbsp;&nbsp;&nbsp;&nbsp;Change in Control Benefit&nbsp;&nbsp;&nbsp;&nbsp;18

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1Change in Control Benefit.&nbsp;&nbsp;&nbsp;&nbsp;18

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2Payment of Change in Control Benefit.&nbsp;&nbsp;&nbsp;&nbsp;18

Article 7&nbsp;&nbsp;&nbsp;&nbsp;Disability Benefit&nbsp;&nbsp;&nbsp;&nbsp;18

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1Disability Benefit&nbsp;&nbsp;&nbsp;&nbsp;18

Article 8&nbsp;&nbsp;&nbsp;&nbsp;Elections Relating to Company Contribution, Profit Sharing Restoration

and Pension Restoration Amounts&nbsp;&nbsp;&nbsp;&nbsp;18

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1Timing of Election&nbsp;&nbsp;&nbsp;&nbsp;18

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2409A Transition Elections&nbsp;&nbsp;&nbsp;&nbsp;18

1

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**TABLE OF CONTENTS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(continued)

**Page**

Article 9&nbsp;&nbsp;&nbsp;&nbsp;Beneficiary Designation.&nbsp;&nbsp;&nbsp;&nbsp;19

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1Beneficiary&nbsp;&nbsp;&nbsp;&nbsp;19

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2Beneficiary Designation.&nbsp;&nbsp;&nbsp;&nbsp;19

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3Acknowledgment&nbsp;&nbsp;&nbsp;&nbsp;19

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4No Beneficiary Designation&nbsp;&nbsp;&nbsp;&nbsp;19

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5Doubt as to Beneficiary&nbsp;&nbsp;&nbsp;&nbsp;19

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6Discharge of Obligations&nbsp;&nbsp;&nbsp;&nbsp;19

Article 10&nbsp;&nbsp;&nbsp;&nbsp;Leave of Absence&nbsp;&nbsp;&nbsp;&nbsp;19

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1Paid Leave of Absence&nbsp;&nbsp;&nbsp;&nbsp;19

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2Unpaid Leave of Absence&nbsp;&nbsp;&nbsp;&nbsp;20

Article 11&nbsp;&nbsp;&nbsp;&nbsp;Termination, Amendment or Modification&nbsp;&nbsp;&nbsp;&nbsp;20

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1Termination&nbsp;&nbsp;&nbsp;&nbsp;20

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2Amendment&nbsp;&nbsp;&nbsp;&nbsp;20

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3Effect of Change in Control&nbsp;&nbsp;&nbsp;&nbsp;20

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.4Plan Agreement&nbsp;&nbsp;&nbsp;&nbsp;21

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.5Effect of Payment&nbsp;&nbsp;&nbsp;&nbsp;21

Article 12&nbsp;&nbsp;&nbsp;&nbsp;Administration&nbsp;&nbsp;&nbsp;&nbsp;21

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1Committee Duties&nbsp;&nbsp;&nbsp;&nbsp;21

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2Agents&nbsp;&nbsp;&nbsp;&nbsp;21

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3Indemnity of Committee&nbsp;&nbsp;&nbsp;&nbsp;21

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.4Employer Information&nbsp;&nbsp;&nbsp;&nbsp;21

Article 13&nbsp;&nbsp;&nbsp;&nbsp;Other Benefits and Agreements&nbsp;&nbsp;&nbsp;&nbsp;22

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1Coordination with Other Benefits&nbsp;&nbsp;&nbsp;&nbsp;22

Article 14&nbsp;&nbsp;&nbsp;&nbsp;Claims Procedures&nbsp;&nbsp;&nbsp;&nbsp;22

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1Presentation of Claim&nbsp;&nbsp;&nbsp;&nbsp;22

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2Notification of Decision&nbsp;&nbsp;&nbsp;&nbsp;22

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.3Review of a Denied Claim&nbsp;&nbsp;&nbsp;&nbsp;22

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.4Decision on Review&nbsp;&nbsp;&nbsp;&nbsp;23

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.5Legal Action.&nbsp;&nbsp;&nbsp;&nbsp;23

Article 15&nbsp;&nbsp;&nbsp;&nbsp;Trust&nbsp;&nbsp;&nbsp;&nbsp;23

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1Establishment of the Trust&nbsp;&nbsp;&nbsp;&nbsp;23

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.2Interrelationship of the Plan and the Trust&nbsp;&nbsp;&nbsp;&nbsp;23

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.3Distributions From the Trust&nbsp;&nbsp;&nbsp;&nbsp;23

Article 16&nbsp;&nbsp;&nbsp;&nbsp;Miscellaneous&nbsp;&nbsp;&nbsp;&nbsp;24

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1Status of Plan&nbsp;&nbsp;&nbsp;&nbsp;24

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.2Unsecured General Creditor&nbsp;&nbsp;&nbsp;&nbsp;24

2

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**TABLE OF CONTENTS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(continued)

**Page**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.3Employer's Liability&nbsp;&nbsp;&nbsp;&nbsp;24

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.4Nonassignability&nbsp;&nbsp;&nbsp;&nbsp;24

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.5Not a Contract of Employment&nbsp;&nbsp;&nbsp;&nbsp;24

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.6Furnishing Information&nbsp;&nbsp;&nbsp;&nbsp;24

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.7Terms&nbsp;&nbsp;&nbsp;&nbsp;25

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.8Captions&nbsp;&nbsp;&nbsp;&nbsp;25

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.9Governing Law&nbsp;&nbsp;&nbsp;&nbsp;25

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.10Notice&nbsp;&nbsp;&nbsp;&nbsp;25

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.11Successors&nbsp;&nbsp;&nbsp;&nbsp;25

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.12Spouse's Interest&nbsp;&nbsp;&nbsp;&nbsp;25

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.13Validity&nbsp;&nbsp;&nbsp;&nbsp;25

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.14Incompetent.&nbsp;&nbsp;&nbsp;&nbsp;26

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.15Court Order&nbsp;&nbsp;&nbsp;&nbsp;26

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.16Distribution in the Event of Taxation&nbsp;&nbsp;&nbsp;&nbsp;26

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.17Insurance&nbsp;&nbsp;&nbsp;&nbsp;26

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.18Legal Fees To Enforce Rights After Change in Control&nbsp;&nbsp;&nbsp;&nbsp;26

APPENDIX A&nbsp;&nbsp;&nbsp;&nbsp;29

iii

------

**FIRST MIDWEST BANCORP, INC. NONQUALIFIED RETIREMENT PLAN**

Amended and Restated Effective January 1, 2008

**<u>Purpose</u>**

The purpose of this Plan is to provide specified benefits to a select group of management and highly compensated Employees who contribute materially to the continued growth, development and future business success of First Midwest Bancorp, Inc., a Delaware corporation, and its subsidiaries, if any, that sponsor this Plan. This Plan shall be unfunded for tax purposes and for purposes of Title I of ERISA.

**<u>Effective Date</u>**

The Plan, as amended and restated in this document, is effective as of January 1, 2008. The distribution of benefits vested as of December 31, 2004 (together with earnings thereon) ("Grandfathered Benefits") shall be governed solely by the terms of Appendix A.

**ARTICLE 1**

**<u>Definitions</u>**

For purposes of this Plan, unless otherwise clearly apparent from the context, the following phrases or terms shall have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1"Account Balance" shall mean, with respect to a Participant, a credit on the

records of the Employer equal to the sum of (i) the Deferral Account balance, (ii) the vested Company Contribution Account balance, (iii) the vested Company Matching Account balance,

&nbsp;&nbsp;&nbsp;&nbsp;(iv) the vested Profit Sharing Restoration Account balance and (v) the vested Pension Restoration Account balance. The Account Balance, and each other specified account balance, shall be a bookkeeping entry only and shall be utilized solely as a device for the measurement and determination of the amounts to be paid to a Participant, or his or her designated Beneficiary, pursuant to this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2"Actuarial Equivalent" shall mean an actuarial equivalent single sum value

determined in the same manner as such Actuarial Equivalent single sum value would be determined under the Pension Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3"Annual Bonus" shall mean any compensation, in addition to Base Annual Salary

relating to services performed during any calendar year, whether or not paid in such calendar year or included on the Federal Income Tax Form W-2 for such calendar year, payable to a Participant as an Employee under any Employer's annual bonus and cash incentive plans, excluding equity awards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4"Annual Company Contribution Amount" shall mean, for any one Plan Year, the

amount determined in accordance with Section 3.5.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5"Annual Company Matching Amount" for any one Plan Year shall be the amount

determined in accordance with Section 3.6.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6"Annual Deferral Amount" shall mean that portion of a Participant's Base Annual

Salary and Annual Bonus that a Participant elects to have, and is deferred, in accordance with Article 3, for any one Plan Year. In the event of a Participant's Disability (if deferrals cease in accordance with Section 8.1), death or a Termination of Employment prior to the end of a Plan Year, such year's Annual Deferral Amount shall be the actual amount withheld prior to such event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.7"Annual Pension Restoration Amount" for any one Plan Year shall be the amount

determined in accordance with Section 3.8.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.8"Annual Profit Sharing Restoration Amount" for any one Plan Year shall be the

amount determined in accordance with Section 3.7.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.9"Base Annual Salary" shall mean the annual cash compensation relating to

services performed during any calendar year, whether or not paid in such calendar year or included on the Federal Income Tax Form W-2 for such calendar year, excluding bonuses, commissions, overtime, fringe benefits, equity awards, relocation expenses, incentive payments, non-monetary awards, directors' fees and other fees, automobile and other allowances paid to a Participant for employment services rendered (whether or not such allowances are included in the Employee's gross income). Base Annual Salary shall be calculated before reduction for compensation voluntarily deferred or contributed by the Participant pursuant to all qualified or non-qualified plans of any Employer and shall be calculated to include amounts not otherwise included in the Participant's gross income under Code Sections 125, 402(e)(3), 402(h), or 403(b) pursuant to plans established by any Employer; provided, however, that all such amounts will be included in compensation only to the extent that, had there been no such plan, the amount would have been payable in cash to the Employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.10"Beneficiary" shall mean one or more persons, trusts, estates or other entities,

designated in accordance with Article 9, that are entitled to receive benefits under this Plan upon the death of a Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.11"Beneficiary Designation Form" shall mean the form established from time to

time by or at the direction of the Committee that a Participant completes, signs and returns to the Committee or its designated agent to designate one or more Beneficiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.12"Benefit Payment Date" shall mean:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)For purposes of a Short-Term Payout payable to a Participant under

Article 4, any date occurring during the 30-day period beginning on January 1st of the calendar year designated by the Participant as the payment year for an Annual Deferral Amount ("Short Term Payment Year"), provided that such Short Term Payment Year shall be at least three Plan Years after the calendar year in which such amounts are actually deferred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)For purposes of a Termination Benefit payable under Article 5 to a

Participant that is not a Specified Employee (determined as of the date of his or her Termination

------

of Employment), any date occurring during the 30-day period beginning on the first day following the last day of the calendar quarter in which the Participant experiences the Termination of Employment. For purposes of a Termination Benefit payable under Article 5 to a Participant that is also a Specified Employee (determined as of the date of his or her Termination of Employment), any date occurring during the 30-day period commencing on the first day following the last day of the second calendar quarter following the quarter in which the Participant experiences the Termination of Employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)For purposes of the Change in Control Benefit payable to a Participant

under Article 6, any date occurring during the 30 day period beginning on the first day following the effective date for the Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)For purposes of the Disability Benefit payable to a Participant under

Article 7, any date occurring during the 60-day period beginning on the first day following the date on which the Participant is determined to be Disabled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.13"Board" shall mean the board of directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.14"Change in Control" shall mean any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Any "person" (as such term is used in Sections 13(d) and 14(d) of the

Securities Act of 1934, as amended, other than (i) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or a subsidiary, or (ii) a corporation owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company, is or becomes the "beneficial owner" (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of the Company representing 20% or more of the total voting power of the then outstanding shares of capital stock of the Company entitled to vote generally in the election of directors (the "Voting Stock"); provided, however, that the following shall not constitute a Change in Control: (A) such person becomes the beneficial owner of 20% or more of the Voting Stock as the result of the acquisition of such stock directly from the Company, or (B) such person becomes the beneficial owner of 20% or more of the Voting Stock as a result of the decrease in the number of outstanding shares caused by the repurchase of shares by the Company; provided, further, that in the event a person described in clause (A) or (B) shall thereafter increase (other than in circumstances described in clause (A) or (B)) beneficial ownership of stock representing more than 1% of the Voting Stock, such person shall then be deemed to be a beneficial owner of 20% or more of the Voting Stock for purposes of this paragraph (a), provided that such person continues to beneficially own 20% or more of the Voting Stock after such subsequent increase in beneficial ownership, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)During any period of two consecutive years, individuals, who at the

beginning of such period, constitute the Board of Directors of the Company, and any new director, whose election by the Board of Directors or nomination for election by the Company's stockholders was approved by a vote of at least two-thirds (⅔) of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved (the "Incumbent Directors"), cease for any reason to constitute a majority thereof, or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The stockholders of the Company approve, or if such approval is not

necessary or required, the consummation of, a reorganization, merger or consolidation, the sale or other disposition of all or substantially all of the assets, or a similar transaction or series of transactions involving the Company (a "Business Combination") in each case, unless (1) all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Voting Stock immediately prior to such Business Combination beneficially, own, directly or indirectly, more than 50% of the total voting power represented by the voting securities entitled to vote generally in the election of directors of the Company or the corporation resulting from the Business Combination (including, without limitation, a corporation which as a result of the Business Combination owns the Company or all or substantially all of the Company's assets either directly or through one or more subsidiaries), in substantially the same proportions as their ownership, immediately prior to the Business Combination of the Voting Stock of the Company, and (2) at least a majority of the members of the board of directors of the Company or such corporation resulting from the Business Combination were members of the Incumbent Board at the time of the execution of the initial agreement, or action of the Incumbent Board, providing for such Business Combination, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)The stockholders of the Company approve a plan of complete liquidation

or dissolution of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.15"Change in Control Benefit" shall mean the benefit set forth under Article 6.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.16"Claimant" shall have the meaning set forth in Section 14.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.17"Code" shall mean the Internal Revenue Code of 1986, as it may be amended

from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.18"Committee" shall mean the committee described in Article 12.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.19"Company" shall mean First Midwest Bancorp, Inc., a Delaware corporation, and

any successor to all or substantially all of the Company's assets or business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.20"Company Contribution Account" shall mean (i) the sum of the Participant's

Annual Company Contribution Amounts, plus (ii) amounts credited in accordance with all the applicable crediting provisions of this Plan that relate to the Participant's Company Contribution Account, less (iii) all distributions made to the Participant or his or her Beneficiary pursuant to this Plan that relate to the Participant's Company Contribution Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.21"Company Matching Account" shall mean (i) the sum of all of a Participant's

Annual Company Matching Amounts, plus (ii) amounts credited in accordance with all the applicable crediting provisions of this Plan that relate to the Participant's Company Matching Account, less (iii) all distributions made to the Participant or his or her Beneficiary pursuant to this Plan that relate to the Participant's Company Matching Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.22"Deduction Limitation" shall mean the following described limitation on a benefit

that may otherwise be distributable pursuant to the provisions of this Plan. Except as otherwise provided, this limitation shall be applied to all distributions that are "subject to the Deduction Limitation" under this Plan. If an Employer determines in good faith prior to a Change in

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Control that there is a reasonable likelihood that any compensation paid to a Participant for a taxable year of the Employer would not be deductible by the Employer solely by reason of the limitation under Code Section 162(m), then to the extent deemed necessary by the Employer to ensure that the entire amount of any distribution to the Participant pursuant to this Plan prior to the Change in Control is deductible, the Employer may defer all or any portion of a distribution under this Plan. Any amounts deferred pursuant to this limitation shall continue to be credited/debited with additional amounts in accordance with Section 3.11 below, even if such amount is being paid out in installments. The amounts so deferred and amounts credited thereon shall be distributed to the Participant or his or her Beneficiary (in the event of the Participant's death) at the earliest possible date, as determined by the Employer in good faith, on which the deductibility of compensation paid or payable to the Participant for the taxable year of the Employer during which the distribution is made will not be limited by Section 162(m), or if earlier, the effective date of a Change in Control. Notwithstanding anything to the contrary in this Plan, the Deduction Limitation shall not apply to any distributions made after a Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.23"Deferral Account" shall mean (i) the sum of all of a Participant's Annual

Deferral Amounts, plus (ii) amounts credited in accordance with all the applicable crediting provisions of this Plan that relate to the Participant's Deferral Account, less (iii) all distributions made to the Participant or his or her Beneficiary pursuant to this Plan that relate to his or her Deferral Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.24"Deferral Election Date" shall mean:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)For purposes of deferrals of Base Annual Salary and Annual Bonus under

Article 3, expect as provided below, the last day of the Plan Year preceding the Plan Year during which the services related to such Base Annual Salary and Annual Bonus are to be performed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)If an Annual Bonus is determined by the Committee to be Performance-

Based Compensation, the date which is six months prior to the end of the applicable performance period, provided that the payment of such Performance-Based Compensation is not substantially certain at the time such election is made; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)For a Participant who is first designated by the Committee on or after the

first day of the Plan Year as being eligible to participate in the Plan, 30 days from the date such designation is communicated to the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.25"Disability" shall mean a Participant is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)unable to engage in any substantial gainful activity by reason of any

medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)by reason of any medically determinable physical or mental impairment

that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three (3) months under an accident and health plan covering employees of the Employer.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.26"Disability Benefit" shall mean the benefit set forth in Article 7.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.27"Election Form" shall mean the appropriate form(s) prescribed from time to time

by the Committee for a Participant to complete, sign and return to the Committee or its designated agent to make an election under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.28"Employee" shall mean a person who is an employee of any Employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.29"Employer(s)" shall mean the Company and/or any of its subsidiaries (now in

existence or hereafter formed or acquired) that have been selected by the Board to participate in the Plan and have adopted the Plan as a sponsor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.30"ERISA" shall mean the Employee Retirement Income Security Act of 1974, as it

may be amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.31"401(k) Plan" shall be that certain First Midwest Bancorp, Inc. Savings and Profit

Sharing Plan, as it may from time to time be amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.32"Participant" shall mean any Employee (i) who is selected to participate in the

Plan, (ii) who elects to participate in the Plan, (iii) who signs a Plan Agreement, an Election Form and a Beneficiary Designation Form, (iv) whose signed Plan Agreement, Election Form and Beneficiary Designation Form are accepted by the Committee or its designated agent,

&nbsp;&nbsp;&nbsp;&nbsp;(v) who commences participation in the Plan, and (vi) whose Plan Agreement has not terminated. A spouse or former spouse of a Participant shall not be treated as a Participant in the Plan or have an account balance under the Plan, even if he or she has an interest in the Participant's benefits under the Plan as a result of applicable law or property settlements resulting from legal separation or divorce.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.33"Pension Plan" shall be that certain First Midwest Bancorp, Inc. Consolidated

Pension Plan, as it may from time to time be amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.34"Pension Restoration Account" shall mean (i) the sum of all of a Participant's

Annual Pension Restoration Amounts, plus (ii) amounts credited in accordance with all the applicable crediting provisions of this Plan that relate to the Participant's Pension Restoration Account, less (iii) all distributions made to the Participant or his or her Beneficiary pursuant to this Plan that relate to the Participant's Pension Restoration Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.35"Performance-Based Compensation" shall mean:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Compensation, the amount of which, or the entitlement to which, is

contingent on the satisfaction of pre-established organizational or individual performance criteria (which need not have been approved by the Board or a committee thereof, or the Company's stockholders) relating to a performance period of at least twelve (12) consecutive months. For this purpose, organizational or individual performance criteria are considered pre-established if established in writing by not later than ninety (90) days after the commencement of the period of service to which the criteria relates, provided that the outcome is substantially uncertain at the time the criteria are established.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Performance-Based Compensation also includes compensation based upon

subjective performance criteria, provided that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)The subjective performance criteria are bona fide and relate to the

performance of the Participant, a group of service providers that includes the Participant, or a business unit for which the Participant provides services (which may include the entire organization); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)The determination that any subjective performance criteria have

been met is not made by the Participant or a family member of the Participant (as defined in Code Section 267(c)(4) applied as if the family of an individual includes the spouse of any member of the family), or a person under the effective control of the Participant or such a family member, and no amount of the compensation of the person making such determination is effectively controlled in whole or in part by the Participant or such a family member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.36"Plan Agreement" shall mean a written agreement, as may be amended from time

to time, which is entered into by and between an Employer and a Participant. Each Plan Agreement executed by a Participant and the Participant's Employer shall provide for the entire benefit to which such Participant is entitled under the Plan; should there be more than one Plan Agreement, the Plan Agreement bearing the latest date of acceptance by the Employer shall supersede all previous Plan Agreements in their entirety and shall govern such entitlement. The terms of any Plan Agreement may be different for any Participant, and any Plan Agreement may provide additional benefits not set forth in the Plan or limit the benefits otherwise provided under the Plan; provided, however, that any such additional benefits or benefit limitations must be agreed to by both the Employer and the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.37"Plan Year" shall mean a period beginning on January 1 of each calendar year and

continuing through December 31 of such calendar year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.38"Plan" shall mean the Company's Nonqualified Retirement Plan, which shall be

evidenced by this instrument and by each Plan Agreement, as they may from time to time be amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.39"Profit Sharing Restoration Account" shall mean (i) the sum of all of a

Participant's Annual Profit Sharing Restoration Amounts, plus (ii) amounts credited in accordance with all the applicable crediting provisions of this Plan that relate to the Participant's Profit Sharing Restoration Account, less (iii) all distributions made to the Participant or his or her Beneficiary pursuant to this Plan that relate to the Participant's Profit Sharing Restoration Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.40"Qualified Plan Limits" shall mean the limitations imposed under Code

Section 401(a)(17), Code Section 401(k)(3), Code Section 402(g) and/or Code Section 415, as the context so requires.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.41"Quarterly or Annual Installment Method" shall be a quarterly or annual

installment payment over the number of quarters or years selected by the Participant in accordance with the Plan, calculated as follows: The Account Balance of the Participant shall be

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calculated as of the close of business on the last business day of the applicable quarter following which the installment payment is to be made. The quarterly or annual installment to be paid shall be calculated by multiplying this balance by a fraction, the numerator of which is one, and the denominator of which is the remaining number of quarterly or annual, as applicable, payments due the Participant (including the installment being calculated). Notwithstanding the foregoing, any installment payments, either quarterly or annual payments, payable under the Plan shall constitute a single payment for purposes of compliance with Code Section 409A.

By way of example, if the Participant elects a 40 quarter Quarterly or Annual Installment Method, the first payment shall be 1/40 of the Account Balance, calculated as described in this definition. The following quarter, the payment shall be 1/39 of the Account Balance, calculated as described in this definition. If the Participant had elected 10 annual installments, then the first payment shall be 1/10 of the Account Balance and the subsequent installment would be 1/9 of the Account Balance at the end of the fourth quarter following the quarter with respect to which the first payment was determined. Each quarterly or annual installment shall be paid on or as soon as practicable after the last business day of the applicable quarter, but in no event more than 30 days after such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.42"Retirement" means termination of employment on or after age 65 or on or after

55 with 15 years of service credited under the applicable qualified retirement plan of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.43"Retirement Committee" shall have the meaning set forth in Section 3.7.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.44"Short-Term Payout" shall mean the payout set forth in Section 4.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.45"Short Term Payment Year" shall have the meaning set forth in Section 1.12.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.46"Specified Employee" shall mean any Participant who is determined to be a "key

employee" (as defined under Code Section 416(i) without regard to paragraph (5) thereof) for the applicable period, as determined annually by the Retirement Committee in accordance with Treas. Reg. §1.409A-1(i). In determining whether a Participant is a Specified Employee, the following provisions shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Committee's identification of the individuals who fall within the

definition of "key employee" under Code Section 416(i) (without regard to paragraph (5) thereof) shall be based upon the 12-month period ending on each December 31st (referred to below as the "identification date"). In applying the applicable provisions of Code Section 416(i) to identify such individuals, "compensation" shall be determined in accordance with Treas. Reg.

§1.415(c)-2(a) without regard to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;Any safe harbor provided in Treas. Reg. §1.415(c)-2(d);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Any of the special timing rules provided in Treas. Reg. §1.415(c)- 2(e); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;Any of the special rules provided in Treas. Reg. §1.415(c)-2(g); and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Each Participant who is among the individuals identified as a "key

employee" in accordance with part (a) of this Section shall be treated as a Specified Employee for purposes of this Plan if such Participant experiences a Termination of Employment during the 12-month period that begins on the April 1st following the applicable identification date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.47"Stock" means the common stock, $.01 par value per share, of the Company. In

the event of a change in the Stock by reason of a Stock dividend or split, recapitalization, merger, consolidation, combination, exchange of shares, or similar corporate change, the Stock shall be appropriately adjusted by the Board or a committee thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.48"Termination Benefit" shall mean the benefit set forth in Article 5.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.49"Termination of Employment" or "Termination" shall mean the separation of

employment from all Employers, voluntarily or involuntarily, for any reason other than Disability or death, which constitutes a separation from service as defined in Treasury Regulation 1.409A-1(h).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.50"Trust" shall mean one or more trusts established pursuant to that certain First

Midwest Bancorp, Inc. Nonqualified Retirement Plan Grantor Trust Agreement, dated as of May 13, 1994, as amended from time to time, between the Company and Wells Fargo Bank,

N.A. as successor in interest to Harris Bank Barrington, N.A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.51"Unforeseeable Financial Emergency" shall be determined in accordance with

Treasury Regulation 1.409A-3(i)(3).

**ARTICLE 2**

**<u>Selection, Enrollment, Eligibility</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1**<u>Selection by Committee</u>**. Participation in the Plan shall be limited to a select group of management and highly compensated Employees of the Employers, as determined by the Committee in its sole discretion. From that group, the Committee shall select, in its sole discretion, Employees to participate in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2**<u>Enrollment Requirements</u>**. As a condition to participation, each selected Employee shall complete, execute and return to the Committee or its designated agent a Plan Agreement, an Election Form and a Beneficiary Designation Form, all within 30 days after he or she is selected to participate in the Plan. In addition, the Committee shall establish from time to time such other enrollment requirements as it determines in its sole discretion are necessary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3**<u>Eligibility; Commencement of Participation</u>**. Provided an Employee selected to participate in the Plan has met all enrollment requirements set forth in this Plan and required by the Committee, including returning all required documents to the Committee or its designated agent within the specified time period, that Employee shall commence participation in the Plan on the first day of the month following the month in which the Employee completes all enrollment requirements or such later date, such as the first day of the next Plan Year, specified by the Committee. If an Employee fails to meet all such requirements within the period required, in accordance with Section 2.2, that Employee shall not be eligible to participate in the Plan until

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the first day of the Plan Year following the delivery to and acceptance by the Committee or its designated agent of the required documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4**<u>Termination of Participation and/or Deferrals</u>**. If the Committee determines in

good faith that a Participant no longer qualifies as a member of a select group of management or highly compensated employees, as membership in such group is determined in accordance with Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA, the Committee shall have the right, in its sole discretion, to prevent the Participant from making future deferral elections as of the first day of the subsequent Plan Year.

**ARTICLE 3**

**<u>Deferral Commitments/Company Matching/Crediting/Taxes</u>**

3.1**<u>Minimum Deferrals</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)**<u>Base Annual Salary and Annual Bonus</u>**. For each Plan Year, commencing with the 2008 Plan Year, a Participant may elect to defer, as his or her Annual Deferral Amount, Base Annual Salary and Annual Bonus in the following combined minimum amount:

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferral | &nbsp;&nbsp;&nbsp;&nbsp;Minimum Amount |
| Base Annual Salary | $&nbsp;&nbsp;&nbsp;&nbsp;0 |
| Annual Bonus | $&nbsp;&nbsp;&nbsp;&nbsp;0 |
| Combined Minimum | $2500 |

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If an election is made for less than the combined minimum, or if no election is made, the amount deferred shall be zero.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)**<u>Short Plan Year</u>**. Notwithstanding the foregoing, if a Participant first becomes a Participant after the first day of a Plan Year, the minimum deferral shall be an amount equal to the minimum set forth above, multiplied by a fraction, the numerator of which is the number of complete months remaining in the Plan Year and the denominator of which is 12.

3.2**<u>Maximum Deferral</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)**<u>Base Annual Salary and Annual Bonus</u>**. For each Plan Year, commencing with the 2008 plan year, a Participant may elect to defer, as his or her Annual Deferral Amount, Base Annual Salary and Annual Bonus up to the following maximum percentages for each deferral elected:

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferral | &nbsp;&nbsp;Maximum Amount |
| Base Annual Salary | &nbsp;&nbsp;75% |
| Annual Bonus | 100% |

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Notwithstanding the foregoing, if a Participant first becomes a Participant after the first day of a Plan Year, the maximum Annual Deferral Amount shall be limited to the amount of

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compensation not yet earned by the Participant as of the date the Participant submits a Plan Agreement and Election Form to the Committee or its designated agent for acceptance.

3.3**<u>Election to Defer; Effect of Election Form</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)**<u>General Rules</u>**. Except as provided below, a Participant must make his or

her deferral election as to a Plan Year no later than the applicable Deferral Election Date and such election shall become irrevocable as of the end of such preceding Plan Year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)**<u>Subsequent Plan Years</u>**. For each succeeding Plan Year, a Participant may revoke or make a new deferral election for the subsequent Plan Year, provided that such election is made before the applicable Deferral Election Date. In the absence of the timely delivery of such a new Election Form, the Election Form in effect at the end of a Plan Year shall constitute the Participant's irrevocable deferral election for the succeeding Plan Year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)**<u>Election Form.</u>** For the above elections to be valid, the Election Form must be completed and signed by the Participant and timely delivered to the Committee or its designated agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4**<u>Withholding of Annual Deferral Amounts</u>**. For each Plan Year, the Base Annual Salary portion of the Annual Deferral Amount shall be withheld from each regularly scheduled Base Annual Salary payroll in equal amounts, as adjusted from time to time for increases and decreases in Base Annual Salary. The Annual Bonus portion of the Annual Deferral Amount shall be withheld at the time the Annual Bonus is or otherwise would be paid to the Participant, whether or not this occurs during the Plan Year itself.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5**<u>Annual Company Contribution Amount</u>**. For each Plan Year, an Employer, in its sole discretion, may, but is not required to, credit any amount it desires to any Participant's Company Contribution Account under this Plan, which amount shall be for that Participant the Annual Company Contribution Amount for that Plan Year. The amount so credited to a Participant may be smaller or larger than the amount credited to any other Participant, and the amount credited to any Participant for a Plan Year may be zero, even though one or more other Participants receive an Annual Company Contribution Amount for that Plan Year. The Annual Company Contribution Amount, if any, shall be credited as of the last day of the Plan Year. If a Participant is not employed by an Employer as of the last day of a Plan Year other than by reason of his or her death while employed, the Annual Company Contribution Amount for that Plan Year shall be zero.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6**<u>Annual Company Matching Amount</u>**. Provided the Participant has elected to defer an Annual Deferral Amount for the Plan Year, the Participant's Annual Company Matching Amount for any Plan Year shall be equal to 2% of the Participant's Base Annual Salary, reduced by the amount of any matching contributions made to the 401(k) Plan on his or her behalf for the plan year of the 401(k) Plan that corresponds to the Plan Year. The Annual Company Matching Amount shall be credited on a quarterly basis during the Plan Year in the same manner as the matching contribution under the 401(k) Plan. If a Participant is not employed by an Employer as of the last day of a calendar quarter during the Plan Year other than by reason of his or her Retirement, Disability or death, the Annual Company Matching Amount

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attributable to such quarter and the remainder of such Plan Year shall be zero. In the event of death, a Participant shall be credited with the Annual Company Matching Amount attributable to the quarter of the Plan Year in which he or she dies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7**<u>Annual Profit Sharing Restoration Amount</u>**.&nbsp;&nbsp;&nbsp;&nbsp;A Participant's Annual Profit

Sharing Amount for any Plan Year shall be an amount, determined by the Company, equal to the amount of profit sharing and matching benefits which would have been credited to the Participant under the 401(k) Plan during the corresponding plan year of the 401(k) Plan, but for the Qualified Plan Limits and the Participant's participation in this Plan. If recommended by the Company's Retirement and Benefit Plans Administration Committee (or any such successor committee) ("Retirement Committee") and approved by the Committee in connection with the Participant's commencement of employment with the Company, the Participant's Annual Profit Sharing Restoration Amount shall also include an amount, determined by the Company, equal to the amount of profit sharing and matching benefits which would have been credited to the Participant under the 401(k) Plan for the period of the Participant's employment with the Company prior to the date the Participant first becomes eligible to participate in the 401(k) Plan. If a Participant is not employed by an Employer as of the last day of a Plan Year other than by reason of his or her Retirement, Disability or death, the Annual Profit Sharing Amount for such Plan Year shall be zero. In the event of Retirement, Disability or death, a Participant shall be credited with the Annual Profit Sharing Amount for the Plan Year in which he or she dies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8**<u>Annual Pension Restoration Amount</u>**. A Participant's Annual Pension Restoration Amount for any Plan Year shall be an amount, determined on a Actuarial Equivalent basis by the Company, equal to (a) the amount by which the Actuarial Equivalent value of the Participant's accrued benefit under the Pension Plan determined as of the last day of the Plan Year (i) as if the Participant's termination of employment occurred on the last day of the Plan Year, or, in the case of a Participant whose employment terminated for any reason during the Plan Year, such earlier date of termination, (ii) without giving effect to the Qualified Plan Limits and the Participant's deferral elections under this Plan, and (iii) if recommended by the Company's Retirement Committee and approved by the Committee in connection with the Participant's commencement of employment with the Company, by crediting of the period of employment prior to the date the Participant first became eligible to participate in the Pension Plan as benefit service, exceeds (b) the sum of (i) the Actuarial Equivalent value as of the last day of the Plan Year of the Participant's accrued benefit under the Pension Plan (including as part of such accrued benefit any amounts previously distributed to the Participant under the Pension Plan), plus (ii) the Actuarial Equivalent value of the Annual Pension Restoration Amounts credited to the Participant's Pension Restoration Account or paid to the Participant with respect to prior Plan Years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9**<u>Investment of Trust Assets</u>**. The Trustee of the Trust shall be authorized, upon written instructions received from the Committee or investment manager appointed by the Committee, to invest and reinvest the assets of the Trust in accordance with the applicable trust agreement.

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3.10**<u>Vesting</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;A Participant shall at all times be 100% vested in his or her Deferral

Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Except as otherwise provided in the Plan Agreement or other written

agreement between the Company and the Participant, a Participant shall be 100% vested in his or her Company Contribution Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;A Participant shall be 100% vested in his or her Company Matching

Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;A Participant shall be vested in his or her Profit Sharing Restoration

Account in accordance with the vesting schedule for Company profit sharing and matching contributions set forth in the 401(k) Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;A Participant shall be vested in his or her Pension Restoration Account in

accordance with the vesting schedule for retirement benefits set forth in the Pension Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything to the contrary contained in this Section 3.10, in

the event of a Change in Control, a Participant's Company Contribution Account, Company Matching Account, Profit Sharing Restoration Account and Pension Restoration Account shall immediately become 100% vested (if it is not already vested in accordance with the above vesting schedules).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.11**<u>Crediting/Debiting of Account Balances</u>**. In accordance with, and subject to,

the rules and procedures that are established from time to time by the Committee, in its sole discretion, amounts shall be credited or debited to a Participant's Account Balance in accordance with the following rules:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)**<u>Election of Investment Funds</u>**. Subject to Section 3.11(f) below, a Participant, in connection with his or her initial deferral election in accordance with Section 3.3(a) above, shall elect, on the Election Form, one or more Investment Fund(s) (as described in Section 3.11(c) below) to be used to determine the additional amounts to be credited to his or her Account Balance. A Participant may change his or her Investment Fund elections in accordance with guidelines set forth by the Committee from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)**<u>Proportionate Allocation</u>**. In making any election described in Section 3.11(a) above, the Participant shall specify on the Election Form, in increments of one percentage point (1%), the percentage of his or her Account Balance to be allocated to a Investment Fund (as if the Participant was making an investment in that Investment Fund with that portion of his or her Account Balance).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)**<u>Investment Funds</u>**. The Participant may elect one or more investment funds, based on such funds as are designated from time to time by Committee (the "Investment Funds"), including a Investment Fund deemed invested in Stock (the "Stock Investment Fund").

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As necessary, the Committee or the Retirement Committee acting at the direction of the Committee may, in its discretion, discontinue, substitute or add an Investment Fund. Each such action will take effect thirty (30) days after the day on which the Committee or the Retirement Committee gives Participants advance written notice of such change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)**<u>Crediting or Debiting Method</u>**.&nbsp;&nbsp;&nbsp;&nbsp;The performance of each elected

Investment Fund (either positive or negative) will be determined by the Committee, in its reasonable discretion, based on the performance of the Investment Funds themselves. A Participant's Account Balance shall be credited or debited on a daily basis based on the performance of each Investment Fund selected by the Participant, as determined by the Committee in its sole discretion, as though (i) a Participant's Account Balance were invested in the Investment Fund(s) selected by the Participant, in the percentages applicable to such calendar quarter, as of the close of business on the first business day of such calendar quarter, at the closing price on such date; (ii) the portion of the Annual Deferral Amount that was actually deferred during any calendar quarter were invested in the Investment Fund(s) selected by the Participant, in the percentages applicable to such calendar quarter, no later than the close of business on the first business day after the day on which such amounts are actually deferred from the Participant's Base Annual Salary through reductions in his or her payroll, at the closing price on such date; and (iii) any distribution made to a Participant that decreases such Participant's Account Balance ceased being invested in the Investment Fund(s), in the percentages applicable to such calendar quarter, no earlier than one business day prior to the distribution, at the closing price on such date. In furtherance of the foregoing, for purposes of crediting dividends attributable to the Stock Investment Fund, dividends shall be credited as of the record date thereof. The Participant's Annual Company Contribution Amount, Annual Company Matching Amount, Annual Profit Sharing Restoration Amount and Annual Pension Restoration Amount shall be credited to his or her Company Contribution Account, Company Matching Account, Profit Sharing Restoration Account and/or Pension Restoration Account, as the case may be, as of the last day of the Plan Year to which they relate. Despite the foregoing, to the extent the Deferral and other amounts described in this Article 3 are paid into the Trust and the Trust assets are invested from time to time to reflect the elections made by Participants pursuant to Section 3.11(a) above, then each Participant's Account Balance shall be debited or credited on the basis of the actual investment gains or losses of the Trust in lieu of crediting of the gains or losses in accordance with clauses (i), (ii) and (iii) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)**<u>No Actual Investment</u>**. Notwithstanding any other provision of this Plan that may be interpreted to the contrary, the Investment Funds are to be used for Investment purposes only, and a Participant's election of any such Investment Fund, the allocation to his or her Account Balance thereto, the calculation of additional amounts and the crediting or debiting of such amounts to a Participant's Account Balance shall not be considered or construed in any manner as an actual investment of his or her Account Balance in any such Investment Fund. In the event that the Company or the Trustee (as that term is defined in the applicable trust agreement with the Trust), in its own discretion, decides to invest funds in any or all of the Investment Funds, no Participant shall have any rights in or to such investments themselves. Without limiting the foregoing, a Participant's Account Balance shall at all times be a bookkeeping entry only and shall not represent any investment made on his or her behalf by the Company or the Trust; the Participant shall at all times remain an unsecured creditor of the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)**<u>Stock Investment Fund – Frozen</u>**. As of September 30, 1998, the portion of each Participant's Account Balance deemed invested in the Stock Investment Fund shall be referred to herein as the Stock Investment Fund – Frozen and be subject to the provisions of this Section 3.11(f). The portion of the Account Balance allocated to the Stock Investment Fund – Frozen shall, for so long as amounts deemed invested in such Fund are deemed invested in Stock, be subject to crediting and debiting solely on the basis of the investment performance of the Stock in which such portion of the Account Balance is deemed invested, including any dividends attributable thereto. No other amounts may be allocated to the Stock Investment Fund – Frozen, nor may any portion of the Account Balance deemed invested in the Stock Investment Fund – Frozen be allocated by the Participant (or Beneficiary) to any other Investment Fund. The distribution of any amount deemed invested in the Stock Investment Fund – Frozen shall be distributed in shares of Stock only; provided, however, that cash shall be distributed in lieu of any fractional share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)**<u>Stock Investment Fund – Active</u>**. Effective October 1, 1998, allocation of any portion of the Account Balance by a Participant (or Beneficiary) for deemed investment in the Stock Investment Fund shall be referred to herein as allocated to the Stock Investment Fund – Active and be subject to the limitations of this Section 3.11(g). Allocations of the Account Balance to the Stock Investment Fund – Active shall be limited such that no amount, other than that attributable to reinvested dividends, may be allocated to the Stock Investment Fund – Active if such allocation will cause the number of shares of Stock deemed represented by the Account Balance allocated to the Stock Investment Fund – Active to exceed 1,875 (subject to appropriate adjustments for any stock split, stock dividend, recapitalization, reorganization or the like). Amounts allocated to the Stock Investment Fund – Active may be allocated to other Investment Funds. Distribution of any portion of the Account Balance then deemed invested in the Stock Investment Fund – Active shall be distributed only in cash; provided, however that Committee may extend to Participants the right to receive such amounts in shares of Stock, provided such right is extended as an award under the Company's Omnibus Stock and Incentive Plan, as amended and restated, effective as of January 1, 2003.

3.12**<u>FICA and Other Taxes</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)**<u>Deferral Account</u>**. For each Plan Year in which an Annual Deferral Amount is being withheld from a Participant, the Participant's Employer(s) shall withhold from that portion of the Participant's Base Annual Salary and Bonus that is not being deferred, in a manner determined by the Employer(s), the Participant's share of FICA and other employment taxes on such Annual Deferral Amount. If necessary, the Committee may reduce the Annual Deferral Amount in order to comply with this Section 3.12.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)**<u>Company Matching Account, Company Contribution Account, Profit</u> <u>Sharing Restoration Account and Pension Restoration Account</u>**. When a Participant becomes vested in a portion of his or her Company Contribution Account, Company Matching Account, Profit Sharing Restoration Account and/or Pension Restoration Account, the Participant's Employer(s) shall withhold from the Participant's Base Annual Salary and/or Annual Bonus that is not deferred, in a manner determined by the Employer(s), the Participant's share of FICA and other employment taxes on such amount. If necessary, the Committee may reduce the vested portion of the Company Contribution Account, Participant's Company

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Matching Account, Profit Sharing Restoration Account and/or Pension Restoration Account in order to comply with this Section 3.12.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)**<u>Distributions</u>**. The Participant's Employer(s), or the trustee of the Trust,

shall withhold from any payments made to a Participant under this Plan all federal, state and local income, employment and other taxes required to be withheld by the Employer(s), or the trustee of the Trust, in connection with such payments, in amounts and in a manner to be determined in the sole discretion of the Employer(s) and the trustee of the Trust.

**ARTICLE 4**

**<u>Short-Term Payout; Unforeseeable Financial Emergencies</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1**<u>Short-Term Payout</u>**. In connection with each election to defer an Annual Deferral Amount, a Participant may irrevocably elect to receive a future "Short-Term Payout" from the Plan with respect to such Annual Deferral Amount. Subject to the Deduction Limitation, the Short-Term Payout shall be a lump sum payment in an amount that is equal to the Annual Deferral Amount plus amounts credited or debited in the manner provided in Section 3.11 above on that amount, determined at the time that the Short-Term Payout becomes payable (rather than the date of a Termination of Employment). Subject to the Deduction Limitation and the other terms and conditions of this Plan, each Short-Term Payout elected shall be paid out on the applicable Benefit Payment Date. By way of example, if a three year Short- Term Payout is elected for Annual Deferral Amounts that are deferred in the Plan Year commencing January 1, 2007, the three year Short-Term Payout would become payable during a 30-day period commencing January 1, 2011.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2**<u>Other Benefits Take Precedence Over Short-Term</u>**. Should an event occur that triggers payment of a benefit under Article 5, 6, or 7 any Annual Deferral Amount, plus amounts credited or debited thereon, that is subject to a Short-Term Payout election under Section 4.1 shall not be paid in accordance with Section 4.1 but shall be paid in accordance with the other applicable Article.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3**<u>Withdrawal Payout/Suspensions for Unforeseeable Financial Emergencies</u>**. If the Participant experiences an Unforeseeable Financial Emergency, the Participant may petition the Committee to (i) suspend any deferrals required to be made by a Participant and/or

&nbsp;&nbsp;&nbsp;&nbsp;(ii) receive a partial or full payout from the Plan. The payout shall not exceed the lesser of the Participant's Account Balance, calculated as if such Participant were receiving a Termination Benefit, or the amount reasonably needed to satisfy the Unforeseeable Financial Emergency. If, subject to the sole discretion of the Committee, the petition for a suspension and/or payout is approved, suspension shall take effect upon the date of approval and any payout shall be made within 60 days of the date of approval. The payment of any amount under this Section 4.3 shall be subject to the Deduction Limitation.

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**<u>ARTICLE V</u>**

**<u>Termination Benefit</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1**<u>Termination Benefit</u>**. Subject to Section 5.2 and the Deduction Limitation, a Participant who Experiences a Termination of Employment shall receive, as a Termination Benefit, his or her Account Balance on the Benefit Payment Date.

5.2**<u>Payment of Termination Benefit</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)A Participant, in connection with his or her commencement of

participation in the Plan, shall elect on an Election Form (i) whether to receive the Termination Benefit in a lump sum or pursuant to an Quarterly or Annual Installment Method of up to 60 quarters or 15 years and (ii) whether to receive the Termination Benefit on the Benefit Payment Date or during the 30-day period following the end of the calendar quarter during which the 1st, 2nd, 3rd, 4th or 5th anniversary of the Participant's Termination of Employment occurs. The Participant may make a one-time change to his or her previous election by submitting a new Election Form to the Committee or its designated agent, provided that (a) any such Election Form will not be effective for twelve (12) months after the date on which the Election Form is submitted to the Committee or its designated agent and (b) the date benefit payment(s) commence to the Participant shall be five (5) years after the date benefits would have otherwise commenced. Notwithstanding the foregoing, in no event shall a election change cause payment of a Termination Benefit to commence later than the 30-day period following the end of the calendar quarter in which the 10th anniversary of the Participant's Termination of Employment occurs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)If a Participant does not make any election with respect to the payment of

the Termination Benefit, then such benefit shall be payable in a lump sum to be paid on the Benefit Payment Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Notwithstanding the provisions of Sections 5.2(a) and (b) above, if the

Participant's Account Balance is less than the dollar limitation in effect under Code Section 402(g) at the time of Termination, payment of the Account Balance shall be made in a lump sum no later than 30 days after the last day of the calendar quarter in which the Participant experiences the Termination. Any payment made shall be subject to the Deduction Limitation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3**<u>Death Benefit</u>**. If a Participant dies before he or she experiences a Termination

of Employment, such Participant's Termination Benefit shall be paid to his or her designated Beneficiary in the form elected by the Participant under Section 5.2

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4**<u>Death Prior to Completion of Termination Benefit</u>**. If a Participant dies after experiencing the Termination of Employment but before the Termination Benefit is paid in full, the Participant's unpaid Termination Benefit payments shall continue and shall be paid to the Participant's Beneficiary over the remaining number of quarters and in the same amounts as that benefit would have been paid to the Participant had the Participant survived.

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**<u>Article VI</u>**

**<u>Change in Control Benefit</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1**<u>Change in Control Benefit</u>**. A Participant, in connection with his or her commencement of participation in the Plan, may make an irrevocable election to receive his or her vested Account Balance in the form of a lump sum payment in the event that a Change in Control occurs prior to the Participant's Termination of Employment, Disability or death (the "Change in Control Benefit").

If a Participant elects not to receive a Change in Control Benefit, or fails to make an election in connection with his or her commencement of participation in the Plan, the Participant's Account Balance shall be paid in accordance with the other applicable provisions of the Plan.

For purposes of this Article 6, Change in Control shall mean an event which is a Change in Control as defined in Article 1 and which is also a "change in control event" as defined in Treasury Regulation §1.409A-3(i)(5).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2**<u>Payment of Change in Control Benefit</u>**. The Change in Control Benefit shall be paid to the Participant in a lump sum on the Benefit Payment Date.

**ARTICLE 7**

**<u>Disability Benefit</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1**<u>Disability Benefit</u>**. A Participant who becomes Disabled prior to the occurrence of an event described in Articles 4, 5, and, if applicable, 6 shall receive his or her vested Account Balance in the form of a lump sum on the Benefit Payment Date

**ARTICLE 8**

**<u>Elections Relating to Company Contribution, Profit Sharing Restoration and Pension</u> <u>Restoration Amounts</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1**<u>Timing of Election</u>**. If an individual initially becomes a Participant as a result of the crediting of an Annual Company Contribution Amount, Annual Profit Sharing Restoration Amount, or Annual Pension Restoration Amount, such Participant shall make the appropriate elections relating to the distribution of such Amounts within 30 days after the end of the Plan Year with respect to which such Annual Company Contribution Amount, Annual Profit Sharing Restoration Amount, or Annual Pension Restoration Amount is credited.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2**<u>409A Transition Elections</u>**. Notwithstanding anything in this Plan to the contrary, effective through December 31, 2007 or such other date as provided for by the Internal Revenue Service ("IRS"), a Participant may make new distribution elections with respect to benefits other than Grandfathered Benefits; provided that any such elections comply with applicable IRS guidence.

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**ARTICLE 9**

**<u>Beneficiary Designation</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1**<u>Beneficiary</u>**. Each Participant shall have the right, at any time, to designate his or her Beneficiary(ies) (both primary as well as contingent) to receive any benefits payable under the Plan to a beneficiary upon the death of a Participant. The Beneficiary designated under this Plan may be the same as or different from the Beneficiary designation under any other plan of an Employer in which the Participant participates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2**<u>Beneficiary Designation</u>**. A Participant shall designate his or her Beneficiary by completing and signing the Beneficiary Designation Form, and returning it to the Committee or its designated agent. A Participant shall have the right to change a Beneficiary by completing, signing and otherwise complying with the terms of the Beneficiary Designation Form and the Committee's rules and procedures, as in effect from time to time. Upon the acceptance by the Committee of a new Beneficiary Designation Form, all Beneficiary designations previously filed shall be canceled. The Committee shall be entitled to rely on the last Beneficiary Designation Form filed by the Participant and accepted by the Committee prior to his or her death.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3**<u>Acknowledgment</u>**. No designation or change in designation of a Beneficiary shall be effective until received and acknowledged in writing by the Committee or its designated agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4**<u>No Beneficiary Designation</u>**. If a Participant fails to designate a Beneficiary as provided in Sections 9.1, 9.2 and 9.3 above or, if all designated Beneficiaries predecease the Participant or die prior to complete distribution of the Participant's benefits, then the Participant's designated Beneficiary shall be deemed to be his or her surviving spouse. If the Participant has no surviving spouse, the benefits remaining under the Plan to be paid to a Beneficiary shall be payable to the executor or personal representative of the Participant's estate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5**<u>Doubt as to Beneficiary</u>**. If the Committee has any doubt as to the proper Beneficiary to receive payments pursuant to this Plan, the Committee shall have the right, exercisable in its discretion, to cause the Participant's Employer to withhold such payments until this matter is resolved to the Committee's satisfaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6**<u>Discharge of Obligations</u>**. The payment of benefits under the Plan to a Beneficiary shall fully and completely discharge all Employers and the Committee from all further obligations under this Plan with respect to the Participant, and that Participant's Plan Agreement shall terminate upon such full payment of benefits.

**ARTICLE 10**

**<u>Leave of Absence</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1**<u>Paid Leave of Absence</u>**. If a Participant is authorized by the Participant's Employer for any reason to take a paid leave of absence from the employment of the Employer, the Participant shall continue to be considered employed by the Employer and the Annual Deferral Amount shall continue to be withheld during such paid leave of absence in accordance with Section 3.3.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2**<u>Unpaid Leave of Absence</u>**. If a Participant is authorized by the Participant's Employer for any reason to take an unpaid leave of absence from the employment of the Employer, the Participant shall continue to be considered employed by the Employer and the Participant shall be excused from making deferrals until the earlier of the date the leave of absence expires or the Participant returns to a paid employment status. Upon such expiration or return, deferrals shall resume for the remaining portion of the Plan Year in which the expiration or return occurs, based on the deferral election, if any, made for that Plan Year. If no election was made for that Plan Year, no deferral shall be withheld.

**ARTICLE 11**

**<u>Termination, Amendment or Modification</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1**<u>Termination</u>**. Although each Employer anticipates that it will continue the Plan for an indefinite period of time, there is no guarantee that any Employer will continue the Plan or will not terminate the Plan at any time in the future. Accordingly, each Employer reserves the right to discontinue its sponsorship of the Plan and/or to terminate the Plan at any time with respect to any or all of its participating Employees, by action of its board of directors. The termination of the Plan shall not adversely affect any Participant or Beneficiary who has become entitled to the payment of any benefits under the Plan as of the date of termination; provided however, that the Employer shall have the right to accelerate installment payments without a premium or prepayment penalty by paying the Account Balance in a lump sum or pursuant to a Quarterly or Annual Installment Method using fewer quarters or years (provided that the present value of all payments that will have been received by a Participant at any given point of time under the different payment schedule shall equal or exceed the present value of all payments that would have been received at that point in time under the original payment schedule). After a Change in Control, the effect of termination of the Plan shall be governed by Section 11.3 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2**<u>Amendment</u>**. Subject to Section 11.3 below relating to amendments made after a Change in Control, any Employer may, at any time, amend or modify the Plan in whole or in part with respect to that Employer by the action of its board of directors; provided, however, that:

&nbsp;&nbsp;&nbsp;&nbsp;(i) no amendment or modification shall be effective to decrease or restrict the value of a Participant's Account Balance in existence at the time the amendment or modification is made, calculated as if the Participant had experienced a Termination of Employment as of the effective date of the amendment or modification; and (ii) no amendment or modification of this Section 11.2 or Section 12.2 of the Plan shall be effective. Such amendment or modification of the Plan shall not affect any Participant or Beneficiary who has become entitled to the payment of benefits under the Plan as of the date of the amendment or modification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3**<u>Effect of Change in Control</u>**. Despite the provisions of Sections 11.1 and 11.2 above, following a Change in Control, the provisions of this Plan or any Participant's Plan Agreement may not be amended or terminated in any manner with respect to a Participant or Beneficiary if such amendment or termination would have an adverse effect in any way upon the computation or amount of or entitlement to benefits of such Participant or Beneficiary under the Plan as in effect immediately prior to the Change in Control, including, but not limited to, any adverse change in or to the crediting or debiting of amounts to the Account Balances or the time or manner of payment of the Account Balances to any Participant or Beneficiary, unless the Participant or Beneficiary has given written consent to such amendment or termination. An

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"adverse change" for purposes of this Section 11.3 shall include, but not be limited to, any acceleration of the payment of the Account Balances payable to the Participant or Beneficiary or a change in the composition of the risk and return characteristics represented by the available Investment Funds or the Participant's or Beneficiary's ability to allocate his or her Account Balances among such Investment Funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.4**<u>Plan Agreement</u>**. Despite the provisions of Sections 11.1 and 11.2 above, if a

Participant's Plan Agreement contains benefits or limitations that are not in this Plan document, the Employer may only amend or terminate such provisions with the consent of the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.5**<u>Effect of Payment</u>**. The full payment of the applicable benefit under Articles 4, 5, 6 or 7 of the Plan shall completely discharge all obligations to a Participant and his or her designated Beneficiaries under this Plan and the Participant's Plan Agreement shall terminate.

**ARTICLE 12**

**<u>Administration</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1**<u>Committee Duties</u>**. Except as otherwise provided in this Article 12, this Plan shall be administered by a Committee which shall consist of the Board, or such committee as the Board shall appoint. Members of the Committee may be Participants under this Plan. The Committee shall also have the discretion and authority to (i) make, amend, interpret, and enforce all appropriate rules and regulations for the administration of this Plan and (ii) decide or resolve any and all questions including interpretations of this Plan, as may arise in connection with the Plan. Any individual serving on the Committee who is a Participant shall not vote or act on any matter relating solely to himself or herself. When making a determination or calculation, the Committee shall be entitled to rely on information furnished by a Participant or the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2**<u>Agents</u>**. In the administration of this Plan, the Committee may, from time to time, employ agents and delegate to them such administrative duties as it sees fit (including acting through a duly appointed representative) and may from time to time consult with counsel who may be counsel to any Employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3**<u>Indemnity of Committee</u>**. All Employers shall indemnify and hold harmless the members of the Committee, any Employee to whom the duties of the Committee may be delegated, and the Retirement Committee against any and all claims, losses, damages, expenses or liabilities arising from any action or failure to act with respect to this Plan, except in the case of willful misconduct by the Committee, any of its members, any such Employee or the Retirement Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.4**<u>Employer Information</u>**. To enable the Committee and/or Retirement Committee to perform its functions, the Company and each Employer shall supply full and timely information to the Committee and/or Retirement Committee, as the case may be, on all matters relating to the compensation of its Participants, the date and circumstances of the Disability, death or Termination of Employment of its Participants, and such other pertinent information as the Committee or Retirement Committee may reasonably require.

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**ARTICLE 13**

**<u>Other Benefits and Agreements</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1**<u>Coordination with Other Benefits</u>**. The benefits provided for a Participant and Participant's Beneficiary under the Plan are in addition to any other benefits available to such Participant under any other plan or program for employees of the Participant's Employer. The Plan shall supplement and shall not supersede, modify or amend any other such plan or program except as may otherwise be expressly provided.

**ARTICLE 14**

**<u>Claims Procedures</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1**<u>Presentation of Claim</u>**. Any Participant or Beneficiary of a deceased Participant (such Participant or Beneficiary being referred to below as a "Claimant") may deliver to the Committee or its designated agent a written claim for a determination with respect to the amounts distributable to such Claimant from the Plan. If such a claim relates to the contents of a notice received by the Claimant, the claim must be made within 60 days after such notice was received by the Claimant. All other claims must be made within 180 days of the date on which the event that caused the claim to arise occurred. The claim must state with particularity the determination desired by the Claimant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2**<u>Notification of Decision</u>**. The Committee shall consider a Claimant's claim within a reasonable time, and shall notify the Claimant in writing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)that the Claimant's requested determination has been made, and that the

claim has been allowed in full; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)that the Committee has reached a conclusion contrary, in whole or in part,

to the Claimant's requested determination, and such notice must set forth in a manner calculated to be understood by the Claimant:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)the specific reason(s) for the denial of the claim, or any part of it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)specific reference(s) to pertinent provisions of the Plan upon which

such denial was based;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)a description of any additional material or information necessary

for the Claimant to perfect the claim, and an explanation of why such material or information is necessary; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)an explanation of the claim review procedure set forth in Section 14.3 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.3**<u>Review of a Denied Claim</u>**. Within 60 days after receiving a notice from the

Committee that a claim has been denied, in whole or in part, a Claimant (or the Claimant's duly authorized representative) may file with the Committee a written request for a review of the denial of the claim. Thereafter, but not later than 30 days after the review procedure began, the Claimant (or the Claimant's duly authorized representative):

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;may review pertinent documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;may submit written comments or other documents; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;may request a hearing, which the Committee, in its sole discretion, may

grant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.4**<u>Decision on Review</u>**.&nbsp;&nbsp;&nbsp;&nbsp;The Committee shall render its decision on review

promptly, and not later than 60 days after the filing of a written request for review of the denial, unless a hearing is held or other special circumstances require additional time, in which case the Committee's decision must be rendered within 120 days after such date. Such decision must be written in a manner calculated to be understood by the Claimant, and it must contain:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)specific reasons for the decision;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)specific reference(s) to the pertinent Plan provisions upon which the

decision was based; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)such other matters as the Committee deems relevant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.5**<u>Legal Action</u>**. A Claimant's compliance with the foregoing provisions of this

Article 14 is a mandatory prerequisite to a Claimant's right to commence any legal action with respect to any claim for benefits under this Plan.

**ARTICLE 15**

**<u>Trust</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1**<u>Establishment of the Trust</u>**. The Company shall establish the Trust, and each Employer shall at least annually transfer over to the Trust such assets as the Employer determines, in its sole discretion, are necessary to provide, on a present value basis, for its respective future liabilities created with respect to the Annual Deferral Amounts, Annual Company Contribution Amounts, and Company Matching Amounts for such Employer's Participants for all periods prior to the transfer, as well as any debits and credits to the Participants' Account Balances for all periods prior to the transfer, taking into consideration the value of the assets in the trust at the time of the transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.2**<u>Interrelationship of the Plan and the Trust</u>**. The provisions of the Plan and the Plan Agreement shall govern the rights of a Participant to receive distributions pursuant to the Plan. The provisions of the Trust shall govern the rights of the Employers, Participants and the creditors of the Employers to the assets transferred to the Trust. Each Employer shall at all times remain liable to carry out its obligations under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.3**<u>Distributions From the Trust</u>**. Each Employer's obligations under the Plan may be satisfied with Trust assets distributed pursuant to the terms of the Trust, and any such distribution shall reduce the Employer's obligations under this Plan.

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**ARTICLE 16**

**<u>Miscellaneous</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1**<u>Status of Plan</u>**. The Plan is intended to be a plan that is not qualified within the meaning of Code Section 401(a) and that "is unfunded and is maintained by an employer primarily for the purpose of providing deferred compensation for a select group of management or highly compensated employee" within the meaning of ERISA Sections 201(2), 301(a)(3) and 401(a)(1). In all respects, the Plan is intended to comply with the requirements of Code Section 409A and all regulations issued thereunder. The Plan shall be administered and interpreted to the extent possible in a manner consistent with that intent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.2**<u>Unsecured General Creditor</u>**. Participants and their Beneficiaries, heirs, successors and assigns shall have no legal or equitable rights, interests or claims in any property or assets of an Employer. For purposes of the payment of benefits under this Plan, any and all of an Employer's assets shall be, and remain, the general, unpledged unrestricted assets of the Employer. An Employer's obligation under the Plan shall be merely that of an unfunded and unsecured promise to pay money in the future.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.3**<u>Employer's Liability</u>**. An Employer's liability for the payment of benefits shall be defined only by the Plan and the Plan Agreement, as entered into between the Employer and a Participant. An Employer shall have no obligation to a Participant under the Plan except as expressly provided in the Plan and his or her Plan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.4**<u>Nonassignability</u>**. Neither a Participant nor any other person shall have any right to commute, sell, assign, transfer, pledge, anticipate, mortgage or otherwise encumber, transfer, hypothecate, alienate or convey in advance of actual receipt, the amounts, if any, payable hereunder, or any part thereof, which are, and all rights to which are expressly declared to be, unassignable and non-transferable. No part of the amounts payable shall, prior to actual payment, be subject to seizure, attachment, garnishment or sequestration for the payment of any debts, judgments, alimony or separate maintenance owed by a Participant or any other person, be transferable by operation of law in the event of a Participant's or any other person's bankruptcy or insolvency or be transferable to a spouse as a result of a property settlement or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.5**<u>Not a Contract of Employment</u>**. The terms and conditions of this Plan shall not be deemed to constitute a contract of employment between any Employer and the Participant. Such employment is hereby acknowledged to be an "at will" employment relationship that can be terminated at any time for any reason, or no reason, with or without cause, and with or without notice, unless expressly provided in a written employment agreement. Nothing in this Plan shall be deemed to give a Participant the right to be retained in the service of any Employer as an Employee, or to interfere with the right of any Employer to discipline or discharge the Participant at any time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.6**<u>Furnishing Information</u>**. A Participant or his or her Beneficiary will cooperate with the Committee by furnishing any and all information requested by the Committee and take such other actions as may be requested in order to facilitate the administration of the Plan and the payments of benefits hereunder, including but not limited to taking such physical examinations as the Committee may deem necessary.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.7**<u>Terms</u>**. Whenever any words are used herein in the masculine, they shall be construed as though they were in the feminine in all cases where they would so apply; and whenever any words are used herein in the singular or in the plural, they shall be construed as though they were used in the plural or the singular, as the case may be, in all cases where they would so apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.8**<u>Captions</u>**. The captions of the articles, sections and paragraphs of this Plan are for convenience only and shall not control or affect the meaning or construction of any of its provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.9**<u>Governing Law</u>**. Subject to ERISA, the provisions of this Plan shall be construed and interpreted according to the internal laws of the State of Illinois without regard to its conflicts of laws principles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.10**<u>Notice</u>**. Any notice or filing required or permitted to be given to the Committee under this Plan shall be sufficient if in writing and hand-delivered, or sent by registered or certified mail, to the address below:

Corporate Secretary

First Midwest Bancorp, Inc. One Pierce Place, Suite 1500 Itasca, IL 60143

Such notice shall be deemed given as of the date of delivery or, if delivery is made by mail, as of the date shown on the postmark on the receipt for registration or certification.

Any notice or filing required or permitted to be given to a Participant under this Plan shall be sufficient if in writing and hand-delivered, or sent by mail, to the last known address of the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.11**<u>Successors</u>**. The provisions of this Plan shall bind and inure to the benefit of the Participant's Employer and its successors and assigns and the Participant and the Participant's designated Beneficiaries. The Company shall require any successor or assignee to expressly and unconditionally assume and agree to perform or cause to be performed each Employer's obligations hereunder. In addition, the Company shall require the ultimate parent entity of any successor or assignee to expressly guaranty the prompt performance by such successor or assignee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.12**<u>Spouse's Interest</u>**. The interest in the benefits hereunder of a spouse of a Participant who has predeceased the Participant shall automatically pass to the Participant and shall not be transferable by such spouse in any manner, including but not limited to such spouse's will, nor shall such interest pass under the laws of intestate succession.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.13**<u>Validity</u>**. In case any provision of this Plan shall be illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining parts hereof, but this Plan shall be construed and enforced as if such illegal or invalid provision had never been inserted herein.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.14**<u>Incompetent</u>**. If the Committee determines in its discretion that a benefit under this Plan is to be paid to a minor, a person declared incompetent or to a person incapable of handling the disposition of that person's property, the Committee may direct payment of such benefit to the guardian, legal representative or person having the care and custody of such minor, incompetent or incapable person. The Committee may require proof of minority, incompetence, incapacity or guardianship, as it may deem appropriate prior to distribution of the benefit. Any payment of a benefit shall be a payment for the account of the Participant and the Participant's Beneficiary, as the case may be, and shall be a complete discharge of any liability under the Plan for such payment amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.15**<u>Court Order</u>**. The Committee is authorized to make any payments directed by court order in any action in which the Plan or the Committee has been named as a party. In addition, if a court determines that a spouse or former spouse of a Participant has an interest in the Participant's benefits under the Plan in connection with a property settlement or otherwise, the Committee, in its sole discretion, shall have the right, notwithstanding any election made by a Participant, to immediately distribute the spouse's or former spouse's interest in the Participant's benefits under the Plan to that spouse or former spouse.

16.16**<u>Distribution in the Event of Taxation</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)**<u>In General</u>**. If, for any reason, all or any portion of a Participant's benefits under this Plan becomes taxable to the Participant prior to receipt, a Participant may petition the Committee before a Change in Control, or the trustee of the Trust after a Change in Control, for a distribution of that portion of his or her benefit that has become taxable. Upon the grant of such a petition, which grant shall not be unreasonably withheld (and, after a Change in Control, shall be granted), a Participant's Employer shall distribute to the Participant immediately available funds in an amount equal to the taxable portion of his or her benefit (which amount shall not exceed a Participant's unpaid Account Balance under the Plan). If the petition is granted, the tax liability distribution shall be made within 90 days of the date when the Participant's petition is granted. Such a distribution shall affect and reduce the benefits to be paid under this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)**<u>Trust</u>**. If the Trust terminates in accordance with its terms and benefits are distributed from the Trust thereunder to a Participant, the Participant's benefits under this Plan shall be reduced to the extent of such distributions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.17**<u>Insurance</u>**. The Employers, on their own behalf or on behalf of the trustee of the Trust, and, in their sole discretion, may apply for and procure insurance on the life of the Participant, in such amounts and in such forms as the Trust may choose. The Employers or the trustee of the Trust, as the case may be, shall be the sole owner and beneficiary of any such insurance. The Participant shall have no interest whatsoever in any such policy or policies, and at the request of the Employers shall submit to medical examinations and supply such information and execute such documents as may be required by the insurance company or companies to whom the Employers have applied for insurance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.18**<u>Legal Fees To Enforce Rights After Change in Control</u>**. In the event of a Change in Control, the Company shall pay all reasonable legal fees, costs and expenses incurred

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by a Participant or Beneficiary in enforcing any provision of this Plan or as a result of the Company's or any Employer's contesting the validity, enforceability or interpretation of this Plan. Such payment shall be made within 30 days after the Participant or Beneficiary submits in writing a request for payment accompanied with such evidence of fees and expenses incurred by the Participant or Beneficiary. In no case will a payment under this Section 16.18 be made after the December 31 of the year following the year in which the Participant or Beneficiary incurred such fees and expenses.

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IN WITNESS WHEREOF, the Company has signed this Plan document as of

<u>December 28</u>, 2007.

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| |
|:---|
| **First Midwest Bancorp, Inc. a Delaware corporation** |
| /s/ JOHN M. O'MEARA |
| Title: Chairman and CEO |

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**APPENDIX A**

The following provisions govern the distribution of benefits that were earned and vested as of December 31, 2004 (including any earnings thereon). The provisions of this Appendix A mirror the Plan provisions effective as of December 31, 2004 and should be interpreted accordingly.

A.1.**<u>Definitions</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)"Disability" shall mean a period of disability during which a Participant

qualifies for permanent disability benefits under the Participant's Employer's long-term disability plan, or, if a Participant does not participate in such a plan, a period of disability during which the Participant would have qualified for permanent disability benefits under such a plan had the Participant been a participant in such a plan, as determined in the sole discretion of the Committee. If the Participant's Employer does not sponsor such a plan, or discontinues to sponsor such a plan, Disability shall be determined by the Committee in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)"Termination of Employment" or "Termination" shall mean the severing

of employment with all Employers, voluntarily or involuntarily, for any reason other than Disability, death or an authorized leave of absence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)"Unforeseeable Financial Emergency" shall mean an unanticipated

emergency that is caused by an event beyond the control of the Participant that would result in severe financial hardship to the Participant resulting from (i) a sudden and unexpected illness or accident of the Participant or a dependent of the Participant, (ii) a loss of the Participant's property due to casualty, or (iii) such other extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant for which distribution is necessary to preserve the value of the benefits of this Plan to the Participant, all as determined in the sole discretion of the Committee.

Terms used in this Appendix but not defined above shall be defined under the terms of the Plan in effect as of December 31, 2004.

A.2.**<u>Distribution of Benefits</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)**<u>Short-Term Payout</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)In connection with each election to defer an Annual Deferral Amount, a Participant may irrevocably elect to receive a future "Short-Term Payout" from the Plan with respect to such Annual Deferral Amount. Subject to the Deduction Limitation, the Short-Term Payout shall be a lump sum payment in an amount that is equal to the Annual Deferral Amount plus any earnings on such amount, determined at the time that the Short-Term Payout becomes payable (rather than the date of a Termination of Employment). Subject to the Deduction Limitation and the other terms and conditions of this Plan, each Short-Term Payout elected shall be paid out during a 60- day period commencing immediately after the last day of any Plan Year designated by the Participant that is at least three Plan Years after the Plan Year in which the Annual Deferral Amount is actually deferred. By way of example, if a three year Short-Term

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Payout is elected for Annual Deferral Amounts that are deferred in the Plan Year commencing January 1, 2000, the three year Short-Term Payout would become payable during a 60-day period commencing January 1, 2004.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)<u>Other Benefits Take Precedence Over Short-Term</u>.&nbsp;&nbsp;&nbsp;&nbsp;Should an

event occur that triggers a benefit under Sections (d), (e) or (f), any Annual Deferral Amount, plus amounts credited or debited thereon, that is subject to a Short-Term Payout election under this Section (a) shall not be paid in accordance with this Section (a) but shall be paid in accordance with the other applicable Section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)**<u>Withdrawal Payout/Suspensions for Unforeseeable Financial</u> <u>Emergencies</u>**. If the Participant experiences an Unforeseeable Financial Emergency, the Participant may petition the Committee to (i) suspend any deferrals required to be made by a Participant and/or (ii) receive a partial or full payout from the Plan. The payout shall not exceed the lesser of the Participant's Account Balance, calculated as if such Participant were receiving a Termination Benefit, or the amount reasonably needed to satisfy the Unforeseeable Financial Emergency. If, subject to the sole discretion of the Committee, the petition for a suspension and/or payout is approved, suspension shall take effect upon the date of approval and any payout shall be made within 60 days of the date of approval. The payment of any amount under this Section (a) shall be subject to the Deduction Limitation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)**<u>Withdrawal Election</u>**. A Participant (or, after a Participant's death, his or her Beneficiary) may elect, at any time, to withdraw all of his or her Account Balance, calculated as if there had occurred a Termination of Employment as of the day of the election, less a withdrawal penalty equal to 10% of such amount (the net amount shall be referred to as the "Withdrawal Amount"). This election can be made at any time, before or after Disability, death or Termination of Employment, and whether or not the Participant (or Beneficiary) is in the process of being paid pursuant to an installment payment schedule. If made before Disability or death, a Participant's Withdrawal Amount shall be his or her Account Balance calculated as if there had occurred a Termination of Employment as of the day of the election. No partial withdrawals of the Withdrawal Amount shall be allowed. The Participant (or his or her Beneficiary) shall make this election by giving the Committee advance written notice of the election in a form determined from time to time by the Committee. The Participant (or his or her Beneficiary) shall be paid the Withdrawal Amount within 60 days of his or her election. Once the Withdrawal Amount is paid, the Participant's right to voluntarily defer compensation into the Plan shall terminate and the Participant shall not be eligible to make any voluntary deferral elections for the remainder of the Plan Year of the Withdrawal Election and the next Plan Year. The payment of the Withdrawal Amount shall be subject to the Deduction Limitation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)**<u>Termination Benefit</u>**. Subject to the Deduction Limitation, a Participant who Experiences a Termination of Employment shall receive, as a Termination Benefit, his or her Account Balance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)<u>Payment of Termination Benefit</u>. A Participant, in connection with his or her commencement of participation in the Plan, shall elect on an Election Form to receive the Termination Benefit in a lump sum or pursuant to an Quarterly or Annual Installment Method of up to 60 quarters or 15 years. The Participant may annually

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change his or her election to an allowable alternative payout period by submitting a new Election Form to the Committee, provided that any such Election Form is applicable to a Termination date which occurs in a subsequent calendar year and at least six months (or such shorter period as the Committee may approve) after the date the new Election Form is accepted by the Committee in its sole discretion; provided, however, such advance filing period shall not apply to a new Election Form submitted prior to a Change in Control which is applicable to a Termination date which occurs on or after the date of the Change in Control. The Election Form most recently accepted by the Committee shall govern the payout of the Termination Benefit. If a Participant does not make any election with respect to the payment of the Termination Benefit, then such benefit shall be payable in five annual payments under the Quarterly or Annual Installment Method. The lump sum payment shall be made, or installment payments shall commence, no later than 30 days after the last day of the calendar quarter in which the Participant experiences the Termination of Employment; provided, however, the Participant may elect to have the Termination Benefit payment commencement date delayed for up to five (5) years from the Termination date by submitting an Election Form to that effect which is accepted by the Committee at least six months (or such shorter period as the Committee may approve) prior to the Termination date. Despite the foregoing, if the Participant's Account Balance is less than $25,000 at the time of Termination, payment of the Account Balance shall be made in a lump sum no later than 30 days after the last day of the calendar quarter in which the Participant experiences the Termination. Any payment made shall be subject to the Deduction Limitation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)<u>Death Prior to Completion of Termination Benefit</u>. If a Participant

dies after experiencing the Termination of Employment but before the Termination Benefit is paid in full, the Participant's unpaid Termination Benefit payments shall continue and shall be paid to the Participant's Beneficiary (a) over the remaining number of quarters and in the same amounts as that benefit would have been paid to the Participant had the Participant survived, or (b) in a lump sum, if requested by the Beneficiary and allowed in the sole discretion of the Committee, that is equal to the Participant's unpaid remaining Account Balance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)**<u>Pre-Termination Survivor Benefit</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Subject to the Deduction Limitation, the Participant's Beneficiary

shall receive a Pre-Termination Survivor Benefit equal to the Participant's Account Balance if the Participant dies before he or she experiences a Termination of Employment or suffers a Disability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)A Participant, in connection with his or her commencement of

participation in the Plan, shall elect on an Election Form whether the Pre-Termination Survivor Benefit shall be received by his or her Beneficiary in a lump sum or pursuant to an Quarterly or Annual Installment Method of up to 60 quarters or 15 years. For purposes of this subsection (e), a Participant's election under subsection (d)(i) above shall govern the time and form of distribution of the Pre-Termination Survivor Benefit. The Participant may annually change this election to an allowable alternative payout period by submitting a new Election Form to the Committee or its designated agent, which form

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must be accepted by the Committee in its sole discretion. The Election Form most recently accepted by the Committee prior to the Participant's death shall govern the payout of the Participant's Pre-Termination Survivor Benefit. If a Participant does not make any election with respect to the payment of the Pre-Termination Survivor Benefit, then such benefit shall be paid in a lump sum. Despite the foregoing, if the Participant's Account Balance at the time of his or her death is less than $25,000, payment of the Pre- Termination Survivor Benefit shall be made in a lump sum. The lump sum payment shall be made, or installment payments shall commence, no later than 30 days after the last day of the calendar quarter in which the Committee is provided with proof that is satisfactory to the Committee or its designated agent of the Participant's death. Any payment made shall be subject to the Deduction Limitation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)**<u>Disability Waiver and Benefit</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)<u>Waiver of Deferral</u>.&nbsp;&nbsp;&nbsp;&nbsp;A Participant who is determined by the

Committee to be suffering from a Disability shall be excused from fulfilling that portion of the Annual Deferral Amount commitment that would otherwise have been withheld from a Participant's Base Annual Salary and Annual Bonus for the Plan Year during which the Participant first suffers a Disability. During the period of Disability, the Participant shall not be allowed to make any additional deferral elections, but will continue to be considered a Participant for all other purposes of this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)<u>Return to Work</u>. If a Participant returns to employment with an Employer after a Disability ceases, the Participant may elect to defer an Annual Deferral Amount for the Plan Year following his or her return to employment or service and for every Plan Year thereafter while a Participant in the Plan; provided such deferral elections are otherwise allowed and an Election Form is delivered to and accepted by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)<u>Payment of Disability Benefit</u>. A Participant suffering a Disability shall, for benefit purposes under this Plan, continue to be considered to be employed and shall be eligible for the benefits provided for in Sections (a)-(f) in accordance with the provisions of those Articles. Notwithstanding the above, the Committee shall have the right to, in its sole and absolute discretion and for purposes of this Plan only, deem the Participant to have experienced a Termination of Employment, at any time after such Participant is determined to be suffering a Disability, in which case the Participant shall receive a Disability Benefit equal to his or her Account Balance at the time of the Committee's determination. The Disability Benefit shall be paid in a lump sum within 60 days of the Committee's exercise of such right. Any payment made shall be subject to the Deduction Limitation.

## Exhibit 10.17

**Exhibit 10.17**

**FREEZE AMENDMENT TO THE**

**FIRST MIDWEST BANCORP, INC. NONQUALIFIED RETIREMENT PLAN** 

**(As Amended and Restated Generally Effective as of January 1, 2014)**

&nbsp;&nbsp;&nbsp;&nbsp;**WHEREAS**, Old National Bancorp (successor by merger to First Midwest Bancorp, Inc.) (the "Company") maintains the First Midwest Bancorp, Inc. Nonqualified Retirement Plan, as amended and restated effective January 1, 2014 (the "Plan"); and

**WHEREAS**, on May 30, 2021, the Company entered into an Agreement and Plan of Merger with Old National Bancorp pursuant to which First Midwest Bancorp, Inc. merged with and into the Company effective as of February 15, 2022 (the "Merger"); and

**WHEREAS**, pursuant to Article 11 of the Plan, the Company reserved the right to amend the Plan at any time and has delegated that authority to the Talent Development and Compensation Board Committee ("Committee"); and

**WHEREAS**, in connection with the Merger, the Committee considered and deems it advisable to amend the Plan to (i) include terms describing eligibility from February 15, 2022 through December 31, 2022, (ii) freeze participation to only those persons who are existing participants in the Plan as of December 31, 2022, and (iii) cease all deferral and Company contributions to the Plan as of December 31, 2022 except with regard to (a) deferral elections in effect for salary and bonus amounts earned in 2022 but paid in 2023, and (b) the Annual Company Contribution Amount, Annual Company Matching Contribution Amount, and the Annual Company Profit Sharing Restoration Amount attributable to the 2022 plan year that may be credited during 2023.

**NOW, THEREFORE**, pursuant to the power delegated to the undersigned officer of the Company in accordance with the authorizations and directions of the Committee, the Plan is hereby amended by adding the following new paragraph immediately before Article I of the Plan:

**<u>Plan Freeze</u>**

Notwithstanding anything herein to the contrary, effective December 31, 2022, the Plan is frozen as to further participation ("Participation Freeze Date") such that participation is limited to only those Employees who are existing Participants in the Plan as of the Participation Freeze Date, and no individual shall thereafter become eligible to participate in the Plan. Furthermore, except with regard to (a) existing Participant deferral elections in effect for Base Annual Salary and Annual Bonus amounts earned in 2022 but paid in 2023, and (b) the Annual Company Contribution Amount, Annual Company Matching Contribution Amount, and the Annual Company Profit Sharing Restoration Amount attributable to the 2022 Plan Year that may be credited during 2023, no other amounts shall be deferred or credited under the Plan after the Participation Freeze Date. Finally, for clarification purposes only, Participants who had made deferral elections for the 2022 Plan Year prior to February 15, 2022 ("Merger Date") when First Midwest Bancorp, Inc. merged with and into Old National Bancorp shall remain Participants in the Plan for the remainder of the 2022 Plan Year regardless of their employer becoming Old National Bancorp as of the Merger Date.

Page 1 of 2

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**IN WITNESS WHEREOF**, and in accordance with the authorizations and directions of the Talent Development and Compensation Board Committee of Old National Bancorp, the foregoing Freeze Amendment to the First Midwest Bancorp, Inc. Nonqualified Retirement Plan, is hereby adopted this 16<sup>th</sup> day of August 2022 by the undersigned duly authorized officer.

**OLD NATIONAL BANCORP**

**By:&nbsp;&nbsp;&nbsp;&nbsp;**<u>/s/ Nicholas J. Chulos</u>

**Nicholas J. Chulos, Chief Legal Officer and Corporate Secretary**

Page 2 of 2

## Exhibit 10.18

**Exhibit 10.18**

**First Midwest Bancorp, Inc.**

Nonqualified Stock Option Gain Deferral Plan

*Master Plan Document*

**Amended and Restated effective January 1, 2008**

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**TABLE OF CONTENTS**

ARTICLE I&nbsp;&nbsp;&nbsp;&nbsp;GENERAL&nbsp;&nbsp;&nbsp;&nbsp;1

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1Effective Date&nbsp;&nbsp;&nbsp;&nbsp;1

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2Purpose&nbsp;&nbsp;&nbsp;&nbsp;1

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3Intent&nbsp;&nbsp;&nbsp;&nbsp;1

ARTICLE II&nbsp;&nbsp;&nbsp;&nbsp;DEFINITIONS AND USAGE&nbsp;&nbsp;&nbsp;&nbsp;2

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1Definitions&nbsp;&nbsp;&nbsp;&nbsp;2

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2Usage.&nbsp;&nbsp;&nbsp;&nbsp;3

ARTICLE III&nbsp;&nbsp;&nbsp;&nbsp;ELIGIBILITY AND PARTICIPATION&nbsp;&nbsp;&nbsp;&nbsp;3

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1Eligibility&nbsp;&nbsp;&nbsp;&nbsp;3

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2Participation&nbsp;&nbsp;&nbsp;&nbsp;4

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3Deferral Election Procedure&nbsp;&nbsp;&nbsp;&nbsp;4

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4Stock-for-Stock Payment Method for Options&nbsp;&nbsp;&nbsp;&nbsp;4

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5Delivery of Stock&nbsp;&nbsp;&nbsp;&nbsp;4

ARTICLE IV&nbsp;&nbsp;&nbsp;&nbsp;PARTICIPANT ACCOUNTS&nbsp;&nbsp;&nbsp;&nbsp;5

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1Accounts&nbsp;&nbsp;&nbsp;&nbsp;5

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2Participant Deferrals&nbsp;&nbsp;&nbsp;&nbsp;5

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3Investment Procedure.&nbsp;&nbsp;&nbsp;&nbsp;5

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4Valuation of Accounts&nbsp;&nbsp;&nbsp;&nbsp;5

ARTICLE V&nbsp;&nbsp;&nbsp;&nbsp;PAYMENT OF BENEFITS&nbsp;&nbsp;&nbsp;&nbsp;6

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1Entitlement to Benefit Payments&nbsp;&nbsp;&nbsp;&nbsp;6

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2Commencement of Benefit Payments&nbsp;&nbsp;&nbsp;&nbsp;6

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3Short-Term Payout&nbsp;&nbsp;&nbsp;&nbsp;7

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4Unforeseeable Financial Emergencies&nbsp;&nbsp;&nbsp;&nbsp;7

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5Withdrawal Election&nbsp;&nbsp;&nbsp;&nbsp;7

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6Payments in Stock&nbsp;&nbsp;&nbsp;&nbsp;8

ARTICLE VI&nbsp;&nbsp;&nbsp;&nbsp;PAYMENT OF BENEFIT ON OR AFTER DEATH&nbsp;&nbsp;&nbsp;&nbsp;8

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1Commencement of Payments After Death&nbsp;&nbsp;&nbsp;&nbsp;8

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2Designation of Beneficiary&nbsp;&nbsp;&nbsp;&nbsp;8

ARTICLE VII&nbsp;&nbsp;&nbsp;&nbsp;ADMINISTRATION&nbsp;&nbsp;&nbsp;&nbsp;8

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1General&nbsp;&nbsp;&nbsp;&nbsp;8

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2Administrative Rules&nbsp;&nbsp;&nbsp;&nbsp;8

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3Duties&nbsp;&nbsp;&nbsp;&nbsp;8

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4Fees&nbsp;&nbsp;&nbsp;&nbsp;9

ARTICLE VIII&nbsp;&nbsp;&nbsp;&nbsp;CLAIMS PROCEDURE&nbsp;&nbsp;&nbsp;&nbsp;9

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1General&nbsp;&nbsp;&nbsp;&nbsp;9

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2Denials&nbsp;&nbsp;&nbsp;&nbsp;9

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3Notice&nbsp;&nbsp;&nbsp;&nbsp;9

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4Appeals Procedure&nbsp;&nbsp;&nbsp;&nbsp;9

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5Review&nbsp;&nbsp;&nbsp;&nbsp;10

ARTICLE IX&nbsp;&nbsp;&nbsp;&nbsp;MISCELLANEOUS PROVISIONS&nbsp;&nbsp;&nbsp;&nbsp;10

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1Amendment&nbsp;&nbsp;&nbsp;&nbsp;10

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2Termination&nbsp;&nbsp;&nbsp;&nbsp;10

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3No Assignment.&nbsp;&nbsp;&nbsp;&nbsp;10

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4Incapacity&nbsp;&nbsp;&nbsp;&nbsp;10

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5Successors and Assigns.&nbsp;&nbsp;&nbsp;&nbsp;11

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6Governing Law&nbsp;&nbsp;&nbsp;&nbsp;11

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.7No Guarantee of Employment&nbsp;&nbsp;&nbsp;&nbsp;11

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.8Severability&nbsp;&nbsp;&nbsp;&nbsp;11

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.9Notification of Addresses&nbsp;&nbsp;&nbsp;&nbsp;11

ARTICLE X&nbsp;&nbsp;&nbsp;&nbsp;ADOPTING EMPLOYERS&nbsp;&nbsp;&nbsp;&nbsp;11

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1Adoption of Plan&nbsp;&nbsp;&nbsp;&nbsp;11

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2Administration&nbsp;&nbsp;&nbsp;&nbsp;11

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3Company as Agent&nbsp;&nbsp;&nbsp;&nbsp;11

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4Termination&nbsp;&nbsp;&nbsp;&nbsp;12

ARTICLE XI&nbsp;&nbsp;&nbsp;&nbsp;TRUST&nbsp;&nbsp;&nbsp;&nbsp;12

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1Trust&nbsp;&nbsp;&nbsp;&nbsp;12

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2Contributions and Expense&nbsp;&nbsp;&nbsp;&nbsp;12

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3Trustee Duties&nbsp;&nbsp;&nbsp;&nbsp;12

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.4Voting Rights&nbsp;&nbsp;&nbsp;&nbsp;12

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.5Reversion to the Company&nbsp;&nbsp;&nbsp;&nbsp;12

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**FIRST MIDWEST BANCORP, INC. NONQUALIFIED STOCK OPTION - GAIN DEFERRAL PLAN**

**(As Amended and Restated as of January 1, 2008)**

**WHEREAS**, First Midwest Bancorp, Inc. ("the Company') has established the First Midwest Bancorp, Inc. Omnibus Stock and Incentive Plan, as Amended and Restated as of January 1, 2008, (the "Stock Plan") for its Employees; and

**WHEREAS**, the Company recognizes the unique qualifications of key employees and the valuable services that they have provided; and

**WHEREAS**, the Company desires to increase Company stock ownership by facilitating the deferral of gains resulting from the exercise of Company nonqualified stock Options;

**NOW, THEREFORE**, the Company hereby amends and restates the First Midwest Bancorp, Inc. Nonqualified Stock Option - Gain Deferral Plan (the "Plan") as hereinafter provided:

**ARTICLE I GENERAL**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1<u>Effective Date</u>**. The provisions of the Plan shall be effective as of January 1,

2008 (the "Effective Date"). The rights, if any, of any person whose status as an Employee of the Company and its subsidiaries and affiliates, if any, has terminated shall be determined pursuant to the Plan as in effect on the date such Employee terminated, unless a subsequently adopted provision of the Plan is made specifically applicable to such person.

Effective January 1, 2005, except for deferrals relating to a limited number of Options, no further deferrals shall be permitted under the Plan. The only Options for which deferrals are permitted after December 31, 2004 are those Options that vested before January 1, 2005, were subject to a deferral election as of December 31, 2004 and then only with respect to options exercised on or after March 1, 2006. Distribution of gain deferred on such options shall be governed by the terms of Appendix A. Gain deferrals before January 1, 2005 shall remain subject to the terms of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2<u>Purpose</u>**. The purpose of the Plan is to increase Company stock ownership by facilitating the deferral of gains resulting from the exercise of Company nonqualified stock Options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3<u>Intent</u>**. With respect to the participation of Employees hereunder, the Plan is intended to be (and shall be construed and administered as) an "employee pension benefit plan" under the provisions of the Employee Retirement Income Security Act of 1974 ("ERISA") which is unfunded and maintained by the Company or an Employer solely to provide retirement income to a select group of management or highly compensated Employees as such group is described under section 201(2), 301(a)(3), and 401(a)(1) of ERISA as interpreted by the U.S. Department of Labor. The Plan is not intended to be a plan described in section 401(a) of the Code, or section 3(2)(A) of ERISA. With respect to the participation in the Plan by nonemployee directors of the Company, the Plan is intended to be a plan of deferred compensation. The

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obligation of the Company and an Employer to make payments under this Plan constitutes nothing more than an unsecured promise to make such payments and any property of the Company or an Employer that may be set aside for the payment of benefits under the Plan shall in the event of the Company's or Employer's bankruptcy or insolvency, remain subject to the claims of the Company's general creditors and the Employer's general creditors, respectively, until such benefits are distributed in accordance with Article V herein.

**ARTICLE II DEFINITIONS AND USAGE**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1<u>Definitions</u>**. Wherever used in the Plan, the following words and phrases shall

have the meaning set forth below unless the context plainly requires a different meaning:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)**"Account"** means the account established on behalf of the Participant as

described in Section 4.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)**"Administrator"** means the person or persons described in Article VII.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)**"Board"** means the Board of Directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)**"Code"** means the Internal Revenue Code of 1986, as amended from time

to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)**"Committee"** means the Compensation Committee of the Board of

Directors or such other committee appointed from time to time by the Board of Directors to administer this Plan. The Committee shall consist of two or more members, each of whom shall qualify as a "non-employee director," as the term (or similar successor term) is defined by Rule 16b-3, and as an "outside director" within the meaning of Code Section 162(m) and regulations thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)**"Company"** means First Midwest Bancorp, Inc. and any successor

thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)**"Effective Date"** means January 1, 2008, the original effective date of the

Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)**"Employee"** means a regular salaried employee (including officers and

directors who are also employees) of the Company or an Employer, or any branch or division thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)**"Employer"** means the Company and any subsidiary or affiliate of the

Company that adopts the Plan for the benefit of its key Employees with the approval of the Company and in accordance with Article X.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)**"ERISA"** means the Employee Retirement Income Security Act of 1974,

as amended from time to time.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)**"Fair Market Value"** means the average of the highest and lowest prices

of the Stock as reported by the consolidated tape of the NASDAQ National Market System on a particular date. In the event that there are no Stock transactions on such date, the Fair Market Value shall be determined as of the immediately preceding date on which there were Stock transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)**"Option"** means the right to purchase Stock at a stated price for a

specified period of time granted by the Company to an Employee under the Stock Plan. For purposes of the Plan, an Option shall be a "Nonstatutory (Nonqualified) Stock Option," or "NSO," as provided for under the Stock Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)**"Participant"** means an eligible Employee and any nonemployee director

of the Company who is participating in the Plan in accordance with Section 3.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)**"Plan"** means the First Midwest Bancorp, Inc. Nonqualified Stock Option

Gain Deferral Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)**"Plan Year"** means the calendar year. Notwithstanding the foregoing, the

initial Plan Year shall be the period beginning on the Effective Date and ending December 31, 1997.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)**"Profit Shares"** means, (A) with respect to any exercise of an Option, the

number of shares equal in value to the excess of (i) the Fair Market Value of the shares of Stock purchased on Option exercise over (ii) the exercise price of the shares of Stock purchased, divided by the Fair Market Value of one share of Stock, and (B) with respect to any Stock Award, the number of shares payable upon the vesting of such Award For purposes of this definition, Fair Market Value shall be determined as of the date of Option exercise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)**"Stock"** means the common stock, $0.01 par value per share, of the

Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)**"Stock Award"** means any award under the Stock Plan, other than an

Option, which is payable in Stock, including, but not limited to, restricted stock or performance share awards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s)**"Stock Plan"** means the First Midwest Bancorp, Inc. Omnibus Stock and

Incentive Plan, as amended from time to time, and any other similar or successor plan established by the Company and under which Employees have been granted nonqualified stock options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t)**"Valuation Date"** means the last business day of each Plan Year and such

other dates as determined from time to time by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2<u>Usage</u>**.&nbsp;&nbsp;&nbsp;&nbsp;Except where otherwise indicated by the context, any masculine

terminology used herein shall also include the feminine and vice versa, and the definition of any term herein in the singular shall also include the plural and vice versa.

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**ARTICLE III ELIGIBILITY AND PARTICIPATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1<u>Eligibility</u>**. The Committee shall designate from time to time those Employees

who shall participate in the Plan; <u>provided,</u> <u>however</u>, that such Employees are members of a select group of management or highly compensated Employees as such group is described under sections 201(2), 301(a)(3), and 401(a)(1) of ERISA as interpreted by the Department of Labor. In addition, each nonemployee director of the Company shall also be entitled to participate in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.2<u>Participation</u>**. An Employee shall commence participation in the Plan as of the date designated by the Committee. A nonemployee director shall commence participation in the Plan as of the later of the Effective Date or the date service as a nonemployee director commences. The participation of any Participant may be suspended or terminated by the Committee at any time, but no such suspension or termination shall operate to reduce the balance of the Account of the Participant as of the Valuation Date that precedes or coincides with the date of such suspension or termination without such Participant's consent. An Employee or nonemployee director shall cease to be a Participant when he terminates employment and service as a director with the Company and all Employers and the balance in his Account is distributed to him or on his behalf. Effective January 1, 2005, participation in the Plan shall be frozen.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.3<u>Deferral Election Procedure</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Each Participant may execute one or more Deferral Election Forms in the

form prescribed by the Administrator. Each Deferral Election Form shall be treated in accordance with Section 4.2. In order to be effective with respect to the exercise of any Option or payment of any Stock Award, a Deferral Election Form must be executed by the Participant:

&nbsp;&nbsp;&nbsp;&nbsp;(i)in a calendar year preceding the exercise of such Options or vesting of the Stock Award; and

&nbsp;&nbsp;&nbsp;&nbsp;(ii)at least six months (or such shorter period as the Committee may approve) prior to the exercise of such Options or vesting of the Stock Award; provided, however, that a Deferral Election Form executed by a Participant during the first 30 days following the later of the Effective Date of the Plan or the participation commencement date designated by the Committee pursuant to Section 3.2 for such Participant, shall be effective with respect to the exercise of Options or vesting of the Stock Award after the date of such Deferral Election Form without regard to clauses (i) and (ii). Effective January 1, 2005, Deferral Election Forms shall not be accepted by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)An Agreement shall be effective no earlier than the date on which it is

delivered to the Administrator and shall continue in effect for all succeeding Plan Years unless otherwise superseded by a subsequent Deferral Election Form (or Deferral Revocation Form).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.4<u>Stock-for-Stock Payment Method for Options</u>**. If a Participant has executed a

Deferral Election Form, and such Deferral Election Form is effective under the terms of the Plan with respect to the Option being exercised, then the Option price shall be payable to the Company in full solely by tendering shares of Stock, which have been held for at least six months prior to the date of the exercise of the Option, having an aggregate Fair Market Value at the time of exercise equal to the total Option price (including, for this purpose, Stock deemed

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tendered by affirmation of ownership). Shares of Stock tendered or deemed tendered shall, for purposes of the six month holding rule, be deemed to be newly-held following use to exercise the Option and thus cannot be used for a subsequent exercise until six months have elapsed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.5<u>Delivery of Stock</u>**. As soon as practicable after (a) receipt of the tendered Stock

or the affirmation of ownership of Stock pursuant to Section 3.4 above, or (b) vesting of the Stock Award, the Company shall deliver to the Trustee, as named pursuant to Article XI of the Plan, a certificate or certificates representing the Profit Shares generated with respect to the exercise of any such Option or vesting of the Stock Award.

**ARTICLE IV PARTICIPANT ACCOUNTS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1<u>Accounts</u>**. The Administrator shall establish and maintain, pursuant to the terms

of the Plan, one or more Accounts for each Participant consisting of amounts credited to such Account pursuant to Section 4.2 below. All amounts which are credited to a Participant's Account shall be credited solely for purposes of accounting and computation, and shall remain assets of the Company subject to the claims of the Company's general creditors. A Participant shall not have any interest or right in or to such Account at any time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2<u>Participant Deferrals</u>**. The Administrator shall credit to a Participant's Account for a Plan Year the amount of Profit Shares resulting from the exercise of an Option or Options or vesting of Stock Awards for which a valid Deferral Election Form is in effect. In order for a Deferral Election Form to be valid with respect to the exercise of an Option: (a) the Deferral Election Form must have been timely executed in accordance with Section 3.5; and (b) with respect to an Option, (i) the exercise complies with all of the applicable terms of the Option and of the Stock Plan; and (ii) the Option price is satisfied by a tender of Stock as described in Section 3.4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.3<u>Investment Procedure</u>**. A Participant's Account shall be deemed invested in Stock of the Company. Any dividends deemed paid on Stock shall be deemed to be reinvested in Stock. In the event of a change in the Stock of the type that results in an adjustment to the Stock pursuant to adjustment provisions set forth in the Stock Plan, then the Participant's Account shall be deemed invested in Stock as so adjusted; provided, however, to the extent that the adjustment results in a deemed investment in cash and stock, such cash shall be deemed reinvested in Stock (as adjusted); provided, further, that if such adjustment results in the deemed investment of the Account entirely in cash, then such cash shall be deemed invested in an interest-bearing account and credited with interest quarterly at an annual rate equal to the prime rate as published in The Wall Street Journal at the beginning of such quarterly period plus 2%, or such other investments as the Committee may permit the Participants to recommend to the trustee of the Trust established pursuant to Article XI below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.4<u>Valuation of Accounts</u>**. The value of a Participant's Account shall be determined from time to time by the Administrator in the following manner:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The income and expense, gains, and losses, both realized and unrealized, from such deemed investments as are required under Section 4.3 shall be determined by the

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Administrator. The amount so determined shall be allocated to the Account of a Participant proportionately in accordance with the procedures established by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Each Participant's Account shall be valued as of the Valuation Date of

each Plan Year or more frequently as determined in the sole discretion of the Administrator, and shall again be valued as of the date that a Participant receives a payment under the Plan, in accordance with the procedures established by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)A Participant's Account shall be reduced by the amount of any benefits

distributed to or on behalf of the Participant pursuant to Article V.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)All allocations to and deductions from a Participant's Account under this

Section 4.4 shall be deemed to have been made on the applicable Valuation Date in the order of priority set forth in this Section 4.4, even though actually determined at a later date.

**ARTICLE V PAYMENT OF BENEFITS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.1<u>Entitlement to Benefit Payments</u>**. Upon a Participant's separation from service

as an Employee or nonemployee director, as applicable, from the Company and all Employers, the Participant shall be entitled to his Account Balance payable by the Company or by his Employer at the time and in the manner determined in accordance with Section 5.2. Notwithstanding the foregoing, if a Participant's separation from service is the result of termination "for cause," no benefits shall be payable to the Participant under the Plan and his Account balance shall be zero. A Participant shall be deemed to have been terminated "for cause" if his employment or service as a director is terminated voluntarily or involuntarily as a result of the Participant's fraud, misappropriation or embezzlement of Company or Employer funds or property. The Committee shall determine whether a Participant's separation from service is "for cause."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.2<u>Commencement of Benefit Payments</u>**. In connection with commencement of participation in the Plan, a Participant shall elect on an election form to receive payment of the Account Balance in a lump sum or in annual or quarterly installments over a period of up to fifteen years. The Participant may annually change the election to an allowable alternative payout period by submitting a new election form to the Committee, provided that any such election form is submitted during a calendar year preceding and at least six months (or such shorter period as the Committee may approve) prior to the Participant's separation from service and is accepted by the Committee in its sole discretion; provided, however, that such advance filing period shall not apply to an election form submitted prior to a Change in Control (as defined in the Stock Plan) which is applicable to a separation from service which occurs on or after the date of such Change in Control. The election form most recently accepted by the Committee shall govern the payout of the Account Balance. If a Participant does not make any election with respect to the payment of the Participant's Account Balance, then such benefit shall be payable in five annual installments. The lump sum payment shall be made, or installment payments shall commence, no later than 30 days after the last day of the calendar quarter in which the Participant experiences the separation from service; provided, however, the Participant may elect to have the payment commencement date delayed for up to five (5) years from the

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separation date by submitting an election form to that effect which is accepted by the Committee at least six months (or such shorter period as the Committee may approve) prior to the separation date; provided, further, if the Participant's Account Balance is less than $25,000 at the time of separation from service, payment of the Account Balance will be made in a lump sum no later than 30 days after the last day of the calendar quarter in which the separation from service occurs. Notwithstanding the foregoing, the Committee, in its sole discretion, shall establish the commencement date for the payment of benefits, the deductibility of which may be limited by Code Section 162(m), as the earliest practicable date upon which such limitations would not apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.3<u>Short-Term Payout</u>**. In connection with a Deferral Election, a Participant may

irrevocably elect to receive a future "Short-Term Payout" from the Plan with respect to the amounts covered by such Deferral Election. The Short-Term Payout shall be a lump sum payment in an amount that is equal to the Profit Shares covered by the particular Deferral Election plus additional shares credited in the manner provided in Section 4.2 above on that amount, determined at the time that the Short-Term Payout becomes payable. Subject to the other terms and conditions of this Plan, each Short-Term Payout elected shall be paid out during a 60 day period commencing immediately after the last day of any Plan year designed by the Participant that is at least three Plan Years after the Plan Year in which the Profit Shares were actually deferred. Notwithstanding the foregoing, the Committee, in its sole discretion may delay the payment of any Short-Term Payment, the deductibility of which may be limited by Code Section 162(m), to this earliest practicable date upon which such limitations would not apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.4<u>Unforeseeable Financial Emergencies</u>**. If the Participant experiences an Unforeseeable Financial Emergency, the Participant may petition the Committee to (i) suspend any Deferral Election made by a Participant and/or (ii) receive a partial or full payout of the Participant's Account Balance from the Plan. The payout shall not exceed the lesser of the Participant's Account Balance, or the amount reasonably needed to satisfy the Unforeseeable Financial Emergency. If, subject to the sole discretion of the Committee, the petition for a suspension and/or payout is approved, suspension shall take effect upon the date of approval and any payout shall be made within 60 days of the date of approval. For purposes of this Section 5.4, "Unforeseeable Financial Emergency" shall mean an unanticipated emergency that is caused by an event beyond the control of the Participant that would result in severe financial hardship to the Participant resulting from (i) a sudden and unexpected illness or accident of the Participant or a dependent of the Participant, (ii) a loss of the Participant's property due to casualty, or (iii) such other extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant in which distribution is necessary to preserve the value of the benefits of this Plan to the Participant, all as determined in the sole discretion of the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.5<u>Withdrawal Election</u>**. A Participant (or, after a Participant's death, his or her Beneficiary) may elect, at any time, to withdraw all of his or her Account Balance, less a withdrawal penalty equal to 10% of such amount (the net amount shall be referred to as the "Withdrawal Amount"). This election can be made at any time, before or after death or separation from service and whether or not the Participant (or Beneficiary) is in the process of being paid pursuant to an installment payment schedule. No partial withdrawals of the

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Withdrawal Amount shall be allowed. The Participant (or his or her Beneficiary) shall make this election by giving the Committee advance written notice of the election in a form determined from time to time by the Committee. The Participant (or his or her Beneficiary) shall be paid the Withdrawal Amount within 60 days of his or her election. Once the Withdrawal Amount is paid, the Participant's right to voluntarily submit Deferral Elections under the Plan shall terminate and the Participant shall not be eligible to make any Deferral Election for the remainder of the Plan Year of the Withdrawal Election and the next Plan Year. Notwithstanding the foregoing, the Committee, in its sole discretion may delay the payment of any Withdrawal Amount, the deductibility of which may be limited by Code Section 162(m), to this earliest practicable date upon which such limitations would not apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.6<u>Payments in Stock</u>**. Unless a Participant's Account Balance has been deemed

invested in cash pursuant to an adjustment described in Section 4.2 above, all payments with respect to such Account Balance shall be made in shares of Stock (as such Stock may be adjusted in accordance with Section 4.2).

**ARTICLE VI**

**PAYMENT OF BENEFIT ON OR AFTER DEATH**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.1<u>Commencement of Payments After Death</u>**.&nbsp;&nbsp;&nbsp;&nbsp;If a Participant dies before

receiving his entire Account Balance, the remainder of the Account otherwise payable with respect to the Participant shall be paid to the Participant's beneficiary or beneficiaries as a single lump-sum amount within ninety (90) days following the date on which the Administrator is notified of the Participant's death.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.2<u>Designation of Beneficiary</u>**. A Participant may, by executing a Beneficiary Designation Form (in the form prescribed by the Administrator) during the Participant's lifetime, designate one or more primary and contingent beneficiaries to receive his Account balance which may be payable to the Participant hereunder following the Participant's death, and may designate the proportions in which such beneficiaries are to receive such payments. A Participant may change such designations from time to time, and the last written designation filed with the Administrator prior to the Participant's death shall control. If a Participant fails to specifically designate a beneficiary or, if no designated beneficiary survives the Participant, payment shall be made by the Administrator in the following order of priority:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)to the Participant's surviving spouse; or if none,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)to the Participant's children, per stirpes; or if none,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)to the Participant's estate.

**ARTICLE VII ADMINISTRATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.1<u>General</u>**.&nbsp;&nbsp;&nbsp;&nbsp;The Administrator shall be the Committee, or such other person or

persons as designated by the Board or the Committee. Except as otherwise specifically provided in the Plan, the Administrator shall be responsible for the administration of the Plan. The Administrator shall be the "named fiduciary" within the meaning of Section 402(c)(2) of ERISA.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.2<u>Administrative Rules</u>**. The Administrator may adopt such rules of procedure as it deems desirable for the conduct of its affairs, except to the extent that such rules conflict with the provisions of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.3<u>Duties</u>**. The Administrator shall have the following rights, powers and duties:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The decision of the Administrator in matters within its jurisdiction shall be

final, binding and conclusive upon each Employer and upon any other person affected by such decision, subject to the claims procedure hereinafter set forth.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The Administrator shall have the duty and authority to interpret and

construe the provisions of the Plan, to decide any question which may arise regarding the rights of Employees, Participants and beneficiaries, and the amounts of their respective interests, to adopt such rules and to exercise such powers as the Administrator may deem necessary for the administration of the Plan, and to exercise any other rights, powers or privileges granted to the Administrator by the terms of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The Administrator shall maintain full and complete records of its

decisions. Its records shall contain all relevant data pertaining to the Participant and his rights and duties under the Plan. The Administrator shall have the duty to maintain Account records of all Participants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)The Administrator shall cause the principal provisions of the Plan to be

communicated to the Participants, and a copy of the Plan and other documents shall be available at the principal office of the Company for inspection by the Participants at reasonable times determined by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)The Administrator shall periodically report to the Committee with respect

to the status of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.4<u>Fees</u>**. No fee or compensation shall be paid to any person for services as the

Administrator.

**ARTICLE VIII** 

**CLAIMS PROCEDURE**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.1<u>General</u>**. Any claim for benefits under the Plan shall be filed by the Participant

or beneficiary ("claimant") on the form prescribed for such purpose with the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.2<u>Denials</u>**. If a claim for benefits under the Plan is wholly or partially denied, notice of the decision shall be furnished to the claimant by the Administrator within a reasonable period of time after receipt of the claim by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.3<u>Notice</u>**. Any claimant who is denied a claim for benefits shall be furnished written notice setting forth:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)the specific reason or reasons for the denial;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)specific reference to the pertinent provision of the Plan upon which the

denial is based;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)a description of any additional material or information necessary for the

claimant to perfect the claim; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)an explanation of the claim review procedure under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.4<u>Appeals Procedure</u>**. In order that a claimant may appeal a denial of a claim, the

claimant or the claimant's duly authorized representative may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)request a review by written application to the Administrator, or its

designate, no later than sixty (60) days after receipt by the claimant of written notification of denial of a claim;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)review pertinent documents; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)submit issues and comments in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.5<u>Review</u>**. A decision on review of a denied claim shall be made not later than

sixty (60) days after receipt of a request for review, unless special circumstances require an extension of time for processing, in which case a decision shall be rendered within a reasonable period of time, but not later than one hundred and twenty (120) days after receipt of a request for review. The decision on review shall be in writing and shall include the specific reason(s) for the decision and the specific reference(s) to the pertinent provisions of the Plan on which the decision is based.

**ARTICLE IX MISCELLANEOUS PROVISIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.1<u>Amendment</u>**. The Company reserves the right to amend the Plan in any manner

that it deems advisable by a resolution of the Board or the Committee. No amendment shall, without the Participant's written consent, affect the amount of the Participant's Account balance at the time the amendment becomes effective or the right of the Participant to receive a distribution of his Account balance. Notwithstanding the foregoing, following a Change in Control (as defined in the Stock Plan), no amendment or termination of the Plan shall, without the Participant's written consent, have an adverse effect on the computation or amount or entitlement to benefits of such Participant, including, but not limited to the time or manner of the payment of the Account. For purposes hereof, an "adverse effect" shall include, but not be limited to, any acceleration of the payment of the Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.2<u>Termination</u>**. The Company reserves the right to terminate the Plan at any time. No termination shall, without the Participant's written consent, affect the amount of the Participant's Account balance prior to the termination or the right of the Participant to receive a distribution of his Account balance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.3<u>No Assignment</u>**. The Participant shall not have the power to pledge, transfer, assign, anticipate, mortgage or otherwise encumber or dispose of in advance any interest in

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amounts payable hereunder or any of the payments provided for herein, nor shall any interest in amounts payable hereunder or in any payments be subject to seizure for payments of any debts, judgments, alimony or separate maintenance, or be reached or transferred by operation of law in the event of bankruptcy, insolvency or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.4<u>Incapacity</u>**.&nbsp;&nbsp;&nbsp;&nbsp;If any person to whom a benefit is payable under the Plan is an

infant or if the Administrator determines that any person to whom such benefit is payable is incompetent by reason of physical or mental disability, the Administrator may cause the payments becoming due to such person to be made to another for his benefit. Payments made pursuant to this Section shall, as to such payment, operate as a complete discharge of the Plan, the Company, each Employer, the Committee and the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.5<u>Successors and Assigns</u>**. The provisions of the Plan are binding upon and inure to the benefit of the Company, each Employer, its respective successors and assigns, and the Participant, his beneficiaries, heirs, legal representatives and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.6<u>Governing Law</u>**. The Plan shall be subject to and construed in accordance with the laws of Illinois to the extent not pre-empted by the provisions of ERISA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.7<u>No Guarantee of Employment</u>**. Nothing contained in the Plan shall be construed as a contract of employment or deemed to give any Participant the right to be retained in the employ of any Employer or any equity or other interest in the assets, business or affairs of any Employer. No Participant hereunder shall have a security interest in the assets of any Employer used to make contributions or pay benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.8<u>Severability</u>**. If any provision of the Plan shall be held illegal or invalid for any reason, such illegality or invalidity shall not affect the remaining provisions of the Plan, but the Plan shall be construed and enforced as if such illegal or invalid provision had never been included herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.9<u>Notification of Addresses</u>**. Each Participant and each beneficiary shall file with the Administrator, from time to time, in writing, the post office address of the Participant, the post office address of each beneficiary, and each change of post office address. Any communication, statement or notice addressed to the last post office address filed with the Administrator (or if no such address was filed with the Administrator, then to the last post office address of the Participant or beneficiary as shown on the Company's or Employer's records) shall be binding on the Participant and each beneficiary for all purposes of the Plan and neither the Administrator nor the Company or an Employer shall be obligated to search for or ascertain the whereabouts of any Participant or beneficiary.

**ARTICLE X ADOPTING EMPLOYERS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.1<u>Adoption of Plan</u>**. The Plan may be adopted by any subsidiary or affiliate of the

Company for the benefit of any Employee designated by the Committee to participate herein. Such adoption shall be by resolution of the adopting Employer's governing body, a copy of which shall be filed with the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.2<u>Administration</u>**. As a condition to participating in the Plan, each adopting Employer shall be deemed to have authorized the Committee and the Administrator (if different from the Committee) to act for it in all matters arising under or with respect to the Plan and shall comply with such other terms and conditions as may be imposed by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.3<u>Company as Agent</u>**. Each adopting Employer hereby irrevocably grants the Company full and exclusive power to exercise, enforce or waive any right which such Employer might otherwise have under the terms of the Plan, and each adopting Employer irrevocably appoints the Company as its agent for such purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.4<u>Termination</u>**. If authorized by the Company, each adopting Employer may, upon written notice to the Company, cease to participate in the Plan with respect to its Employees by resolution of its governing body.

**ARTICLE XI TRUST**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.1<u>Trust</u>**. A Trust has been established under the Plan by the execution of a separate

trust agreement entitled the **First Midwest Bancorp, Inc. Nonqualified Stock Option - Gain Deferral Trust** with one or more trustees. The Trust is intended to be maintained as a "grantor trust", under section 677 of the Code, for which the Company is the grantor. The assets of the Trust will be held, invested and disposed of by the trustee, in accordance with the terms of the Trust, for the exclusive purpose of providing Plan benefits for the Participants. Notwithstanding any provision of the Plan or the Trust to the contrary, the assets of each Trust shall at all times be subject to the claims of the grantor's general creditors in the event of the grantor's insolvency or bankruptcy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.2<u>Contributions and Expense</u>**. The Company, in its sole discretion, and from time to time, may make contributions to the Trust. All benefits under the Plan and expenses chargeable to the Plan, to the extent not paid directly by the Company, shall be paid from the Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.3<u>Trustee Duties</u>**. The powers, duties and responsibilities of the trustee shall be as set forth in the Trust agreement and nothing contained in the Plan, either expressly or by implication, shall impose any additional powers or duties responsibilities upon the trustee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.4<u>Voting Rights</u>**. Each Participant (or, in the event of his death, his beneficiary) shall have the right to direct the Trustee as to the manner in which whole and partial shares of Stock allocated to his Account as of the record date are to be voted on each matter brought before an annual or special stockholders' meeting. Upon timely receipt of such directions, the Trustee shall on each such matter vote as directed the number of shares (including fractional shares) of Stock allocated to such Participant's Account, and the Trustee shall have no discretion in such matter. The directions received by the Trustee from Participants shall be held by the Trustee in confidence and shall not be divulged or released to any person, including officers or employees of any Employer. The Trustee shall vote allocated shares for which it has not received direction in the same proportion as directed shares are voted, and shall have no discretion in such matter. Additionally, in the event a tender offer is extended with respect to the

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Stock, each Participant shall have the identical rights to direct the voting of the shares allocated to his Account as detailed in the preceding sentences of this Section 11.4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.5<u>Reversion to the Company</u>**. The Company shall not have any beneficial interest

in the Trust and no part of the Trust shall ever revert or be repaid to the Company prior to the payment of all Plan benefits to Participants, except with respect to amounts allocable to forfeited benefits (including without limitation, any amounts forfeited on account of a termination "for cause") and as otherwise reasonably determined by the Committee not to be necessary to pay benefits to Participants.

\* \* \* \* \*

**IN WITNESS WHEREOF**, the Company has caused this restated Plan to be executed by its duly authorized officer effective as of the 1st day of January, 2008.

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| | |
|:---|:---|
| **ATTEST/WITNESS** | **FIRST MIDWEST BANCORP, INC.** |
| /s/ CYNTHIA A. LANCE | /s/ JOHN M. O'MEARA |
| Date: December 28, 2007 | Date: December 28, 2007 |

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**APPENDIX A DISTRIBUTION OF POST-2004 DEFERRALS**

The following provisions govern the distribution of amounts deferred upon the exercise of Options that vested before January 1, 2005, were subject to a deferral election as of December 31, 2004 and exercised on or after March 1, 2006 ("Post-2004 Deferrals"). This Appendix A is intended to comply with the requirements of Code Section 409A and all regulations issued thereunder.

A.1.**<u>Definitions</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)**"Change in Control"** means a "change in control event" as defined in

Treasury Regulation §1.409A-3(i)(5).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)**"Specified Employee"** means any Participant who is determined to be a

"key employee" (as defined under Code Section 416(i) without regard to paragraph (5) thereof) for the applicable period, as determined annually by the Committee in accordance with Treas. Reg. §1.409A-1(i). In determining whether a Participant is a Specified Employee, the following provisions shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)The Committee's identification of the individuals who fall within

the definition of "key employee" under Code Section 416(i) (without regard to paragraph

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) thereof) shall be based upon the 12-month period ending on each December 31st (referred to below as the "identification date"). In applying the applicable provisions of Code Section 416(i) to identify such individuals, "compensation" shall be determined in accordance with Treas. Reg. §1.415(c)-2(a) without regard to:

(1)Any safe harbor provided in Treas. Reg. §1.415(c)-2(d);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Any of the special timing rules provided in Treas. Reg.

§1.415(c)-2(e); and

(3)Any of the special rules provided in Treas. Reg. §1.415(c)-

2(g).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)Each Participant who is among the individuals identified as a "key

employee" in accordance with part (b) of this Section shall be treated as a Specified Employee for purposes of this Plan if such Participant experiences a separation from service during the 12-month period that begins on the April 1st following the applicable identification date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)**"Unforeseeable&nbsp;&nbsp;&nbsp;&nbsp;Financial&nbsp;&nbsp;&nbsp;&nbsp;Emergency"&nbsp;&nbsp;&nbsp;&nbsp;**shall&nbsp;&nbsp;&nbsp;&nbsp;be&nbsp;&nbsp;&nbsp;&nbsp;determined&nbsp;&nbsp;&nbsp;&nbsp;in

accordance with Treasury Regulation 1.409A-3(i)(3).

Terms used in this Appendix but not defined above shall be defined under the terms of the Plan.

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A.2.**<u>Distribution of Post-2004 Deferrals</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Upon a Participant's separation from service as an Employee or

nonemployee director, as applicable, from the Company and all Employers, the Participant shall receive a distribution of his or her Post-2004 Deferrals. Notwithstanding the foregoing, if a Participant's separation from service is the result of termination "for cause," no benefits shall be payable to the Participant under this Appendix and his Post- 2004 Deferrals shall be zero. A Participant shall be deemed to have been terminated "for cause" if his employment or service as a director is terminated voluntarily or involuntarily as a result of the Participant's fraud, misappropriation or embezzlement of Company or Employer funds or property. The Committee shall determine whether a Participant's separation from service is "for cause."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)If a Participant experiences a separation from service, payment of

Post-2004 Deferrals shall be made, or shall commence, no later than 30 days after the last day of the calendar quarter in which the Participant experienced the separation from service; provided however, if a Participant is a Specified Employee as of the date of his or her separation from service, the distribution of such Participant's Post-2004 Deferrals shall be delayed, and the lump sum payment or any installments shall be paid to the Participant beginning in the 30-day period following the calendar quarter in which the date that is six (6) months after the date on which the Participant experienced a separation from service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Unforeseeable Financial Emergency</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)If&nbsp;&nbsp;&nbsp;&nbsp;the&nbsp;&nbsp;&nbsp;&nbsp;Participant&nbsp;&nbsp;&nbsp;&nbsp;experiences&nbsp;&nbsp;&nbsp;&nbsp;an&nbsp;&nbsp;&nbsp;&nbsp;Unforeseeable&nbsp;&nbsp;&nbsp;&nbsp;Financial

Emergency, the Participant may petition the Committee to (i) suspend any Deferral Election made by a Participant and/or (ii) receive a partial or full payout of the Participant's Post-2004 Deferrals from the Plan. The payout shall not exceed the lesser of the Participant's Post-2004 Deferrals, or the amount reasonably needed to satisfy the Unforeseeable Financial Emergency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)If, subject to the sole discretion of the Committee, the petition for a

suspension and/or payout is approved, suspension shall take effect upon the date of approval and any payout shall be made within 60 days of the date of approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Change in Control</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)A Participant may make an irrevocable election to receive his or

her Post-2004 Deferrals in the form of a lump sum payment in the event that a Change in Control occurs prior to the Participant's separation of service. If a Participant elects not to receive a benefit in the event a Change in Control occurs, or fails to make an election in connection with his or her commencement of participation in the Plan, the Participant's Post-2004 Deferrals shall be paid in accordance with the other applicable provisions of this Appendix.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)Distributions resulting from a Change in Control shall be made

during the 30 day period following the date on which the Change in Control occurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Cash-Out</u>. Notwithstanding anything in this Appendix to the contrary, if a

Participant's Post-2004 Deferrals are less than the dollar limitation set forth under Code Section 402(g)(1) ($15,500 in 2008, adjusted thereafter by the IRS) at the time of separation from service, payment of the Post-2004 Deferrals will be made in a lump sum no later than 30 days after the last day of the calendar quarter in which the separation from service occurs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)<u>Payment in Stock</u>. Unless a Participant's Post-2004 Deferrals have been deemed invested in cash, all payments with respect to Post-2004 Deferrals shall be made in shares of Stock (as may be adjusted).

A.3.**<u>Distribution Elections for Post-2004 Deferrals</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Distribution of Participants' Post-2004 Deferrals shall be governed

by the distribution election form most recently accepted by the Committee. A Participant may make a one-time change to his or her previous election by submitting a new election form to the Committee or a representative thereof, provided that (a) any such election form will not be effective for twelve (12) months after the date on which the election form is submitted to the Committee or a representative thereof and (b) the date benefit payment(s) commence to the Participant shall be five (5) years after the date benefits would have otherwise commenced. Notwithstanding the foregoing, in no event shall an election change cause payment of Post-2004 Deferrals to commence later than the 30-day period following the end of the calendar quarter in which the 10th anniversary of the Participant's separation from service occurs. If a Participant does not make any election with respect to the payment of the Participant's Post-2004 Deferrals, then such benefit shall be payable in a lump sum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)Notwithstanding anything in this Appendix to the contrary,

effective through December 31, 2008, a Participant may make new distribution elections with respect to Post-2004 Deferrals, provided that (a) any elections made prior to January 1, 2008 may only apply to benefits that would not otherwise be payable in 2007 and may not cause a benefit to be paid in 2007 that would not otherwise be payable in 2007 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any elections made on or after January 1, 2008 but before January 1, 2009, may only apply to benefits that would not otherwise be payable in 2008 and may not cause a benefit to be paid in 2008 that would not otherwise be payable in 2008.

## Exhibit 10.22

**Exhibit 10.22**

**OLD NATIONAL BANCORP**

**ANNUAL INCENTIVE COMPENSATION PLAN**

**1. Effective Date and Purpose**

The Talent Development and Compensation Committee (the "<u>Committee</u>") of the Board of Directors (the "<u>Board</u>") of Old National Bancorp ("<u>Old National</u>" and, together with its subsidiaries and affiliates and their respective successors and assigns, the "<u>Company</u>") hereby adopts the Old National Bancorp Annual Incentive Compensation Plan (the "<u>Plan</u>") effective as of February 22, 2023 (the "<u>Effective Date</u>"). The purpose of the Plan is to provide an incentive to attract, retain and reward selected employees of the Company to contribute to the Company's growth, profitability and success. This plan replaces the Old National Bancorp Short-Term Incentive Compensation Plan for Key Executives beginning with the Performance Period (as defined in Section 4) from January 1, 2023 through December 31, 2023.

**2. Eligibility**

The Committee or the Company's Chief Executive Officer ("CEO") shall have the sole and absolute discretion and authority to determine which employees of the Company are eligible to participate in the Plan (each, a "<u>Participant</u>"). To be eligible to receive an Award with respect to any Performance Period, a Participant must be actively employed by the Company on the last day of the Performance Period in which an Award is earned, except as otherwise determined by the Committee or the CEO. Eligible employees hired during the Performance Period may be eligible to receive a prorated Award for a Performance Period in the discretion of the Committee or the CEO. Participating in the Plan and being granted an Award hereunder does not mean the Participant shall be eligible to participate in the Plan and receive an Award hereunder for any other Performance Period or for each year that he or she is an employee of the Company.

**3. Administration**

The Committee shall administer the Plan and shall have the authority in its sole and absolute discretion to (i) determine each Participant's Target Award Level; (ii) establish, amend and rescind any rules and regulations relating to the Plan; (iii) approve all of the Awards made under the Plan; and (iv) make all determinations and take all other actions necessary or appropriate for the proper administration of the Plan. All powers of the Committee shall be executed in its sole and absolute discretion, in the best interest of the Company, not as a fiduciary, and in keeping with the objectives of the Plan and need not be uniform as to similarly situated individuals.

A Participant's participation in this Plan shall be deemed an acknowledgement that he or she agrees to the terms of this Plan, any Award and any rules or regulations under this Plan. All decisions and determinations of the Committee shall be final and binding on the Participant, his or her beneficiaries and any other person having or claiming an interest under such Award. The Committee's administration of the Plan, including any such rules and regulations, interpretations, selections, determinations, approvals, decisions, delegations, amendments, terminations and other actions, shall be final and binding.

**4. Determination of Awards**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)*Performance Period*. Each "<u>Performance Period</u>" shall be a fiscal year of the Company or any other period designated by the Committee with respect to which an Award may be earned.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)*Determining Participants for the Performance Period.* The Committee or the CEO shall determine the Participants for each Performance Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)*Setting Target Award Levels and Performance Goals*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Prior to or as soon as practicable following the commencement of a Performance Period, but in no event not later than March 31, the Committee shall determine each Participant's Target Award Level and the Performance Goals for the Performance Period (and how they are weighted, if applicable). Eligible employees hired after March 31 of the Performance Period may be eligible to receive a prorated Award for the Performance Period, with such eligible employees' Target Award Levels and Performance Goals determined by the Committee or the CEO at the time of hire.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)The Committee may establish the target incentive amount for any Participant with respect to any Performance Period in its sole and absolute discretion (the "<u>Target Award Level</u>"). The Target Award Level may be designated as a dollar amount, percentage of base salary, or such other measure, as determined by the Committee, and may be established at or with different levels, including minimum/threshold or maximum levels as the Committee determines in its sole and absolute discretion; provided that the maximum level shall be no greater than two (2) times the Target Award Level. Target Award Levels need not be uniform among Participants. The Committee shall not change the Target Award Level of any Participant or assign a different Target Award Level to a Participant during a Performance Period at any time prior to the final determination of whether an Award is earned, unless necessary to reflect any change in the Participant's responsibility level or position during the course of the Performance Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)The Committee may establish performance goals (the "<u>Performance Goals</u>") (and how they are weighted, if applicable) for each Award to Participants as the Committee determines in its sole and absolute discretion. A Performance Goal may be based on one or more criteria (either separately or in combination) with regard to the Participant's individual performance or the performance of the Company. The Performance Goals may be (but need not be) different for each Performance Period and different Performance Goals may be applicable to different Participants based upon the Participant's job function, business unit, responsibilities or experience.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)The Committee may impose terms or conditions in addition to those imposed pursuant to this Section 4(c), including but not limited to, a condition that (A) the Participant be employed by the Company on the payment date, or (B) the Participant re-pay the Award if he or she engages in prohibited competition with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)If a Participant is a party to an employment agreement with the Company, any Award to the Participant shall be subject to the provisions of such employment agreement and, to the extent there is a conflict between the employment agreement and this Plan, the employment agreement shall control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)*Earning an Award.* Generally, the actual amount of the incentive award earned by a Participant under the Plan for any Performance Period (an "<u>Award</u>") will be based on the level of achievement of the Performance Goals established by the Committee for that Performance Period. An Award will not be earned if the level of achievement of all Performance Goals is below the minimum (or threshold) required to earn an Award for the applicable Performance Period. Awards need not be uniform among Participants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)*Certifying Performance*. As soon as administratively practicable after the end of the Performance Period, the Committee shall determine the Company's performance in relation to the Performance Goals for the Performance Period; and it shall certify the extent to which the Performance Goals were achieved.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)*Discretionary Awards; Adjustment of Awards.* In addition to the Award paid to a Participant under the Plan, if any, the Committee may pay to a Participant an additional amount, taking into account such factors as it deems appropriate and determines in its sole and absolute discretion. The Committee may adjust all or part of an Award, including downward or upward adjustments, based upon a Participant's individual performance or other factors determined by the Committee in its sole and absolute discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)*Payment of Awards*. A Participant's Award shall be paid in cash, an equity-based award of equivalent value, or such other form of consideration determined by the Committee in its sole and absolute discretion, or a combination of the foregoing, no later than March 15 following the end of the fiscal year in which the Performance Period is completed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)*Delegation to CEO.* The Committee may delegate its authority to the CEO to determine Target Award Levels and Performance Goals and to make final Award determinations and adjustments for any Participant(s) under this Plan, provided that such Participant(s) do not report directly to the CEO.

**5. Miscellaneous Provisions**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)*Amendment and Termination.* The Committee may amend, suspend or terminate the Plan at any time at its sole and absolute discretion. Any amendment or termination of the Plan, however, shall not affect the right of a Participant to receive any earned but unpaid Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)*No Employment Right.* The Plan is not a contract between the Company and the eligible employees or the Participants. Neither the establishment of the Plan, nor any action taken hereunder, shall be construed as giving any eligible employee or any Participant any right to be retained in the employ of the Company or a right to an Award. The Company is under no obligation to continue the Plan. Nothing contained in the Plan shall limit or affect in any manner or degree the normal and usual powers of management, exercised by the officers and the Board or committees thereof, to change the duties or the character of employment of any employee of the Company or Participant or to remove the individual from the employment of the Company at any time, all of which rights and powers are expressly reserved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)*No Assignment.* A Participant's right and interest under the Plan may not be assigned or transferred and any attempted assignment or transfer shall be null and void and shall extinguish, in the Company's sole and absolute discretion, the Company's obligation under the Plan to pay Awards with respect to the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)*Unfunded Plan.* The Plan shall be unfunded. The Company shall not be required to establish any special or separate fund, or to make any other segregation of assets, to assure payment of Awards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)*Withholding Taxes.* The Company shall have the right to deduct from Awards paid any taxes or other amounts required by law to be withheld.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)*Section 409A of the Code*. The Company intends that Awards under this Plan shall be exempt from Section 409A of the Internal Revenue Code and the regulations promulgated thereunder ("<u>Section 409A</u>"), and this Plan shall be interpreted, construed and administered in accordance with such intent. To the extent that any Award is not exempt from the application of the requirements of Section 409A, this Plan and the Award shall be construed and interpreted in a manner so as to comply with such requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)*Clawback.* All Awards under this Plan shall be subject to forfeiture or other penalties under any clawback or recoupment policy or provision that may be implemented by the Company from time to time or set forth in an applicable Award, whether adopted prior to, on or after the Effective Date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)*Governing Law.* The validity, construction, interpretation and effect of the Plan shall exclusively be governed by and determined in accordance with the laws of the State of Indiana (without regard to choice or conflict of law principles thereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)*Headings.* The headings in the Plan have been inserted for convenience of reference only and will not affect the construction of the provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)*Committee Actions.* Any and all actions, determinations and decisions taken or made by the Committee (including, but not limited to, determining any Participants who are entitled to participate in the Plan and receive an Award hereunder or establishing any Performance Goals or Target Award Levels), and all powers and authority exercised by the Committee, under this Plan shall be in the Committee's sole and absolute discretion. In addition, the Committee shall have the sole and absolute power to interpret, or resolve any questions or ambiguities under, this Plan.

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## Exhibit 10.35

**Exhibit 10.35**

**EMPLOYMENT AGREEMENT**

**<u>(Amended and Restated)</u>**

**THIS EMPLOYMENT AGREEMENT** (this "**Agreement**") made by and between **FIRST MIDWEST BANCORP, INC.** ("**Company**") and **MICHAEL L. SCUDDER** ("**Executive**"), effective as of June 18, 2018 ("**Effective Date**"), is amended and restated effective as of January 18, 2019.

<u>W</u> <u>I</u> <u>T</u> <u>N</u> <u>E</u> <u>S</u> <u>S</u> <u>E</u> <u>T</u> <u>H</u>:

**WHEREAS**, the Company is desirous of continuing Executive's employment as Chief Executive Officer of the Company and as Chief Executive Officer of its wholly owned subsidiary, FIRST MIDWEST BANK (the "**Bank**"), on the terms and conditions and for the consideration hereinafter set forth, and Executive is desirous of continuing such employment on such terms and conditions and for such consideration;

**WHEREAS**, references herein to Executive's employment by the Company, the Bank or another subsidiary, and references herein to payments of any nature to be made to Executive shall mean that either the Company will make such payments or it will cause the Bank or another applicable subsidiary (reference to "**Employer**" hereinafter shall mean the Company, the Bank or another subsidiary by which Executive is employed) to make such payments to Executive:

**NOW, THEREFORE**, for and in consideration of the mutual promises, covenants and obligations contained herein, Company and Executive agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.<u>Employment, Positions and Term</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Employment and Position</u>. The Employer shall continue to employ the Executive as the Chief Executive Officer of the Company, and as the Chief Executive Officer of the Bank, and the Executive shall so serve, for the term set forth in Paragraph 1(b). Executive shall continue to be a member of, and serve as Chairman of the Board of Directors of the Company and of the Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Term</u>. The term of the Executive's employment under this Agreement shall commence on the Effective Date and end on June 17, 2020, subject to the extension of such term as hereinafter provided and subject to earlier termination as provided in Paragraph 7 (the "**period of employment**"). The term of this Agreement shall be extended automatically for two (2) additional years as of the second anniversary of the Effective Date and each second anniversary date thereof unless, no later than ninety (90) days prior to any such renewal date (i) the Company or Employer gives written notice to the Executive, as by either the Board of Directors of the Company, or a duly authorized committee thereof (the "**Board**"), or (ii) the Executive gives written notice to the Employer, in accordance with Paragraph 14, that the term of this Agreement shall not be so extended. Anything in this Agreement to the contrary, if at any time during the Executive's period of employment under this Agreement there is a Change in Control (as defined in Paragraph 7), the term of this Agreement shall automatically extend to a date which is three (3) years from the date of the Change in Control (and shall be further extended pursuant to the foregoing provisions of this Paragraph 1(b), unless written notice to the contrary is given in accordance with this Paragraph 1(b)).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.<u>Duties and Responsibilities</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The duties and responsibilities of Executive are and shall continue to be of an executive nature as shall be required by the Employer in the conduct of its business. Executive's powers and authority shall be as may be prescribed by the by-laws of the Employer and those customarily performed by the Chief Executive Officer, including, but not limited to, those of the Chief Executive Officer of a public company. Executive recognizes that during the period of employment hereunder, Executive owes an undivided duty of loyalty to the Employer, and agrees to devote his entire business time and attention to the performance of said duties and responsibilities. Recognizing and acknowledging that it is essential for the protection and enhancement of the name and business of the Employer and the goodwill pertaining thereto, the Executive shall perform the duties under this Agreement professionally, in accordance with the applicable laws, rules and regulations and such standards, policies and procedures established by the Employer and the industry from time to time, including the Employer's Corporate Code of Ethics and Standards of Conduct and, if applicable, Code of Ethics for Senior Financial Officers. Executive will not perform any duties for any other business without the prior written consent of the Employer, and may engage in charitable, civic or community activities, provided that such duties or activities do not materially interfere with the proper performance of his duties under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Notwithstanding anything herein to the contrary, Executive's employment may be terminated by the Employer, subject to the terms and conditions of this Agreement. Executive shall be deemed to have voluntarily resigned from the Board and from the Board of the Bank, without any further action required, upon termination of Executive's employment with the Employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.<u>Base Salary</u>. For services performed by the Executive for the Employer pursuant to this Agreement, the Employer shall pay the Executive a base salary at the rate of eight hundred fifty thousand dollars ($850,000) per year ("**Base Salary**") payable in substantially equal installments in accordance with the Employer's regular payroll practices. Executive's Base Salary shall be subject to review annually and the Employer may (but is not required to) increase the Base Salary as the Board or a committee thereof, in its discretion, may authorize or determine, which increased amount, if any, shall become the "Base Salary" hereunder. Notwithstanding the foregoing, prior to a Change in Control the Employer may reduce Executive's Base Salary as part of an across-the-board reduction in base salaries for all Company executive officers (an "**Across-the-Board Reduction**") or as part of a change in the mix of Executive's Base Salary, Target Bonus and Target LTI (the aggregate of the Base Salary, Target Bonus and Target LTI, the Executive's "**Total Aggregate Direct Compensation**") as part of an across-the-board change in mix for all Company executive officers. For the avoidance of doubt, any percentage reduction in Executive's Base Salary as part of an Across-the-Board Reduction shall never be greater than the percentage reduction applicable to other executive officers, for the same period as the reduction in other executive officers' salaries and, in the event such reduction is later mitigated for other executive officers, Executive's reduction shall then be mitigated to the same extent applicable to other executive officers.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.<u>Annual Bonuses</u>. For each fiscal year during the term of employment, the Executive shall be eligible to receive a bonus pursuant to the First Midwest Bancorp, Inc. Short Term Incentive Compensation Plan or any successor or replacement plan ("**STIC**"), in accordance with the terms of such Plan, as adopted and administered by the Board for senior executives of the Employer, as such plan may be amended from time to time by the Board in its discretion. Executive's annual target bonus amount shall be not less than 85% of Base Salary ("**Target Bonus"**), subject to review annually and the Employer may (but is not required to) increase the Target Bonus as the Board or a committee thereof, in its discretion, may authorize or determine, which increased amount, if any, shall become the "Target Bonus" hereunder. Notwithstanding the foregoing, prior to a Change in Control, Employer may decrease Executive's Target Bonus as a result of (a) an Across-the-Board Reduction in the compensation of the Employer's executive officers, or (b) as a change in mix of the Executive's compensation, so long as such change in mix does not result in a reduction in the Executive's Total Aggregate Direct Compensation. For the avoidance of doubt, any percentage reduction in Executive's Target Bonus shall never be greater than the percentage reduction applicable to other executive officers, for the same period as the reduction in other executive officers' target bonuses and, in the event such reduction is later mitigated for other executive officers, Executive's reduction shall then be mitigated to the same extent applicable to other executive officers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.<u>Long-Term and Equity Incentive Compensation</u>. During the term of employment hereunder, the Executive shall be eligible to participate in the First Midwest Bancorp, Inc. Omnibus Stock and Incentive Plan, the First Midwest Bancorp, Inc. 2018 Stock and Incentive Plan and in any other long-term and/or equity-based incentive compensation plan or program approved by the Board from time to time and receive performance shares, restricted stock or other awards as may be granted thereunder ("**LTIC**"). Executive's aggregate annual target award opportunity shall be not less than 170% of Base Salary ("**Target LTI**"), subject to review annually and the Employer may (but is not required to) increase the Target LTI as the Board or a committee thereof, in its discretion, may authorize or determine, which increased amount, if any, shall become the "Target LTI" hereunder. Notwithstanding the foregoing, prior to a Change in Control, Employer may decrease Executive's Target LTI as a result of (a) an Across-the-Board Reduction in the compensation of the Employer's executive officers, or (b) as a change in mix of the Executive's compensation, so long as such change in mix does not result in a reduction in the Executive's Total Aggregate Direct Compensation. For the avoidance of doubt, any percentage reduction in Executive's Target LTI shall never be greater than the percentage reduction applicable to other executive officers, for the same period as the reduction in such targets for other executive officers and, in the event such reduction is later mitigated for other executive officers, Executive's reduction shall then be mitigated to the same extent applicable to other executive officers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.<u>Other Benefits</u>. In addition to the compensation described in Paragraphs 3, 4 and 5, above, the Executive shall also be entitled to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Participation in Benefit Plans</u>. The Executive shall be entitled to participate in all of the various retirement, welfare, fringe benefit, perquisites and expense

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reimbursement plans, programs and arrangements of the Employer in which the Executive participated as of the Effective Date, as may be changed from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Vacation</u>. The Executive shall be entitled to such number of days of vacation with pay during each calendar year during the period of employment in accordance with the Employer's applicable personnel policy as in effect from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Post-Employment of Health Benefits</u>. Following termination of employment for any reason other than by the Employer for Cause, Executive shall be entitled to maintain health benefits coverage for himself, his spouse and age-eligible dependents (and his spouse shall be entitled to maintain such coverage for herself and such eligible dependents in the event of Executive's death) on the same basis as if Executive's full-time employment continued until Executive and his spouse are eligible for Medicare coverage and Executive's dependents are no longer age-eligible for coverage under the Company's group health insurance policy, provided that Executive (or his spouse) pays the premium for such coverage on the same cost-sharing basis applicable to full-time active employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.<u>Termination</u>. Unless earlier terminated in accordance with the following provisions of this Paragraph 7, the Employer shall continue to employ the Executive and the Executive shall remain employed by the Employer during the entire term of this Agreement as set forth in Paragraph 1(b). Paragraph 8 hereof sets forth certain obligations of the Employer in the event that the Executive's employment hereunder is terminated. Certain capitalized terms used in this Paragraph 7 and in Paragraph 8 hereof are defined in Paragraph 7(d), below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Death or Disability</u>. Except to the extent otherwise provided in Paragraph 8 with respect to certain post-Date of Termination (as defined below) payment obligations of the Employer, this Agreement shall terminate immediately as of the Date of Termination in the event of the Executive's death or in the event that the Executive becomes disabled. The Executive will be deemed to be disabled upon the first to occur of (i) the end of a six (6)-consecutive month period, or the end of an aggregate period of nine (9) months out of any consecutive twelve (12) months, during which, by reason of physical or mental injury or disease, the Executive has been unable to perform substantially all of his usual and customary duties under this Agreement or (ii) the date that a reputable physician acceptable to the Employer determines in writing that the Executive will, by reason of physical or mental injury or disease, be unable to perform substantially all of the Executive's usual and customary duties under this Agreement for a period of at least six (6) consecutive months. If any question arises as to whether the Executive is disabled, upon reasonable request therefor by the Board, the Executive shall submit to reasonable examination by a physician for the purpose of determining the existence, nature and extent of any such disability. The Board shall promptly provide the Executive with written notice of the results of any such determination of disability and of any decision of the Board to terminate the Executive's employment by reason thereof. In the event of disability, until the Date of Termination, the base salary payable to the Executive under Paragraph 3 hereof shall be reduced dollar-for-dollar by the amount of disability benefits, if any, paid to the Executive in accordance with any disability policy or program of the Employer.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Discharge for Cause</u>. In accordance with the procedures hereinafter set forth, the Employer may terminate the Executive's employment hereunder for Cause. Except to the extent otherwise provided in Paragraph 8 with respect to certain post-Date of Termination obligations of the Employer, this Agreement shall terminate immediately as of the Date of Termination in the event the Executive is terminated for Cause. Any termination of the Executive for Cause shall be communicated by a Notice of Termination to the Executive given in accordance with Paragraph 14 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Termination without Cause; Resignation with or without Good Reason</u>. The Employer may terminate the Executive's employment without Cause by giving written notice to the Executive in accordance with Paragraph 14 at least thirty (30) days prior to the Date of Termination. The Executive may resign from employment with or without Good Reason. To resign without Good Reason, Executive shall give written notice to the Employer in accordance with Paragraph 14, at least thirty (30) days prior to the Date of Termination. To resign with Good Reason, the Executive shall provide written notice of the occurrence of an event constituting Good Reason and Executive's resignation in accordance with the procedures and time periods set forth in Paragraph 7(d)(v) below. Except to the extent otherwise provided in Paragraph 8 with respect to certain post-Date of Termination obligations of the Employer, this Agreement shall terminate immediately as of the Date of Termination in the event the Executive is terminated without Cause or resigns for any reason or no reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Definitions</u>. For purposes of this Agreement, the following capitalized terms shall have the meanings set forth below:

(i)"**Accrued Obligations**" shall mean, as of the Date of Termination, the sum of (A) Executive's Base Salary under Paragraph 3 through the Date of Termination to the extent not theretofore paid, (B) the amount of any other cash compensation earned by the Executive as of the Date of Termination to the extent not theretofore paid, (C) any vacation pay, expense reimbursements and other cash payments to which the Executive is entitled as of the Date of Termination to the extent not theretofore paid, (D) any grants and awards earned and vested under the terms of the STIC, LTIC or any incentive compensation plan or program, (E) the right to maintain post-employment health coverage under Paragraph 6(c), and (F) all other benefits which have accrued and are vested as of the Date of Termination. For the purpose of this Paragraph 7(d)(i), except as provided in the applicable plan, program or policy, amounts shall be deemed to accrue ratably over the period during which they are earned, but no discretionary compensation shall be deemed earned or accrued until it is specifically approved in accordance with the applicable plan, program or policy.

(ii)"**Cause**" shall mean (A) the Executive's willful and continued (for a period of not less than fifteen (15) days after written notice thereof) failure to perform substantially the duties of his employment (other than as a result of physical or mental incapacity, or while on vacation); or (B) the Executive's willfully engaging in illegal conduct, an act of dishonesty or gross misconduct related to the performance of Executive's duties and responsibilities under the Agreement; or (C) the Executive's conviction of a crime involving moral turpitude, dishonesty, fraud, theft or financial

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impropriety, but specifically excluding any conviction based entirely on vicarious liability (with "**vicarious liability**" meaning liability based on acts of the Employer for which the Executive is charged solely as a result of his position with the Employer and in which Executive was not directly involved and did not have prior knowledge of such actions or intended actions); or (D) the Executive's willful violation of a material requirement of any code of ethics or standards of conduct of the Employer applicable to Executive or Executive's fiduciary duty to the Employer; <u>provided</u>, <u>however</u>, that no act or failure to act, on the part of the Executive, shall be considered "willful" unless it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that the Executive's action or omission was in the best interests of the Employer; and provided further that no act or omission by the Executive shall constitute Cause hereunder unless the Employer has given detailed written notice thereof to the Executive, and the Executive has failed to remedy such act or omission within fifteen (15) days of receipt of such written notice.

(iii)"**Change in Control**" shall mean:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Any "person" (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended), other than (i) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or a subsidiary, or (ii) a corporation owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company, is or becomes the "beneficial owner" (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of the Company representing 25% or more of the total voting power of the then outstanding shares of capital stock of the Company entitled to vote generally in the election of directors (the "**Voting Stock**"); provided, however, that the following shall not constitute a Change in Control: (A) such person becomes a beneficial owner of 25% of more of the Voting Stock as the result of an acquisition of such stock directly from the Company, or (B) such person becomes a beneficial owner of 25% or more of the Voting Stock as a result of the decrease in the number of outstanding shares caused by the repurchase of shares by the Company, or (C) such person becomes a beneficial owner of 25% or more of the Voting Stock without any plan or intention to seek or affect control of the Company, if such person promptly enters into an irrevocable commitment promptly to divest, and thereafter promptly divests, such shares of Voting Stock so that such person ceases to beneficially own 25% or more of the Voting Stock; provided, further, that in the event a person described in clause (A) or (B) shall thereafter increase (other than in circumstances described in clause (A) or (B)) beneficial ownership of stock representing more than 1% of the Voting Stock, such person shall then be deemed to become a beneficial owner of 25% or more of the Voting Stock for purposes of this paragraph (a), provided such person continues to beneficially own 25% or more of the Voting Stock after such subsequent increase in beneficial ownership, or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)During any period of two consecutive years, individuals, who at the beginning of such period constitute the Board, and any new director, whose election by the Board or nomination for election by the Company's stockholders was approved by a vote of at least two-thirds of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute a majority thereof,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)The consummation of, a reorganization, merger or consolidation, the sale or other disposition of all or substantially all of the assets, or a similar transaction or series of transactions involving the Company (a "**Business Combination**") in each case, unless (1) all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Voting Stock immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of the total voting power represented by the voting securities entitled to vote generally in the election of directors of the Company or the corporation resulting from the Business Combination (including, without limitation, a corporation which as a result of the Business Combination owns the Company or all or substantially all of the Company's assets either directly or through one or more subsidiaries), in substantially the same proportions as their ownership immediately prior to the Business Combination of the Voting Stock of the Company, and (2) at least a majority of the members of the board of directors of the Company or such corporation resulting from the Business Combination were members of the Board at the time of the execution of the initial agreement, or action of the Board, providing for such Business Combination; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)the stockholders of the Company approve a plan of complete liquidation or dissolution of the Company.

The Board has final authority to construe and interpret the provisions of the foregoing paragraphs (A), (B), (C) and (D) and to determine the exact date on which a Change in Control has been deemed to have occurred thereunder.

(iv)"**Date of Termination**" shall mean (A) in the event of a discharge of the Executive for Cause, the date the Executive receives a Notice of Termination, or any later date specified in such Notice of Termination, as the case may be, (B) in the event of a discharge of the Executive without Cause or a resignation by the Executive, the date specified in the written notice to the Executive (in the case of discharge) or the Employer (in the case of resignation), which date shall be no less than thirty (30) days from the date of such written notice, (C) in the event of the Executive's death, the date of the Executive's death, and (D) in the event of termination of the Executive's employment by reason of disability pursuant to Paragraph 7(a), the date the Executive (or Executive's legal representative) receives written notice of such termination.

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(v)"**Good Reason**" shall mean the occurrence of any event, other than in connection with a termination of Executive's employment, which results in a material diminution of Executive's status, duties, authority, responsibilities or compensation from those contemplated by this Agreement, including, without limitation, any of the following actions without the Executive's written consent (which, for this purpose, will not include consent given in Executive's capacity as a director, officer or employee of an Employer): (A) removal from or failure to elect the Executive to the positions set forth in Paragraph 1(a), other than removal from the position of Chairman of the Board, following the Board's reasonable determination that the roles of Chairman and Chief Executive Officer should not be held by the same individual, so long as Executive remains a member of the Board and in the other positions set forth in Paragraph 1(a); or (B) a material diminution in the nature or scope of the Executive's titles, duties, powers, authority or reporting relationships, from those contemplated in Paragraphs 1(a) and 2(a), such that such titles, duties, authority or reporting relationships are inconsistent with, and commonly (in the banking industry) considered to be of lesser authority, status or responsibility; or (C) a material reduction in the Executive's Base Salary, Target Bonus, or Target LTI, other than as a result of (1) an Across-the-Board Reduction which occurs prior to a Change in Control, or (2) a change in mix of the Executive's compensation which occurs prior to a Change in Control and that does not result in a material reduction in the Executive's Total Aggregate Direct Compensation, or (D) any material failure by the Employer to comply with any of the provisions of this Agreement; or (E) the Employer gives notice to the Executive pursuant to Paragraph 1(b) that the term of this Agreement shall not be extended upon the expiration of the then-current term; or (F) the Employer requires the Executive to be based at an office or location which is more than 35 miles from the Executive's office as of the Effective Date or any renewal date of this Agreement; <u>provided</u>, <u>however</u>*,* that an event shall not constitute Good Reason unless the Executive gives Employer written notice of such event within ninety (90) days of the initial existence of an event and Employer fails to cure such circumstance within the thirty (30) day period following Employer's receipt of such written notice, and Executive serves a Notice of Termination within ninety (90) days of the completion of the Employer's cure period. In the event of a Change in Control, any good faith determination by the Executive that Good Reason exists shall be conclusive.

(vi)"**Notice of Termination**" shall mean a written notice which (A) indicates the specific termination provision in this Agreement relied upon, (B) sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive's employment under the provision so indicated and (C) if the Date of Termination is to be other than the date of receipt of such notice or the date otherwise specified on this Agreement, specifies the termination date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.<u>Obligations of the Employer Upon Termination</u>. The following provisions describe the post-Date of Termination obligations of the Employer to the Executive under this Agreement upon the termination of Executive's employment and the Agreement. However, except as explicitly provided in this Agreement, nothing in this Agreement shall limit or otherwise adversely affect any rights which the Executive may have under applicable law, under

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any other agreement with the Employer or any of its subsidiaries, or under any compensation or benefit plan, program, policy or practice of the Employer or any of its subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Death, Disability, Discharge for Cause, or Resignation Without Good Reason</u>. In the event the Executive's employment and this Agreement terminate pursuant to Paragraph 7(a) by reason of the death or disability of the Executive, or pursuant to Paragraph 7(b) by reason of the termination of the Executive by the Employer for Cause, or pursuant to Paragraph 7(c) by reason of the resignation of the Executive other than for Good Reason, the Employer shall pay to the Executive, or his heirs or estate, in the event of the Executive's death, all Accrued Obligations in a lump sum in cash within thirty (30) days after the Date of Termination; <u>provided</u>, <u>however</u>, that any portion of the Accrued Obligations which consists of bonus, deferred compensation, incentive compensation, insurance benefits or other employee benefits shall be determined and paid in accordance with the terms of the relevant plan or policy as applicable to the Executive, including, where applicable, the forfeiture of such amounts upon a termination for Cause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Discharge Without Cause or Resignation with Good Reason</u> . In the event the Executive's employment and this Agreement terminate pursuant to Paragraph 7(c) by reason of the termination of the Executive by the Employer other than for Cause or disability, or by reason of the resignation of the Executive for Good Reason:

(i)The Employer shall pay all Accrued Obligations to the Executive in a lump sum in cash within thirty (30) days after the Date of Termination; <u>provided</u>, <u>however</u>, that any portion of the Accrued Obligations which consists of bonus, deferred compensation, incentive compensation, insurance benefits or other employee benefits shall be determined and paid in accordance with the terms of the relevant plan, policy or agreement as applicable to the Executive, except as may otherwise be provided in this Agreement;

(ii)The Employer shall pay to the Executive any STIC bonus earned but not yet paid from the year preceding the year during which termination occurs ("**Prior Year Bonus**");

(iii)The Employer shall pay to the Executive a STIC bonus for the year during which termination occurs, calculated as the greater of: (1) the pro-rata portion of his then current annual target Bonus amount based on the number of days elapsed during the year through the Date of Termination, or (2) the pro-rata portion of the actual annual bonus amount earned based on the number of days elapsed during the year through the Date of Termination, in either event paid when the bonus otherwise would have been paid pursuant to the terms of the STIC plan;

(iv)The Employer shall cause the unvested portion of each outstanding LTIC award, granted prior to or after the Effective Date of this Agreement, which is held by the Executive on the Date of Termination to vest or to remain eligible to be earned and vest as follows (unless the terms of any applicable LTIC award agreement are more favorable to the Executive, in which case such terms shall apply): (1) each such LTIC award then

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subject solely to time-based vesting shall vest on the Date of Termination to the extent that the pro-rata portion (as described below) of the award exceeds the portion of the award that vested prior to the Date of Termination, and (2) the pro-rata portion (as described below) of each such LTIC award subject to performance-based vesting and for which the applicable performance period will end after the Date of Termination shall remain outstanding and shall become earned and vest at the end of the performance period based on the level of performance achieved; provided that for purposes of clause (1) above, the pro-rata portion shall be the total number of shares subject to the award multiplied by a fraction, the numerator of which is the number of whole months from the grant date of the award to the Date of Termination and the denominator of which is the number of months in the period from the grant date to the final scheduled vesting date under the award; provided, further that for purposes of clause (2) the pro-rata portion shall be the percentage of the total number of performance shares granted under the award multiplied by a fraction, the numerator of which is the number of whole months from the first day of the performance period under the award to the Date of Termination and the denominator of which is the number of months in the performance period; provided, further, that any portion of the award described in clause (1) that remains unvested after application of clause (1) and any portion of the performance shares under the award described in clause (2) which do not remain outstanding after application of clause (2) shall be forfeited; and

(v)The Employer shall pay to the Executive an amount equal to two (2) times the sum of his Base Salary and Target Bonus as in effect under Paragraphs 3 and 4, which amount shall be payable in substantially equal installments in accordance with the Employer's regular payroll practices, for a period of twenty-four (24) months (the "**Severance Period**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Effect of Change in Control</u>. In the event that a Change in Control occurs and the Executive's employment and this Agreement thereafter terminate within two (2) years pursuant to Paragraph 7(c) by reason of the discharge of the Executive by the Employer other than for Cause or disability or by reason of the resignation of the Executive for Good Reason, then, in lieu of the amounts payable under Paragraph 8(b):

(i)The Employer shall pay all Accrued Obligations to the Executive in a lump sum in cash within thirty (30) days after the Date of Termination; <u>provided</u>, <u>however</u>, that any portion of the Accrued Obligations which consists of bonus, deferred compensation, incentive compensation, insurance benefits or other employee benefits shall be determined and paid in accordance with the terms of the relevant plan or policy as applicable to the Executive, provided that Paragraph 8(b)(iv) shall apply to all LTIC awards held by Executive as of the Date of Termination;

(ii)The Employer shall pay any Prior Year Bonus to the Executive;

(iii)Within thirty (30) days after the Date of Termination, the Employer shall pay to the Executive a STIC bonus for the year during which termination occurs,

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calculated as a pro-rata portion of his then current Target Annual Bonus amount based on the number of days elapsed during the year through the Date of Termination;

(iv)The Employer shall pay to the Executive an amount equal to three (3) times the sum of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)the amount of Executive's Base Salary in effect under Paragraph 3 determined as of the Date of Termination, or the date immediately preceding the date of the Change in Control, whichever is greater; plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)the Executive's Target Bonus in effect under Paragraph 4 for the calendar year in which Change in Control or the Date of Termination occurs, whichever is greater,

which amount shall be payable in a lump sum payment within thirty (30) days after the Date of Termination (or, in the event the Change in Control is not a change in ownership or effective control under Code Section 409A, in substantially equal installments in accordance with the Employer's regular payroll practice over a period of twenty-four (24) months).

Notwithstanding the foregoing, if a Change in Control occurs and this Agreement is terminated prior to the Change in Control pursuant to Paragraph 7(c) by reason of the discharge of the Executive by the Employer other than for Cause or disability, or by reason of the resignation of the Executive for Good Reason, then Executive shall be deemed for purposes of this Paragraph 8(c) to have so terminated pursuant to Paragraph 7(c) immediately following the date the Change in Control occurs if it is reasonably demonstrated by Executive that such earlier termination was (i) at the request of a third party who had taken steps reasonably calculated to effect the Change in Control, or (ii) otherwise arose, or the circumstances that precipitated the termination otherwise arose, in connection with or in anticipation of the Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Effect on Other Amounts</u>. The payments provided for in this Paragraph 8 shall be, in addition to all other sums then payable and owing to Executive, subject to applicable federal and state income and other withholding taxes and shall be in full settlement and satisfaction of all of Executive's claims and demands. Upon such termination of this Agreement, other than as provided in Paragraph 26, Employer shall have no rights or obligations under this Agreement, other than its obligations under this Paragraph 8, and Executive shall have no rights and obligations under this Agreement, other than Executive's obligations under Paragraph 12 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)<u>Conditions</u>. Any payments of benefits made or provided pursuant to this Paragraph 8 are subject to the Executive's:

(i)reaffirmation of and compliance with Executive's obligations under Paragraph 12 hereof;

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(ii)delivery to the Employer of an executed Release and Severance Agreement, which shall be substantially in the form attached hereto as Exhibit A, with such changes therein or additions thereto as needed under then applicable law to give effect to its intent and purpose; and

(iii)delivery to the Employer of a resignation from all offices, directorships and fiduciary positions with the Employer, its affiliates and employee benefit plans.

Notwithstanding the due date of any post-employment payments, any amounts due under this Paragraph 8 shall not be due until after the expiration of any revocation period applicable to the Release and Severance Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.<u>Section 280G Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Anything in this Agreement to the contrary notwithstanding, in the event that the Accounting Firm (as defined below) shall determine that receipt of all Payments (as defined below) would subject the Executive to the excise tax under Section 4999 of the Code, the Accounting Firm shall determine whether to reduce any of the Payments paid or payable pursuant to this Agreement (the "**Agreement Payments**") so that the Parachute Value (as defined below) of all Payments, in the aggregate, equals the Safe Harbor Amount (as defined below). The Agreement Payments shall be so reduced only if the Accounting Firm determines that the Executive would have a greater Net After-Tax Receipt (as defined below) of aggregate Payments if the Agreement Payments were so reduced. If the Accounting Firm determines that the Executive would not have a greater Net After-Tax Receipt of aggregate Payments if the Agreement Payments were so reduced, the Executive shall receive all Agreement Payments to which the Executive is entitled hereunder. For purposes of all present-value determinations required to be made under this Paragraph 9, Employer and the Executive elect to use the applicable federal rate that is in effect on the Effective Date pursuant to Treasury Regulations § 1-280G, Q&A-32.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)If the Accounting Firm determines that aggregate Agreement Payments should be reduced so that the Parachute Value of all Payments, in the aggregate, equals the Safe Harbor Amount, Employer shall promptly give the Executive notice to that effect and a copy of the detailed calculation thereof. All determinations made by the Accounting Firm under this Paragraph 9 shall be binding upon Employer and the Executive and shall be made as soon as reasonably practicable and in no event later than five (5) days following the Effective Date. For purposes of reducing the Agreement Payments so that the Parachute Value of all Payments, in the aggregate, equals the Safe Harbor Amount, only amounts payable under this Agreement (and no other Payments) shall be reduced. All reasonable fees and expenses of the Accounting Firm shall be borne solely by Employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)As a result of the uncertainty in the application of Section 4999 of the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible that amounts will have been paid or distributed by Employer to or for the benefit of the Executive pursuant to this Agreement that should not have been so paid or distributed (each, an

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"**Overpayment**") or that additional amounts that will have not been paid or distributed by Employer to or for the benefit of the Executive pursuant to this Agreement could have been so paid or distributed (each, an "**Underpayment**"). In the event that the Accounting Firm, based upon the assertion of a deficiency by the Internal Revenue Service against Employer or the Executive that the Accounting Firm believes has a high probability of success determines that an Overpayment has been made, any such Overpayment paid or distributed by Employer to or for the benefit of the Executive shall be repaid by the Executive to Employer together with interest at the applicable federal rate provided for in Section 7872(f)(2) of the Code; <u>provided</u>, <u>however</u>, that no such repayment shall be required if and to the extent such deemed repayment would not either reduce the amount on which the Executive is subject to tax under Section 1 and Section 4999 of the Code or generate a refund of such taxes. In the event that the Accounting Firm, based upon controlling precedent or substantial authority, determines that an Underpayment has occurred, any such Underpayment shall be promptly paid by Employer to or for the benefit of the Executive together with interest at the applicable federal rate provided for in Section 7872(f)(2) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Prior to the Effective Date, Employer shall cooperate with the Executive in good faith in valuing, and the Accounting Firm shall take into account the value of, services provided or to be provided by the Executive (including, without limitation, any agreement by which Executive has agreed to refrain from performing services for other entities), such that payments in respect of such services may be considered reasonable compensation within the meaning of Q&A-9 and Q&A-40 to Q&A-44 of the final regulations under Section 280G of the Code and/or exempt from the definition of the term "parachute payment" within the meaning of Q&A-2(a) of the final regulations under Section 280G of the Code in accordance with Q&A-5(a) of the final regulations under Section 280G of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)For purposes of this Paragraph 9:

(i)"**Accounting Firm**" shall mean the independent public accountants then regularly retained by the Employer for purposes of tax planning or such other nationally-recognized accounting consulting firm (other than the independent auditors of the Employer or the entity resulting from the Business Combination) in consultation with counsel acceptable to the Employer.

(ii)"**Net After-Tax Receipt**" shall mean the present value (as determined in accordance with Sections 280G(b)(2)(A)(ii) and 280G(d)(4) of the Code) of a Payment net of all taxes imposed on the Executive with respect thereto under Sections 1 and 4999 of the Code and under applicable state and local laws, determined by applying the highest marginal rate under Section 1 of the Code and under state and local laws which applied to the Executive's taxable income for the immediately preceding taxable year, or such other rate(s) as the Accounting Firm determines to be likely to apply to the Executive in the relevant tax year(s).

(iii)"**Parachute Value**" of a Payment shall mean the present value as of the date of the change of control for purposes of Section 280G of the Code of the portion of such Payment that constitutes a "parachute payment" under Section 280G(b)(2) of the Code, as

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determined by the Accounting Firm for purposes of determining whether such Payment is a parachute payment and to what extent the excise tax under Section 4999 of the Code will apply to such Payment.

(iv)"**Payment**" shall mean any payment or distribution in the nature of compensation (within the meaning of Section 280G(b)(2) of the Code) to or for the benefit of the Executive, whether paid or payable pursuant to the Agreement or otherwise.

(v)"**Safe Harbor Amount**" shall mean 2.99 times the Executive's "base amount," within the meaning of Section 280G(b)(3) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)The provisions of this Paragraph 9 shall survive the expiration of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.<u>Section 409A of the Code</u>. It is intended that any amounts payable under this Agreement and the Employer's and Executive's exercise of authority or discretion hereunder shall comply with Section 409A of the Code (including the Treasury regulations and other published guidance relating thereto) so as not to subject Executive to the payment of any interest or additional tax imposed under Section 409A of the Code. In furtherance of this intent (a) if, due to the circumstances giving rise to any lump sum payment or payments under this Agreement, the date of payment or the commencement of such payments thereof must be delayed for six months in order to meet the requirements of Section 409A(a)(2)(B) of the Code applicable to "specified employees," then such payment or payments shall be so delayed and paid upon expiration of such six month period and (b) if the sixty (60) day period following the Date of Termination begins in one calendar year and ends in a second calendar year, and if there are non-qualified deferred compensation payments subject to Code Section 409A due to Executive conditioned upon the Executive's execution and non-revocation of the Release and Severance Agreement and which is to be paid during a designated period that begins in a first calendar year, such payments shall be delayed and paid in the second calendar year. With regard to any provision herein that provides for reimbursement of expenses or in-kind benefits: (i) the right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit, and (ii) the amount of expenses eligible for reimbursement or in-kind benefits provided during any taxable year shall not affect the expenses eligible for reimbursement or in-kind benefits to be provided in any other taxable year, provided that the foregoing shall not be violated with regard to expenses covered by Code Section 105(h) that are subject to a limit related to the period in which the arrangement is in effect. Any expense or other reimbursement payment made pursuant to this Agreement or any plan, program, agreement or arrangement of the Employer referred to herein, shall be made on or before the last day of the taxable year following the taxable year in which such expense or other payment to be reimbursed is incurred. To the extent that any Treasury regulations, guidance or changes to Section 409A would result in the Executive becoming subject to interest and additional tax under Section 409A of the Code, the Employer and Executive agree to amend this Agreement in order to bring this Agreement into compliance with Code Section 409A.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.<u>Mediation and Arbitration</u>. Except as provided in Paragraph 11(c) below, any unresolved controversy or claim arising from or related to this Agreement or breach hereof shall be resolved by use of mediation initially, and if that fails to resolve the matter, by arbitration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Mediation</u>. Mediation shall be in Chicago, Illinois, before one mediator qualified in mediation of employment matters agreed upon by the parties, or if no agreement on a mediator is reached, before a mediator chosen according to the American Arbitration Association ("**AAA**") National Rules for the Resolution of Employment Disputes, specifically the Employment Mediation Rules. There shall be only one mediator. The parties will use best efforts to obtain a mediator and complete the mediation within 30 days from the date of request for mediation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Arbitration</u>. If the mediation has not been completed within 60 days from the date of request for mediation, any party may, by notice to all other parties and the AAA, forego mediation and move directly to arbitration under the AAA National Rules for the Resolution of Employment Disputes. Such arbitration shall be before a single arbitrator mutually selected by the parties and shall be in Chicago, Illinois. By written agreement signed by the Employer and the Executive, the parties hereto may agree to forego mediation, may make any agreement regarding scheduling of the mediation or the arbitration process, discovery or hearing, which agreement shall be binding on the mediator or arbitrator, despite any AAA rule to the contrary. The determination of the arbitrator shall be final, not subject to appeal, and binding on all parties and may be enforced by appropriate judicial order of any court of competent jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Exclusions</u>. Notwithstanding the foregoing provisions of this Paragraph 11, (i) the parties are not required to arbitrate any issue for which injunctive relief is sought by any party hereto (including pursuant to Paragraph 13 hereof), (ii) all parties may seek injunctive relief in any federal district court located in Chicago, Illinois or any state court located in Cook County, Illinois, and (iii) claims of worker's compensation and unemployment compensation shall not be subject to arbitration under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Attorneys' Fees</u>. With respect to any dispute or controversy arising under or in connection with this Agreement, if the Executive is a prevailing party (as defined below), the Executive shall be entitled to recover all reasonable attorneys' fees and expenses incurred in connection with the dispute or controversy. A "prevailing party" is one who is successful on any material substantive issue in the action and achieves either a judgment in such party's favor or some other affirmative recovery.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.<u>Confidentiality and Restrictive Covenants Agreement</u>. On the Effective Date, the Executive shall enter into a Confidentiality and Restrictive Covenant Agreement (the "**Restrictive Covenant Agreement**"), which agreement includes covenants concerning Non-Disclosure of Confidential Information, Non-Competition, Non-Solicitation and Non-Disparagement. The Executive agrees to be subject to and bound by all terms and conditions of the Restrictive Covenant Agreement during the period of employment and, to the extent provided therein, thereafter, as if such terms and conditions were set forth in full herein. References in this

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Agreement to Executive's obligations under this Paragraph 12 shall mean references to his obligations under the Restrictive Covenant Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.<u>Remedies</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Executive acknowledges that the restrictions and agreements herein provided are fair and reasonable, that enforcement of the provisions of Paragraph 12 will not cause Executive undue hardship and that said provisions are reasonably necessary and commensurate with the need to protect the Employer and its legitimate and proprietary business interests and property from irreparable harm. Executive acknowledges and agrees that (a) a breach of any of the covenants and provisions contained in Paragraph 12 above will result in irreparable harm to the business of the Employer, (b) a remedy at law in the form of monetary damages for any breach by Executive of any of the covenants and provisions contained in Paragraph 12 is inadequate, (c) in addition to any remedy at law or equity for such breach, the Employer shall be entitled to institute and maintain appropriate proceedings in equity, including a suit for injunction to enforce the specific performance by Executive of the obligations hereunder and to enjoin Executive from engaging in any activity in violation hereof and (d) the covenants on Executive's part contained in Paragraph 12, shall be construed as agreements independent of any other provisions in this Agreement, and the existence of any claim, setoff or cause of action by Executive against the Employer, whether predicated on this Agreement or otherwise, shall not constitute a defense or bar to the specific enforcement by the Employer of said covenants. In the event of a breach or a violation by Executive of any of the covenants and provisions of this Agreement, the running of the Restriction Period (but not of Executive's obligation thereunder), shall be tolled during the period of the continuance of any actual breach or violation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The parties hereto agree that the covenants set forth in Paragraph 12 are reasonable with respect to their duration, geographical area and scope. If the final judgment of a court of competent jurisdiction declares that any term or provision of Paragraph 12 is invalid or unenforceable, the parties agree that the court making the determination of invalidity or unenforceability shall have the power to reduce the scope, duration, or area of the term or provision, to delete specific words or phrases, or to replace any invalid or unenforceable term or provision with a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision, and this Agreement shall be enforceable as so modified after the expiration of the time within which the judgment may be appealed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.<u>Notices</u>. Any notice or other communication required or permitted to be given hereunder shall be determined to have been duly given to any party (a) upon delivery to the address of such party specified below if delivered personally or by courier; (b) upon dispatch if sent in .PDF form by electronic mail to the Company-provided electronic mail address, or if transmitted by telecopy or other means of facsimile; (c) within forty-eight (48) hours after deposit thereof in the U.S. mail, postage prepaid, for delivery as certified mail, return receipt requested, or (d) within twenty-four (24) hours after deposit thereof with a reputable overnight courier (charges prepaid), addressed, in any case to the party at the following address(es) or telecopy numbers:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)If to Executive, at the address set forth on the records of the Employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)If to the Employer:

First Midwest Bancorp, Inc.

8750 Bryn Mawr Ave., Suite 1300

Chicago, Illinois 60631

Attn: Corporate Secretary

Fax No.: (872) 207-7411

E-mail: nick.chulos@firstmidwest.com

or to such other address(es) or facsimile number(s) as any party may designate by Written Notice in the aforesaid manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.<u>Directors and Officers Liability Coverage; Indemnification</u>. Executive shall be entitled to coverage under such directors and officers liability insurance policies maintained from time to time by the Company, Bank or any subsidiary for the benefit of its directors and officers. The Company shall indemnify and hold Executive harmless, to the fullest extent permitted by the laws of the State of Delaware, from and against all costs, charges and expenses (including reasonable attorneys' fees), and shall provide for the advancement of expenses incurred or sustained in connection with any action, suit or proceeding to which the Executive or his legal representatives may be made a party by reason of the Executive's being or having been a director, officer or employee of the Company, Bank or any of its affiliates or employee benefit plans. The provisions of this Paragraph 15 shall not be deemed exclusive of any other rights to which the Executive seeking indemnification may have under any by-law, agreement, vote of stockholders or directors, or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.<u>Full Settlement; No Mitigation</u>. The Employer's obligation to make the payments and provide the benefits provided for in this Agreement and otherwise to perform its obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense or other claim, right or action which the Employer may have against the Executive or others, other than as described in Paragraph 29. In no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Executive under any of the provisions of this Agreement, and such amounts shall not be reduced whether or not the Executive obtains other employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.<u>Payment in the Event of Death</u>. In the event payment is due and owing by the Employer to Executive under this Agreement upon the death of Executive, payment shall be made to such beneficiary as Executive may designate in writing, or failing such designation, then the executor of his estate, in full settlement and satisfaction of all claims and demands on behalf of Executive, shall be entitled to receive all amounts owing to Executive at the time of death under this Agreement. Such payments shall be in addition to any other death benefits of the Employer and in full settlement and satisfaction of all severance benefit payments provided for in this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.<u>Entire Understanding</u>. This Agreement constitutes the entire understanding and agreement between the parties relating to Executive's employment hereunder and supersedes and cancels all prior written and oral understandings and agreements with respect to such matters (including the employment agreements dated May 4, 2007 and June 18, 2018, respectively, between the Company and the Executive), except for the terms and provisions of any employee benefit or other compensation plans (or any agreements or awards thereunder) or other agreements referred to in this Agreement, or as otherwise expressly contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.<u>Binding Effect</u>. This Agreement shall be binding upon and inure to the benefit of the heirs and representatives of the Executive and the successors and assigns of the Company. The Company shall require any successor (whether direct or indirect, by purchase, merger, reorganization, consolidation, acquisition of property or stock, liquidation, or otherwise) to all or a substantial portion of its assets, by agreement in form and substance reasonably satisfactory to the Executive, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform this Agreement if no such succession had taken place. Regardless of whether such an agreement is executed, this Agreement shall be binding upon any successor of the Company in accordance with the operation of law, and such successor shall be deemed the "Company" for purposes of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.<u>Tax Withholding</u>. The Employer shall provide for the withholding of any taxes required to be withheld by federal, state or local law with respect to any payment in cash, shares of stock and/or other property made by or on behalf of the Employer to or for the benefit of the Executive under this Agreement or otherwise. The Employer may, at its option: (a) withhold such taxes from any cash payments owing from the Employer to the Executive, (b) require the Executive to pay to the Employer in cash such amount as may be required to satisfy such withholding obligations and/or (c) make other satisfactory arrangements with the Executive to satisfy such withholding obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.<u>No Assignment</u>. Except as otherwise expressly provided herein, this Agreement is not assignable by any party and no payment to be made hereunder shall be subject to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or other charge.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.<u>Execution in Counterparts</u>. This Agreement may be executed by the parties hereto in two (2) or more counterparts, each of which shall be deemed to be an original, but all such counterparts shall constitute one and the same instrument, and all signatures need not appear on any one counterpart.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.<u>Jurisdiction and Governing Law</u>. Jurisdiction over disputes with regard to this Agreement shall be exclusively in the courts of the State of Illinois, and this Agreement shall be construed and interpreted in accordance with and governed by the laws of the State of Illinois, without regard to the choice of laws provisions of such laws.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.<u>Severability</u>. If any provision of this Agreement shall be adjudged by any court of competent jurisdiction to be invalid or unenforceable for any reason, such judgment shall not affect, impair or invalidate the remainder of this Agreement. Furthermore, if the scope of any restriction or requirement contained in this Agreement is too broad to permit enforcement of such restriction or requirement to its full extent, then such restriction or requirement shall be enforced to the maximum extent permitted by law, and the Executive consents and agrees that any court of competent jurisdiction may so modify such scope in any proceeding brought to enforce such restriction or requirement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.<u>Waiver</u>. The waiver of any party hereto of a breach of any provision of this Agreement by any other party shall not operate or be construed as a waiver of any subsequent breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26.<u>Amendment; Effect of Termination</u>. No change, alteration or modification hereof may be made except in a writing, signed by each of the parties hereto. The provisions of Paragraph 8 relating to post-Date of Termination obligations, and the provisions and obligations set forth in Paragraphs 9 through 29 shall survive termination of the Agreement pursuant to Paragraph 7.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.<u>Construction</u>. The language used in this Agreement will be deemed to be the language chosen by Employer and Executive to express their mutual intent and no rule of strict construction shall be applied against any person. Wherever from the context it appears appropriate, each term stated in either the singular or plural shall include the singular and the plural, and the pronouns stated in either the masculine, the feminine or the neuter gender shall include the masculine, feminine or neuter. The headings of the Paragraphs of this Agreement are for reference purposes only and do not define or limit, and shall not be used to interpret or construe the contents of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.<u>No Duplication</u>. Notwithstanding anything herein to the contrary, to the extent that any compensation or benefits are paid to or received by the Executive from the Company, Bank or any other subsidiary of Company or the Bank, such compensation or benefits shall be deemed to satisfy the obligations of the Company, Bank and all subsidiaries, such that Executive shall not be entitled to receive any compensation or benefits which are duplicative of such amounts previously paid to or received by Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29.<u>Regulatory Requirements and Compensation Recovery (Clawback)</u>. Anything in this Agreement to the contrary notwithstanding, it is intended that, to the extent required, this Agreement and the payments made hereunder comply with the requirements of any legislative or regulatory limitations or requirements which are or may become applicable to the Employer and the payments made hereunder, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and any rules or regulations issued thereunder (collectively, the "Regulatory Requirements"), which limitations or requirements may include, but not limited to, provisions limiting, delaying or deferring payment of certain bonus, incentive or retention compensation or "golden parachute payments" to certain officers or highly compensated employees, requiring that the Employer may recover (claw-back) bonus and incentive compensation in certain circumstances, and precluding bonus and incentive arrangements that encourage unnecessary or

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excessive risks that threaten the value of the Employer, in each case within the meaning of the Regulatory Requirements, and only to the extent applicable to the Employer and the Executive. The application of this Paragraph 29 is intended to, and shall be interpreted, administered and construed to, cause the Agreement to comply with the Regulatory Requirements and, to the maximum extent consistent with this Paragraph 29 and the Regulatory Requirements, to permit the operation of this Agreement in accordance with the terms and conditions hereof before giving effect to the provisions of this Paragraph 29 or the Regulatory Requirements.

***[Signature page follows this page]***

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**IN WITNESS WHEREOF**, the parties hereto have executed and delivered this Agreement as of the day and year first above written.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

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| | | | |
|:---|:---|:---|:---|
| | | **FIRST MIDWEST BANCORP, INC.** | **FIRST MIDWEST BANCORP, INC.** |
| | | By: | /s/ PATRICK S. BARRETT |
| | | Name: | Patrick S. Barrett |
| | | Title: | Executive Vice President and <br>Chief Financial Officer |
| **ATTEST:** | **ATTEST:** |  |  |
| By: | /s/ NICHOLAS J. CHULOS |  |  |
|  | Nicholas J. Chulos |  |  |
|  | Executive Vice President, General Counsel<br>and Corporate Secretary |  |  |
|  |  | **EXECUTIVE** | **EXECUTIVE** |
|  |  | By: | /s/ MICHAEL L. SCUDDER |
|  |  |  | Michael L. Scudder |

---

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**<u>Exhibit A to Employment Agreement</u>**

**RELEASE AND SEVERANCE AGREEMENT**

**THIS RELEASE AND SEVERANCE AGREEMENT** is made and entered into this day of, by and between **First Midwest Bancorp, Inc.**, its subsidiaries and affiliates (collectively "**FMBI**") and Michael L. Scudder (hereinafter "**EXECUTIVE**").

EXECUTIVE'S employment with FMBI terminated on [], and EXECUTIVE has voluntarily agreed to the terms of this RELEASE AND SEVERANCE AGREEMENT in exchange for severance benefits under the Employment Agreement ("**Employment Agreement**") to which EXECUTIVE otherwise would not be entitled.

**NOW THEREFORE**, in consideration for severance benefits provided under the Employment Agreement, EXECUTIVE on behalf of himself and his spouse, heirs, executors, administrators, children, and assigns does hereby fully release and discharge FMBI, its officers, directors, employees, agents, subsidiaries and divisions, benefit plans and their administrators, fiduciaries and insurers, successors, and assigns from any and all claims or demands for wages, back pay, front pay, attorney's fees and other sums of money, insurance, benefits, contracts, controversies, agreements, promises, damages, costs, actions or causes of action and liabilities of any kind or character whatsoever, whether known or unknown, from the beginning of time to the date of these presents, relating to his employment or termination of employment from FMBI, including but not limited to any claims, actions or causes of action arising under the statutory, common law or other rules, orders or regulations of the United States or any State or political subdivision thereof including the Age Discrimination in Employment Act and the Older Workers Benefit Protection Act.

EXECUTIVE acknowledges and reaffirms that EXECUTIVE'S obligations under Paragraph 12 of the Employment Agreement, including covenants concerning Non-Disclosure of Confidential Information, Non-Competition, Non-Solicitation, and Non-Disparagement, shall continue to apply to EXECUTIVE.

This Release and Settlement Agreement supersedes any and all other agreements between EXECUTIVE and FMBI except agreements relating to proprietary or confidential information belonging to FMBI, and any other agreements, promises or representations relating to severance pay or other terms and conditions of employment are null and void.

This release does not affect EXECUTIVE'S right to any benefits to which EXECUTIVE may be entitled under any employee benefit plan, program or arrangement sponsored or provided by FMBI, including but not limited to the Employment Agreement and the plans, programs and arrangements referred to therein.

EXECUTIVE and FMBI acknowledge that it is their mutual intent that the Age Discrimination in Employment Act waiver contained herein fully comply with the Older Workers Benefit Protection Act. Accordingly, EXECUTIVE acknowledges and agrees that:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Severance benefits exceed the nature and scope of that to which he would otherwise have been legally entitled to receive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Execution of this Agreement and the Age Discrimination in Employment Act waiver herein is his knowing and voluntary act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;He has been advised by FMBI to consult with his personal attorney regarding the terms of this Agreement, including the aforementioned waiver;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;He has had at least twenty-one (21) calendar days within which to consider this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;He has the right to revoke this Agreement in full within seven (7) calendar days of execution and that none of the terms and provisions of this Agreement shall become effective or be enforceable until such revocation period has expired;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;He has read and fully understands the terms of this agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;Nothing contained in this Agreement purports to release any of EXECUTIVE's rights or claims under the Age Discrimination in Employment Act that may arise after the date of execution.

***[Signature page follows this page]***

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**IN WITNESS WHEREOF**, the parties have executed this Agreement on the date indicated above.

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| |
|:---|
| **FIRST MIDWEST BANCORP, INC.**, for itself and its Subsidiaries<br>By: <br>Its:  |
| **EXECUTIVE**<br>**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**  |

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## Exhibit 10.36

**Exhibit 10.36**

**FIRST MIDWEST BANCORP, INC.**

**<u>CONFIDENTIALITY AND RESTRICTIVE COVENANTS AGREEMENT</u>**

This Confidentiality and Restrictive Covenants Agreement (this "<u>Agreement</u>"), dated as of June 18, 2018, is made by and among First Midwest Bancorp, Inc. ("<u>FMBI</u>"), and its subsidiary First Midwest Bank (the "<u>Bank</u>"), and each of their successors and assigns (including FMBI's and the Bank's respective subsidiaries and affiliates, collectively, "<u>Employer</u>"), and Michael L. Scudder ("<u>Employee</u>").

WHEREAS, Employee is currently the Chairman, President and Chief Executive Officer of FMBI and Chairman of the Board and Chief Executive Officer of the Bank;

WHEREAS, Employee is currently party to an employment agreement and confidentiality and restrictive covenants agreement with Employer;

WHEREAS, Employee understands and acknowledges that Employer has a legitimate business interest in protecting Employer's property, confidential information, customer and employee relationships and other protectable interests;

WHEREAS, Employee understands and acknowledges that in the course of performing services for Employer, Employee has had and will continue to have access to and use confidential information, and has provided and will continue to provide services to customers, of Employer;

WHEREAS, Employer has proposed to enter into a new employment agreement with Employee (the "<u>New Employment Agreement</u>"), which agreement provides, among other things, for an increase in compensation and in severance benefits which may become payable upon termination of Employee's employment in qualifying circumstances;

WHEREAS, the New Employment Agreement provides that Employee will continue to be eligible to receive cash bonuses or other annual incentive compensation from Employer (any such compensation, "<u>Bonus Compensation</u>"), pursuant to the terms and conditions governing such compensation;

WHEREAS, the New Employment Agreement provides that Employee will continue to be eligible to receive equity-based awards under the First Midwest Bancorp, Inc. 2018 Incentive and Stock Plan (the "<u>Incentive Plan</u>"), as may from time to time be awarded in the future (any such awards, "<u>Equity Awards</u>"), pursuant to the terms and conditions of the Incentive Plan, and/or any successor plans;

WHEREAS, the New Employment Agreement provides that Employer's entering into such agreement, and Employee's continued eligibility to receive Bonus Compensation and/or Equity Awards, and the vesting and payment thereof, are in consideration of and are conditioned upon, among other things, Employee's execution of and compliance with this Agreement; and

WHEREAS, Employee desires to enter into the New Employment Agreement and continue to be eligible to receive Bonus Compensation and Equity Awards.

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Employee agrees as follows:

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**1. NON-USE OF EMPLOYER'S PROPERTY**

All notes, reports, plans, published memoranda or other documents (in tangible or electronic form) created, developed, generated or acquired by Employee, or to which Employee otherwise has access, during the course of employment with Employer, concerning or related to Employer's business, whether or not containing or relating to Confidential Information (as defined below), and all tangible personal property of Employer entrusted to Employee or in Employee's direct or indirect possession or control, are solely the property of Employer, and will be promptly delivered to Employer and not thereafter used by Employee upon termination of Employee's employment for any reason or no reason.

**2. NON-DISCLOSURE OF EMPLOYER'S CONFIDENTIAL INFORMATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Confidential Information</u>.** For purposes of this Agreement, "<u>Confidential Information</u>" means any and all trade secrets and other confidential, proprietary and/or non-public information of Employer, whether in tangible or electronic form, that Employee creates, develops, generates or acquires, or to which Employee otherwise has access, during the course of employment with Employer and that Employer designates or treats as confidential through its policies, practices or procedures. Confidential Information shall include, but is not limited to, financial information and data; business and marketing plans, practices and strategies; proprietary computer programs and other methods of operation, techniques, systems and processes; intellectual property and other research and development; statistical data and analyses; information concerning Employer's planned or pending investment products, acquisitions or divestitures; personnel information, including the identity of officers and employees of Employer, their responsibilities, competence, abilities and compensation; financial, accounting and similar records of Employer and/or any fund or account managed by Employer; current and prospective customer lists and information on customers and prospective customers and their officers and other employees; customer financial statements, investment objectives, the nature of their investment portfolios and contractual agreements with Employer, and other personal customer information; and other information received by Employer from third parties in confidence or pursuant to a duty of confidentiality. Notwithstanding the foregoing, Confidential Information shall not include information which is in or hereafter enters the public domain through no fault of Employee and without breach of any duty of confidentiality; information known to Employee prior to first receipt of or access to such information in the course of employment; or information rightfully received by Employee outside the scope of employment from a third party who does not owe Employer a duty of confidentiality with respect to such information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Disclosure or Use</u>.** Employee acknowledges and understands that Employer has spent extensive time, effort and resources developing Confidential Information and that, solely as a result of Employee's employment with Employer, Employee has had and will continue to have access to such Confidential Information. Employee further acknowledges and understands that Employer has taken reasonable measures to protect and maintain the secrecy of its Confidential Information. Accordingly, during the term of Employee's employment and thereafter, Employee agrees not to use or disclose any Confidential Information except in furtherance of Employee's duties for Employer in the ordinary course of business and to otherwise comply with all policies of Employer relating to the use and disclosure of Confidential Information. Upon termination of employment with Employer for any reason or no reason, Employee shall not, directly or indirectly, disclose, publish, communicate or use on Employee's behalf or another's behalf, any Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Permitted Disclosure or Use</u>.** To the extent applicable law requires a finite duration, the foregoing restrictions on the disclosure or use of Confidential Information shall apply for a period of five (5) years following termination of Employee's employment for any

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**3.&nbsp;&nbsp;&nbsp;&nbsp;NON-COMPETITION WITH THE EMPLOYER**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Non-Competition</u>.** Employee agrees that during the period of employment and for the period ending two years after the last day of Employee's employment with Employer (the "<u>Date of Termination</u>"), Employee will not in any manner, directly or indirectly (whether as an officer, director, employee, investor, consultant, independent contractor or otherwise), engage or be engaged in, provide services to, for or on behalf of, or assist any other person, firm, corporation or enterprise in engaging or being engaged in, any business providing banking products or services competitive with any banking product or service provided by Employer in any geographic region or territory in which Employer maintains a material banking or financial services business which provides such banking products or services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Banking Products or Services</u>.** For purposes of this Section 3, "banking products or services" are products or services of the type described in Item 1 of the most recent Form 10-K filed by FMBI with the Securities and Exchange Commission, which products and services shall include, but are not limited to, deposit products and services, corporate and consumer lending products and services, treasury management products and services and wealth management products and services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Geographic Territory</u>**. Employee acknowledges and agrees that the geographic region or territory in which Employer maintains a material banking or financial services business providing banking products or services is comprised of the following areas: (a) the area within one hundred (100) miles of Employer's corporate headquarters in Chicago, Illinois; and (b) the area within thirty (30) miles of any branch or office of the Employer which, as of the Date of Termination (as defined in the New Employment Agreement), was staffed with at least 15 employees engaged in banking or other financial services.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Exception for Ownership of Publicly Traded Stock</u>.** Nothing herein shall prohibit Employee from being a passive owner of not more than 1% of the outstanding equity interest in any entity that is publicly traded, so long as the Employee has no active participation in the business of such entity.

**4.&nbsp;&nbsp;&nbsp;&nbsp;NON-INTERFERENCE WITH EMPLOYER'S CUSTOMERS**

Employee acknowledges and understands that Employer has spent extensive time, effort and resources developing and maintaining personal contacts and relationships with customers and that, solely as a result of his or her employment with Employer, Employee has had and will continue to have direct contact and dealings with, management or supervisory responsibility for, or access to Confidential Information about, such customers. Therefore, during the period of Employee's employment with Employer and thereafter, without interruption, for the period ending two years after the Date of Termination, Employee agrees not to, directly or indirectly, for Employee's own account or as an agent, officer, director, owner, partner or consultant of any corporation, firm, partnership, joint venture, syndicate, sole proprietorship or other entity, solicit, call upon, contact, contract with, sell to or perform services for, or attempt to solicit, call upon, contact, contract with, sell to or perform services for, any customers of Employer for the purpose of providing to such customer banking products or services of any kind that are offered or provided by Employer, or to assist any person, business or entity to do so. For purposes of this provision, the term "<u>customer</u>" means any business, entity or person which is or was a customer of Employer at any time during the period of Employee's employment with Employer and with respect to which Employee had contact or supervisory responsibility in course of conducting business for Employer or about whom Employee had access to and used Confidential Information, other than any customer which has ceased to do business with Employer at least six (6) months prior to the last day of Employee's employment without any inducement, encouragement or involvement of Employee.

**5.&nbsp;&nbsp;&nbsp;&nbsp;NON-SOLICITATION AND NO-HIRE OF EMPLOYER'S EMPLOYEES**

Employee acknowledges and understands that Employer has spent extensive time, effort and resources training and maintaining a stable workforce and that, solely as a result of Employee's employment with Employer, Employee has had and will continue to have direct contact and dealings with employees of Employer. Therefore, during the period of Employee's employment with Employer and thereafter, without interruption, for the period ending two years after the Date of Termination, Employee agrees not to, directly or indirectly, for Employee's own account or as an agent, officer, director, owner, partner, or consultant of any corporation, firm, partnership, joint venture, syndicate, sole proprietorship or other entity: (a) solicit, induce, recruit or encourage, or attempt to solicit, induce, recruit or encourage, any employee of Employer to leave the employ of Employer, or to assist any other person, business or entity to do so; or (b) hire or attempt to hire any employee of Employer, or assist any other person, business or entity to do so. For purposes of this provision, the term "<u>employee</u>" means any person who is or was an employee of Employer during the period of Employee's employment with Employer and with respect to which Employee had contact or supervisory responsibility in the course of conducting business for Employer or about whom Employee had access to and used Confidential Information related to their performance or advancement potential, other than a former employee who has not been employed by Employer for a period of at least six (6) months prior to the last day of Employee's employment without any inducement, encouragement or involvement of Employee.

**6.&nbsp;&nbsp;&nbsp;&nbsp;NON-DISPARAGEMENT OF EMPLOYER**

Employee acknowledges and understands that Employer's good name and its goodwill are extremely valuable and the result of the expenditure of substantial time, effort and resources

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by Employer. Therefore, during the period of Employee's employment with Employer and thereafter, without interruption, for the period ending two years after the Date of Termination, Employee agrees not to make, or cause to be made, any statement or disclosure that disparages Employer, or any director, officer or employee of Employer, or assist any other person, business or entity to do so.

**7.&nbsp;&nbsp;&nbsp;&nbsp;GENERAL PROVISIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.1&nbsp;&nbsp;&nbsp;&nbsp;<u>No Inducements</u>.** In agreeing to the protective covenants set forth herein and compliance therewith, Employee does not rely on any inducements, promises or representations of Employer, or its officers or directors, other than the terms and conditions specifically set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Employment Still At-Will; No Guarantee</u>.** Employee acknowledges that Employee is an "at-will" employee of Employer and nothing set forth herein gives or shall be deemed to give Employee any right to remain in the employ of Employer. Employee also acknowledges that, while Employee is eligible to earn compensation, and to receive Bonus Compensation or Equity Awards, the payment of such compensation and/or granting of any such Bonus Compensation and Equity Awards, as the case may be, is subject to the terms and conditions of such Bonus Compensation and/or the Incentive Plan and Equity Awards, and that nothing set forth herein shall be deemed to guarantee to Employee that any specific amount of compensation, Bonus Compensation or Equity Awards will be earned by or made to Employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Employee Has Read And Understands</u>.** Employee acknowledges that the statements herein are true and correct and that Employee has read and understands all of the terms of this Agreement and has had the opportunity to consult with an attorney with respect to the terms of this Agreement if Employee deems necessary. Employee agrees that Employee is entering into this Agreement as a voluntary act and that Employee has received adequate consideration in exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Restrictions Reasonable</u>.** Employee acknowledges and agrees that the restrictions set forth in Sections 1 through 6 of this Agreement are reasonable and necessary for the protection of Employer's legitimate business interests, and do not impose any undue economic hardship on Employee or otherwise preclude Employee from gainful employment, particularly in other areas outside of those captured by Employee's current position.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Equitable Relief</u>.** Employee acknowledges that Employer will suffer irreparable harm if Employee breaches or threatens to breach this Agreement and that, in the event of Employee's actual or threatened breach of this Agreement, Employer will have no adequate remedy at law. Accordingly, Employee agrees that, in addition to any other remedies at law or in equity available to Employer for Employee's breach or threatened breach of this Agreement, Employer is entitled to specific performance or injunctive relief against Employee to prevent any such actual or threatened breach without the necessity of posting a bond or other security.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Period Of Restriction Extended</u>.** In the event of a breach by Employee of any covenant in Section 3, 4, 5 or 6 of this Agreement, the period of restriction set forth in such provision shall be extended by the period of such breach (up to a maximum of twelve (12) additional months). In addition, in the event of a breach of any of the covenants in Sections 1 through 5 of this Agreement, Employee shall lose all rights under any unvested or unexercised awards under the Incentive Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Applicable Law, Venue and Jurisdiction</u>.** The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of Illinois without giving effect to the conflict of law principles thereof. The exclusive venue for

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any litigation between Employee and Employer for any dispute arising out of or relating to this Agreement shall be the state court located in Cook County, Illinois, or the federal district court located in Chicago, Illinois, and Employee hereby irrevocably consents to any such court's exercise of personal jurisdiction over Employee for such purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Waiver Of Jury</u>.** EMPLOYEE AND EMPLOYER IRREVOCABLY WAIVE THEIR RIGHTS TO A JURY TRIAL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Waiver and Modification</u>.** Except as provided below in Section 7.11 and 7.12, no provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in a writing signed by the parties hereto and, in the case of Employer, such waiver, modification or discharge has been authorized or approved by the Board of Directors or an authorized officer of Employer. Any waiver of any breach of any kind or character whatsoever shall not be construed as a continuing waiver of, or consent to, any subsequent breach of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Headings</u>.** The headings used in this Agreement are for convenience only and are not part of its operative language. They shall not be used to affect the construction of any provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.11&nbsp;&nbsp;&nbsp;&nbsp;<u>Severability</u>.** The provisions of this Agreement are severable and should any provision hereof be void, voidable or unenforceable under applicable law, such void, voidable or unenforceable provision shall not affect or invalidate any other provision of this Agreement, which shall continue to govern the relative rights and duties of the parties hereto as though the void, voidable or unenforceable provision were not a part hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.12&nbsp;&nbsp;&nbsp;&nbsp;<u>"Blue Pencil Provision"</u>.** In the event that any provision, or part thereof, shall be declared by a court to exceed the maximum time period or scope that the court deems to be enforceable, then the parties hereto expressly authorize the court to modify such provision, or part thereof, so that it may be enforced to the fullest extent permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.13&nbsp;&nbsp;&nbsp;&nbsp;<u>Other Agreements</u>.** This Agreement is in addition to and supplements any other written agreements between the parties that contain restrictive covenant obligations. Notwithstanding the foregoing, this Agreement supersedes and cancels the Confidentiality and Restrictive Covenants Agreement dated December 14, 2012 between the Employer and the Employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.14&nbsp;&nbsp;&nbsp;&nbsp;<u>Survival and Binding Effect</u>.** The restrictions set forth in Sections 1 through 6 of this Agreement shall survive the termination of this Agreement and the termination of Employee's employment with Employer for any reason or no reason. This Agreement shall be binding upon and inure to the benefit of the parties hereto, their heirs, personal representatives, successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.15&nbsp;&nbsp;&nbsp;&nbsp;<u>Execution in Counterparts</u>.** This Agreement may be executed by the parties hereto in two (2) or more counterparts, each of which shall be deemed to be an original, but all such counterparts shall constitute one and the same agreement, and all signatures need not appear on any one counterpart. A signed copy of this Agreement delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

***[Signature page follows this page]***

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IN WITNESS WHEREOF, the undersigned have duly entered into this Agreement as of the date set forth above

**FIRST MIDWEST BANCORP, INC.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EMPLOYEE**

**FIRST MIDWEST BANK**

**FOR AND ON BEHALF OF EMPLOYER**

By: <u>/s/ Kathleen S. Carroll&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>/s/ Michael L. Scudder&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Michael L. Scudder

Name: <u>Kathleen S. Carroll&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

Executive Vice President and<br>Title:&nbsp;&nbsp;&nbsp;&nbsp;<u>Chief Human Resources Officer&nbsp;&nbsp;&nbsp;&nbsp;</u>

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## Exhibit 10.37

**Exhibit 10.37**

***<br>Execution Version***

[**FMBI Letterhead**]

May 30, 2021

Michael L. Scudder

*At the address on file with the Corporation*

Dear Michael:

Reference is made to the Agreement and Plan of Merger, dated as of May 30, 2021, between First Midwest Bancorp, Inc. (the "<u>Corporation</u>") and Old National Bancorp (as the same may be amended, restated, supplemented or otherwise modified from time to time, the "<u>Merger Agreement</u>"), your Amended and Restated Employment Agreement with the Corporation, dated January 18, 2019 (your "<u>Employment Agreement</u>") and your Confidentiality and Restrictive Covenants Agreement with the Corporation and First Midwest Bank, dated January 18, 2018 (your "<u>CCR Agreement</u>"). Capitalized terms used and not otherwise defined herein have the respective meanings ascribed to them in the Merger Agreement, except as otherwise noted.

As you are aware, the Merger Agreement contemplates that, as of the Closing Date, (a) Mr. James C. Ryan, III will serve as the Chief Executive Officer of the Surviving Corporation and (b) you will no longer serve as Chief Executive Officer but will serve as Executive Chairman of the Board of Directors of the Surviving Corporation (the "<u>Board</u>") from the Closing Date to the second (2<sup>nd</sup>) anniversary of the Closing Date (the "<u>Initial Period</u>"). Upon the second (2<sup>nd</sup>) anniversary of the Closing Date, you will cease to serve as the Executive Chairman of the Board and will commence serving as a consultant to the Surviving Corporation through the third (3<sup>rd</sup>) anniversary of the Closing Date) (the "<u>Consultancy Period</u>", and together with the Initial Period, the "<u>Service Period</u>").

This letter agreement confirms to you, and you agree that your Employment Agreement and CCR Agreement shall be amended as follows:

*Compensation During Service Period.* Your compensation for service with the Surviving Corporation shall be established by the Compensation Committee of the Surviving Corporation; provided, that for the Service Period, your salary, annual bonus and annual equity award grants shall be set at ninety percent (90%) of the Chief Executive Officer's salary, annual bonus and annual equity award grants (your annual bonus for the third (3<sup>rd</sup>) year of the Service Period shall be pro-rated based on time worked during the calendar year of termination). For the Service Period, you will continue to receive the same perquisites, office space and administrative support as were made available to you by the Corporation on the same basis as were provided to you immediately before the Closing Date. Your salary, annual bonus and annual equity award grants as set forth herein will be in lieu of any such compensation payable under your Employment Agreement.

For purposes of the First Midwest Bancorp Consolidated Pension Plan, you will be credited with one additional year of age at retirement with respect to your service during the Consultancy Period, provided that if such crediting is not permitted under the plan, the Surviving Corporation will pay you a supplemental equivalent payment at the end of the Initial Period in lieu thereof. Additionally, during the Consultancy Period, you will continue to be entitled to indemnification by the Surviving Corporation to the same extent as other officers, and the Surviving Corporation will maintain directors' and officers' liability insurance for you to the same extent as other officers.

If, prior to the expiration of the Service Period, your service as Executive Chairman or consultant with the Company is terminated (1) by the Company without Cause (as defined in your Employment Agreement) or (2) by you for Good Reason (as defined in your Employment Agreement, but subject to the section entitled "Waiver of Good Reason" below), any unpaid salary and annual bonus (based on target) and ungranted annual equity awards (based on prior year award dollar value) for the entire Service Period will be paid to you in full in cash and any equity awards of the Surviving Corporation that are outstanding will accelerate and vest in full; provided that, any equity awards of the Surviving Corporation subject to a performance condition or requirement will remain subject to such performance condition or requirement, subject to delivery to the Corporation of an executed Release and Severance Agreement (as defined in your Employment Agreement). You acknowledge and agree that the amounts owed to you under this paragraph will be paid in lieu of any amounts that you would have been entitled to receive under Section 8 of your Employment Agreement and you will receive no further severance after the Closing Date under Section 8 of your Employment Agreement.

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Upon the end of the Service Period, you will receive a pro-rated annual bonus (based on time worked during the calendar year of termination and target performance) and any equity awards of the Surviving Corporation that are outstanding will accelerate and vest in full; provided that, any equity awards of the Surviving Corporation subject to a performance condition or requirement will remain subject to such performance condition or requirement.

Upon termination of your service with the Corporation for any reason, you will continue to be eligible to receive the post-employment health benefits coverage as contemplated by Section 6(c) of your Employment Agreement.

*Retention Bonus.* You will be granted a cash-based retention award equal to $5.4 million (the "<u>Retention Bonus</u>"). The Retention Bonus will be paid fifty percent (50%) on the first anniversary of the Closing Date and fifty percent (50%) on the second anniversary of the Closing Date, commencing on the Closing Date, subject only to your continued service with the Surviving Corporation. The unpaid portion of your Retention Bonus will be paid to you in a lump sum in full upon (1) early termination of service by the Corporation without Cause (as defined in your Employment Agreement) or due to your death or disability (as determined under your Employment Agreement) or (2) a resignation by you for Good Reason (as defined in your Employment Agreement, but subject to the section entitled "Waiver of Good Reason" below). You acknowledge and agree that the Retention Bonus will be paid in lieu of any amounts that you would have been entitled to receive under Section 8 of your Employment Agreement and you hereby expressly waive all rights to any payments and/or benefits under Section 8 of your Employment Agreement with respect to the transactions contemplated under the Merger Agreement.

*Outstanding Equity Awards.* Your Corporation equity awards will be converted into equity awards of the Surviving Corporation as set forth in Section 1.8 of the Merger Agreement. Upon (1) early termination of service by the Corporation without Cause (as defined in your Employment Agreement) or due to death or disability (as determined in your Employment Agreement) or (2) a resignation by you for Good Reason (as defined in your Employment Agreement, but subject to the section entitled "Waiver of Good Reason" below), any of your unvested equity awards of the Corporation that were outstanding on the Closing Date will accelerate and vest in full.

*Waiver of Good Reason.* You acknowledge and agree that your removal from the role of Chief Executive Officer of the Corporation and any other changes in your responsibilities and/or duties at the Closing Date will not constitute Good Reason under your Employment Agreement.

*Restrictive Covenants.* You acknowledge and agree that your confidentiality obligations and restrictive covenants under your CCR Agreement remain in full force and effective. You further agree that, in consideration of the compensation to be paid to you under this letter agreement, Section 3.1 of your CCR Agreement shall be amended such that the non-competition obligations set forth therein shall apply for a period of five (5) years after the Closing Date and Section 3.3(b) of your CCR Agreement shall be amended to eliminate the words "was staffed with at least 15 employees engaged in banking or other financial services". You acknowledge and recognize the highly competitive nature of the Corporation's business, that access to confidential information renders you special and unique within the Corporation's industry, and that you have had the opportunity to develop substantial relationships with existing and prospective clients, accounts, customers, consultants, contractors, investors, and strategic partners of the Company during the course of and as a result of your employment with the Corporation. In light of and in consideration for the foregoing, and in consideration of the compensation provided under this letter agreement, you acknowledge and agree that amended restriction set forth in above is reasonable and valid in duration and geographic scope and in all other respects and is essential to protect the value of the business and assets of the Corporation. You further acknowledge that such restriction will not materially interfere with your ability to earn a living following the Closing Date.

*Miscellaneous*. Except as set forth above, the terms of your Employment Agreement and CCR Agreement remain in full force and effect (it being understood that you will remain eligible to participate in the various retirement, welfare, fringe benefit, perquisites and expense reimbursement plans, benefit plans, programs and arrangements of the Corporation that you participate in as of the Closing Date, subject to any amendments thereto or replacements thereof).

The effectiveness of this letter agreement shall be conditioned upon the Closing. In the event that the Merger Agreement terminates prior to Closing, this letter agreement shall be void *ab initio*.

[*Signature Pages Follow*]

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| | |
|:---|:---|
| Sincerely, | Sincerely, |
| FIRST MIDWEST BANCORP, INC. | FIRST MIDWEST BANCORP, INC. |
| /s/ Patrick S. Barrett | /s/ Patrick S. Barrett |
| By: | Patrick S. Barrett |
| Title: | Executive Vice President and Chief<br>Financial Officer |

---

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| | |
|:---|:---|
| AGREED AND ACCEPTED: | |
| EXECUTIVE | |
| /s/ Michael L. Scudder | |
| Michael L. Scudder | <br>[*Signature Page to Letter Agreement*] |

---

&nbsp;&nbsp;&nbsp;&nbsp;

## Exhibit 10.38

**Exhibit 10.38**

**<u>EMPLOYMENT AGREEMENT</u>**

**THIS EMPLOYMENT AGREEMENT** (this "**Agreement**") is made by and between **FIRST MIDWEST BANCORP, INC.** ("**Company**") and **MARK G. SANDER** ("**Executive**"), effective as of January 18, 2019 ("**Effective Date**").

<u>W</u> <u>I</u> <u>T</u> <u>N</u> <u>E</u> <u>S</u> <u>S</u> <u>E</u> <u>T</u> <u>H</u>:

**WHEREAS**, the Company is desirous of continuing Executive's employment in a new position as President and Chief Operating Officer of the Company and the existing position as President and Chief Operating Officer of its wholly owned subsidiary, FIRST MIDWEST BANK (the "**Bank**"), on the terms and conditions and for the consideration hereinafter set forth, and Executive is desirous of continuing such employment on such terms and conditions and for such consideration;

**WHEREAS**, references herein to Executive's employment by the Company, the Bank or another subsidiary, and references herein to payments of any nature to be made to Executive shall mean that either the Company will make such payments or it will cause the Bank or another applicable subsidiary (reference to "**Employer**" hereinafter shall mean the Company, the Bank or another subsidiary by which Executive is employed) to make such payments to Executive:

**NOW, THEREFORE**, for and in consideration of the mutual promises, covenants and obligations contained herein, Company and Executive agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.<u>Employment, Positions and Term</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Employment and Position</u>. The Employer shall continue to employ the Executive as the President and Chief Operating Officer of the Company, and as the President and Chief Operating Officer of the Bank, and the Executive shall so serve, for the term set forth in Paragraph 1(b). Executive shall continue to be a member of the Board of Directors of the Company and the Board of Directors of the Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Term</u>. The term of the Executive's employment under this Agreement shall commence on the Effective Date and end on the second anniversary of the Effective Date, subject to the extension of such term as hereinafter provided and subject to earlier termination as provided in Paragraph 7 (the "**period of employment**"). The term of this Agreement shall be extended automatically for two (2) additional years as of the second anniversary of the Effective Date and each second anniversary date thereof unless, no later than ninety (90) days prior to any such renewal date (i) the Company or Employer gives written notice to the Executive, as by either the Board of Directors of the Company, or a duly authorized committee thereof (the "**Board**"), or (ii) the Executive gives written notice to the Employer, in accordance with Paragraph 14, that the term of this Agreement shall not be so extended. Anything in this Agreement to the contrary, if at any time during the Executive's period of employment under this Agreement there is a Change in Control (as defined in Paragraph 7), the term of this Agreement shall automatically extend to a date which is three (3) years from the date of the Change in Control (and shall be further extended pursuant to the foregoing provisions of this Paragraph 1(b), unless written notice to the contrary is given in accordance with this Paragraph 1(b)).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.<u>Duties and Responsibilities</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The duties and responsibilities of Executive are and shall continue to be of an executive nature as shall be required by the Employer in the conduct of its business. Executive's powers and authority may be prescribed by the by-laws of the Employer and those customarily performed by the President and Chief Operating Officer, including, but not limited to, those of the President of a public company. Executive recognizes that during the period of employment hereunder, Executive owes an undivided duty of loyalty to the Employer, and agrees to devote his entire business time and attention to the performance of said duties and responsibilities. Recognizing and acknowledging that it is essential for the protection and enhancement of the name and business of the Employer and the goodwill pertaining thereto, the Executive shall perform the duties under this Agreement professionally, in accordance with the applicable laws, rules and regulations and such standards, policies and procedures established by the Employer and the industry from time to time, including the Employer's Corporate Code of Ethics and Standards of Conduct and, if applicable, Code of Ethics for Senior Financial Officers. Executive will not perform any duties for any other business without the prior written consent of the Employer, and may engage in charitable, civic or community activities, provided that such duties or activities do not materially interfere with the proper performance of his duties under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Notwithstanding anything herein to the contrary, Executive's employment may be terminated by the Employer, subject to the terms and conditions of this Agreement. Executive shall be deemed to have voluntarily resigned from the Board and from the Board of the Bank, without any further action required, upon termination of Executive's employment with the Employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.<u>Base Salary</u>. For services performed by the Executive for the Employer pursuant to this Agreement, the Employer shall pay the Executive a base salary at the rate of six hundred seventy-five thousand dollars ($675,000) per year ("**Base Salary**") payable in substantially equal installments in accordance with the Employer's regular payroll practices. Executive's Base Salary shall be subject to review annually and the Employer may (but is not required to) increase the Base Salary as the Board or a committee thereof, in its discretion, may authorize or determine, which increased amount, if any, shall become the "Base Salary" hereunder. Notwithstanding the foregoing, prior to a Change in Control the Employer may reduce Executive's Base Salary as part of an across-the-board reduction in base salaries for all Company executive officers (an "**Across-the-Board Reduction**") or as part of a change in the mix of Executive's Base Salary, Target Bonus and Target LTI (the aggregate of the Base Salary, Target Bonus and Target LTI, the Executive's "**Total Aggregate Direct Compensation**") as part of an across-the-board change in mix for all Company executive officers. For the avoidance of doubt, any percentage reduction in Executive's Base Salary as part of an Across-the-Board Reduction shall never be greater than the percentage reduction applicable to other executive officers, for the same period as the reduction in other executive officers' salaries and, in the event such reduction is later mitigated for other executive officers, Executive's reduction shall then be mitigated to the same extent applicable to other executive officers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.<u>Annual Bonuses</u>. For each fiscal year during the term of employment, the Executive shall be eligible to receive a bonus pursuant to the First Midwest Bancorp, Inc. Short

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Term Incentive Compensation Plan or any successor or replacement plan ("**STIC**"), in accordance with the terms of such Plan, as adopted and administered by the Board for senior executives of the Employer, as such plan may be amended from time to time by the Board in its discretion. Executive's annual target bonus amount shall be not less than 65% of Base Salary ("**Target Bonus"**), subject to review annually and the Employer may (but is not required to) increase the Target Bonus as the Board or a committee thereof, in its discretion, may authorize or determine, which increased amount, if any, shall become the "Target Bonus" hereunder. Notwithstanding the foregoing, prior to a Change in Control, Employer may decrease Executive's Target Bonus as a result of (a) an Across-the-Board Reduction in the compensation of the Employer's executive officers, or (b) as a change in mix of the Executive's compensation, so long as such change in mix does not result in a reduction in the Executive's Total Aggregate Direct Compensation. For the avoidance of doubt, any percentage reduction in Executive's Target Bonus shall never be greater than the percentage reduction applicable to other executive officers, for the same period as the reduction in other executive officers' target bonuses and, in the event such reduction is later mitigated for other executive officers, Executive's reduction shall then be mitigated to the same extent applicable to other executive officers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.<u>Long-Term and Equity Incentive Compensation</u>. During the term of employment hereunder, the Executive shall be eligible to participate in the First Midwest Bancorp, Inc. Omnibus Stock and Incentive Plan, the First Midwest Bancorp, Inc. 2018 Stock and Incentive Plan and in any other long-term and/or equity-based incentive compensation plan or program approved by the Board from time to time and receive performance shares, restricted stock or other awards as may be granted thereunder ("**LTIC**"). Executive's aggregate annual target award opportunity shall be not less than 120% of Base Salary ("**Target LTI**"), subject to review annually and the Employer may (but is not required to) increase the Target LTI as the Board or a committee thereof, in its discretion, may authorize or determine, which increased amount, if any, shall become the "Target LTI" hereunder. Notwithstanding the foregoing, prior to a Change in Control, Employer may decrease Executive's Target LTI as a result of (a) an Across-the-Board Reduction in the compensation of the Employer's executive officers, or (b) as a change in mix of the Executive's compensation, so long as such change in mix does not result in a reduction in the Executive's Total Aggregate Direct Compensation. For the avoidance of doubt, any percentage reduction in Executive's Target LTI shall never be greater than the percentage reduction applicable to other executive officers, for the same period as the reduction in such targets for other executive officers and, in the event such reduction is later mitigated for other executive officers, Executive's reduction shall then be mitigated to the same extent applicable to other executive officers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.<u>Other Benefits</u>. In addition to the compensation described in Paragraphs 3, 4 and 5, above, the Executive shall also be entitled to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Participation in Benefit Plans</u>. The Executive shall be entitled to participate in all of the various retirement, welfare, fringe benefit, perquisites and expense reimbursement plans, programs and arrangements of the Employer in which the Executive participated as of the Effective Date, as may be changed from time to time.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Vacation</u>. The Executive shall be entitled to such number of days of vacation with pay during each calendar year during the period of employment in accordance with the Employer's applicable personnel policy as in effect from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Post-Employment of Health Benefits</u>. Following termination of employment for any reason other than by the Employer for Cause, Executive shall be entitled to maintain health benefits coverage for himself, his spouse and age-eligible dependents (and his spouse shall be entitled to maintain such coverage for herself and such eligible dependents in the event of Executive's death) on the same basis as if Executive's full-time employment continued until Executive and his spouse are eligible for Medicare coverage and Executive's dependents are no longer age-eligible for coverage under the Company's group health insurance policy, provided that Executive (or his spouse) pays the premium for such coverage on the same cost-sharing basis applicable to full-time active employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.<u>Termination</u>. Unless earlier terminated in accordance with the following provisions of this Paragraph 7, the Employer shall continue to employ the Executive and the Executive shall remain employed by the Employer during the entire term of this Agreement as set forth in Paragraph 1(b). Paragraph 8 hereof sets forth certain obligations of the Employer in the event that the Executive's employment hereunder is terminated. Certain capitalized terms used in this Paragraph 7 and in Paragraph 8 hereof are defined in Paragraph 7(d), below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Death or Disability</u>. Except to the extent otherwise provided in Paragraph 8 with respect to certain post-Date of Termination (as defined below) payment obligations of the Employer, this Agreement shall terminate immediately as of the Date of Termination in the event of the Executive's death or in the event that the Executive becomes disabled. The Executive will be deemed to be disabled upon the first to occur of (i) the end of a six (6)-consecutive month period, or the end of an aggregate period of nine (9) months out of any consecutive twelve (12) months, during which, by reason of physical or mental injury or disease, the Executive has been unable to perform substantially all of his usual and customary duties under this Agreement or (ii) the date that a reputable physician acceptable to the Employer determines in writing that the Executive will, by reason of physical or mental injury or disease, be unable to perform substantially all of the Executive's usual and customary duties under this Agreement for a period of at least six (6) consecutive months. If any question arises as to whether the Executive is disabled, upon reasonable request therefor by the Board, the Executive shall submit to reasonable examination by a physician for the purpose of determining the existence, nature and extent of any such disability. The Board shall promptly provide the Executive with written notice of the results of any such determination of disability and of any decision of the Board to terminate the Executive's employment by reason thereof. In the event of disability, until the Date of Termination, the base salary payable to the Executive under Paragraph 3 hereof shall be reduced dollar-for-dollar by the amount of disability benefits, if any, paid to the Executive in accordance with any disability policy or program of the Employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Discharge for Cause</u>. In accordance with the procedures hereinafter set forth, the Employer may terminate the Executive's employment hereunder for Cause. Except to the extent otherwise provided in Paragraph 8 with respect to certain post-Date of Termination

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obligations of the Employer, this Agreement shall terminate immediately as of the Date of Termination in the event the Executive is terminated for Cause. Any termination of the Executive for Cause shall be communicated by a Notice of Termination to the Executive given in accordance with Paragraph 14 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Termination without Cause; Resignation with or without Good Reason</u>. The Employer may terminate the Executive's employment without Cause by giving written notice to the Executive in accordance with Paragraph 14 at least thirty (30) days prior to the Date of Termination. The Executive may resign from employment with or without Good Reason. To resign without Good Reason, Executive shall give written notice to the Employer in accordance with Paragraph 14, at least thirty (30) days prior to the Date of Termination. To resign with Good Reason, the Executive shall provide written notice of the occurrence of an event constituting Good Reason and Executive's resignation in accordance with the procedures and time periods set forth in Paragraph 7(d)(v) below. Except to the extent otherwise provided in Paragraph 8 with respect to certain post-Date of Termination obligations of the Employer, this Agreement shall terminate immediately as of the Date of Termination in the event the Executive is terminated without Cause or resigns for any reason or no reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Definitions</u>. For purposes of this Agreement, the following capitalized terms shall have the meanings set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)"**Accrued Obligations**" shall mean, as of the Date of Termination, the sum of (A) Executive's Base Salary under Paragraph 3 through the Date of Termination to the extent not theretofore paid, (B) the amount of any other cash compensation earned by the Executive as of the Date of Termination to the extent not theretofore paid, (C) any vacation pay, expense reimbursements and other cash payments to which the Executive is entitled as of the Date of Termination to the extent not theretofore paid, (D) any grants and awards earned and vested under the terms of the STIC, LTIC or any incentive compensation plan or program, (E) the right to maintain post-employment health coverage under Paragraph 6(c), and (F) all other benefits which have accrued and are vested as of the Date of Termination. For the purpose of this Paragraph 7(d)(i), except as provided in the applicable plan, program or policy, amounts shall be deemed to accrue ratably over the period during which they are earned, but no discretionary compensation shall be deemed earned or accrued until it is specifically approved in accordance with the applicable plan, program or policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)"**Cause**" shall mean (A) the Executive's willful and continued (for a period of not less than fifteen (15) days after written notice thereof) failure to perform substantially the duties of his employment (other than as a result of physical or mental incapacity, or while on vacation); or (B) the Executive's willfully engaging in illegal conduct, an act of dishonesty or gross misconduct related to the performance of Executive's duties and responsibilities under the Agreement; or (C) the Executive's conviction of a crime involving moral turpitude, dishonesty, fraud, theft or financial impropriety, but specifically excluding any conviction based entirely on vicarious liability (with "**vicarious liability**" meaning liability based on acts of the Employer for which the Executive is charged solely as a result of his position with the Employer and in which Executive was not directly involved and did not have prior knowledge of such

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actions or intended actions); or (D) the Executive's willful violation of a material requirement of any code of ethics or standards of conduct of the Employer applicable to Executive or Executive's fiduciary duty to the Employer; <u>provided</u>, <u>however</u>, that no act or failure to act, on the part of the Executive, shall be considered "willful" unless it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that the Executive's action or omission was in the best interests of the Employer; and provided further that no act or omission by the Executive shall constitute Cause hereunder unless the Employer has given detailed written notice thereof to the Executive, and the Executive has failed to remedy such act or omission within fifteen (15) days of receipt of such written notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)"**Change in Control**" shall mean:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Any "person" (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended), other than (i) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or a subsidiary, or (ii) a corporation owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company, is or becomes the "beneficial owner" (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of the Company representing 25% or more of the total voting power of the then outstanding shares of capital stock of the Company entitled to vote generally in the election of directors (the "**Voting Stock**"); provided, however, that the following shall not constitute a Change in Control: (A) such person becomes a beneficial owner of 25% of more of the Voting Stock as the result of an acquisition of such stock directly from the Company, or (B) such person becomes a beneficial owner of 25% or more of the Voting Stock as a result of the decrease in the number of outstanding shares caused by the repurchase of shares by the Company, or (C) such person becomes a beneficial owner of 25% or more of the Voting Stock without any plan or intention to seek or affect control of the Company, if such person promptly enters into an irrevocable commitment promptly to divest, and thereafter promptly divests, such shares of Voting Stock so that such person ceases to beneficially own 25% or more of the Voting Stock; provided, further, that in the event a person described in clause (A) or (B) shall thereafter increase (other than in circumstances described in clause (A) or (B)) beneficial ownership of stock representing more than 1% of the Voting Stock, such person shall then be deemed to become a beneficial owner of 25% or more of the Voting Stock for purposes of this paragraph (a), provided such person continues to beneficially own 25% or more of the Voting Stock after such subsequent increase in beneficial ownership, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)During any period of two consecutive years, individuals, who at the beginning of such period constitute the Board, and any new director, whose election by the Board or nomination for election by the Company's stockholders was approved by a vote of at least two-thirds of the directors then still in office who either were directors at the beginning of the period or whose

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election or nomination for election was previously so approved, cease for any reason to constitute a majority thereof,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)The consummation of, a reorganization, merger or consolidation, the sale or other disposition of all or substantially all of the assets, or a similar transaction or series of transactions involving the Company (a "**Business Combination**") in each case, unless (1) all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Voting Stock immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of the total voting power represented by the voting securities entitled to vote generally in the election of directors of the Company or the corporation resulting from the Business Combination (including, without limitation, a corporation which as a result of the Business Combination owns the Company or all or substantially all of the Company's assets either directly or through one or more subsidiaries), in substantially the same proportions as their ownership immediately prior to the Business Combination of the Voting Stock of the Company, and (2) at least a majority of the members of the board of directors of the Company or such corporation resulting from the Business Combination were members of the Board at the time of the execution of the initial agreement, or action of the Board, providing for such Business Combination; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)the stockholders of the Company approve a plan of complete liquidation or dissolution of the Company.

The Board has final authority to construe and interpret the provisions of the foregoing paragraphs (A), (B), (C) and (D) and to determine the exact date on which a Change in Control has been deemed to have occurred thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)"**Date of Termination**" shall mean (A) in the event of a discharge of the Executive for Cause, the date the Executive receives a Notice of Termination, or any later date specified in such Notice of Termination, as the case may be, (B) in the event of a discharge of the Executive without Cause or a resignation by the Executive, the date specified in the written notice to the Executive (in the case of discharge) or the Employer (in the case of resignation), which date shall be no less than thirty (30) days from the date of such written notice, (C) in the event of the Executive's death, the date of the Executive's death, and (D) in the event of termination of the Executive's employment by reason of disability pursuant to Paragraph 7(a), the date the Executive (or Executive's legal representative) receives written notice of such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)"**Good Reason**" shall mean the occurrence of any event, other than in connection with a termination of Executive's employment, which results in a material diminution of Executive's status, duties, authority, responsibilities or compensation from those contemplated by this Agreement, including, without limitation, any of the following actions without the Executive's written consent (which, for this purpose, will not include consent given in Executive's capacity as a director, officer or employee of an Employer): (A) removal from or failure to elect the Executive to the positions set forth in Paragraph

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1(a); or (B) a material diminution in the nature or scope of the Executive's titles, duties, powers, authority or reporting relationships, from those contemplated in Paragraphs 1(a) and 2(a), such that such titles, duties, authority or reporting relationships are inconsistent with, and commonly (in the banking industry) considered to be of lesser authority, status or responsibility; or (C) a material reduction in the Executive's Base Salary, Target Bonus, or Target LTI, other than as a result of (1) an Across-the-Board Reduction which occurs prior to a Change in Control, or (2) a change in mix of the Executive's compensation which occurs prior to a Change in Control and that does not result in a material reduction in the Executive's Total Aggregate Direct Compensation; or (D) any material failure by the Employer to comply with any of the provisions of this Agreement; or (E) the Employer gives notice to the Executive pursuant to Paragraph 1(b) that the term of this Agreement shall not be extended upon the expiration of the then-current term; or (F) the Employer requires the Executive to be based at an office or location which is more than 35 miles from the Executive's office as of the Effective Date or any renewal date of this Agreement; or (G) if prior to the second anniversary of the Effective Date, Michael L. Scudder ceases to be the Chief Executive Officer of the Company or the Chief Executive Officer of the Bank and Executive is not promoted into such position(s); <u>provided</u>, <u>however</u>*,* that an event shall not constitute Good Reason unless the Executive gives Employer written notice of such event within ninety (90) days of the initial existence of an event and Employer fails to cure such circumstance within the thirty (30) day period following Employer's receipt of such written notice, and Executive serves a Notice of Termination within ninety (90) days of the completion of the Employer's cure period. In the event of a Change in Control, any good faith determination by the Executive that Good Reason exists shall be conclusive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)"**Notice of Termination**" shall mean a written notice which (A) indicates the specific termination provision in this Agreement relied upon, (B) sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive's employment under the provision so indicated and (C) if the Date of Termination is to be other than the date of receipt of such notice or the date otherwise specified on this Agreement, specifies the termination date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.<u>Obligations of the Employer Upon Termination</u>. The following provisions describe the post-Date of Termination obligations of the Employer to the Executive under this Agreement upon the termination of Executive's employment and the Agreement. However, except as explicitly provided in this Agreement, nothing in this Agreement shall limit or otherwise adversely affect any rights which the Executive may have under applicable law, under any other agreement with the Employer or any of its subsidiaries, or under any compensation or benefit plan, program, policy or practice of the Employer or any of its subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Death, Disability, Discharge for Cause, or Resignation Without Good Reason</u>. In the event the Executive's employment and this Agreement terminate pursuant to Paragraph 7(a) by reason of the death or disability of the Executive, or pursuant to Paragraph 7(b) by reason of the termination of the Executive by the Employer for Cause, or pursuant to Paragraph 7(c) by reason of the resignation of the Executive other than for Good Reason, the Employer shall pay to the Executive, or his heirs or estate, in the event of the Executive's death,

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all Accrued Obligations in a lump sum in cash within thirty (30) days after the Date of Termination; <u>provided</u>, <u>however</u>, that any portion of the Accrued Obligations which consists of bonus, deferred compensation, incentive compensation, insurance benefits or other employee benefits shall be determined and paid in accordance with the terms of the relevant plan or policy as applicable to the Executive, including, where applicable, the forfeiture of such amounts upon a termination for Cause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Discharge Without Cause or Resignation with Good Reason</u>. In the event the Executive's employment and this Agreement terminate pursuant to Paragraph 7(c) by reason of the termination of the Executive by the Employer other than for Cause or disability, or by reason of the resignation of the Executive for Good Reason:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)The Employer shall pay all Accrued Obligations to the Executive in a lump sum in cash within thirty (30) days after the Date of Termination; <u>provided</u>, <u>however</u>, that any portion of the Accrued Obligations which consists of bonus, deferred compensation, incentive compensation, insurance benefits or other employee benefits shall be determined and paid in accordance with the terms of the relevant plan, policy or agreement as applicable to the Executive, except as may otherwise be provided in this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)The Employer shall pay to the Executive any STIC bonus earned but not yet paid from the year preceding the year during which termination occurs ("**Prior Year Bonus**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)The Employer shall pay to the Executive a STIC bonus for the year during which termination occurs, calculated as the greater of: (1) the pro-rata portion of his then current annual target Bonus amount based on the number of days elapsed during the year through the Date of Termination, or (2) the pro-rata portion of the actual annual bonus amount earned based on the number of days elapsed during the year through the Date of Termination, in either event paid when the bonus otherwise would have been paid pursuant to the terms of the STIC plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)The Employer shall cause the unvested portion of each outstanding LTIC award, granted prior to or after the Effective Date of this Agreement, which is held by the Executive on the Date of Termination to vest or to remain eligible to be earned and vest as follows (unless the terms of any applicable LTIC award agreement are more favorable to the Executive, in which case such terms shall apply): (1) each such LTIC award then subject solely to time-based vesting shall vest on the Date of Termination to the extent that the pro-rata portion (as described below) of the award exceeds the portion of the award that vested prior to the Date of Termination, and (2) the pro-rata portion (as described below) of each such LTIC award subject to performance-based vesting and for which the applicable performance period will end after the Date of Termination shall remain outstanding and shall become earned and vest at the end of the performance period based on the level of performance achieved; provided that for purposes of clause (1) above, the pro-rata portion shall be the total number of shares subject to the award multiplied by a fraction, the numerator of which is the number of whole months from the grant date of the award to the Date of Termination and the denominator of which is the

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number of months in the period from the grant date to the final scheduled vesting date under the award; provided, further that for purposes of clause (2) the pro-rata portion shall be the percentage of the total number of performance shares granted under the award multiplied by a fraction, the numerator of which is the number of whole months from the first day of the performance period under the award to the Date of Termination and the denominator of which is the number of months in the performance period; provided, further, that any portion of the award described in clause (1) that remains unvested after application of clause (1) and any portion of the performance shares under the award described in clause (2) which do not remain outstanding after application of clause (2) shall be forfeited; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)The Employer shall pay to the Executive an amount equal to two (2) times the sum of his Base Salary and Target Bonus as in effect under Paragraphs 3 and 4, which amount shall be payable in substantially equal installments in accordance with the Employer's regular payroll practices, for a period of twenty-four (24) months (the "**Severance Period**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Effect of Change in Control</u>. In the event that a Change in Control occurs and the Executive's employment and this Agreement thereafter terminate within two (2) years pursuant to Paragraph 7(c) by reason of the discharge of the Executive by the Employer other than for Cause or disability or by reason of the resignation of the Executive for Good Reason, then, in lieu of the amounts payable under Paragraph 8(b):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)The Employer shall pay all Accrued Obligations to the Executive in a lump sum in cash within thirty (30) days after the Date of Termination; <u>provided</u>, <u>however</u>, that any portion of the Accrued Obligations which consists of bonus, deferred compensation, incentive compensation, insurance benefits or other employee benefits shall be determined and paid in accordance with the terms of the relevant plan or policy as applicable to the Executive, provided that Paragraph 8(b)(iv) shall apply to all LTIC awards held by Executive as of the Date of Termination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)The Employer shall pay any Prior Year Bonus to the Executive;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)Within thirty (30) days after the Date of Termination, the Employer shall pay to the Executive a STIC bonus for the year during which termination occurs, calculated as a pro-rata portion of his then current Target Annual Bonus amount based on the number of days elapsed during the year through the Date of Termination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)The Employer shall pay to the Executive an amount equal to three (3) times the sum of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)the amount of Executive's Base Salary in effect under Paragraph 3 determined as of the Date of Termination, or the date immediately preceding the date of the Change in Control, whichever is greater; plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)the Executive's Target Bonus in effect under Paragraph 4 for the calendar year in which Change in Control or the Date of Termination occurs, whichever is greater,

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which amount shall be payable in a lump sum payment within thirty (30) days after the Date of Termination (or, in the event the Change in Control is not a change in ownership or effective control under Code Section 409A, in substantially equal installments in accordance with the Employer's regular payroll practice over a period of twenty-four (24) months).

Notwithstanding the foregoing, if a Change in Control occurs and this Agreement is terminated prior to the Change in Control pursuant to Paragraph 7(c) by reason of the discharge of the Executive by the Employer other than for Cause or disability, or by reason of the resignation of the Executive for Good Reason, then Executive shall be deemed for purposes of this Paragraph 8(c) to have so terminated pursuant to Paragraph 7(c) immediately following the date the Change in Control occurs if it is reasonably demonstrated by Executive that such earlier termination was (i) at the request of a third party who had taken steps reasonably calculated to effect the Change in Control, or (ii) otherwise arose, or the circumstances that precipitated the termination otherwise arose, in connection with or in anticipation of the Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Effect on Other Amounts</u>. The payments provided for in this Paragraph 8 shall be, in addition to all other sums then payable and owing to Executive, subject to applicable federal and state income and other withholding taxes and shall be in full settlement and satisfaction of all of Executive's claims and demands. Upon such termination of this Agreement, other than as provided in Paragraph 26, Employer shall have no rights or obligations under this Agreement, other than its obligations under this Paragraph 8, and Executive shall have no rights and obligations under this Agreement, other than Executive's obligations under Paragraph 12 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)<u>Conditions</u>. Any payments of benefits made or provided pursuant to this Paragraph 8 are subject to the Executive's:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)reaffirmation of and compliance with Executive's obligations under Paragraph 12 hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)delivery to the Employer of an executed Release and Severance Agreement, which shall be substantially in the form attached hereto as Exhibit A, with such changes therein or additions thereto as needed under then applicable law to give effect to its intent and purpose; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)delivery to the Employer of a resignation from all offices, directorships and fiduciary positions with the Employer, its affiliates and employee benefit plans.

Notwithstanding the due date of any post-employment payments, any amounts due under this Paragraph 8 shall not be due until after the expiration of any revocation period applicable to the Release and Severance Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.<u>Section 280G Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Anything in this Agreement to the contrary notwithstanding, in the event that the Accounting Firm (as defined below) shall determine that receipt of all Payments (as defined below) would subject the Executive to the excise tax under Section 4999 of the Code, the Accounting Firm shall determine whether to reduce any of the Payments paid or payable

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pursuant to this Agreement (the "**Agreement Payments**") so that the Parachute Value (as defined below) of all Payments, in the aggregate, equals the Safe Harbor Amount (as defined below). The Agreement Payments shall be so reduced only if the Accounting Firm determines that the Executive would have a greater Net After-Tax Receipt (as defined below) of aggregate Payments if the Agreement Payments were so reduced. If the Accounting Firm determines that the Executive would not have a greater Net After-Tax Receipt of aggregate Payments if the Agreement Payments were so reduced, the Executive shall receive all Agreement Payments to which the Executive is entitled hereunder. For purposes of all present-value determinations required to be made under this Paragraph 9, Employer and the Executive elect to use the applicable federal rate that is in effect on the Effective Date pursuant to Treasury Regulations § 1-280G, Q&A-32.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)If the Accounting Firm determines that aggregate Agreement Payments should be reduced so that the Parachute Value of all Payments, in the aggregate, equals the Safe Harbor Amount, Employer shall promptly give the Executive notice to that effect and a copy of the detailed calculation thereof. All determinations made by the Accounting Firm under this Paragraph 9 shall be binding upon Employer and the Executive and shall be made as soon as reasonably practicable and in no event later than five (5) days following the Effective Date. For purposes of reducing the Agreement Payments so that the Parachute Value of all Payments, in the aggregate, equals the Safe Harbor Amount, only amounts payable under this Agreement (and no other Payments) shall be reduced. All reasonable fees and expenses of the Accounting Firm shall be borne solely by Employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)As a result of the uncertainty in the application of Section 4999 of the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible that amounts will have been paid or distributed by Employer to or for the benefit of the Executive pursuant to this Agreement that should not have been so paid or distributed (each, an "**Overpayment**") or that additional amounts that will have not been paid or distributed by Employer to or for the benefit of the Executive pursuant to this Agreement could have been so paid or distributed (each, an "**Underpayment**"). In the event that the Accounting Firm, based upon the assertion of a deficiency by the Internal Revenue Service against Employer or the Executive that the Accounting Firm believes has a high probability of success determines that an Overpayment has been made, any such Overpayment paid or distributed by Employer to or for the benefit of the Executive shall be repaid by the Executive to Employer together with interest at the applicable federal rate provided for in Section 7872(f)(2) of the Code; <u>provided</u>, <u>however</u>, that no such repayment shall be required if and to the extent such deemed repayment would not either reduce the amount on which the Executive is subject to tax under Section 1 and Section 4999 of the Code or generate a refund of such taxes. In the event that the Accounting Firm, based upon controlling precedent or substantial authority, determines that an Underpayment has occurred, any such Underpayment shall be promptly paid by Employer to or for the benefit of the Executive together with interest at the applicable federal rate provided for in Section 7872(f)(2) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Prior to the Effective Date, Employer shall cooperate with the Executive in good faith in valuing, and the Accounting Firm shall take into account the value of, services provided or to be provided by the Executive (including, without limitation, any agreement by

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which Executive has agreed to refrain from performing services for other entities), such that payments in respect of such services may be considered reasonable compensation within the meaning of Q&A-9 and Q&A-40 to Q&A-44 of the final regulations under Section 280G of the Code and/or exempt from the definition of the term "parachute payment" within the meaning of Q&A-2(a) of the final regulations under Section 280G of the Code in accordance with Q&A-5(a) of the final regulations under Section 280G of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)For purposes of this Paragraph 9:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)"**Accounting Firm**" shall mean the independent public accountants then regularly retained by the Employer for purposes of tax planning or such other nationally-recognized accounting consulting firm (other than the independent auditors of the Employer or the entity resulting from the Business Combination) in consultation with counsel acceptable to the Employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)"**Net After-Tax Receipt**" shall mean the present value (as determined in accordance with Sections 280G(b)(2)(A)(ii) and 280G(d)(4) of the Code) of a Payment net of all taxes imposed on the Executive with respect thereto under Sections 1 and 4999 of the Code and under applicable state and local laws, determined by applying the highest marginal rate under Section 1 of the Code and under state and local laws which applied to the Executive's taxable income for the immediately preceding taxable year, or such other rate(s) as the Accounting Firm determines to be likely to apply to the Executive in the relevant tax year(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)"**Parachute Value**" of a Payment shall mean the present value as of the date of the change of control for purposes of Section 280G of the Code of the portion of such Payment that constitutes a "parachute payment" under Section 280G(b)(2) of the Code, as determined by the Accounting Firm for purposes of determining whether such Payment is a parachute payment and to what extent the excise tax under Section 4999 of the Code will apply to such Payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)"**Payment**" shall mean any payment or distribution in the nature of compensation (within the meaning of Section 280G(b)(2) of the Code) to or for the benefit of the Executive, whether paid or payable pursuant to the Agreement or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)"**Safe Harbor Amount**" shall mean 2.99 times the Executive's "base amount," within the meaning of Section 280G(b)(3) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)The provisions of this Paragraph 9 shall survive the expiration of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.<u>Section 409A of the Code</u>. It is intended that any amounts payable under this Agreement and the Employer's and Executive's exercise of authority or discretion hereunder shall comply with Section 409A of the Code (including the Treasury regulations and other published guidance relating thereto) so as not to subject Executive to the payment of any interest or additional tax imposed under Section 409A of the Code. In furtherance of this intent (a) if, due to the circumstances giving rise to any lump sum payment or payments under this Agreement, the date of payment or the commencement of such payments thereof must be

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delayed for six months in order to meet the requirements of Section 409A(a)(2)(B) of the Code applicable to "specified employees," then such payment or payments shall be so delayed and paid upon expiration of such six month period and (b) if the sixty (60) day period following the Date of Termination begins in one calendar year and ends in a second calendar year, and if there are non-qualified deferred compensation payments subject to Code Section 409A due to Executive conditioned upon the Executive's execution and non-revocation of the Release and Severance Agreement and which is to be paid during a designated period that begins in a first calendar year, such payments shall be delayed and paid in the second calendar year. With regard to any provision herein that provides for reimbursement of expenses or in-kind benefits: (i) the right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit, and (ii) the amount of expenses eligible for reimbursement or in-kind benefits provided during any taxable year shall not affect the expenses eligible for reimbursement or in-kind benefits to be provided in any other taxable year, provided that the foregoing shall not be violated with regard to expenses covered by Code Section 105(h) that are subject to a limit related to the period in which the arrangement is in effect. Any expense or other reimbursement payment made pursuant to this Agreement or any plan, program, agreement or arrangement of the Employer referred to herein, shall be made on or before the last day of the taxable year following the taxable year in which such expense or other payment to be reimbursed is incurred. To the extent that any Treasury regulations, guidance or changes to Section 409A would result in the Executive becoming subject to interest and additional tax under Section 409A of the Code, the Employer and Executive agree to amend this Agreement in order to bring this Agreement into compliance with Code Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.<u>Mediation and Arbitration</u>. Except as provided in Paragraph 11(c) below, any unresolved controversy or claim arising from or related to this Agreement or breach hereof shall be resolved by use of mediation initially, and if that fails to resolve the matter, by arbitration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Mediation</u>. Mediation shall be in Chicago, Illinois, before one mediator qualified in mediation of employment matters agreed upon by the parties, or if no agreement on a mediator is reached, before a mediator chosen according to the American Arbitration Association ("**AAA**") National Rules for the Resolution of Employment Disputes, specifically the Employment Mediation Rules. There shall be only one mediator. The parties will use best efforts to obtain a mediator and complete the mediation within 30 days from the date of request for mediation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Arbitration</u>. If the mediation has not been completed within 60 days from the date of request for mediation, any party may, by notice to all other parties and the AAA, forego mediation and move directly to arbitration under the AAA National Rules for the Resolution of Employment Disputes. Such arbitration shall be before a single arbitrator mutually selected by the parties and shall be in Chicago, Illinois. By written agreement signed by the Employer and the Executive, the parties hereto may agree to forego mediation, may make any agreement regarding scheduling of the mediation or the arbitration process, discovery or hearing, which agreement shall be binding on the mediator or arbitrator, despite any AAA rule to the contrary. The determination of the arbitrator shall be final, not subject to appeal, and binding on all parties and may be enforced by appropriate judicial order of any court of competent jurisdiction.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Exclusions</u>. Notwithstanding the foregoing provisions of this Paragraph 11, (i) the parties are not required to arbitrate any issue for which injunctive relief is sought by any party hereto (including pursuant to Paragraph 13 hereof), (ii) all parties may seek injunctive relief in any federal district court located in Chicago, Illinois or any state court located in Cook County, Illinois, and (iii) claims of worker's compensation and unemployment compensation shall not be subject to arbitration under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Attorneys' Fees</u>. With respect to any dispute or controversy arising under or in connection with this Agreement, if the Executive is a prevailing party (as defined below), the Executive shall be entitled to recover all reasonable attorneys' fees and expenses incurred in connection with the dispute or controversy. A "prevailing party" is one who is successful on any material substantive issue in the action and achieves either a judgment in such party's favor or some other affirmative recovery.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.<u>Confidentiality and Restrictive Covenants Agreement</u>. On the Effective Date, the Executive shall enter into a Confidentiality and Restrictive Covenant Agreement (the "**Restrictive Covenant Agreement**"), which agreement includes covenants concerning Non-Disclosure of Confidential Information, Non-Competition, Non-Solicitation and Non-Disparagement. The Executive agrees to be subject to and bound by all terms and conditions of the Restrictive Covenant Agreement during the period of employment and, to the extent provided therein, thereafter, as if such terms and conditions were set forth in full herein. References in this Agreement to Executive's obligations under this Paragraph 12 shall mean references to his obligations under the Restrictive Covenant Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.<u>Remedies</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Executive acknowledges that the restrictions and agreements herein provided are fair and reasonable, that enforcement of the provisions of Paragraph 12 will not cause Executive undue hardship and that said provisions are reasonably necessary and commensurate with the need to protect the Employer and its legitimate and proprietary business interests and property from irreparable harm. Executive acknowledges and agrees that (a) a breach of any of the covenants and provisions contained in Paragraph 12 above will result in irreparable harm to the business of the Employer, (b) a remedy at law in the form of monetary damages for any breach by Executive of any of the covenants and provisions contained in Paragraph 12 is inadequate, (c) in addition to any remedy at law or equity for such breach, the Employer shall be entitled to institute and maintain appropriate proceedings in equity, including a suit for injunction to enforce the specific performance by Executive of the obligations hereunder and to enjoin Executive from engaging in any activity in violation hereof and (d) the covenants on Executive's part contained in Paragraph 12, shall be construed as agreements independent of any other provisions in this Agreement, and the existence of any claim, setoff or cause of action by Executive against the Employer, whether predicated on this Agreement or otherwise, shall not constitute a defense or bar to the specific enforcement by the Employer of said covenants. In the event of a breach or a violation by Executive of any of the covenants and provisions of this Agreement, the running of the Restriction Period (but not of Executive's obligation thereunder), shall be tolled during the period of the continuance of any actual breach or violation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The parties hereto agree that the covenants set forth in Paragraph 12 are reasonable with respect to their duration, geographical area and scope. If the final judgment of a court of competent jurisdiction declares that any term or provision of Paragraph 12 is invalid or unenforceable, the parties agree that the court making the determination of invalidity or unenforceability shall have the power to reduce the scope, duration, or area of the term or provision, to delete specific words or phrases, or to replace any invalid or unenforceable term or provision with a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision, and this Agreement shall be enforceable as so modified after the expiration of the time within which the judgment may be appealed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.<u>Notices</u>. Any notice or other communication required or permitted to be given hereunder shall be determined to have been duly given to any party (a) upon delivery to the address of such party specified below if delivered personally or by courier; (b) upon dispatch if sent in .PDF form by electronic mail to the Company-provided electronic mail address, or if transmitted by telecopy or other means of facsimile; (c) within forty-eight (48) hours after deposit thereof in the U.S. mail, postage prepaid, for delivery as certified mail, return receipt requested, or (d) within twenty-four (24) hours after deposit thereof with a reputable overnight courier (charges prepaid), addressed, in any case to the party at the following address(es) or telecopy numbers:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)If to Executive, at the address set forth on the records of the Employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)If to the Employer:

First Midwest Bancorp, Inc.

8750 Bryn Mawr Ave., Suite 1300

Chicago, Illinois 60631

Attn: Corporate Secretary

Fax No.: (872) 207-7411

E-mail: nick.chulos@firstmidwest.com

or to such other address(es) or facsimile number(s) as any party may designate by Written Notice in the aforesaid manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.<u>Directors and Officers Liability Coverage; Indemnification</u>. Executive shall be entitled to coverage under such directors and officers liability insurance policies maintained from time to time by the Company, Bank or any subsidiary for the benefit of its directors and officers. The Company shall indemnify and hold Executive harmless, to the fullest extent permitted by the laws of the State of Delaware, from and against all costs, charges and expenses (including reasonable attorneys' fees), and shall provide for the advancement of expenses incurred or sustained in connection with any action, suit or proceeding to which the Executive or his legal representatives may be made a party by reason of the Executive's being or having been a director, officer or employee of the Company, Bank or any of its affiliates or employee benefit plans. The provisions of this Paragraph 15 shall not be deemed exclusive of any other rights to which the Executive

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seeking indemnification may have under any by-law, agreement, vote of stockholders or directors, or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.<u>Full Settlement; No Mitigation</u>. The Employer's obligation to make the payments and provide the benefits provided for in this Agreement and otherwise to perform its obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense or other claim, right or action which the Employer may have against the Executive or others, other than as described in Paragraph 29. In no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Executive under any of the provisions of this Agreement, and such amounts shall not be reduced whether or not the Executive obtains other employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.<u>Payment in the Event of Death</u>. In the event payment is due and owing by the Employer to Executive under this Agreement upon the death of Executive, payment shall be made to such beneficiary as Executive may designate in writing, or failing such designation, then the executor of his estate, in full settlement and satisfaction of all claims and demands on behalf of Executive, shall be entitled to receive all amounts owing to Executive at the time of death under this Agreement. Such payments shall be in addition to any other death benefits of the Employer and in full settlement and satisfaction of all severance benefit payments provided for in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.<u>Entire Understanding</u>. This Agreement constitutes the entire understanding and agreement between the parties relating to Executive's employment hereunder and supersedes and cancels all prior written and oral understandings and agreements with respect to such matters (including the employment agreement dated June 7, 2011 between the Company and the Executive, as amended), except for the terms and provisions of any employee benefit or other compensation plans (or any agreements or awards thereunder) or other agreements referred to in this Agreement, or as otherwise expressly contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.<u>Binding Effect</u>. This Agreement shall be binding upon and inure to the benefit of the heirs and representatives of the Executive and the successors and assigns of the Company. The Company shall require any successor (whether direct or indirect, by purchase, merger, reorganization, consolidation, acquisition of property or stock, liquidation, or otherwise) to all or a substantial portion of its assets, by agreement in form and substance reasonably satisfactory to the Executive, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform this Agreement if no such succession had taken place. Regardless of whether such an agreement is executed, this Agreement shall be binding upon any successor of the Company in accordance with the operation of law, and such successor shall be deemed the "Company" for purposes of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.<u>Tax Withholding</u>. The Employer shall provide for the withholding of any taxes required to be withheld by federal, state or local law with respect to any payment in cash, shares of stock and/or other property made by or on behalf of the Employer to or for the benefit of the Executive under this Agreement or otherwise. The Employer may, at its option: (a) withhold such taxes from any cash payments owing from the Employer to the Executive, (b) require the Executive to pay to the Employer in cash such amount as may be required to satisfy such

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withholding obligations and/or (c) make other satisfactory arrangements with the Executive to satisfy such withholding obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.<u>No Assignment</u>. Except as otherwise expressly provided herein, this Agreement is not assignable by any party and no payment to be made hereunder shall be subject to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or other charge.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.<u>Execution in Counterparts</u>. This Agreement may be executed by the parties hereto in two (2) or more counterparts, each of which shall be deemed to be an original, but all such counterparts shall constitute one and the same instrument, and all signatures need not appear on any one counterpart.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.<u>Jurisdiction and Governing Law</u>. Jurisdiction over disputes with regard to this Agreement shall be exclusively in the courts of the State of Illinois, and this Agreement shall be construed and interpreted in accordance with and governed by the laws of the State of Illinois, without regard to the choice of laws provisions of such laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.<u>Severability</u>. If any provision of this Agreement shall be adjudged by any court of competent jurisdiction to be invalid or unenforceable for any reason, such judgment shall not affect, impair or invalidate the remainder of this Agreement. Furthermore, if the scope of any restriction or requirement contained in this Agreement is too broad to permit enforcement of such restriction or requirement to its full extent, then such restriction or requirement shall be enforced to the maximum extent permitted by law, and the Executive consents and agrees that any court of competent jurisdiction may so modify such scope in any proceeding brought to enforce such restriction or requirement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.<u>Waiver</u>. The waiver of any party hereto of a breach of any provision of this Agreement by any other party shall not operate or be construed as a waiver of any subsequent breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26.<u>Amendment; Effect of Termination</u>. No change, alteration or modification hereof may be made except in a writing, signed by each of the parties hereto. The provisions of Paragraph 8 relating to post-Date of Termination obligations, and the provisions and obligations set forth in Paragraphs 9 through 29 shall survive termination of the Agreement pursuant to Paragraph 7.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.<u>Construction</u>. The language used in this Agreement will be deemed to be the language chosen by Employer and Executive to express their mutual intent and no rule of strict construction shall be applied against any person. Wherever from the context it appears appropriate, each term stated in either the singular or plural shall include the singular and the plural, and the pronouns stated in either the masculine, the feminine or the neuter gender shall include the masculine, feminine or neuter. The headings of the Paragraphs of this Agreement are for reference purposes only and do not define or limit, and shall not be used to interpret or construe the contents of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.<u>No Duplication</u>. Notwithstanding anything herein to the contrary, to the extent that any compensation or benefits are paid to or received by the Executive from the Company, Bank or any other subsidiary of Company or the Bank, such compensation or benefits shall be

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deemed to satisfy the obligations of the Company, Bank and all subsidiaries, such that Executive shall not be entitled to receive any compensation or benefits which are duplicative of such amounts previously paid to or received by Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29.<u>Regulatory Requirements and Compensation Recovery (Clawback)</u>. Anything in this Agreement to the contrary notwithstanding, it is intended that, to the extent required, this Agreement and the payments made hereunder comply with the requirements of any legislative or regulatory limitations or requirements which are or may become applicable to the Employer and the payments made hereunder, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and any rules or regulations issued thereunder (collectively, the "Regulatory Requirements"), which limitations or requirements may include, but not limited to, provisions limiting, delaying or deferring payment of certain bonus, incentive or retention compensation or "golden parachute payments" to certain officers or highly compensated employees, requiring that the Employer may recover (claw-back) bonus and incentive compensation in certain circumstances, and precluding bonus and incentive arrangements that encourage unnecessary or excessive risks that threaten the value of the Employer, in each case within the meaning of the Regulatory Requirements, and only to the extent applicable to the Employer and the Executive. The application of this Paragraph 29 is intended to, and shall be interpreted, administered and construed to, cause the Agreement to comply with the Regulatory Requirements and, to the maximum extent consistent with this Paragraph 29 and the Regulatory Requirements, to permit the operation of this Agreement in accordance with the terms and conditions hereof before giving effect to the provisions of this Paragraph 29 or the Regulatory Requirements.

***[Signature page follows this page]***

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**IN WITNESS WHEREOF**, the parties hereto have executed and delivered this Agreement as of the day and year first above written.

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| | | | |
|:---|:---|:---|:---|
| | | **FIRST MIDWEST BANCORP, INC.** | **FIRST MIDWEST BANCORP, INC.** |
| | | By: | /s/ MICHAEL L. SCUDDER |
| | | | Michael L. Scudder |
| | | | Chairman and Chief Executive Officer |
| **ATTEST:** | **ATTEST:** |  |  |
| By: | /s/ NICHOLAS J. CHULOS |  |  |
|  | Nicholas J. Chulos |  |  |
|  | Executive Vice President, General Counsel<br>and Corporate Secretary |  |  |
|  |  | **EXECUTIVE** | **EXECUTIVE** |
|  |  | By: | /s/ MARK G. SANDER |
|  |  |  | Mark G. Sander |

---

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**<u>Exhibit A to Employment Agreement</u>**

**RELEASE AND SEVERANCE AGREEMENT**

**THIS RELEASE AND SEVERANCE AGREEMENT** is made and entered into this day of, by and between **First Midwest Bancorp, Inc.**, its subsidiaries and affiliates (collectively "**FMBI**") and Mark G. Sander (hereinafter "**EXECUTIVE**").

EXECUTIVE'S employment with FMBI terminated on [], and EXECUTIVE has voluntarily agreed to the terms of this RELEASE AND SEVERANCE AGREEMENT in exchange for severance benefits under the Employment Agreement ("**Employment Agreement**") to which EXECUTIVE otherwise would not be entitled.

**NOW THEREFORE**, in consideration for severance benefits provided under the Employment Agreement, EXECUTIVE on behalf of himself and his spouse, heirs, executors, administrators, children, and assigns does hereby fully release and discharge FMBI, its officers, directors, employees, agents, subsidiaries and divisions, benefit plans and their administrators, fiduciaries and insurers, successors, and assigns from any and all claims or demands for wages, back pay, front pay, attorney's fees and other sums of money, insurance, benefits, contracts, controversies, agreements, promises, damages, costs, actions or causes of action and liabilities of any kind or character whatsoever, whether known or unknown, from the beginning of time to the date of these presents, relating to his employment or termination of employment from FMBI, including but not limited to any claims, actions or causes of action arising under the statutory, common law or other rules, orders or regulations of the United States or any State or political subdivision thereof including the Age Discrimination in Employment Act and the Older Workers Benefit Protection Act.

EXECUTIVE acknowledges and reaffirms that EXECUTIVE'S obligations under Paragraph 12 of the Employment Agreement, including covenants concerning Non-Disclosure of Confidential Information, Non-Competition, Non-Solicitation, and Non-Disparagement, shall continue to apply to EXECUTIVE.

This Release and Settlement Agreement supersedes any and all other agreements between EXECUTIVE and FMBI except agreements relating to proprietary or confidential information belonging to FMBI, and any other agreements, promises or representations relating to severance pay or other terms and conditions of employment are null and void.

This release does not affect EXECUTIVE'S right to any benefits to which EXECUTIVE may be entitled under any employee benefit plan, program or arrangement sponsored or provided by FMBI, including but not limited to the Employment Agreement and the plans, programs and arrangements referred to therein.

EXECUTIVE and FMBI acknowledge that it is their mutual intent that the Age Discrimination in Employment Act waiver contained herein fully comply with the Older Workers Benefit Protection Act. Accordingly, EXECUTIVE acknowledges and agrees that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Severance benefits exceed the nature and scope of that to which he would otherwise have been legally entitled to receive.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Execution of this Agreement and the Age Discrimination in Employment Act waiver herein is his knowing and voluntary act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;He has been advised by FMBI to consult with his personal attorney regarding the terms of this Agreement, including the aforementioned waiver;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;He has had at least twenty-one (21) calendar days within which to consider this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;He has the right to revoke this Agreement in full within seven (7) calendar days of execution and that none of the terms and provisions of this Agreement shall become effective or be enforceable until such revocation period has expired;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;He has read and fully understands the terms of this agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;Nothing contained in this Agreement purports to release any of EXECUTIVE's rights or claims under the Age Discrimination in Employment Act that may arise after the date of execution.

***[Signature page follows this page]***

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**IN WITNESS WHEREOF**, the parties have executed this Agreement on the date indicated above.

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| |
|:---|
| **FIRST MIDWEST BANCORP, INC.**, for itself and its Subsidiaries<br>By: <br>Its: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**EXECUTIVE**<br><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> |

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## Exhibit 10.39

**Exhibit 10.39**

**FIRST MIDWEST BANCORP, INC.**

**<u>CONFIDENTIALITY AND RESTRICTIVE COVENANTS AGREEMENT</u>**

This Confidentiality and Restrictive Covenants Agreement (this "<u>Agreement</u>"), dated as of January 18, 2019, is made by and among First Midwest Bancorp, Inc. ("<u>FMBI</u>"), and its subsidiary First Midwest Bank (the "<u>Bank</u>"), and each of their successors and assigns (including FMBI's and the Bank's respective subsidiaries and affiliates, collectively, "<u>Employer</u>"), and Mark G. Sander ("<u>Employee</u>").

WHEREAS, Employee is currently the President and Chief Operating Officer of FMBI, President and Chief Operating Officer of the Bank, a member of the Board of Directors of FMBI and a member of the Board of Directors of the Bank;

WHEREAS, Employee is currently party to an employment agreement and confidentiality and restrictive covenants agreement with Employer;

WHEREAS, Employee understands and acknowledges that Employer has a legitimate business interest in protecting Employer's property, confidential information, customer and employee relationships and other protectable interests;

WHEREAS, Employee understands and acknowledges that in the course of performing services for Employer, Employee has had and will continue to have access to and use confidential information, and has provided and will continue to provide services to customers, of Employer;

WHEREAS, Employer has proposed to enter into a new employment agreement with Employee (the "<u>New Employment Agreement</u>"), which agreement provides, among other things, promoting Employee to President and Chief Operating Officer of FMBI for an increase in compensation and in severance benefits which may become payable upon termination of Employee's employment in qualifying circumstances;

WHEREAS, the New Employment Agreement provides that Employee will continue to be eligible to receive cash bonuses or other annual incentive compensation from Employer (any such compensation, "<u>Bonus Compensation</u>"), pursuant to the terms and conditions governing such compensation;

WHEREAS, the New Employment Agreement provides that Employee will continue to be eligible to receive equity-based awards under the First Midwest Bancorp, Inc. 2018 Incentive and Stock Plan (the "<u>Incentive Plan</u>"), as may from time to time be awarded in the future (any such awards, "<u>Equity Awards</u>"), pursuant to the terms and conditions of the Incentive Plan, and/or any successor plans;

WHEREAS, the New Employment Agreement provides that Employer's entering into such agreement, and Employee's continued eligibility to receive Bonus Compensation and/or Equity Awards, and the vesting and payment thereof, are in consideration of and are conditioned upon, among other things, Employee's execution of and compliance with this Agreement; and

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WHEREAS, Employee desires to enter into the New Employment Agreement and continue to be eligible to receive Bonus Compensation and Equity Awards.

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Employee agrees as follows:

**1.**&nbsp;&nbsp;&nbsp;&nbsp;**NON-USE OF EMPLOYER'S PROPERTY**

All notes, reports, plans, published memoranda or other documents (in tangible or electronic form) created, developed, generated or acquired by Employee, or to which Employee otherwise has access, during the course of employment with Employer, concerning or related to Employer's business, whether or not containing or relating to Confidential Information (as defined below), and all tangible personal property of Employer entrusted to Employee or in Employee's direct or indirect possession or control, are solely the property of Employer, and will be promptly delivered to Employer and not thereafter used by Employee upon termination of Employee's employment for any reason or no reason.

**2.**&nbsp;&nbsp;&nbsp;&nbsp;**NON-DISCLOSURE OF EMPLOYER'S CONFIDENTIAL INFORMATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1**&nbsp;&nbsp;&nbsp;&nbsp;**<u>Confidential Information</u>.** For purposes of this Agreement, "<u>Confidential Information</u>" means any and all trade secrets and other confidential, proprietary and/or non-public information of Employer, whether in tangible or electronic form, that Employee creates, develops, generates or acquires, or to which Employee otherwise has access, during the course of employment with Employer and that Employer designates or treats as confidential through its policies, practices or procedures. Confidential Information shall include, but is not limited to, financial information and data; business and marketing plans, practices and strategies; proprietary computer programs and other methods of operation, techniques, systems and processes; intellectual property and other research and development; statistical data and analyses; information concerning Employer's planned or pending investment products, acquisitions or divestitures; personnel information, including the identity of officers and employees of Employer, their responsibilities, competence, abilities and compensation; financial, accounting and similar records of Employer and/or any fund or account managed by Employer; current and prospective customer lists and information on customers and prospective customers and their officers and other employees; customer financial statements, investment objectives, the nature of their investment portfolios and contractual agreements with Employer, and other personal customer information; and other information received by Employer from third parties in confidence or pursuant to a duty of confidentiality. Notwithstanding the foregoing, Confidential Information shall not include information which is in or hereafter enters the public domain through no fault of Employee and without breach of any duty of confidentiality; information known to Employee prior to first receipt of or access to such information in the course of employment; or information rightfully received by Employee outside the scope of employment from a third party who does not owe Employer a duty of confidentiality with respect to such information.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2**&nbsp;&nbsp;&nbsp;&nbsp;**<u>Disclosure or Use</u>.** Employee acknowledges and understands that Employer has spent extensive time, effort and resources developing Confidential Information and that, solely as a result of Employee's employment with Employer, Employee has had and will continue to have access to such Confidential Information. Employee further acknowledges and understands that Employer has taken reasonable measures to protect and maintain the secrecy of its Confidential Information. Accordingly, during the term of Employee's employment and thereafter, Employee agrees not to use or disclose any Confidential Information except in furtherance of Employee's duties for Employer in the ordinary course of business and to otherwise comply with all policies of Employer relating to the use and disclosure of Confidential Information. Upon termination of employment with Employer for any reason or no reason, Employee shall not, directly or indirectly, disclose, publish, communicate or use on Employee's behalf or another's behalf, any Confidential Information.

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**3.**&nbsp;&nbsp;&nbsp;&nbsp;**NON-COMPETITION WITH THE EMPLOYEE**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1**&nbsp;&nbsp;&nbsp;&nbsp;**<u>Non-Competition</u>.** Employee agrees that during the period of employment and for the period ending one year after the last day of Employee's employment with Employer (the <u>"Date of Termination</u>"), Employee will not in any manner, directly or indirectly (whether as an officer, director, employee, investor, consultant, independent contractor or otherwise), engage or be engaged in, provide services to, for or on behalf of, or assist any other person, firm, corporation or enterprise in engaging or being engaged in, any business providing banking products or services competitive with any banking product or service provided by Employer in any geographic region or territory in which Employer maintains a material banking or financial services business which provides such banking products and services. In the event the Date of Termination occurs on or after the date of a Change in Control (as defined in the New Employment Agreement), the one year period set forth in the preceding sentence shall be extended to two years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.2**&nbsp;&nbsp;&nbsp;&nbsp;**<u>Banking Products or Services</u>.** For purposes of this Section 3, "banking products or services" are products or services of the type described in Item 1 of the most recent Form 10-K filed by FMBI with the Securities and Exchange Commission, which products and services shall include, but are not limited to, deposit products and services, corporate and consumer lending products and services, treasury management products and services and wealth management products and services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.4**&nbsp;&nbsp;&nbsp;&nbsp;**<u>Geographic Territory</u>.** Employee acknowledges and agrees that the geographic region or territory in which Employer maintains a material banking or financial services business providing banking products or services is comprised of the following areas: (a) the area within fifty (50) miles of Employer's corporate headquarters in Chicago, Illinois; and (b) the area within thirty (30) miles of any branch or office of the Employer which, as of the Date of Termination, was staffed with at least fifteen (15) employees engaged in banking or other financial services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.5**&nbsp;&nbsp;&nbsp;&nbsp;**<u>Exception for Ownership of Publicly Traded Stock</u>.** Nothing herein shall prohibit Employee from being a passive owner of not more than 1% of the outstanding equity interest in any entity that is publicly traded, so long as the Employee has no active participation in the business of such entity.

**4.**&nbsp;&nbsp;&nbsp;&nbsp;**NON-INTERFERENCE WITH EMPLOYER'S CUSTOMERS**

Employee acknowledges and understands that Employer has spent extensive time, effort and resources developing and maintaining personal contacts and relationships with customers and that, solely as a result of his or her employment with Employer, Employee has had and will continue to have direct contact and dealings with, management or supervisory responsibility for, or access to Confidential Information about, such customers. Therefore, during the period of Employee's employment with Employer and thereafter, without interruption, for the period ending eighteen (18) months after the Date of Termination (or two (2) years if the Date of Termination occurs on or after the date of a Change in Control, as defined in the New Employment Agreement), Employee agrees not to, directly or indirectly, for Employee's own account or as an agent, officer, director, owner, partner or consultant of any corporation, firm,

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partnership, joint venture, syndicate, sole proprietorship or other entity, solicit, call upon, contact, contract with, sell to or perform services for, or attempt to solicit, call upon, contact, contract with, sell to or perform services for, any customers of Employer for the purpose of providing to such customer banking products or services of any kind that are offered or provided by Employer, or to assist any person, business or entity to do so. For purposes of this provision, the term "<u>customer</u>" means any business, entity or person which is or was a customer of Employer at any time during the period of Employee's employment with Employer and with respect to which Employee had contact or supervisory responsibility in course of conducting business for Employer or about whom Employee had access to and used Confidential Information, other than any customer which has ceased to do business with Employer at least six (6) months prior to the last day of Employee's employment without any inducement, encouragement or involvement of Employee.

**5.**&nbsp;&nbsp;&nbsp;&nbsp;**NON-SOLICITATION AND NO-HIRE OF EMPLOYER'S EMPLOYEES**

Employee acknowledges and understands that Employer has spent extensive time, effort and resources training and maintaining a stable workforce and that, solely as a result of Employee's employment with Employer, Employee has had and will continue to have direct contact and dealings with employees of Employer. Therefore, during the period of Employee's employment with Employer and thereafter, without interruption, for the period ending 18 months after the Date of Termination (two years if the Date of Termination occurs on or after the date of a Change in Control, as defined in the New Employment Agreement), Employee agrees not to, directly or indirectly, for Employee's own account or as an agent, officer, director, owner, partner, or consultant of any corporation, firm, partnership, joint venture, syndicate, sole proprietorship or other entity: (a) solicit, induce, recruit or encourage, or attempt to solicit, induce, recruit or encourage, any employee of Employer to leave the employ of Employer, or to assist any other person, business or entity to do so; or (b) hire or attempt to hire any employee of Employer, or assist any other person, business or entity to do so. For purposes of this provision, the term "<u>employee</u>" means any person who is or was an employee of Employer during the period of Employee's employment with Employer and with respect to which Employee had contact or supervisory responsibility in the course of conducting business for Employer or about whom Employee had access to and used Confidential Information related to their performance or advancement potential, other than a former employee who has not been employed by Employer for a period of at least six (6) months prior to the last day of Employee's employment without any inducement, encouragement or involvement of Employee.

**6.**&nbsp;&nbsp;&nbsp;&nbsp;**NON-DISPARAGEMENT OF EMPLOYER**

Employee acknowledges and understands that Employer's good name and its goodwill are extremely valuable and the result of the expenditure of substantial time, effort and resources by Employer. Therefore, during the period of Employee's employment with Employer and thereafter, without interruption, for the period ending two years after the Date of Termination, Employee agrees not to make, or cause to be made, any statement or disclosure that disparages Employer, or any director, officer or employee of Employer, or assist any other person, business or entity to do so.

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**7.**&nbsp;&nbsp;&nbsp;&nbsp;**GENERAL PROVISIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.1**&nbsp;&nbsp;&nbsp;&nbsp;**<u>No Inducements</u>.** In agreeing to the protective covenants set forth herein and compliance therewith, Employee does not rely on any inducements, promises or representations of Employer, or its officers or directors, other than the terms and conditions specifically set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.2**&nbsp;&nbsp;&nbsp;&nbsp;**<u>Employment Still At-Will; No Guarantee</u>.** Employee acknowledges that Employee is an "at-will" employee of Employer and nothing set forth herein gives or shall be deemed to give Employee any right to remain in the employ of Employer. Employee also acknowledges that, while Employee is eligible to earn compensation, and to receive Bonus Compensation or Equity Awards, the payment of such compensation and/or granting of any such Bonus Compensation and Equity Awards, as the case may be, is subject to the terms and conditions of such Bonus Compensation and/or the Incentive Plan and Equity Awards, and that nothing set forth herein shall be deemed to guarantee to Employee that any specific amount of compensation, Bonus Compensation or Equity Awards will be earned by or made to Employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.3**&nbsp;&nbsp;&nbsp;&nbsp;**<u>Employee Has Read And Understands</u>.** Employee acknowledges that the statements herein are true and correct and that Employee has read and understands all of the terms of this Agreement and has had the opportunity to consult with an attorney with respect to the terms of this Agreement if Employee deems necessary. Employee agrees that Employee is entering into this Agreement as a voluntary act and that Employee has received adequate consideration in exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.4**&nbsp;&nbsp;&nbsp;&nbsp;**<u>Restrictions Reasonable</u>.** Employee acknowledges and agrees that the restrictions set forth in Sections 1 through 6 of this Agreement are reasonable and necessary for the protection of Employer's legitimate business interests, and do not impose any undue economic hardship on Employee or otherwise preclude Employee from gainful employment, particularly in other areas outside of those captured by Employee's current position.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.5**&nbsp;&nbsp;&nbsp;&nbsp;**<u>Equitable Relief</u>.** Employee acknowledges that Employer will suffer irreparable harm if Employee breaches or threatens to breach this Agreement and that, in the event of Employee's actual or threatened breach of this Agreement, Employer will have no adequate remedy at law. Accordingly, Employee agrees that, in addition to any other remedies at law or in equity available to Employer for Employee's breach or threatened breach of this Agreement, Employer is entitled to specific performance or injunctive relief against Employee to prevent any such actual or threatened breach without the necessity of posting a bond or other security.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.6**&nbsp;&nbsp;&nbsp;&nbsp;**<u>Period Of Restriction Extended</u>.** In the event of a breach by Employee of any covenant in Section 3, 4, 5 or 6 of this Agreement, the period of restriction set forth in such provision shall be extended by the period of such breach (up to a maximum of twelve (12) additional months). In addition, in the event of a breach of any of the covenants in Sections 1 through 5 of this Agreement, Employee shall lose all rights under any unvested or unexercised awards under the Incentive Plan.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.7**&nbsp;&nbsp;&nbsp;&nbsp;**<u>Applicable Law, Venue and Jurisdiction</u>.** The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of Illinois without giving effect to the conflict of law principles thereof. The exclusive venue for any litigation between Employee and Employer for any dispute arising out of or relating to this Agreement shall be the state court located in Cook County, Illinois, or the federal district court located in Chicago, Illinois, and Employee hereby irrevocably consents to any such court's exercise of personal jurisdiction over Employee for such purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.8**&nbsp;&nbsp;&nbsp;&nbsp;**<u>Waiver Of Jury</u>.** EMPLOYEE AND EMPLOYER IRREVOCABLY WAIVE THEIR RIGHTS TO A JURY TRIAL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.9**&nbsp;&nbsp;&nbsp;&nbsp;**<u>Waiver and Modification</u>.** Except as provided below in Section 7.11 and 7.12, no provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in a writing signed by the parties hereto and, in the case of Employer, such waiver, modification or discharge has been authorized or approved by the Board of Directors or an authorized officer of Employer. Any waiver of any breach of any kind or character whatsoever shall not be construed as a continuing waiver of, or consent to, any subsequent breach of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.10**&nbsp;&nbsp;&nbsp;&nbsp;**<u>Headings</u>.** The headings used in this Agreement are for convenience only and are not part of its operative language. They shall not be used to affect the construction of any provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.11**&nbsp;&nbsp;&nbsp;&nbsp;**<u>Severability</u>.** The provisions of this Agreement are severable and should any provision hereof be void, voidable or unenforceable under applicable law, such void, voidable or unenforceable provision shall not affect or invalidate any other provision of this Agreement, which shall continue to govern the relative rights and duties of the parties hereto as though the void, voidable or unenforceable provision were not a part hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.12**&nbsp;&nbsp;&nbsp;&nbsp;**<u>"Blue Pencil Provision"</u>.** In the event that any provision, or part thereof, shall be declared by a court to exceed the maximum time period or scope that the court deems to be enforceable, then the parties hereto expressly authorize the court to modify such provision, or part thereof, so that it may be enforced to the fullest extent permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.13**&nbsp;&nbsp;&nbsp;&nbsp;**<u>Other Agreements</u>.** This Agreement is in addition to and supplements any other written agreements between the parties that contain restrictive covenant obligations. Notwithstanding the foregoing, this Agreement supersedes and cancels the Confidentiality and Restrictive Covenants Agreement dated December 14, 2012 between the Employer and the Employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.14**&nbsp;&nbsp;&nbsp;&nbsp;**<u>Survival and Binding Effect</u>.** The restrictions set forth in Sections 1 through 6 of this Agreement shall survive the termination of this Agreement and the termination of Employee's employment with Employer for any reason or no reason. This Agreement shall be binding upon and inure to the benefit of the parties hereto, their heirs, personal representatives, successors and assigns.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.15**&nbsp;&nbsp;&nbsp;&nbsp;**<u>Execution in Counterparts</u>.** This Agreement may be executed by the parties hereto in two (2) or more counterparts, each of which shall be deemed to be an original, but all such counterparts shall constitute one and the same agreement, and all signatures need not appear on any one counterpart. A signed copy of this Agreement delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

***[Signature page follows this page]***

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**IN WITNESS WHEREOF**, the undersigned have duly entered into this Agreement as of the date set forth above.

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| | |
|:---|:---|
| **FIRST MIDWEST BANCORP, INC.**<br>**FIRST MIDWEST BANK**<br>**FOR AND ON BEHALF OF EMPLOYER** | **EMPLOYEE** |
| By:<u>/s/ MICHAEL L. SCUDDER</u><br>&nbsp;&nbsp;&nbsp;&nbsp; Michael L. Scudder<br>&nbsp;&nbsp;&nbsp;&nbsp; Chairman and Chief Executive Officer | <u>/s/ MARK G. SANDER&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> <br> Mark G. Sander |
| ATTEST: <br>By:<u>/s/ NICHOLAS J. CHULOS</u><br>&nbsp;&nbsp;&nbsp;&nbsp; Nicholas J. Chulos<br>&nbsp;&nbsp;&nbsp;&nbsp; Executive Vice President, General <br>&nbsp;&nbsp;&nbsp;&nbsp; Counsel and Corporate Secretary |  |

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## Exhibit 10.40

**Exhibit 10.40**

***<br>Execution Version***

[**FMBI Letterhead**]

May 30, 2021

Mark G. Sander

*At the address on file with the Corporation*

Dear Mark:

Reference is made to the Agreement and Plan of Merger, dated as of May 30, 2021, between First Midwest Bancorp, Inc. (the "<u>Corporation</u>") and Old National Bancorp (as the same may be amended, restated, supplemented or otherwise modified from time to time, the "<u>Merger Agreement</u>"), your Employment Agreement, dated as of January 18, 2019, by and between you and the Corporation (your "<u>Employment Agreement</u>") and your Confidentiality and Restrictive Covenants Agreement, dated as of January 18, 2019, by and between you, the Corporation and First Midwest Bank (your "<u>CCR Agreement</u>"). Capitalized terms used and not otherwise defined herein have the respective meanings ascribed to them in the Merger Agreement, except as otherwise noted.

As you are aware, the Merger Agreement contemplates that, as of the Closing Date, you will no longer serve as a director of the Board of Directors of the Corporation (the "<u>Board</u>") but will serve as President and Chief Operating Officer of the Surviving Corporation, reporting directly to the Chief Executive Officer.

This letter agreement confirms to you, and you agree that your Employment Agreement and CCR Agreement shall be amended as follows:

*Annual Compensation.* Your annual compensation for service with the Surviving Corporation shall be established by the Compensation Committee of the Surviving Corporation but shall be no less than your annual compensation immediately prior to the Closing Date. In the event of a termination of employment without Cause (as defined in your Employment Agreement) or resignation for Good Reason (as defined in your Employment Agreement, but subject to the section entitled "Waiver of Good Reason" below) after the Closing Date, you will be eligible for severance under Section 8 of your Employment Agreement (it being understood you will only be eligible for severance under Section 8(c) of your Employment Agreement in the event a subsequent Change in Control (as defined in your Employment Agreement) occurs after the Closing Date). You will also continue to be eligible to receive the post-employment health benefits coverage as contemplated by Section 6(c) of your Employment Agreement upon any termination of employment.

*Retention Bonus.* You will be granted a cash-based retention award equal to $3.55 million (the "<u>Retention Bonus</u>"). The Retention Bonus will be paid fifty percent (50%) on the first anniversary of the Closing Date and fifty percent (50%) on the second anniversary of the Closing Date, commencing on the Closing Date, subject only to your continued employment with the Surviving Corporation. The unpaid portion of your Retention Bonus will be paid to you in a lump sum in full upon (1) early termination of service by the Corporation without Cause (as defined in your Employment Agreement) or due to your death or disability (as determined under your Employment Agreement) or (2) a resignation by you for Good Reason (as defined in your Employment Agreement, but subject to the section entitled "Waiver of Good Reason" below).

*Outstanding Equity Awards.* Your Corporation equity awards will be converted into equity awards of the Surviving Corporation as set forth in Section 1.8 of the Merger Agreement. Upon (1) early termination of service by the Corporation without Cause (as defined in your Employment Agreement) or due to death or disability (as determined in your Employment Agreement) or (2) a resignation by you for Good Reason (as defined in your Employment Agreement, but subject to the section entitled "Waiver of Good Reason" below), any of your unvested equity awards of the Corporation that were outstanding on the Closing Date will accelerate and vest in full.

*Waiver of Good Reason.* You acknowledge and agree that your removal from the role of director of the Board and any other changes in your responsibilities and/or duties at the Closing Date will not constitute Good Reason under your Employment Agreement.

*Restrictive Covenants.* You further agree that, in consideration of the compensation to be paid to you under this letter agreement, Section 3.4(b) of your CCR Agreement shall be amended to eliminate the words "was staffed with at least 15 employees engaged in banking or other financial services". You acknowledge and recognize the highly competitive nature of the Corporation's business, that access to confidential information renders you special and unique within the Corporation's industry, and that you have had the opportunity to develop

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substantial relationships with existing and prospective clients, accounts, customers, consultants, contractors, investors, and strategic partners of the Company during the course of and as a result of your employment with the Corporation. In light of and in consideration for the foregoing, and in consideration of the compensation provided under this letter agreement, you acknowledge and agree that amended restriction set forth in above is reasonable and valid in duration and geographic scope and in all other respects and is essential to protect the value of the business and assets of the Corporation. You further acknowledge that such restriction will not materially interfere with your ability to earn a living following the Closing Date.

*Miscellaneous*. Except as set forth above, the terms of your Employment Agreement and CCR Agreement remain in full force and effect (it being understood that you will remain eligible to participate in the various retirement, welfare, fringe benefit, perquisites and expense reimbursement plans, benefit plans, programs and arrangements of the Corporation that you participate in as of the Closing Date, subject to any amendments thereto or replacements thereof).

The effectiveness of this letter agreement shall be conditioned upon the Closing. In the event that the Merger Agreement terminates prior to Closing, this letter agreement shall be void *ab initio*.

[*Signature Pages Follow*]

------

---

| |
|:---|
| Sincerely, |
| FIRST MIDWEST BANCORP, INC. |
| /s/ Michael L. Scudder |
| By: Michael L. Scudder |
| Title: Chairman of the Board and Chief<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Executive Officer |

---

AGREED AND ACCEPTED:

---

| |
|:---|
| EXECUTIVE |
| /s/ Mark G. Sander |
| Mark G. Sander |

---

[*Signature Page to Letter Agreement*]

## Ex-21

**EXHIBIT 21**

**OLD NATIONAL BANCORP**

**SUBSIDIARIES OF THE REGISTRANT**

**AS OF DECEMBER 31, 2022**

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| | | |
|:---|:---|:---|
| <u>Name of Subsidiary</u> | <u>Jurisdiction of Incorporation</u> | <u>Business Name of Subsidiary</u> |
| 1834 Investment Advisors Co. | Wisconsin | 1834 Investment Advisors Co. |
| Old National Bank | United States of America | Old National Bank |
| Old National Realty Company, Inc. | Indiana | Old National Realty Company, Inc. |
| Premier Asset Management LLC | Illinois | Premier Asset Management LLC |

---

## Exhibit 23.1

**Exhibit 23.1**

**Consent of Independent Registered Public Accounting Firm**

We consent to the incorporation by reference in the following Registration Statements, of our report for Old National Bancorp, dated February 22, 2023, relating to the financial statements and effectiveness of internal control over financial reporting, appearing in this Annual Report on Form 10-K:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Form S-3 No. 333-120545 pertaining to the Old National Bancorp Amended and Restated Stock Purchase and Dividend Reinvestment Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Form S-3 No. 333-258774 pertaining to the Old National Bancorp Amended and Restated Stock Purchase and Dividend Reinvestment Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Form S-3 No. 333-238986 pertaining to the registration of Old National Bancorp's securities on a universal shelf registration statement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.Form S-4 No. 333-257536 pertaining to the registration of equity securities in connection with the acquisition of First Midwest Bancorp, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.Form S-4 No. 333-104818 pertaining to Old National's transaction with J.W.F. Insurance Companies, Inc;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.Form S-8 No. 333-65516 pertaining to the Old National Bancorp 1999 Equity Incentive Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.Form S-8 No. 333-152769 pertaining to the Old National Bancorp 2008 Incentive Compensation Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.Form S-8 No. 333-297737 pertaining to the Old National Bancorp 2008 Incentive Compensation Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.Form S-8 POS No. 333-257536 pertaining to the registration of equity securities in connection with the acquisition of First Midwest Bancorp, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.Form S-8 No. 333-161395 pertaining to the Old National Bancorp Employee Stock Purchase Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.Form S-8 No. 333-197938 pertaining to the United Bancorp, Inc. 1999 Stock Option Plan, the United Bancorp, Inc. 2005 Stock Option Plan and the United Bancorp, Inc. Stock Incentive Plan of 2010.

---

| | |
|:---|:---|
| | /s/ Crowe LLP |
| Louisville, Kentucky | |
| February 22, 2023 | |

---

## Exhibit 31.1

**Exhibit 31.1**

**FORM OF SECTION 302 CERTIFICATION**

I, James C. Ryan, III, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this annual report on Form 10-K of Old National Bancorp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 (e) and 15d-15 (e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | | |
|:---|:---|:---|:---|
| Date: | February 22, 2023 | By: | /s/ James C. Ryan, III |
|  |  |  | James C. Ryan, III |
|  |  |  | Chief Executive Officer |
|  |  |  | (Principal Executive Officer) |

---

## Exhibit 31.2

**Exhibit 31.2**

**FORM OF SECTION 302 CERTIFICATION**

I, Brendon B. Falconer, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this annual report on Form 10-K of Old National Bancorp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 (e) and 15d-15 (e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | | |
|:---|:---|:---|:---|
| Date: | February 22, 2023 | By: | /s/ Brendon B. Falconer |
|  |  |  | Brendon B. Falconer |
|  |  |  | Chief Financial Officer |
|  |  |  | (Principal Financial Officer) |

---

## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the annual report of Old National Bancorp (the "Company") on Form 10-K for the year ending December 31, 2022 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, James C. Ryan, III, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | |
|:---|:---|
| By: | /s/ James C. Ryan, III |
|  | James C. Ryan, III |
|  | Chief Executive Officer |
|  | (Principal Executive Officer) |
| Date: | February 22, 2023 |

---

## Exhibit 32.2

**Exhibit 32.2**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the annual report of Old National Bancorp (the "Company") on Form 10-K for the year ending December 31, 2022 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Brendon B. Falconer, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | |
|:---|:---|
| By: | /s/ Brendon B. Falconer |
|  | Brendon B. Falconer |
|  | Chief Financial Officer |
|  | (Principal Financial Officer) |
| Date: | February 22, 2023 |

---

<br>