About Vanderburgh County, IN

Most economists and Ben Bernanke believe that the recession is over. In addition, the "pending sales index" has increased for seven consecutive months, the first time that has occurred since the index was started in 2001. Although both of these pieces of information sound great, and they are good, we should look beyond headlines to see what is really happening in the Evansville area. We have seen a Toyota expansion, we are losing some Whirlpool jobs and we are adding some Berry Plastics jobs. Currently national unemployment is almost 10% while the Evansville area is less at 8.6%. Although the economy is improving no one we know is forecasting rapid economic growth.

Local housing sales continue at a very steady rate. Over the past four months our local MLS has sold 1585 homes compared to 1600 over the same period last year. Month to month sales have been virtually unchanged since May. The supply of homes on the market in our area has also stayed very steady. Although we can not say that sales are brisk, we can say that in some locations and price ranges the supply of homes is limited. If you are curious about the housing market in a specific location or price range give us a call and we can help you with that information.

From our friends in the financial services industry we have the following to report: But for mildly weak 3-month and 30-year Treasury auctions last week, it was a strong week for the credit markets and even stronger for the real estate market. The reported quantity of mortgage applications for the week prior showed a 16.4% rise overall, with strong jumps for both the purchase money and the refinancing mortgages. The Freddie Mac weekly loan average rate fell to 4.87%. And the average of all mortgage rates (including jumbos, whose rates are declining while applications rise) ended the week at 5.27%.

A little over a year ago my company, F. C. Tucker Emge Realtors launched a completely redesigned website designed specifically to help make the home buying process easy. At the same time we started spending less money on print advertising and spent more resources enhancing and promoting our website. This decision was one of the best decisions we ever made. We are now selling more real estate than our next two competitors combined and more and more buyers are finding their new home at www.FCTuckerEmge.com If you haven't visited the site please do. We think you will like what you see.

More than 80 percent of new single-family homes have at least two bathrooms, which occupy an average of 300 square feet of floor space, or 12 percent of the total area, according to a study by the National Association of Home Builders.

The home builder's study reports a major return on value for extra bathrooms: "When the number of bathrooms is approximately equal to the number of bedrooms, an additional half-bath adds about 10 percent to the home's value, and one additional bath adds about 19 percent."

A mid-range bathroom remodel, which costs $10,500 on average nationwide, repays a home buyer at least 100 percent of the outlay when the property is sold, the home buyer study concludes.

Source: Chicago Tribune, Mike McClintock (09/21/2009) http://www.realtor.org/RMODaily.nsf/pages/News2009100503?OpenDocument

Pending home sales have increased for seven straight months, the longest in the series of the index which began in 2001, according to the NATIONAL ASSOCIATION OF REALTORS®.

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in August, rose 6.4 percent to 103.8 from a reading of 97.6 in July, and is 12.4 percent above August 2008 when it was 92.4. The index is at the highest level since March 2007 when it was 104.5.

Lawrence Yun, NAR chief economist, said not all contracts are turning into closed sales within an expected timeframe. "The rise in pending home sales shows buyers are returning to the market and signing contracts, but deals are not necessarily closing because of long delays related to short sales, and issues regarding complex new appraisal rules," he said. "No doubt many first-time buyers are rushing to beat the deadline for the $8,000 tax credit, which expires at the end of next month."

The Pending Home Sales Index in the Northeast jumped 8.2 percent to 85.3 in August and is 12.0 percent higher than August 2008. In the Midwest the index rose 3.1 percent to 90.8 in August and is 7.6 percent above a year ago. In the South, pending home sales increased 0.8 percent to an index of 104.6 and is 8.2 percent above August 2008. In the West the index surged 16.0 percent to 130.5 and is 22.3 percent above a year ago.

"There is likely to be some double counting over a span of several months because some buyers whose contracts were cancelled have found another home and signed a new contract to buy," Yun explained. "Perhaps the real question is how many transactions are being delayed in the pipeline, and how many are being cancelled? Without historic precedents, it's challenging to assess."

Yun also noted that the data sample coverage for pending sales is smaller than the measurement for closed existing-home sales, so the two series will never match one for one.

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said first-time buyers need to act now. "Potential first-time buyers must make a contract offer very soon to have a reasonable chance of qualifying for the tax credit," he said. "Congress needs to extend and expand this program because it's stimulating the economy and reducing inventory close to price stabilization points."

McMillan said a sizable number of homebuyers already in the pipeline could be let down because of the tight deadline. "We know there is a pent-up demand because sales are below normal levels for the size of our population. The faster we absorb excess inventory, the sooner we'll turn the corner on home prices, prevent additional families from becoming upside-down in their mortgages, and give Wall Street the confidence to extend credit to other sectors," he said. "Each home sale pumps an additional $63,000 into the economy through related goods and services, so the benefits of extending and expanding the tax credit far outweigh the costs."

Yun said the forecast for home sales and prices depends very much on whether a tax credit is extended. "All we can say for certain is sales will decline when the tax credit expires because we are not yet on a self-sustaining recovery path. It also raises a risk of a double-dip recession," he said. "Extending and expanding the tax credit is the best tool in our arsenal to encourage financially qualified buyers to stimulate the economy and help reduce the budget deficit."

Source: NAR

Old National Bancorp (NYSE: ONB) in Evansville has launched a $150 million public stock offering. The company plans to use the proceeds to support ongoing and anticipated growth, which could include acquisitions of other financial institutions, possibly involving assets of failed banks. The underwriters have an option to purchase up to an additional 15 percent of the shares.

Old National Bancorp (NYSE:ONB), the holding company for Old National Bank, today announced it has commenced an underwritten public offering of $150 million of its common stock, subject to adjustment.

The Company intends to use the net proceeds from the offering for general corporate purposes and to support ongoing and future anticipated growth, which may include opportunistic acquisitions of other financial institutions, possibly including acquisitions of assets and liabilities of failed or distressed financial institutions in FDIC-sponsored or assisted transactions.

Sandler O'Neill & Partners, L.P. is the sole book-running manager.
Keefe, Bruyette & Woods, Inc. and SunTrust Robinson Humphrey, Inc. are co-managers.

The Company intends to grant the underwriters a 30-day option to purchase up to an additional 15 percent of the shares offered to cover over-allotments, if any. The shares will be issued pursuant to a prospectus supplement to the prospectus filed as a part of the Company's effective shelf-registration statement on Form S-3 (File No.
333-151499).

About Old National Bancorp

Old National Bancorp, with $8.0 billion in assets, is a financial holding company headquartered in Indiana. Old National Bank, its banking subsidiary, is focused on community banking in its primary footprint in Indiana, eastern and southeastern Illinois, and central and western Kentucky. Old National Bancorp also owns financial services companies that provide services to supplement its banking business, including fiduciary and wealth management services, insurance and other financial services.

Source: Old National Bancorp http://www.insideindianabusiness.com/newsitem.asp?ID=37789

Mead Johnson Nutrition (NYSE: MJN) is expanding its Evansville operations over the next year and adding 35 jobs. The pediatric nutritional company will invest nearly $33 million in equipment and building improvements for a powder infant formula production line at one of its existing facilities. Mead Johnson employs approximately 1,200 workers at its Evansville-based North American production headquarters.

EVANSVILLE, Ind. (Sept. 21, 2009) - Mead Johnson Nutrition (NYSE:MJN), a pediatric nutritional company, announced today that it will expand its operations here, creating up to 35 new positions by 2010.

Best known for its infant formulas, Mead Johnson will invest $32.8 million in equipment and building improvements needed to bring a powder infant formula production line to one of its existing facilities located on the Lloyd Expressway.

"From Fort Wayne to Evansville, well-known, global companies have recognized the value of doing business in our state," said Governor Mitch Daniels. "Mead Johnson's expansion and commitment to Indiana brings new, high-paying jobs for Hoosiers and reinforces southwest Indiana's economic strength."

Mead Johnson employs approximately 1,200 associates at its Evansville-based North American headquarters. Also located in Evansville is the Evansville Supply Center, where Mead Johnson develops, manufactures and packages liquid infant formulas. The company plans to begin staffing the additional manufacturing positions over the next year as the new powder production line is phased in.

"The additional manufacturing capacity will enhance the company's ability to respond to the growing consumer preference for powdered infant formula products," said Jeff Jobe, Mead Johnson senior vice president, global supply chain. "The new facility will allow us to better meet consumers' needs and help fulfill our mission to create nutritional brands and products trusted to give infants and children the best start in life."

Founded in 1905, Mead Johnson markets more than 70 products in over 50 countries in North America, Latin America, Europe and Asia, employing 5,300 associates worldwide.

The Indiana Economic Development Corporation offered Mead Johnson & Company up to $3.25 million in performance-based tax credits and up to $28,500 in training grants based on the company's job creation plans. The city of Evansville will create a tax increment financing district which will allow Mead Johnson to capture and reinvest property taxes into its business and it will offer an additional property tax phase-in.

"This investment proves that Evansville has created the right climate to attract new business at a time when there is such strong competition among cities for new jobs," said Mayor Jonathan Weinzapfel. "We are pleased that we are able to continue our partnership with Mead Johnson and create additional jobs and investment in our community."

Mead Johnson's growth in Indiana comes just over a month after Dow AgroSciences announced that it would expand its biotechnology research operations in Indianapolis, creating 100 new jobs. Since the IEDC was created in 2005, more than 60 life science companies have committed to create 10,000 new jobs and invest more than $1.1 billion in their Indiana operations.

About Mead Johnson
Mead Johnson & Company is a wholly owned subsidiary of Mead Johnson Nutrition Company (NYSE: MJN). Mead Johnson Nutrition, a global leader in pediatric nutrition, develops, manufactures, markets and distributes more than 70 products in over 50 markets worldwide. The company's mission is to create nutritional brands and products trusted to give infants and children the best start in life. The company's "Enfa" family of brands, including Enfamil® infant formula, is the world's leading brand franchise in pediatric nutrition. For more information, go to meadjohnson.com.

About IEDC
Created by Governor Mitch Daniels in 2005 to replace the former Department of Commerce, the Indiana Economic Development Corporation is governed by a 12-member board chaired by Governor Daniels. Indiana Secretary of Commerce Mitch Roob serves as the chief executive officer of the IEDC. For more information about IEDC, visit www.iedc.in.gov.

Source: Indiana Economic Development Corporation http://www.insideindianabusiness.com/newsitem.asp?ID=37795