St. Joseph Capital Corporation Announces Third Quarter Results and Merger With Old National Bancorp

The chairman, president and chief executive officer of St. Joseph Capital Corporation (NASDAQ: SJOE), John W. Rosenthal, Sr., today announced that the Company's consolidated net income for the three month period ended September 30, 2006, was $707,000, a decrease of 12% compared to the same quarter a year ago. While third quarter earnings decreased from the same quarter a year ago, they increased by $125,000 or 17.7% compared to the second quarter of 2006. Earnings per common share (EPS) for the three months ended September 30, 2006 decreased to $0.40 basic and $0.38 fully-diluted, compared to $0.46 basic and $0.43 fully-diluted EPS for the three months ended September 30, 2005.

Total assets as of September 30, 2006 reached $477.3 million, an increase of $26.6 million or 5.6% compared to September 30, 2005. Loan growth during the third quarter remained strong, increasing by $8.7 million or 2.4% over last quarter and $27.1 million, or 7.6% from a year ago. The attached financial statements provide additional information and performance measurements.

In addition to disclosing third quarter results, Chairman Rosenthal announced that a quarterly dividend of $0.06 per common share would be paid on December 15, 2006 to shareholders of record on December 1, 2006.

Earlier this week, St. Joseph Capital Corporation announced its intention to merge with Old National Bancorp (NYSE: ONB). Old National has signed a definitive agreement to acquire all of the common stock of SJOE for $40.00 per share in an all cash transaction. The transaction is scheduled to close in the first quarter of 2007 pending regulatory and shareholder approval. A special meeting of shareholders to approve the agreement will be held in the first quarter of 2007.

St. Joseph Capital Corporation is a bank holding company whose headquarters are located in Mishawaka, Indiana. Its primary operating subsidiary, St. Joseph Capital Bank, provides a broad array of banking services to businesses and individuals in the Michiana area. St. Joseph Capital Bank employs numerous delivery channels for their financial services including a unique courier service and electronic banking accessed via their website, www.sjcb.com. St. Joseph Capital Bank is a member of the Federal Deposit Insurance Corporation.

This news release is believed accurate as of the date it was issued. However, it may become outdated over time, and should not be relied on as factually correct after its issue date.

SPECIAL NOTE CONCERNING FORWARD-LOOKING STATEMENTS

This news release contains comments or information that constitute forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that are based on current expectations that involve a number of risks and uncertainties. Actual results may differ materially from the results expressed in forward-looking statements. Factors that might cause such a difference include changes in interest rates and interest rate relationships; unexpected events involving the proposed merger with Old National Bancorp; demand for products and services; the degree of competition by traditional and non-traditional competitors; changes in banking regulation; changes in tax laws; changes in prices, levies, and assessments; the impact of technological advances; governmental and regulatory policy changes; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; changes in the national and local economy; and other factors, including risk factors, referred to from time to time in filings made by St. Joseph Capital Corporation with the Securities and Exchange Commission. St. Joseph Capital Corporation undertakes no obligation to update or clarify forward- looking statements, whether as a result of new information, future events or otherwise.

                          ST. JOSEPH CAPITAL CORPORATION
                          ------------------------------
                Consolidated Statements of Operations (Unaudited)
                  (Dollars in thousands, except per share data)

                                   Three Months Ended  Nine Months Ended
                                   ------------------  ------------------
                                   Sept. 30, Sept. 30, Sept. 30, Sept. 30,
                                      2005     2006      2005      2006
Interest income
        Loans, including fees      $  5,974  $  4,775  $ 17,034  $ 12,885
        Securities and other
         interest income                907       916     2,645     2,789
                                   --------  --------  --------  --------
                                      6,881     5,691    19,679    15,674
Interest expense
        Deposits                      3,822     2,341    10,175     5,997
        Securities sold under
         agreements to repurchase
         and other borrowings           873       766     2,741     2,023
                                   --------  --------  --------  --------
                                      4,695     3,107    12,916     8,020
                                   --------  --------  --------  --------
Net interest income                   2,186     2,584     6,763     7,654
Provision for loan losses              (317)        -      (317)        -
                                   --------  --------  --------  --------

Net interest income after provision
 for loan losses                      2,503     2,584     7,080     7,654

Noninterest income
        Service charges on deposit
         accounts                       118        97       310       320
        Other noninterest income        136       135       472       407
                                   --------  --------  --------  --------
                                        254       232       782       727
Noninterest expense
        Employee compensation and
         benefits                     1,255     1,204     3,789     3,478
        Stock option expense             59        35       169       105
        Occupancy and equipment
         expense                        134       135       409       381
        Fraud Loss                        -         -        52         -
        Other expense                   366       371     1,114     1,211
                                   --------  --------  --------  --------
                                      1,814     1,745     5,533     5,175
                                   --------  --------  --------  --------
Income before income taxes              943     1,071     2,329     3,206
Income tax expense                      236       268       529       792
                                   --------  --------  --------  --------
Net income                         $    707  $    803  $  1,800  $  2,414
                                   ========  ========  ========  ========

Basic income per common share      $    .40  $    .46  $   1.02  $   1.39
                                   ========  ========  ========  ========
Diluted income per common share    $    .38  $    .43  $    .97  $   1.29
                                   ========  ========  ========  ========



                           ST. JOSEPH CAPITAL CORPORATION
                   Condensed Consolidated Balance Sheets (Unaudited)
                                (Dollars in thousands)

                                              September 30, September 30,
                                                     2006        2005
ASSETS
        Total cash and cash equivalents          $  22,274   $  18,936
        Securities available for sale               79,363      84,718
        Federal Home Loan Bank (FHLB) stock          3,227       3,152
        Loans receivable                           358,103     330,972
        Less: Allowance for loan losses              3,178       3,578
                                                 ---------   ---------
               Loans receivable, net               354,925     327,394
        Premises and equipment, net                  3,168       3,294
        Interest receivable and other assets        14,366      13,273
                                                 ---------   ---------
                Total assets                     $ 477,323   $ 450,767
                                                 =========   =========

LIABILITIES AND SHAREHOLDERS’ EQUITY
       Liabilities
        Total deposits                           $ 379,706   $ 332,876
        Federal fund purchased                           -      15,400
        Securities sold under agreements to
         repurchase                                 12,240       6,120
        FHLB advances                               43,000      57,000
        Subordinated debentures                      8,000       8,000
        Interest payable and other liabilities       3,083       2,834
                                                 ---------   ---------
                Total liabilities                  446,029     422,230
       Total shareholders’ equity                   31,294      28,537
                                                 ---------   ---------
Total liabilities and shareholders’ equity       $ 477,323   $ 450,767
                                                 =========   =========


                       St. Joseph Capital Corporation
         Selected Quarterly Consolidated Financial Data (Unaudited)
              (Dollars in thousands, except per share data)

                       Three      Three      Three      Three      Three
                       Months     Months     Months     Months     Months
                     September    June       March    December   September
                        30,        30,        31,        31,         30,

                       2006       2006       2006       2005        2005
                     ---------  ---------  ---------  ---------  ---------
EARNINGS
  Net interest
   income            $   2,186  $   2,206  $   2,371  $   2,556  $   2,584
  Provision for loan
   loss                   (317)         -          -          -          -
  Noninterest income       254        282        246        229        232
  Noninterest
   expense               1,814      1,752      1,967      1,672      1,745
  Net income         $     707  $     582  $     511  $     806  $     803
  Basic earnings per
   share             $    0.40  $    0.33  $    0.29  $    0.46  $    0.46
  Diluted earnings
   per share         $    0.38  $    0.31  $    0.28  $    0.43  $    0.43
  Average shares
   outstanding       1,784,304  1,768,726  1,758,269  1,749,120  1,746,401
Average diluted
 shares outstanding  1,860,425  1,856,690  1,854,894  1,855,800  1,875,652

PERFORMANCE RATIOS
  Return on average
   assets*                0.60%      0.50%      0.46%      0.71%      0.72%
  Return on average
   common equity *        9.44%      7.92%      7.24%     11.49%     11.58%
  Net interest
   margin (fully-tax
   equivalent)*           2.07%      2.14%      2.37%      2.53%      2.60%
Efficiency ratio         74.34%     70.42%     75.16%     60.04%     61.97%

CAPITAL
  Average equity to
   average assets          6.3%       6.4%       6.3%       6.2%       6.2%
  Tier 1 leverage
   capital ratio           8.7%       8.5%       8.6%       8.5%       8.4%
  Tier 1 risk-based
   capital ratio          11.1%      10.8%      10.9%      10.7%      10.8%
  Total risk-based
   capital ratio          12.0%      11.8%      11.9%      11.7%      11.8%
Book value per share     17.46      16.54      16.63      16.53      16.32

ASSET QUALITY
  Net charge-offs    $      83  $       -  $       -  $       -  $       -
  Net charge-offs to
   average loans *        0.02%      0.00%      0.00%      0.00%      0.00%
  Allowance for loan
   losses            $   3,178  $   3,578  $   3,578  $   3,578  $   3,578
  Allowance for loan
   losses to total
   loans                  0.89%      1.02%      1.03%      1.06%      1.08%
  Nonperforming
   loans             $      12  $      83  $       -  $       -  $       -
  Other real estate
   owned             $       -  $       -  $       -  $       -  $       -
  Nonperforming
   loans to total
   loans                  0.00%      0.02%      0.00%      0.00%      0.00%
Nonperforming assets
 to total assets          0.00%      0.02%      0.00%      0.00%      0.00%

END OF PERIOD BALANCES
  Total assets       $ 477,323  $ 490,906  $ 460,780  $ 481,128  $ 450,767
  Total earning
   assets              441,696    454,296    431,952    425,934    415,748
  Total loans          358,103    349,400    345,953    338,705    330,972
  Total deposits       379,706    376,251    330,081    343,398    332,876
Stockholders' equity    31,294     29,440     29,596     28,941     28,537

AVERAGE BALANCES
  Total assets       $ 468,809  $ 463,556  $ 451,645  $ 447,615  $ 440,751
  Total earning
   assets              440,563    436,081    425,312    419,884    413,442
  Total loans          351,609    347,900    338,723    331,579    317,514
  Total deposits       364,357    348,202    343,345    346,684    337,573
  Stockholders’
   equity               29,727     29,483     28,608     27,819     27,519

* annualized for quarterly data


Contacts:
John Rosenthal
574-273-9700
Email Contact

Mark Secor
800-890-2798
Email Contact
Fax: 574-243-9670

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