Old National Bancorp. (NASDAQ:ONB) Q1 2015 Earnings Conference Call - Final Transcript

Apr 27, 2015 • 11:00 am ET


Old National Bancorp. (NASDAQ:ONB) Q1 2015 Earnings Conference Call - Final Transcript


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Welcome to the Old National Bancorp's First Quarter 2015 Earnings Conference Call. This call is being recorded and has been made accessible to the public in accordance with the SEC's Regulation FD. The call, along with corresponding presentation slides, will be archived for 12 months on the Investor Relations page at oldnational. com. A replay of the call will also be available beginning at 1 PM Central on April 27 through May 11.

To access the replay, dial 855-859-2056, conference ID code 23961693. Those participating today will be analysts and members of the financial community. At this time, all participants are in a listen-only mode. Following management's prepared remarks, we will hold a question-and-answer session. At this time, the call will be turned over to Lynell Walton for opening remarks. Ms. Walton?

Lynell J. Walton

Thank you, Holly, and good morning, everyone. Joining me today on Old National Bancorp's first quarter 2015 earnings conference call are Bob Jones, Chris Wolking, Daryl Moore, Jim Sandgren, Jim Ryan and Joan Kissel.

(Forward Looking Statements)

Additionally, as you review Slide 4, certain non-GAAP financial measures will be discussed on this conference call. References to non-GAAP measures are only provided to assist you in understanding Old National's results and performance trends and should not be relied upon as a financial measure of actual results. Reconciliations for such non-GAAP measures are appropriately referenced and included within the presentation.

I'll begin the analysis of our first quarter earnings on Slide 5 where I'll provide an update on our performance as they relate to our 2015 initiatives. Our first strategic initiative for 2015 is to grow organic revenue. Our organic loan growth during the first quarter was 2. 2 million when looking at period-end balances while year-over-year, we experienced organic loan growth of $341 million or 7% on a period-end basis. This loan growth is net of loans acquired through acquisitions and excludes (inaudible)In addition, adjusted revenue grew 15. 1% over first quarter of 2014 results.

And as Bob outlined for you in last quarter's call, we have initiated a new company-wide referral program and are very excited about the positive reaction we've received both geographically across our footprint and across all lines of business. In just the first 60 days of this new program, Old National associates have logged over 7,300 referrals. We're also pleased that our core net interest margin remains relatively stable during the first quarter as compared to the fourth quarter of 2014. Our second strategic initiative for 2015 is to improve the operating leverage of the company. As we discussed in our first quarter earnings call, we have initiated actions, which we believe will improve the efficiencies of our organization.

These actions include branch sales and consolidations and early retirement program and other workforce reductions. To-date, these actions are all tracking as planned from a timing perspective and we continue to anticipate annualized non-interest expense savings of $23 million to $27 million upon completion.

Our final strategic initiative is prudent use of our capital and providing