Old National Bancorp. (NASDAQ:ONB) Q1 2016 Earnings Conference Call - Final Transcript

May 02, 2016 • 11:00 am ET

Previous

Old National Bancorp. (NASDAQ:ONB) Q1 2016 Earnings Conference Call - Final Transcript

Share
Close

Loading Event

Loading Transcript

Q & A
Executive
Christopher A. Wolking

that I understand it, thank you. I would suggest that probably one of the areas that Anchor has had a lot of success at is commercial real estate.

They've, a lot of their growth has come from that, and part of it's reflective of the Madison market and the Milwaukee market which are seeing significant growth. We believe they have done an outstanding job of underwriting those credits.

But I think every -- also understands our appetite for commercial real estate. I think 12.5% in the first quarter of growth is probably a high-level, but I don't see it moderating a great deal as we continue to implement our credit standards.

I would tell you that the level of cooperation amongst their credit team and Daryl's is as good as I've seen in all of our partnerships. Secondarily, I think what we have found with Anchor is a lot of their senior lenders and senior credit folks have come from larger banks and understand the culture that Daryl is trying to create throughout the franchise.

Analyst
Jon G. Arfstrom

And then in terms of Len and Kevin, they are moving to Madison and Milwaukee, is that right?

Executive
Christopher A. Wolking

They are there. Len has actually closed and moved into his new house. If anybody wants to buy a house on Pleasant Drive in Evansville, we do have one for sale, or Len has one for sale. And Kevin and his wife are up in Milwaukee now as well. They've been extremely well-accepted.

Analyst
Jon G. Arfstrom

How do you measure their progress, Bob? I mean I guess, what things do you expect them to do first, and longer term, how are you going to measure their progress?

Executive
Robert G. Jones

So first is really attrition, both associate and client attrition, because you're walking a fine balancing act. While the cultures are similar, there is change. Just simply on the credit side, you're going to see a little more of our credit culture, which again, similar, but there's still a difference.

So and the first measurement for both of them will be, can we retain the performance we want to retain? Are we retaining the clients we want to retain? And then you begin to look at growth after that, because I'm afraid if I put them towards growth in the beginning, you kind of lose sight of what your base is, and they spent a lot of time building that.

So I think, John, over time, if we can grow that book slightly less than we did in the first quarter, retain all of our RMs and then, the other thing they're going to be challenged with is taking those areas that we don't have up in the market today.

So trust and Wealth Management are clearly opportunities to grow. Our small business group out of Michigan will go into the market and really deal with the lower end of those markets, which we think we have a great opportunity.

But I think first and foremost, next quarter you ought to ask me