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

May 02, 2016 • 11:00 am ET

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

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Q & A
Analyst
John V. Moran

to go back to the insurance sale real quick. And I hear you on the 2016, zero impact, right, because most of these are pretax earnings from that business would be derived in the first quarter.

If we look into '17, if I'm hearing you right, you've got $6.3 million round numbers in, or not round numbers, I guess it would be the exact numbers in pretax, and then you're saying $2 million to $3 million in OpEx that you expect to have a benefit on the termination of the defined benefit plan.

So, I mean, if I've got that right, at the midpoint, it's not even $4 million in pretax, so like $0.02 to consensus '17, am I, I'm thinking about that right?

Executive
Christopher A. Wolking

You're spot on. Again, that doesn't assure anything for allocation of corporate overhead and other areas that will change. So again, we're comfortable that in '17, will have no impact on our -- your models.

Analyst
John V. Moran

Okay, and then just on the capital piece of terminating the plan, is there any capital impact from that in 4Q, when you flip the switch on that?

Executive
Christopher A. Wolking

No, no capital impact, it's just cash expense. Yes, it's just the cash.

Operator
operator

John Rodis, FIG Partners.

Analyst
John Rodis

I just wanted to follow-up on that comment you just made on operating expenses going forward. You said $88 million to $90 million a quarter, what does that include? And what doesn't include?

Executive
Robert G. Jones

It includes Old National, no insurance, without Anchor.

Analyst
John Rodis

Okay, and when you say no insurance, you're saying that reflects insurance going away, am I --

Executive
Robert G. Jones

Yes, that's correct. We've sold it -- it's our expectation at this stage that sales should be complete very, very early in the month of June.

Analyst
John Rodis

Okay, and then that would also reflect the $2 million to $3 million, I think you said, from the termination of the defined benefits plan?

Executive
Robert G. Jones

No. That will come on additional savings in the fourth quarter on top of that. So that's an annualized number of $2 million to $3 million, probably early in the fourth quarter. So for your year modeling, it would be one quarter of $2 million to $3 million, and then the full benefit in '17.

Operator
operator

And at this time, we have no further questions. I'll turn the conference back over to management for closing remarks.

Executive
Daryl D. Moore

Great, as always, any further questions, please contact Lynell. We know we give you a lot this quarter, but we're happy to answer any questions. Thank you.

Operator
operator

This concludes Old National's call. Once again, a replay, along with the presentation slides will be available for 12 months on the Investor Relations page of Old National's website, oldnational.com.

A replay of the call will also be available by dialing 1 (855) 859-2056, conference ID code 86208935. This replay will be available through May 17. If anyone has any additional questions, please contact Lynell Walton at (812) 464-1366.

Thank you for your participation on today's conference call.