Old National Bancorp. (NASDAQ:ONB) Q3 2019 Earnings Conference Call - Final Transcript

Oct 21, 2019 • 08:00 am ET

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Old National Bancorp. (NASDAQ:ONB) Q3 2019 Earnings Conference Call - Final Transcript

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Q & A
Executive
James C. Ryan III

and that's taking care of our customers and continuing to show record production. So that's where our focus is and then hopefully we'll see a slower level of paydowns.

The thing that hit us in the quarter, as Jim pointed out, was the lower line utilization and so that impacted balances a little bit. So hopefully we could see that return in the fourth quarter, so that can help.

Executive
Brendon B. Falconer

Regarding the stock buyback, it's been a good capital management tool. And what we're close to the end of our authorization. I would think we want to have that tool in our toolkit if -- the kind of relative value represented itself to us next year too.

Analyst
Chris McGratty

Okay, great. Your credit numbers were very good. Can you just provide an update on the Ag portfolio, what the, any kind of stress there any kind of updated thoughts?

Executive
Daryl D. Moore

Yes, Chris. This a Daryl. Really we're going to have to get into November to really know what's going on there. First is just our farmers bringing crops in the field. But the second is the level of payments that our farmers are going to get, we're really not going to know that for another 2 to 3 weeks. And that'll have a bit of an impact on their strength. We've talked a little bit about this before, our Ag portfolio was down, most of the customers that we have in the portfolio still have adequate equity in their land. So we've only got about $315million , $320 million in Ag outstanding.

So that is not a portfolio today that concerns us a lot just simply because of the size and I don't think there is a lot for us today, given the current dynamics and a lot of loss content in that portfolio.

Analyst
Chris McGratty

Okay, great. And maybe Brendon one for you. The tax rate in the fourth quarter that the tick-up that you expect, is that kind of fair for 2020 as you looked into it?

Executive
Brendon B. Falconer

Yes, I think that's a fair number for the next several quarters. Yes.

Analyst
Chris McGratty

Thank you.

Operator
Operator

Your next question comes from the line of Nathan Race with Piper Jaffray.

Executive
James C. Ryan III

Good morniing

Analyst
Nathan Race

Hi guys, good morning. Question first, maybe on the securities portfolio size, obviously, some growth this quarter, just given the deposit inflows in the challenging loan growth. So I guess from here in the fourth quarter, do you expect it to kind of be a steady state or should we expect some shrinkage as loan growth picks up and perhaps deposit growth slows, so any thoughts?

Executive
Brendon B. Falconer

Yes. I think it's a little higher. We pre-purchased, when we had some opportunities with the rate environment given some deposits and given the cash flows are coming of that portfolio. I don't think we'll grow it from here, if anything may come down a little bit in the fourth quarter.

Analyst
Nathan Race

Okay, perfect. It's helpful. And Jim, just on the operational review that you guys will be wrapping up shortly, just