ONB - Earnings call transcript Q1 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome to the Old National Bancorp First Quarter 2021 Earnings Conference Call. This call is being recorded and has been made accessible to the public in accordance with the SEC Regulation FD. Corresponding presentation slides can be found on the Investor Relations page at oldnational.com and will be archived there for 12 months. Management would like to remind everyone that as noted on Slide 2, certain statements on today’s call maybe forward-looking in nature and are subject to certain risks uncertainties and other factors that could cause actual results to differ from those discussed. The company’s risk factors are fully disclosed and discussed within the SEC filings.

contain which slides more believes certain comparisons. appropriate addition, non-GAAP management measures, provide In are assist intended performance measures non-GAAP These to trends. investors of understanding the Reconciliations the are numbers presentation. of for contained these appendix within remarks. the I now to for like turn would call to Jim over Ryan opening Mr. Ryan?

Jim Ryan

at loans, of End commercial increased of which end PPP our X.X% on excluding was include, total XX% period the of of because and annualized than $X.XX. production on X, on Thank our were pretax basis deposit XX.X%. impacted release, Earnings increased XXX higher deposits period $XXX quarter loan and over pleased implementation operating year-over-year per highlights Other result annualized more our good we million, Earnings quarter first $XXX commercial estimates. earnings Adjusted Net results. dollars would an reserve everyone. but have first relatively despite details, record Wealth expected we will was improved planned. the to the by pre-provision million. in as and basis our for exceeded share interest the consistent all were consensus better low is points categories are share slightly quarter morning, of mortgage of guidance. Adjusted fill Way. also very management than management had XX% with release. seasonally income our grew per the under stronger than ratio are unchanged and assets nicely, now was Starting ONB you are Slide XX%. to share you our revenue all up Brendon leverage ratio were positively a expense efficiency

X the new hard process with During PPP Round forgiveness the SBA Round loans for and quarter, our clients X worked on originating loans. we

SBA applications been team fund round. of in by XX% XX,XXX those first forgiven the have already. almost held loans SBA the the Our

to clients most. of support I work we allowed forgiveness am forgiveness done on to have have the round. our focus Our proud almost the achieve the process second faster than

We of almost stimulus consistently applications economic XXX of X,XXX have and the quality supported – today. loan million adjustments those better of than exist reserves totaling we average Most size or our consistent by XX,XXX. during We processed XX% given credit approximately match $XXX programs, average with forecast improved economic with have of quarter than reduced uncertainty with still an our the modeling. qualitative our to higher reserves level that metrics

watch weekly credit We still continue proactively asset pandemic are to review impacted into ratings to downgrade loan-by-loan. meeting our and loans quality quality

historically footprint diverse and We portfolios quick and us and hiring. most. practices, A on impact weather loan better believe strong continue consistent our than underwriting update that greater Midwest to should help the

have We have during added pipeline of and continue excellent candidates the quarter some excellent to opportunities.

join people to have We interest and we our to story fantastic a from have team. wanting strong tell

Lastly, have focused results clients despite Brendon. I’ll the indicative of our remained are we on now think communities our efforts. to the call and serving turn distractions, over ongoing and I our

Brendon Falconer

Thank you.

as Turning earnings ONB and $X related charges, share million $X.X X, exclude our to adjusted well per both debt million in earnings Adjusted as were Slide gains. Way security in GAAP $X.XX.

the million with operating throughout commercial XXX activity $XX quarter challenging X, first positive despite and total driven by basis loans leverage. points environment, period mix, remains year-over-year trend asset we earning pretax, the We quarter strong pre-provision and XXX portfolio deposit which million million we quarter of pipeline growth. to loans to our XX% X Commercial of increased with pipeline with The average production pleased rate. higher outpaced our revenue, X.XX%, production. $XXX Moving strong end Slide to in our once our balanced of Slide net or increased loan which yields current $XXX the among commercial are XX% the investment excluding as a of well million. of shows category Even X.X%. production, quarterly outstanding also $X.X lead our increased End accepted generated over seasonally were believe quarter footprint was with adjusted strong XX% markets. another loans to prior million. in PPP production quarter-over-quarter production major quarter in over grew floating growth should Commercial again record operating increased

well a money work to taking portfolio yields excess new We of liquidity portfolio are years. putting X.XX% with the our disciplined duration investment approach within in five and to

X, XX% higher rates patterns Moving from actions during business from XX% savings liquidity quarter. average quarter the and and that the spending deposits by to personal have increased resulted added during various from government and has This period-end come changing slide respectively. largely the growth and stimulus

of cost a for total reduced our to pricing, this average to over the was our deposits points continuing cost X In improvement X $XXX million. efforts funding QX. basis basis by Turning borrowings point lower, also drive we quarter quarter,

$XX net declined income interest due quarter-over-quarter, PPP-related Next interest the in margin. on fees. and of you million our will income of to Net and see Slide $XX million interest decrease largely X, details

income cash X million excluding to PPP, two excess days XX in fewer was the account $XX slightly expectations lower fees, predominantly with and margin, rates due income remainder investments. with million The $XXX than adjusted to $XX loans $X X markets in on with were the capital in additional the expected quarter basis Mortgage Excess lower due primarily Adjusted non-interest quarter. decline new days days the million points points unseasonably million margins. was production this to quarter PPP decline Excluding to by basis our to lower we’ve income. QX. cash. declined in was than on revenues income. decline quarter the X.XX%. trends and of shows and business fewer sale first better accretion first million Slide in interest gain driven of for elevated basis fewer recorded fell strong Core with and due of net interest X.XX% line impact points XX PPP Net the and the of margin slight $X non-interest

a our initiatives. also in due and our nice in We saw Wealth Way-related management progress increases ONB under to growth segment assets in

expenses runs term. to a material near other expense unfunded provision commitments, reserve in expenses. the expense anticipate in for trend better in were call Adjusting ONB $XXX adjusted in tax we in unfunded in our include quarter non-interest charges and shows category. through QX additional XX million charges which our do strategic amortization, reversal, than ONB $X.X our Way-related slightly in fourth was are the We Slide the Way they what as plan. Next results a million. not outlined related non-interest Included total These credit million for $X.X reductions

the quarter We be our this the be to of of reported should datacenter the last office an earnings cost Cost impact These second related just migration QX completed to ONB Way-related immaterial. be charges should have in earnings. and location. migration will to

forward stood to Slide will balances, see Turning at roll $X.X a of loans which those you XX, quarter billion end. at on PPP

We Round through X with process. formally the continue forgiveness to assist clients approximately SBA for forgiveness XX%

demand We having March XX. under Round in originated we anticipated, just X have $XXX than seen stronger million through

With million and X on corresponding As totaling to applicants of the Daryl and recognition late PPP to over million. the million. corresponding week, that, X Round will unamortized be fees brings $XX credit. loans X the We to last Rounds to it loans approximately of fees income would I anticipate – with X applications discuss fee in totaled from $XX total This occur forgiven to Round $XXX most turn XXXX. late

Daryl Moore

their basis delinquencies Brendon. our Total continued trend historical the Slide XX reflects most a of consecutive on you, day basis. both at XX performance points current plus Thank XX the recent third quarter for downward end. the a portfolio quarter’s loan quarter following and trend

the our been over concentrated Stimulus past low the improvement payments, tax in the commercial refunds are quarters levels discretionary pandemic historically and income delinquency all of spending seasonal has reduced as historically on been As side, a retail the have retail factors low delinquencies have several likely rates. higher of we seen result to funds the contributing the portfolio. during

have very all in contained last might Net quarter. feared but current surprise the to well very of charge-offs the small a in quarters of posted a we pleasant subsequent year. net delinquency the back unsustainable is, we in where long-term. lack see on certainly bring The what been charge-offs be March with We has recovery in given were likelihood, may front, the level will

decreases pandemic several Over charge-offs the been be quarters in with second although they reason. making quarters, for in are on period. pushed the with portfolio, past in we Non-performing and restructured to strong could the stalls both pandemic we the in certainly first get for and we in this would significant not the out potential setback or some slightly progress have the year. associated point quarter a modest are that economy At the mind reflecting seeing a of we time, loans non-accrual front fell this charge-offs occur the loans the of if

gap National Old the and years. see, this peers the can between you its narrowed metric favorably several particular has last over As in

continued well in We to loan non-performing charge-offs net the perform category. to

results to past reflected results roughly can XX% have our ranged years, peers’ while you have over As X% XX%, see, we the the from to three X% in range.

have a roll out XX months and we for of certainly in fortunate understand have With experienced. in believe recovery more are off swift imagined to to this are and we many how XXXX. acknowledge economic have good led vaccine the current severe escaped the more stimulus results longer start downturn quarter, and economic a government rapid we recovery than us could combination net ago. category to we The all the I than of programs generous

see might management. change to need and forward opinion, in However, risk our this we of we step approaches how opportunity to back to take identification views

efficient retrospect, have portfolios credit back good of pandemic the In this was many I of to March might the way was relatively risk-oriented but unprecedented to think as impact accomplished had job forward done, specifically get job historical a able our loan us try industry going year as forward. to figure not does we based out to risk an how scramble or but as performance, wished. event a understanding we were on going to like we last of in the

the efforts from turn We over steps that, and to front. attentive ongoing term the better on on this take With call to back experience near I’ll in in the this make learning Brendon. intend to even have bank ourselves

Brendon Falconer

needs. out million, million recent million which Thank XX, led of impact Daryl. a our stimulus an the will reserve additional you you, QX. is the government million decline of portfolio quality decrease of outlook, in $XX economic $XX including to $X allowance $XXX to see of reduction. The successful of from first an Slide improving details roll vaccine led most quarter The loan improving underlying the and On our

economy the approach crisis thoughtful there onset although the as be As at above uncertainty. is you build amount economy remains strengthening, reserve this of recall, we clearly similarly of were average an will measured the improves. the in our and And

$XX As our holding to a result, appropriate will amount today larger I adjustments than closely make and we quarters. are performance portfolio our a continue in monitor to reserves qualitative the it’s typical future and we reserve of our acquired also from offset continue remaining would remind in portfolios that not any upon marks and like we marks accrete will charge-offs, margin to million directly to through mark you these unamortized will resolution. carry while

comments are up As key my here I takeaways. some wrap

net very to pleased production the we deliver of with guided quarter. commercial stable Record results quarter. are last asset first interest growth the earning helped and We the us quarter fundamental on income

Round for includes mortgage thoughts fee a commercial in pipeline, continue included $X.X continue wealth our is particularly interest metrics We net to and continue margin, rates PPP new businesses for billion will remain Lower Round on on going credit the perform to XX growth. The process well. category. new quarter business continues outlook to quality forgiveness but Our well, and continued our expectations. production expect stable exceed clients interest reinvestment X accepted and ended net which the put million through to we our $XXX asset - lower with loan healthy businesses, income Slide pressure XXXX. earning and X

to fees XXXX time. balances of in of and $XX recognition at latter in related to expect occur the of We of half Round run-off most occur million the that the unamortized X

and this we strong expect term. were our the receipt charges recapture increases by continue in The encouraged revenue performance further the maintain levels. additional April annual but that of early stimulus of fee performance lag to We and of are historical Other additional will lines return merit pre-pandemic level expected the markets environment unfunded well. with mortgage commitments. do reserve in any our commercial the were help effective in to delaying businesses, to be We Expenses trends. our rate in service increase business. in businesses activity XQ material stable to to the subject for perform not line be should our capital high Deposit levels continue to with and and should momentum fee wealth near industry anticipate

consensus generally year. of We for estimates remainder the are comfortable with the expenses current on the

brief a update Lastly, on taxes.

to we the $X of as in tax We the commitments. credit worked tax approximately tax expect one-year we million do remaining a year the volatility for full of effective historical that, may continue total, happy credits with corresponding here amortization full reduction the in by expecting year the Sandgren. our last caused credit are rate through XX%. to that have Jim team have tax answer are With questions the we and we any approximately including you In

Operator

Scott Sandler. from [Operator Siefers Instructions] with question first Piper Our comes

Your line open. is

Jim Ryan

Scott, back. you are

Scott Siefers

Good know morning, guys. I remember. you that

Brendon Falconer

That’s right.

Scott Siefers

appreciate. I but quarter, last of repeat a need Didn’t

the are question. sort of is the you margin. Hope hey, the of you to question appreciate nuance first So, on morning. Maybe or start place I doing up well the and taking just good guys

core, core of as to you and margin going on of of XXX. PAAs pressure it? magnitude I on order further and Maybe of ex about see of So down importantly thoughts sort more what’s PPPs guess just kind there sort

Brendon Falconer

Yes. Scott Brendon. it’s

is be interest earning difficult to I pinpoint and be but income asset pressure it’s think do to where the making to in We system that headed. we’ll putting growth us focus Obviously, stable. where excess liquidity been the is to the continue we margin our think on potential have that’s focused. has for margins,

Scott Siefers

on mean, the just the you side, is there. are the trend Yet dynamics then, on sort by showing of am of the lending curious, And your - Jim, to sort really I commercial thoughts good. Perfect. the right. competition guys any growth bucking side All Okay. which and I on hear

or – guys that really same Now to newer of you doing sort continuing in thing speaking still sort competitor take an is share, to market where is of are we your successfully are of some it’s more broadly your of well reopening positioned environment our particularly kind just markets? the

James Sandgren

if I has Yes, continue shared making the last are willing opportunistic, think see and we’ve as Yes, us, in we all leadership calling, Scott, market we are months Sandgren Jim our been here. really prospects the out be clients out – to calls. we’ve past calls we to are been few and your in out team

commercial starting particularly, tell up, competition you the is of mind. real like frame side. I estate really So, will feed the certainly to on the

pick of we’ve to I secondary think, without Also down, been the are with we still interest in Again, the and frame other commercial I quarter And up. are growth to extended to opportunistic starting periods utilization banks we think penalties. our some market and up. we only seeing line start how construction I without out longer We refinancing are see calling. discipline compression and first But, again, deals, starting there. certainly mind think picking see and so has very we been are seeing the on great that are and are swaps term had fixed maintaining we prepayment rates winning

like is our quarter a competition quarter the good the pipeline bit strong production quite built We’ve as with the I So, but obviously We about well. feel chances. quarter. really and fierce, first in second finished up

Jim Ryan

here. this starting I all new hires to to I got competes Wisconsin you some Scott, also in see of new – impact in our is us off former just of marketplace. that we’ve continued think in calling I of active Wisconsin there to opportunities hires, are fruits are start that, the to were and Jim. we’ll starting were get markets could are I great they C&I add key we not regarding hires the efforts to have would grow, and think can as some space in out continue be and particularly, think on that clients fill as to their traction we really in new

and out this some we are calling we business grow. So, product are classes we’ve new way a and regularly and new effort. to augment is focused driving markets I we people Jim want to hiring to help some in are continue incredibly is got

Scott Siefers

Perfect. That all great. sounds Okay.

much. thank guys So, very you

Jim Ryan

you. to from Great Scott. hear Thanks,

Operator

with question Terry next Stephens. from comes Our McEvoy

Your open. line is

Jim Ryan

Good morning, Terry.

Terry McEvoy

Hi. everyone. Good morning,

Jim Ryan

Morning.

Terry McEvoy

you allowance that losses looking A to just the you wondering quick the quarter the allowance This the just what releases disclosed and I maybe commitments, just shifted of for loan am securities the last first kind was unfunded loan unfunded you again question. or credit a year? have was losses. because fourth commitment do quarter what from what reserve at last up matches expense could And was with for and in against then, quarter just today repeat the loan

Jim Ryan

update commitments We our is we for so allowance construction for unfunded lower drive and than ended that model and for the any the same that books we credit revolvers and So, the commitments. have credit drivers unfunded unfunded or those our quarter million on drivers some the are for runs through allowance last $X.X that the quarter really – the did Terry, allowance drive draws the of that CECL our time. losses

Terry McEvoy

my then, up. does morning. banks, banks Okay. your a and about clearing that MOE page Thanks I just XX for included And this deal of in that deck, investor say say mid-sized another week, one that noticed what two is, guess last just the question what announced for does I National? the peer Old Jim, last an

Jim Ryan

There can going and the continue continues it to talent for be competition. lots out a think There industry. our easier. in be invest I operating there is environment to revenue environment growth right? need is technology challenging Well, of I think lots be to difficult is not I to mean, of and

So conversations. types are all things those think those I of driving

things in kind to open we’ll And will anything – MOE are space, just ultimately I you that drive the the bar, we then And think. to to a really on come. of won’t because be previously, financials, can’t got any you those culture, As value. transaction requires have right? strategy all I have financials to and fit stakeholder focused those if in addition higher think But said get the kinds right,

would So, Board those look obviously at of a makes Directors our Anything sense, higher take things to a that open. have slightly but bar.

Terry McEvoy

Great. Thanks, Jim.

Jim Ryan

Thank you.

Operator

with comes question from Chris next Our McGratty KBW.

is line open. Your

Jim Ryan

Chris. Morning,

Chris McGratty

the Hey your this talked question growth to speak of capital, the in growth about of But kind on drivers buyback in interested economy. comments bit the on the Obviously, the morning. the movers the of Good you guys with I am Jim buybacks? of you about quarter. capital. ton have heard I for Can guys. just cautious little a uncertainty priority. appetite – a the you

Jim Ryan

Yes. for Definitely kind as table are through consider potential of just going M&A more near-term the us we to on we balance any the more and gets Clearly, footing, outlook those out the economy we’ll on get partnerships comfortable. stable and to with trade-offs. a go

they deploy use think look viable I think want buyback at more What’s But capital, better how for an or the capital. we option. become a I again, partnership M&A can to we better of opportunity.

Chris McGratty

buyback I into guess, Okay. deal? a to of I should the proximity meaning, a But, read lack

Jim Ryan

No.

Chris McGratty

Okay.

Jim Ryan

been stance for That’s yes. year, entire our the

Chris McGratty

Okay.

then, credit your just was today us maybe reserve, year a how the emerge? where has cycles. How fast about when versus, Could obviously, one day do and fully been about spectacular we thinking over level Okay. you maybe just absolute And reserve bogey? on the just think you are that of we forward remind

Brendon Falconer

Yes. this Chris is Yes. Brendon.

is with the of today. at reserve, more is chunk of $XXX A one are which just did model our the So, one, million significantly economy. that’s the reflective $XX we day in instance big million day that than qualitative uncertainty say we that holding where we started for

may what is not like from we comparison. sure three now. that are that That quarters So said, that look

flexible or with and reserve are accordingly. the it stands today We comfortable we’ll down where up move and

Chris McGratty

NII excluding was comment, could think I just PPP or other that accretion GAAP and clarifying if then, And a that one Okay. both stability, was the number?

Brendon Falconer

core yes, management. – Core No.

Jim Ryan

Core.

Brendon Falconer

PPP Excluding accretion.

Chris McGratty

All Thanks, Brendon. right. Awesome.

Brendon Falconer

Yes.

Operator

next comes Our from RBC Markets. Jon question Arfstrom Capital with

open. is line Your

Jim Ryan

Jon. Morning,

Jon Arfstrom

that morning. that. be Brendon, else? something about on at expense $XXX or I quantify a are Is of see Good Hey. you at the consensus Question guide looking for you looking the Good the should just we morning. million year. number for to

Brendon Falconer

fourth I expectations. our quarter numbers thinking, are am of that third, Jon, the reflective Yes. and second,

ourselves to be million street that’s and had. pretty tough for give credit the So, would that the yes, close. $X relative what But, rough

Jon Arfstrom

in the commercial what growth, if optimism, across loan footprint? to recovery had expectation on any is your what you differences on the really be? put Back finger would driving And that

Brendon Falconer

jump our the in. and at by going Jim to start am then let out are around We willingness demonstrated seeing Clearly, look driven they just credit our think I portfolios, right. our all off we and I clients, quality this Yes. are, and in. comfort to have came being opportunities where

be that relatively to known conservative are one We there.

came feel So and pretty good our we about portfolios.

that able the quickly are about we analyze and portfolios We and continue to feel should good confirm to in jump that.

didn’t portfolios, a they They worried So peers a because took where our they home I maybe us because were. also about degrees. they people a for it there. at pause team a but took stop think their They couple not of pause hard pause many members the took own are had as a proactive as pause took

do to in terms continue Places like setback COVID we Michigan to numbers. their of continued have so, And that.

will that maybe put a people there. pressure psyche at out bit those little on of of least some of So probably the

in in that acutely way. they still kind – pretty on do so, back all ways continuing will don’t various big of think that. Midwest-focused we’ve and recovering it continue a to equal and competitors most significant come basis. seem as markets. the a it change seems real It’s to But our be And organization sector seen to come But commercial various see a But active. in I we’ll Jim back to where said, I will watch estate

Jim Ryan

really challenges deal fairly other that’s there been and continue supply challenges some the that’s well And I space, labor the is and an we skilled I they across so, to, The optimistic just some thing in outlook But, well. the optimistic. optimistic back. the mean, it’s people I of and it’s contracting, add, with clients biggest very, challenge very chain talking to Yes. big thing mean, finding and our holding the only those would has certainly prospects are as overall, footprint manufacturing

Jon Arfstrom

Good.

two down of flows Just And and are could I XX, in kind maybe follow-ups. what am curious the loans, more are terms the just of they if you are they what of is the seeing credit coming there? profile down. coming Slide share slide, and NPLs? out non-performing in with us gradually you the in

Daryl Moore

let any me saying Jon, start maybe Yes. taking what there by environment that manage National clients - taking in that on your these out kind in and really in interesting of so to through what’s consider cycle is, market smaller are that probably would is and has a I ability banks aggressive move liquidity some big the these or of Old still, non-performers in who’s influence this non-performers are loans.

maybe – never we maybe that you slowed down like quarter, quarters two really a but so, think might not a And bit, little is. I it think for

first kind the those. to ability manage for that’s of So us

less On out in paydowns the of non-performing, we portfolio. had a that than actual little $XX million

no is across able borrowers that this to into list It C&I doing other have cycle. it’s So banks comment the industries come coming don’t many Really board. The I again, profile think really way industries of underwritten our that are just to we’ve in CRE. earlier non-performers extent and versus that. are any that. individual have the it’s that just on really throughout they that is the find concentrated are on the any to just Jim’s different We

Jim Ryan

that think our the to right you right, to the that like relative to very and credit them to advantage an because I we they those actual we to stick that in here accurately they history weakness. portfolio, think tend with rehabilitate need to take bucket. see think didn’t recapture looks charge-off we able and I comes to being graph we where back look possible work think individual you it and that in And quite with them I are and and often, loss when call that think with us that know experience terms Jon, if our as we income to is we of time go the just call But, early what is we as those out, were the borrowers. whether the really that are we or can decide we try to a book to this proactive we interest them early have credit situations when gives a And it’s and this that all get we

Jon Arfstrom

Yes, it’s interesting.

And in of sellers? upper that. what last your at the is what you right, sticky I But well. of situations MOE a it, really attractiveness ask the Terry we appetite and are that what it, as and at potential it’s on of then, M&A? appetite is rifle look on right XX of you guess it’s Chris kind and shot on seeing excluding that’s and every look piece because agree your Slide lot But terms that – it in of flow deal it impressive. around but look the quarter, chart And and are You thing, when at and you I

Jim Ryan

opportunities. – around my consistent of I previous we guess, passed the smaller books in are being with my quarter, lot on not seeing previously a comments those

was could be a time personally. a I active. lot period that very in And we I are year get and position. executing wasn’t XXXX, and As more now continue our I the particularly still were Way doesn’t you tell pandemic our appetite think with credit was those a we I XXXX I we as two-year that, think do that focused. it ONB internally to I can mean in the we over of it’s of active comfortable back. if that position, of

at better position a in that’s our particularly given look one in absolutely meets it this – all rates, a to assess so, And would attractive kind to absolutely if comes that risk. along take are credit of of environment we our hurdle ability

Jon Arfstrom

Okay. All Thank you. right.

Operator

comes Gerlinger Ben from Group. question next Hovde with Our

open. Your line is

Jim Ryan

Good from to you, Ben. hear

Ben Gerlinger

Good Thanks. guys. morning,

bit of guess, perspective, peaking good from to bottom kind about a three little just year. and the recessions, as charge-offs I bell quarters manner the a A kind you to see or over look net a bit two I credit you’d like in after quarter. GDP hypothetically you say. of on start couple Solid past of more the follow-up wanted of a curve

obviously, recovery a So this stimulus of of is intervening, programs and different and a of recession through lot deferrals. a bit of aspects the lot kind preventing because government

of a So, and I but a less is a there just kind thinking hypothetically, am curve top. bit peak the probably to of bell going be of at elongated

do kind million? comfortable low-XXs just kind work by So, kind allowance factors you time improvement? continued of as this with back, to more total guys more passing of to year of need that holding before that qualitative Or see feel through your and down you it looking you back

Brendon Falconer

Ben, tell I well. lower you peak is different, maybe what’s this that be as think about how is think time are a do really the it the could and I into to course going the in And I story. in then to our going think characterized year to given elongated, it recession probably approach of reserving uncertainty. comments the thoughtful be we opening

I comments appropriate are are how think on about, your well. thinking as we

Ben Gerlinger

growth, it trying like the sidelines? because make at are knowing share? a your core that slightly you customer, though you your figure for customers sense from prevent lending feel other you the just to and kind dynamic? areas feel though we that guys are nuance really or within taking of and the alluded the a a to is and back that late or on as are loan just thinking the last this are is you of of you were? you banks from into growing bigger going last competing though early then, least you then Or CRE the area loan hay do some out smaller be And more going core actual there it end-markets still growth. just the driver are recently and can people you of be back Being it is to the come to recovering, you competitive while you be Or regional the going half of about that the seen most general. as that year, growth you guys banks, year where Thanks. big seems second year aspects from see of is in have the all at the loan the week C&I whether pulled that pace are as on Okay. quarter growth to, Is A lot commentary,

Jim Ryan

just it’s share. mean, right? both, taking are Yes, of bit I add, I will little a we

We more are just because we little share taking more nimble, are focused. bit little

But gives comfort. We in in terms and feel because provide share of That three what gave we really growth new more pipeline we four translate. tell look know and out good darn category. our forward. for those going sure change hard really accepted focus. the people It’s It’s looking to numbers well are efforts. try to pipeline won’t we you us perspective. working is making are and or meeting really hiring we hard how numbers. it what the them that’s stop quarter might ultimately obviously, our about I then, Obviously, taking pretty are out and We their needs and to the we - competition out our or our customers with their are It’s why demands to pipeline’s know that two we will stop It quarters this, hard. won’t

us. everybody We out are going hustle around

put hard. to work to and go are going really continue people on the business. to attractive this We’ll team out We grow

Ben Gerlinger

any market where Service maybe there that correctly? areas that’s within bit, a finally, your kind day the bit see you income. areas quarter. given of some wealth my any it. were there a to fee at we continue then, management know of control the little some But had fee of add national at Obviously, talent down good of looks isn’t count is Are last I income charges growth? in outsized it looking are the out a that And mortgage probably a dynamics more but question can factor.

Jim Ryan

grow space business. just that an I management wealth would is area to continue And look we we say talent. are to that and changing our approach Well, for fundamentally,

planning really grow individual focused are on holistic focused We transactions on revenue. and to less financial or

and the And quarter a as starting are obviously translate by into to than longer large, but so, continue better margin think our a to focus than today about from that in for continuing business to people also historic never space, to space. that run felt continuing to profile. drive will you better benefited those probably, I always see results. we I think are play said, that both little I’ve on we’ve But us I hire a better do growth have that term

terms lot to and ability business. business. and over are in, I little really think, better a in but biggest play treasury that’s grow long-term, also feel that too management longer that is a people about impact feel I investing about run, an We of area that good technology. the our as we not Again, it’s the in short

Ben Gerlinger

all and appreciate I guys year. have up answers and right. a solid Hope All great quarter. the keep Great. the it you

Jim Ryan

Ben. Thanks,

Operator

Sandler. [Operator instructions] Our with question from Siefers comes next Piper Scott

Your open. line is

Jim Ryan

Scott. Hi,

Scott Siefers

to the so left just outlook. in put Hey, don’t too Round on point guys. make a is Hey, fees most you’ve fine of you got X. what I want PPP But,

of evenly in to – originations X fourth quarters X, done other get the the how at thinking we base going then, is we the geared does things Is words, cadence to what of this about much about with year? the are are what of pretty you towards of good point, and sort second come the of? Round is we half what sort of the and you with most say, Just Or forgiveness half in year? the this that Round would in the of two quarter? mean we the second then, we Round forgiveness kind that of lumpier second in X And off in sort And fees, as a think the quarter? be split of see I go through

Jim Ryan

XX% we and to funds That’s what really the here numbers a the very that - say $XXX this the that. loaded million. a majority number likely finer originations through to Round hard to gave let’s we quarter are fourth It’s the program probably the And quoted. year-to-date I collected of year. loaded put quoted the out quarter then run is more vast X would is year the of towards going quarter. first fourth quarter, for doing than soon. I be of probably fourth given that bulk the just the towards That’s the probably Yes, likely of say you that point on it Brendon

Scott Siefers

Yes.

Jim Ryan

the understand But accurately you situation. I otherwise think

Scott Siefers

Okay, you you taking terrific. Appreciate Thank guys. follow-up. right. All the

Jim Ryan

Thanks, Scott.

Operator

further time. Ryan turn will I over to in this queue no Jim at are questions the comments. call There for back closing

Jim Ryan

want towards, much. appreciate make We that to sure we report. participation. I One just we so pointed published you Thank your thing you our ESG first

We we of are the work do. proud awfully

We tell are of proud ability that awfully story. to our

we hard to work it’s So and of at indicative all report, hopefully that had look you a take our energy. chance a think

the support. well want all we I think it’s communities, team and support think, you how things doing, that to within things governance are for report. all environment captured that our the are your to and addition just the In like commercial other I we And how support we thank members, practices, our

As you much. always, calls, Lynell any for available Thanks Brendon Walton phone are any and follow-ups so have.

Operator

additional your at If available in dialing conference questions, by X-XXX-XXX-XXXX XXX-XXX-XXXX. be conference replay National’s replay a ID Lynell Xrd. XX code call again, slides participation please the with May concludes has you of website also the months for today’s be oldnational.com. available This Once This page for Old anyone of will on along contact National’s through be Walton replay Relations Investor call. with presentation will Old Thank available will the A call. XXXXXXX.

Old National Bancorp (ONB) 19 Apr 212021 Q1 Earnings call transcript