Old National Bancorp (ONB) 2005 Q2 法說會逐字稿

Good day everyone, and welcome to the Old National Bancorp's second quarter earnings conference call. This call is being recorded and has been made accessible to the public in accordance with SEC Regulation FD. The call, along with corresponding presentation slides will be archived for 12 months on the Shareholder Relations page at www.oldnational.com.

A replay of the call will also be available beginning at 5:30 p.m. Central Time today through August 11th. To access the replay dial 1-888-203-1112 and enter confirmation code 2750864.

Those participating today will be analysts and members of the financial community. At this time all participants are in a listen-only mode. We will conduct a question-and-answer session and instructions will follow at that time.

With us today is Old National Bancorp's President, Chief Executive Officer, Mr. Bob Jones; Senior Executive Vice President and Chief Operating Officer, Mike Hinton; the Chief Financial Officer, Chris Wolking; and the Chief Credit Officer, Daryl Moore; and the Vice President of Investor Relations, Lynelle Walton. At this time I would like to turn the conference over to Ms Walton for opening remarks.

Thank you, Lorie. I would like to again welcome everyone to our call today and just as a reminder, our slides are currently available on our web site and we will be following them today.

If you turn to Slide 3 it's our complete forward-looking statement. As usual, let me remind you that during today’s call our management will be making certain forward-looking statements regarding future results, asset quality, growth and expected trends. For these statements, Old National claims the protection of the Safe Harbor for forward-looking statements under the Private Securities Litigation Reform Act of 1995.

If you turn to Slide 4 you will see our agenda, starting with our recent strategic initiatives. Mike will give us a status update of the acquisitions and divestitures that we have recently announced, and then we will flow into an assessment of our performance against our strategic imperatives.

And just as a reminder of those, on slide 5 is our three strategic imperatives, the first being strengthened risk profile. We did just announce during the quarter the appointment of Barbara Murphy as our Chief Risk Officer. Barbara was most recently with Bank One and her responsibilities will include compliance, credit policy, CRA, loan review and risk management. We are very pleased to have her and her bio is in the appendix to today’s presentation.

Also an update on the risk profile will be given by Daryl Moore. As our credit quality continues to improve, Daryl will give you an update there, and also some details regarding the loan sale that we had during the quarter.

Management discipline, Chris will be discussing second quarter highlights, strengths and opportunities, and the rigorous process and discipline that we are building around our capital management and also our expense management.

As we continue to improve upon these first two imperatives, we lay the foundation and are on our way to achieving the third, which is consistent quality earnings. Bob will assess our progress against our financial targets and our outlook for 2005. With that, I will turn it over to Mike Hinton.

Thank you very much, Lynelle, and I will refer you to slide 5 which is titled, ‘Recent Strategic Initiatives’ – I am sorry, slide 7. I apologize. Earlier this year we indicated an intent to sharpen the strategic focus of the Company. Our intent is to clearly define our geographic footprint and to remain consistent in our vision of providing the full range of Old National services to produce long-lasting client relationships in each of the markets we serve.

Further, it is our intent to concentrate on those businesses which we deem to be core competencies, and those which can meet our financial targets for return on capital.

As a result of that strategic direction, the Company has taken several significant steps recently. Last quarter we completed the previously announced sale of the Terrill Insurance Agency based in St Louis. The St Louis, Missouri market is not in our plans for banking expansion; consequently, the Terrill Agency did not fit our strategic plan going forward. The sale of Terrill will result in a third quarter tax expense of approximately $9.5 million and an after-tax loss on that sale of $1.1 million for a total impact of $10.6 million attributed to discontinued operations.

Just last week we announced our intent to sell our five financial centers located in Clarksville, Tennessee. As of June 30th, 2005 the Clarksville Financial Centers had $120 million in loans and held $172 million in deposits and borrowing with 38 associates on staff. That transaction is expected to close during the fourth quarter.

Old National originally purchased Clarksville as a part of a plan to expand into Tennessee. That is no longer part of our plan.

We also are actively involved in marketing the Fund Evaluation Group, FEG, based in Cincinnati. This is a high-quality investment consulting subsidiary but its location in Ohio and the business itself are not consistent with Old National’s sharpened focus.

And finally, we also completed the much-anticipated acquisition of the JW Flynn Insurance Company based in Indianapolis, Indiana. Flynn is an excellent group which gives us wonderful synergies with our growing Indianapolis banking business, as well as our wealth management and mortgage businesses there.

An added bonus of that transaction is that we were able to respond very quickly to the resignation of insurance CEO Jim Parsons by naming Tom Flynn as interim CEO of ONB Insurance Operations. Tom has tremendous experience and credibility with the insurance carriers as well as our insurance professionals. His appointment assures that we will not lose momentum or continuity in our insurance business. Tom’s bio is included in the appendix at the end of the presentation. With that I will turn the program over to our CFO, Chris Wolking.

Thanks, Mike. Good afternoon everyone and thank you for joining us on our second quarter conference call. As Bob and I were discussing my remarks for this call, we decided I could be brief because truly the numbers speak for themselves this quarter. At $0.31 per share, our quarterly earnings from continuing ops for the second quarter were the highest since the second quarter of 2003, or 10.7% improved from first quarter of 2005 and were $0.17 per share better than second quarter in 2004.

Really, my remarks then will simply focus your attention on what we see as the most significant strengths and opportunities apparent in our second quarter numbers.

If you will go to slide 10, you will see a description of really the exceptional loan growth we experienced in the second quarter. June 30th loan balances were 99 -- nearly $100 million higher than balances at March 31, 2005. Commercial, commercial real estate and consumer loans accounted for $91.8 million of this increase.

The increase in commercial and commercial real estate loans is even more noteworthy when you recognize we sold nearly 27 million of non-performing and substandard performing loans in May. Daryl Moore will provide you with some additional information on the loan sale in his presentation.

If you’ll turn to slide 11, you can see how the loan growth contributed to a healthy shift in our earning asset mix. Loans accounted for 65.6% of our earning assets at June 30, compared to 62.5% at March 31, 2005. You will also note from the graphs that investment assets shrank as a percentage of earning assets from 37.5% at March 31 to 34.4% at June 30.

We committed to you last quarter that ONB would reduce its investment portfolio and we were able to accelerate this somewhat due to the favorable interest rate environment during the second quarter. Period end March to period end June we reduced the investment portfolio $321 million.

Slide 12 describes really just the last couple of strengths I would like to highlight. Non-interest income increased $2.5 million during the quarter, largely due to the two full months of JWF Insurance Company’s revenue, and $1 million of securities gains.

I mention the securities gains because they partially offset the $1.7 million expense associated with the call of our trust preferred securities in May. As you recall, that was a 9.5% coupon, $50 million issuance. You will also note on this slide in the growth that we experienced in our capital markets area, fees from the sale of interest rate risk management products and the origination of revenue bond financing increased in concert with the improvement in our commercial lending activity.

Last, but certainly not least, the Company continued to improve its management of non-interest expenses. Non-interest expenses declined $2.5 million compared to first quarter 2005, and this follows on the heels of an $8.3 million decrease in non-interest expense in the first quarter of 2005 compared to the fourth quarter of 2004.

The marked improvement in our ability to control expenses contributed to our strong second quarter performance.

It is particularly true as you read, really what we view as our most significant challenge on slide 13, our continued low net interest margin and declining net interest income. At 3.2%, our net interest margin is clearly below what is acceptable, while our earning asset mix improved during the quarter, rising short-term rates dampened any improvement in our margin.

Continuing to reduce our investment portfolio and wholesale funding is clearly an important strategy to improve the margin, even if it costs us net interest income in the short run. As we stated in today’s press release, it is our intention to continue to shrink the investment portfolio to 25 to 30% of total assets.

Also on slide 13 I reiterated our commitment to obtaining and maintaining an efficiency ratio of 55 to 60%. We have made excellent progress in our ability to manage expenses in 2005, but we recognize we still have opportunities in this area.

Finally, on slide 14 you will note the progress we have made in our stock buyback. As you recall, our board authorized us to buyback up to 5% of our outstanding shares. Through June, we had repurchased about 2.3% and we expect to buy back the full 5% authorized by the board, certainly reducing the investment portfolio and divesting Terrill, FEG and the Clarksville branches, as Mike pointed out, provide us with a significant capital management flexibility -- a significant amount of capital management flexibility going forward. So with that, I will turn the presentation over to Daryl Moore, our Chief Credit Officer.

Great, thank you Chris. Starting with slide 16, we continued our disciplined approach to improving credit quality in the second quarter, which as I have mentioned many times before, includes the review of loans that may best be disposed of in the secondary market. During the second quarter, we sold $26.7 million in loans with an associated write down of $5.3 million.

What was a little different in this quarter’s sale was that the sale included loans that were performing, substandard loans. In this regard, we identified loans that were exposed to certain economic risk factors and in industries where we felt reductions were appropriate and showed those loans to the secondary markets for bids. In the quarter, the bids on the selection of those loans were within acceptable range, and we decided to sell them.

We do intend to continue to review the appropriateness of selling performing, substandard loans as a tool to manage credit risks and exposures in the future.

On slide 17, you can see that non-accrual loans continued their decline in the second quarter. June 30 balances in this category were $6.2 million lower than at the end of the first quarter, and $48.6 million lower than at the end of the second quarter in 2004, representing a 50% reduction over that one-year time period.

While we do not anticipate the steepness of the decline that you see in the graph will continue, and that is simply because the dollar amount of non-accrual loans has declined so significantly, we do feel that the level of non-accrual loans can continue to be reduced further in the coming quarters.

Slide 18 shows the continued progress we are making in the reduction of classified or problem loans. Problem loans decreased $24.6 million in the quarter and are down 48% from the same period last year. In addition to the $24.6 million reduction in classified loans shown on this chart, we did reduce criticized loans by $22.2 million.

I want to make a comment about charge offs for the quarter. Net charge offs for the quarter were $11.7 million compared to a loan loss provision for the quarter of $6 million. Now as I previously commented, $5.3 million of the losses for the quarter were related to the loan sale. With the continued decrease in criticized and classified loans, our ALLL methodology clearly indicated that a $6 million provision for the quarter was appropriate.

We are pleased with the loan growth shown in the quarter, especially in light of the fact that the average asset quality rating of new loans originated in the quarter was slightly better than that posted for the full year originations in year 2004.

In conclusion on my part, we continue to make strong progress in improving the quality of our portfolio, but we acknowledge that we need to make more progress to move our numbers closer to peer averages. With that, I will turn it over to Bob for some comments.

Great. Thanks, Daryl and welcome to all of you on the phone. If I could have you turn to page 20, let me recap the quarter for you as I see it and then we will turn it over for questions.

Second quarter further strengthened our foundation that we see necessary for Old National to become a high performing institution. We clearly began to see the benefits of our increased focus on both accountability and management discipline as it pertains to credit quality, expense control and capital allocation.

Just some examples that evidence this hard work by all of our associates. First, we experienced the first quarterly end of period increase in our loan portfolio since the second quarter of 2001; our continued benefit of our focus on credit quality resulted in a 15% decrease in our classified and criticized loans. And as Daryl said, we have a comfort that the loans we are booking now meet our rigid credit standards.

Our ROE of 13.18% is the best for Old National since the second quarter of 2003. In continuing to leverage the benefits of ASCEND have allowed us to have the lowest quarterly non-interest expense as an entity since the second quarter of 2002.

But just to set expectations, we know we clearly are not where we want to be, as evidenced as where we stand against our financial targets that are on page 20. Just a reminder, these financial targets are 18 to 24 month targets, and they were established in the fourth quarter of 2004 and as you can see in the chart, we still have work to do as there is a gap that exists between where we are today and where we intend to be for us to achieve our third strategic imperative, which is consistent quality earnings. We remain firmly committed to achieving that target and we realize that doing so is going to require additional focus and discipline.

Before I open the phones to questions, I would again like to state that we are comfortable with both the range of analysts’ expectations for the third quarter as well as for the full year as they stands for earnings from continuing operations. Again, I would like to thank you for your time and I am happy now to take any questions you might have.

Thank you, Mr. Jones. (Operator instructions) Your first question comes from Scott Siefers with Sandler O'Neill.

Good afternoon, guys.

Good afternoon, Scott.

How is everybody doing?

We are doing great, how are you doing?

Good, good. Thank you. Just a quick question first on credit. I guess I would be curious to know the mix of performing versus non-performing in the sale of the $25 million or so of loans; and then I guess more broadly, depending on how that fleshes out, if I were to simply back out the entire $25 million or so, NPAs would have increased in the quarter. So I’d like to just get a little more detail if possible -- your thoughts on inflows into non-performing -- things of that nature.

And then separately, just a little more color on progress, as to where we stand with the ASCEND program, if possible, particularly on the cost side. I would be curious to see if you think it is possible to continue to reduce expenses on an absolute basis here in the next quarter or two.

Scott, Daryl. I will take the first question on the credit quality, and it’s a really good question because the information that you have doesn’t give that detail. I will tell you out of the $26.7 million that was sold, $22 million of that was performing substandard, so you can see a very small proportion was actually non-performing, non-accrual. If you then take that piece that we sold, we still would have had a net reduction in non-accruals for the quarter.

Okay, thank you.

Scott, as it pertains to ASCEND, I think you can see in the quarter that we continue to get benefits from the ASCEND process. We are comfortable with where we are and as we have previously disclosed, we will continue to get benefits through the balance of the year and full year benefits will be in 2006. We are on track with expense savings. Our focus and discipline around continuing to contain costs will move beyond ASCEND and really become a cultural issue for us.

Okay, great. Then just one final question actually. Did you say the costs related to calling the sub-preferred, was that $1.7 million?

Yes.

Okay, thank you.

Great, thanks Scott.

And moving on, we’ll take our next question today from Troy Ward with AG Edwards.

Hey, Troy, how are you doing?

I am doing fine, thank you. A couple questions. First of all, up on the net interest margin, looking at the last 10-Q on basically every metric you seem to be very asset-sensitive, and in the quarter you had lower non-accruals, a positive shift in deposits, a positive shift in the percentage of earning assets that are loans which should bode well for the margin, but yet we saw margin decline in the quarter.

Can you provide some background there? What are you seeing that you continue to see the decline in the margin?

Troy, I am going to have Jim Ryan who is with us, and our Treasurer, answer that question.

I am not sure what numbers you are looking at in the Q, but as stated in the Q we are slightly liability sensitive in our net interest income modeling, and our longer term rate risk, we are closer to neutral. So the decline in the margin during the quarter was attributable to just the increase in our short-term funding costs related to our wholesale funding and then pressure on deposit pricing. Our asset yields, we are just unable to maintain the same amount of pace that our deposits and borrowing costs increased.

You know what, I apologize, I was looking at your different zones and not where you actually were on the net interest income table in the 10-Q, I apologize. It does indicate that you are slightly negative.

Boy it is nice to catch you guys with mistakes occasionally. We are going to mark that down, Troy.

Yes thanks, Bob, I am sure you will. Hey on ASCEND, going back to the ASCEND, see a lot of moving parts since the original guidance was put out there on ASCEND. Is it possible to get an update where you are and what expectations you see going forward? In particular on headcount and expense savings? And how some of the -- I know insurance shouldn’t have had that big of -- been that big a driver for ASCEND, but definitely the Tennessee branches.

I am not quite sure how to answer that, to be honest. We will see de minimus headcount reductions going forward. I would say that we have gotten through most of our headcount reductions. The cost saves going forward will be really through process improvements and from fully receiving the benefits from actions we have taken, which really just gives you an extended period of time to take the benefits.

Fee income is all in place, you know as we have often said, the revenue numbers, to use a non-technical term, are still very squidgy as terms as we can look for the impact. Clarksville was not an ASCEND-related opportunity, that is really a strategic opportunity. Obviously we will have the headcount reduction there with the corresponding reduction in our assets and the expense with that.

Okay, and then one follow-up on the credit side. Of the loan sale in the quarter, were any of those loans out of the Tennessee franchise, or were any of those loans out of the Indianapolis franchise?

There was, of the non-performing, those came from Tennessee and Indianapolis, but again remember that they were a fairly small proportion of that loan sale, less than $5 million.

Okay, thank you.

Thanks, Troy.

We’ll go next to Merrill Lynch, Mark Kehoe.

Good afternoon, everyone.

Hi Mark, how are you doing?

Fine, thank you. I have a question in terms of, when I look at consensus and I get to 2005 of $1.30, I am wondering how you are going to get there in the rest of the year, as it would imply a quickening in profits, growth?

Well I think you just answered your own question. I think as you look at consensus, there is a ramp up for the third and the fourth quarter which gets us to the mean average of $1.29. It is going to be through continued cost containment, the balance sheet has grown to the point where we are going to start to realize some of those benefits as well.

But, so, in terms of selling some the businesses as well, will that have an impact on revenue in the second half of the year?

That would all be in discontinued operations, other than Clarksville, which is counted as continued operations and our ratification of the consensus does not include the gain from the sale on Clarksville but the revenue from Clarksville would be up there to the point of the sale.

Thank you.

(Operator instructions) We will go next to Fred Cummings; KeyBanc Capital Markets.

Freddie, I was missing you there, buddy.

I can’t let you off the hook, Bobby. Bob, can you touch on where this loan growth -- commercial loan growth is coming from within your various regions?

Yes, Fred, that is a great question. I would tell you that our loan growth is predominantly coming from our Indy and Louisville markets, but just as positive we have seen the stem of loan reductions in our other markets and we are starting to get to the point where the balance sheet has stabilized in other markets. The largest portion continues to come from our growth markets of Indy and Louisville.

Okay. And Bob, with respect to your desire to add additional loan officers, are you ready to do that just yet or do you think your current staff just needs to become more productive?

You know, a little of both, Fred. There are some markets where we are seeing the increased opportunities and we will add some lenders. Mike has put in place a pretty rigid performance standard and we have some loan officers that can’t meet Mike’s standards, and we will hire replacements. We have encouraged our regional presidents to keep looking for rainmakers in the markets. We think our story plays very well in our markets with our community bank focus. If we find the right person, we are going to hire them because it is important to that relationship strategy.

Okay, thank you.

Thanks, Fred.

Our next question today is from Charlie Ernst with Sandler O'Neill.

Charlie, how are you doing?

I am well, how are you guys doing?

Doing great.

Can you give a little bit of guidance as to how quickly you think you will be able to get down to that bond range that you have stated, the size of 25 to I guess, was it 29 or 30%?

This is Chris Wolking, Charlie. The 25 to 30 we actually feel very good about and I think as we have stated before, our bond portfolio generates a lot of cash. As we have the opportunity to sell bonds like we did in the second quarter, we will continue to take advantage of that opportunity. But it is clearly an important part of our overall capital management strategy to reduce the size of that portfolio.

So you will basically use the cash flows, and then whatever opportunistic sales you have (multiple speakers)

Absolutely.

And get down there as quickly as possible?

Absolutely.

Okay, and then in terms of the targets that you guys give, can you remind me why you focus on GAAP equity assets versus tangible equity assets?

No, no real reason. We actually have guidelines for both.

What are the tangible targets?

Our tangible target is 6 to 7. And obviously as we have talked about our divestitures, intangibles are very important to us and managing that tangible equity number is key.

Okay, and then lastly I know this has been asked a couple of times, but on the expense side it sounds like most of the dollar amount of the decline in expenses has occurred and now we will see maybe sort of a flattening out in expenses? Is that, do you think, fair or am I off base on that?

I am looking at my FD person to make sure I can answer this. I think we will continue to focus on reducing expenses, that is part of our culture. You will not see the significant decreases in expenses but you will continue to see our expenses going down over the next few quarters.

Great, thanks a lot.

We will take our next question today from David Conrad with KBW.

Hi, David.

Hi, good afternoon. Kind of a follow-up question from Charlie regarding the securities portfolio, really in the context of the net interest margin. If you can provide any guidance there? I would imagine with the yield curve environment, margins would be challenging for you, but I was wondering what benefit this shift in asset mix may provide to potentially lift the margins through the second half of the year.

David, you are absolutely right and I am certainly not prepared at this point to give you any specific numbers simply because I don’t have them. But you know, it is obviously part of our overall strategy. We recognize that the bond portfolio is not an appropriate asset for us, particularly in this yield curve environment, and we certainly are focused on the benefit that reducing that portfolio has for the margin. There’s obviously other things very important to us related to net interest margin, including deposit growth and that is a very, very important part of our overall strategy.

Okay, thank you.

Thank you, David.

Our next question today is from Merrill Lynch and Karen Lamark.

Hi, Karen, how are you doing?

Good, how are you?

We are doing great.

Going back to a couple of previous questions, in particular the ramp of earnings that’s implied from consensus. What are your assumptions, even directionally on net interest margins? Or, any quantification around that?

Secondly, were the discontinued operations loss making? Is there sort of an elimination of a drag that’s going to help you in the second half?

I will answer the question on the margin, I think. Karen, repeat that question for me on the margin.

Any color, qualitatively or quantitatively on net interest margin expectations?

Yes, we have talked about this before that implied obviously, in our numbers is some good loan growth and we obviously have a large security portfolio and if we can get that loan growth along with – if we can get that loan growth, given our securities portfolio and our rate sensitivity, we are not uncomfortable with the direction that we will see margin going.

And certainly if we can reduce the size of the investment portfolio simultaneously with the loan growth, that I think portends some good things for the margin going forward.

You are saying there is an upward bias just by downsizing the securities portfolio?

Yes. Well really, as part of the downsizing the -- yes.

Okay.

Karen, could you repeat the second question?

Yes, the discontinued operations. Were they loss-making? I am just trying to see whether or not there is any kind of elimination of any kind of a drag that is going to help benefit you in the second half?

They were loss and we are not able to give you too many specifics. I wouldn’t include anything in your models for any losses or recoup of anything from there.

Okay, thanks.

Karen, did you have anything further?

No, I am all set. Thank you.

Thanks so much.

Thanks, Karen.

And we will go back to Mr. Cummings with a follow-up question.

Daryl, in looking at your charge-offs, it looks like if you X out the impact of the loan sale, charge-offs were roughly 48 basis points. Can you give us some mix of that 48 basis points of charge-offs between commercial and consumer?

Fred, I would say – let me stop and think here real quickly. Probably about – and this is off the top of my head – about 60% of that is commercial.

Okay. And with respect to how you guys, your reserve methodology, you are at 161 of total loans today. Now if that is going to decline further, will it be predicated on a further improvements in the classified and substandard assets?

Yes, the way the model stands today, that is our biggest driver in moving that allowance level down. Yes it would be.

Okay. And then Mike, for you, one last question on the deposit gathering side. It looks like on an average basis non-interest bearing demand, they were pretty flat. Your NOW and savings accounts were down, linked-quarter. Money market was up though. What are you doing to better generate transaction account growth?

Well, Fred, you are hitting on something which is absolutely square on target for us. We did see movement from our checking products and savings products into money market during the last quarter. We have initiated a number of marketing programs that will be dedicated to addressing the need to attract dollars back into demand and checking products, and that will get major focus from us the remainder of this year as well as the next year.

Fred, one thing I might add is we are really going to put some emphasis on our corporate cash management and trying to drive through our small to medium-sized customers. We have asked Jim Ryan, our Treasurer, who also runs our capital markets, to really execute a strategy. We are putting in some new software technology. We are actually looking for, hiring a regional sales manager to run that business. We think we have got significant upside on the commercial side, given the market share we have and the loan relationships that we do have.

Okay, thank you.

Thanks.

And we will go back to Troy Ward with a follow-up question.

Troy, you know, you had a mistake so you don’t get a follow-up question.

Bob, leave me alone. On the credit, $50 million in non-accrual, can you give us the top three, a little bit of color on the top three, how big they are and what type of loans those are?

I can tell you that our largest non-accrual today is $7.5 million, the second-largest would be in the -- probably -- 3.5 to 4.5 million range. Different industries, there is no commonality amongst the largest of the credits in terms of industry.

Are they real estate secured, or C&I?

They are – the majority are real estate secured.

Okay. And can you just give a little color on what you are seeing from your commercial customers as far as outstanding lines? Are they pulling down on those, are they using capital? What are they doing now in the markets versus what they were doing six months ago?

We are beginning to see pockets of increased demand for use of those lines. Again, as Bob pointed out, most of that loan growth that we are getting right now is coming from those new markets, so I think what we are looking at is the potential that exists for some increased borrowing from those existing legacy markets.

And one final one on expenses again. In the commentary you mentioned a couple new locations in the Indianapolis market. Is that figured into your original ASCEND assumptions from expense side?

They would be figured into our 2005 budget, but it would not have been part of the ASCEND number.

Okay, thank you.

Thanks, Troy.

There are no further questions at this time. Mr. Jones, I will turn the call back over to you for any additional or concluding remarks.

Great, well thank you so much. I appreciate everybody’s time and attention. As always, Lynelle stands ready to answer any further questions you might have and just have a great day. We will talk to you later.

This concludes Old National’s call. Once again, a replay along with the presentation slides will be available for 12 months on Shareholder Relations page of Old National’s website at www.oldnational.com. A replay of the call will also be available by dialing 1-888-203-1112, confirmation code 2750864. The replay will be available through August 11th. If anyone has any additional questions, please contact Lynelle Walton at 812-464-1366. Thank you for your participation in today’s conference.