ONB
#Yes, I think you are right on, Scott.
I think the Durbin was right where we expected.
Obviously most of that we saw ---+ virtually all of that we saw in the third quarter with a full third-quarter impact, and then declines on the branch sale a little bit.
But about what we expected.
I think ---+ I know <UNK> is very much engaged in increasing the number of accounts and it's a very important part of our 2016 focus on the branch side.
Scott, just for edification.
Durbin was almost exactly the same in the fourth quarter as it was in the third quarter.
So the only weakness might be just a little bit more from the sale of those branches.
No, if anything seasonal.
You sometimes get people that get bonuses and that at the end of the year and you get a little behavioral change.
But no pricing changes, we just don't feel the market is receptive to many changes at this stage.
Yes, and <UNK>, you are well aware of just the competitive pressures out there.
So there will continue to be that pressure going forward.
But the fact that we have some other options, specifically our SBA lending program and the expertise that we picked up with our United partnership, it is helping our RMs really find more ways to say yes to our customers and we are getting a better return on that risk.
So we will still see some pressure on yields for sure, but I think adding the SBA program has certainly given us a little bit of a boost that we didn't have really before.
It is safe to say, <UNK>, we are pleased that the yield ---+ production yield was able to stay slightly ahead of where we were last quarter even given those competitive pressures.
Yes, <UNK>, and I want to make clear, it is not necessarily an increase in reserves but certainly more kind of management and attention to the area.
So it would be the things that everybody else has talked about, it would be indirect lending, we need to watch that very closely, be commercial real estate, it would be concentrations, it would be this whole kind of discussion about end of draw around HELOCs.
And then a lot of emphasis and discussion around underwriting exceptions and how you manage those and tract those.
So if you think about just the cycles that banks go through, it is all the same stuff that we have been having to brush ourselves off and really refocus on over the last three or four cycles.
Yes, great question, <UNK>.
Much like <UNK> getting in queue at 4 AM ---+ I think once we saw the announcement for both transactions on Monday, both <UNK> and I had shot emails up to the market presidents and said, now is the time for us to take advantage of some disruption.
So, we absolutely would love to hire more people in those key markets.
We do believe that disruption does present opportunities for us.
So I know [Todd Clark] and the folks in Michigan are anxious to go out and win some more business and we will see where we go from there.
Great, thank you.
If you have follow-on questions give us a call.
We would be stunned.
Well, really if you think about those businesses absent wealth management you would see growth.
Our concern is the equity markets because such a large portion of that book is tied to a fee-based on portfolio size.
And as the equity markets decline you are going to see less revenue there.
So if you remove wealth from that equation you would see a stable to a more positive number.
We were just being a little more conservative based on our view of ---+ with the potential equity markets.
And you guys are, again as I said, smarter than I am.
But I just ---+ the way we started out the year with a decline in the equity markets, obviously as we charge fees you are going to get more challenged there.
But remove that, John, you are fair to say that we would be much more positive.
It is noise.
I was in Bloomington over the weekend, I was in Indianapolis on Friday, I have been in Michigan, I have been in the northern part of the state, I have been in Louisville.
And when I ask the specific question, how do you feel.
Our clients actually feel very good.
They don't understand this broader concern and they are still looking at projects, they are looking at expansion, they are looking at opportunities.
So we all need to remember that election cycles also kind of breed negativity and it is hard to not turn on the TV and tell everybody how you feel terrible.
But ultimately if you are in Louisville, Kentucky or Paoli, Indiana our clients feel pretty good.
Huge.
It is the biggest issue ---+ all our clients ---+ it is not an issue of capacity from a borrowing standpoint, it is just can we hire the right people and get them to the job.
And again it cuts across all our markets.
We still believe that it is gradual subject to those very large prepayments that we get and the volatility in prepayments quarter to quarter.
About the only thing that I can point to, <UNK>, is 2015 where our expectations I think at the end of the first quarter when we first used that slide was $45 million-ish and we finished up with $61 million.
Now the point being there is that it is a limited pot of money, right.
But we still have quite a bit left in unamortized discount at about $105 million.
So we do expect some prepayments.
The degree of those prepayments is awfully tough to distill.
And I would say that as we get closer to the end of these, the prepayments probably get less significant because we have worked out a lot of the large credit.
So it just kind of glides down to an end.
That is about as much color as I can give you because that is the color we are subject to in our forecasts.
Right.
History also is a great indicator of the future.
That is correct.
Great question.
So our belief that stocks are still trading a portion on tangible book, so obviously we will kind of continue to focus on growing our tangible book because we think that is important given all of the activity that we have had over the last few years.
So saying that as kind of the overhang, clearly organic growth is our first driver.
We also understand the need for the dividend with the recent increase that our directors authorized.
Then we begin to get that balance between the buyback and any potential future.
But we are really focused on organic growth and really focused in ensuring that we continue to build that tangible book as we go forward.
And <UNK>, I might add ---+ recall that the consideration for the Anchor transaction is fairly heavily cash as well.
So to <UNK>'s point, we do try to balance ---+ every time we make one of these decisions we try to balance several factors and try to use that capital in the very best way based on current market conditions and opportunities and things of that sort.
Well, it is a little of both.
But it really gets towards more course dividend payout ratios, kind of where they get focused.
We have not been ---+ we don't have a public stated payout ratio, but it is important as we look at capital.
And then the Board also has the ability to look out forward and see where our capital needs may be in the future as well.
Great.
Everyone, thank you so much for your time and attention.
And as always, please let <UNK> know if you have any follow-up questions and <UNK> and I and <UNK> and <UNK> are available to take any.
Have a great day, everybody.
Thanks, everybody.
