ONB
#Thank you.
Yes, <UNK>.
So the Wisconsin contribution there is just a little bit over $200 million.
So the legacy piece is about, a little over $900 million.
Yes.
Just really, good execution with our vendor management group just trying to drive down early termination charges on their key IT contracts, most notably their core service provider.
There was some great negotiation done on behalf of the Anchor team and our team just driving those contracts lower.
No.
It's about $280 million at this point in time.
I would say all banks are watching commercial real estate.
Despite what we've said about the growth, everybody's looking at that and making sure that we don't get too heated there.
We have very small energy.
We've gotten a little bit of coal, we are watching that.
Outside of that, everything else seems to be moving along pretty well, <UNK>
No, not at all, <UNK>.
I think, I get criticized when I use this analogy but I think we've earned the right to be a little more selective in our partners.
We've built ---+ we're in the markets we want to be in.
If we get a deal that makes a lot of sense with reduced earn back, great strategic opportunities, good expense saves.
We clearly have to look at it, but I can tell you that we're spending a lot more energy on execution and really trying to drive higher quality earnings.
September.
Mid-September when we do the conversion.
Thanks, <UNK>.
There would be just a little bit of benefit in the fourth quarter.
Depending on exactly when we execute that's really in the guidance.
Then most of the benefit, though, will be in the first Q of 2017.
That's absolutely correct.
When opportunities present themselves.
So if we get a backup in interest rates, we might look at putting some additional duration on the investment portfolio.
It probably won't move the needle meaningfully but nonetheless, we're going to continue to look for opportunities, maybe swapping some stuff back to fixed rate on the loan side.
Those types of actions.
When opportunities present themselves, I think we'll give us a chance that insulating from some of the flatter yield curve we find ourselves in today.
Yes.
I think that's a great observation.
We are more asset sensitive than we've ever been as a bank.
So we got more asset sensitive in the second quarter, primarily as a result of bringing on the Anchor balance sheet, even though they have commercial real estate loans, most of those loans are variable rate in nature.
So we will look for ways to still remain asset sensitive and to benefit if rates ever do rise.
But that is an expensive position to maintain.
So to the extent that we feel comfortable adding some additional duration, we will look for those opportunities.
Welcome back, Mr.
<UNK>.
I think the opportunities are really growth.
We're just seeing ---+ I think we're at the beginning of seeing what this franchise can look like in terms of the growth, both on the commercial ---+ we don't talk about retail a lot, but as part of our United Bank & Trust partnership in Ann Arbor, we brought on an extremely talented management team, part of which ---+ we have a gentleman now running our retail bank that's got Huntington and Old Kent and Fifth Third background that Ray Webb is doing a great job.
So I think the growth is optimistic.
I wouldn't be my normal honest self if I didn't say that I think we've made some good progress on expenses.
I think we still have an opportunity to do a better job on reducing cost.
I will tell you were all very focused on it but at the right manner of doing that.
As you think forward, I think the risks for all of us is just this yield curve and the interest rate environment.
The question at the end is what keeps you awake at night.
I'm not sure that stock price would be at the top of that list for me as I think through what we've done and kind of where that stock price sits.
I wouldn't be doing my job if I wasn't focused on it.
Yes, I think that's a great question, <UNK>.
I think that's one of the things Chris is looking at.
Chris is two months on the job in indirect and the balance of his capital markets ---+ you saw the yield increase there through some of his efforts.
But we've asked Chris and Chris is going to take a real hard look at that portfolio to see if it's the best use of capital and funding.
I think as you look forward to the future, we will have some more decisions to communicate there.
Thanks, <UNK>.
Glad to have you back.
Welcome back.
<UNK>, we're always looking at opportunities to keep that tax rate in check.
So obviously as we make more income that will put pressure on that rate, but I don't know if we're willing to say this point in time that rate is going to go back up from here.
I think we're continuing to look for ways to moderate that rate even into 2017.
As part of what Chris is focused on in the capital markets with some of his transactions in that group, we've also got some way to moderate our taxes.
So, as <UNK> said, we're feeling keenly focused on it.
Thanks, <UNK>.
Great.
Thank you all.
Thank you for your insightful questions.
Any follow-up, let <UNK> know.
We look forward to talking to you again soon.
