Q1 2021 Old National Bancorp Earnings Call
Jake Jake
home page 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 and accordance with the SEC regulation FD corresponding presentation slides can be found with the investor relations page at Old National and will be archived there for 12 months management would like to remind everyone that has noted on slide to certain States.
Events on today's call may be 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 companies are fully disclosed and discussed within the SEC filings in addition certain flights contain non-gaap measures which management believes provide more appropriate comparisons wage. Gap measures are intended to assist investors understanding a performance Trends where I can solidly as reconciliation for these numbers are contained within the appendix of the presentation. I know like the during the call over to Jim Ryan for opening remarks Mister Ryan. Thank you and good morning. Everyone wage earnings per share were $0.52 earnings per share were positively impacted by our Reserve release bread and we'll fill you in on all the details, but despite the release our earnings would have exceeded consent to age.
Adjusted pre-tax provision are up 18% year-over-year as a result of the implementation of the onb way adjusted operating leverage also improved over nine hundred basis points and our efficiency ratio was 54.3% other highlights for the quarter include end up. Commercial loans, excluding PPP increased 2.6% annualized because of record first-quarter commercial production of $718 million into. Total deposits increased more than eight hundred million, which was 19% higher on an annualized basis and not deposit ratio is not a very low 78% interest income dollars a relatively unchanged consistent with our guidance wealth management assets under management grew nicely Home Mortgage Revenue a seasonally stronger than expected and all expense categories were slightly better than we had planned.
During the quarter.
Worked hard with our clients and the SBA forgiveness process for round one PPP loans and originating new round two loans our team help the SBA fund almost 10,000 loans in the first round down 5% of those applications have been forgiven by the SBA already our focus on the Forgiveness process how our clients to achieve forgiveness faster than most. I'm also proud of the work we've done to support the second round. We have processed almost 6,000 applications, totally $700 or $578 with an average loan size of $98,000.
Most of our credit quality metrics approved during the quarter with consistently better than economic forecast in the massive stimulus programs. We reduce reserves consistent with our modeling bulb. We still have approx 30% of our reserves supported by qualitative adjustments given the higher than average level economic uncertainty that exists today.
We continue to proactively downgrade our pandemic impacted loans and a watch asset quality ratings and they're still meeting weekly to review credit quality loan Bailon. We continue to believe that are historically strong assistant underwriting practices diverse and grant or loan portfolios and Midwest Footprints and help us one of the impact better than most
A quick update on hiring we have added some excellent candidates during the quarter. We continue to have a good pipeline of opportunities. We have a fantastic story to tell and we have a strong interest from not wanting to join our team lastly despite the ongoing distractions. We have remained focused on serving our clients and communities and I think our results are indicative of our efforts off the call over to Brandon. Thank you turning to slide for both our gas and adjusted earnings-per-share. We're $0.52 adjusted earnings, excluding 1.5 million wage be way related charges cuz well as two million dollars in debt Securities game.
Moving it's like five. We are pleased with our quarterly adjusted pre-tax reprovision net revenue, which was 18% higher year-over-year and despite the challenging operating environment. We generated 993 base point the positive operating Leverage.
Black six of the trending updating Lawns and earning asset mix total average along with excluding ptpp through $118 or 3.7% and appeared commercial loans increased $59,000 driven by record first-quarter commercial production of $718 commercial activity remained strong throughout our footprint with production. Well balanced among our major markets awful commercial production yield increased quarter of a quarter to 2.9%. 75% of which were floating rate.
Even with our seasonally strong production our quarter and pipelines increased 28% over prior quarter to two point six billion dollars. We believe the current Pipeline with over $600. The category she would lead to another strong quarter of production.
You also increase in the quarter page twenty-four folio duration. Well within five years.
Kevin. And and average deposits increased during the quarter by 90% And 13% respectively this growth has largely come from higher business and personal savings rates that resulted from changing patterns and add liquidity from the various government stimulus actions during the quarter.
Turning the pricing. Our total cost of deposits was 7 basis points for the quarter a to basic Point improvement over Q4 and our continuing efforts to drive funding costs lower. We also reduced average borrowing 681 million dollars.
Next Friday, you will see details of our managers income and margin and then interest income declined $13 quarter-over-quarter largely due to the decrease of ten million dollars in PPP related interest, excluding the impact of PPP and interesting come with in line with our expectations with a slight $3000000 declined predominately due to fewer days in the quarter.
Dennis Martin calling 32 basis points in order to 2.94% do to lower ppc's viewer gays and additional excess cash for March and excluding accretion and TPP feel for what she wants to 2.74% cash and fewer days account for eight basis points of the decline with the remainder due to new business rates on loans and Investments.
Flight nine. She'll Trends me just did not interest income adjusted non-interest income but 55 million dollars in the first quarter was slightly lower than the $58 if we recorded in queue for the three million dollar Club driven by lower Capital markets income mortgage revenue for better than expected with unceasingly strong first-quarter production of $518 and elevated gain-on-sale markets month. We also saw nice broken our wealth segments do to increase an actress under management and progress in our own View Way related initiatives.
Next like 10 shows a trend in adjusted non-interest expenses adjusting for onb way related charges and tax credit amortization non interest expense was $115 these wage or slightly better than what we outlined in our fourth quarter call and they include a 1.3 million dollar reversal a provision for unfunded commitments which runs through the other expense category. We do not anticipate additional material wage and run fun to reserve in the near-term included in our total expensive in q1. We're 1.5 million dollars in charge of the latest onb way strategic plan. We have just completed the migration of our database to an off-site location costs related to this migration will be recorded in Q2 earnings. It should be a material. The second quarter charges should be the last of the onb way related cost impact earnings.
During the laws of flight eleven, you will see a role for it those balances which stood at one point 1 billion dollars a quarter and we continue to assist around with clients and forgiveness with approximately 75% certainly through the FDA forgiveness process. We have seen stronger demand around here than we anticipated having originated just under five hundred million dollars through March 31st.
As of late last week round through the applicant's application still do 578 million with corresponding fees, totaling approximately $26. This brings a total on amortize fees on T. Round one and two two thirty three million dollars.
We would anticipate.
Loan to be forgiven and the corresponding recognition of the fee income to occur late in 20 21 with that. I will turn it over to Darryl to discuss credit. Thank you Brandon off the performance of our loan portfolio both on a current quarter in historical Trend basis total 30 plus day delinquencies continued their downward trend for a third consecutive quarter following a 12 basis points at the most wage orders and is our commercial delinquencies have historically been on the low side the Improvement. We have seen over the past several quarters has been concentrated in the retail portfolio stimulus payments higher levels of discretionary income as a result of reduced spending during the pandemic and seasonal income tax refunds are all likely contributing factors to the historically low retail delinquency rates. We will have to see what subsequent quarters may bring on to the home key front, but the current level is in all likelihood on sustainable in the long-term.
Net charge-offs were well contained with a very small net recovery posted in the quarter. The lack of charge-offs has certainly been a very pleasant surprise given where we feared we might be back in March of last year over the past several quarters. We have been up in mind that charge-offs associated with pandemic would be pushed out to the first and second quarters of this year at this point in time. We are not seen a strong potential for significant charge office in the portfolio bag. Although they certainly could occur if we get a setback in the progress. We were making on the pandemic front or the economy stalls for some reason non-performing loans felt slightly in the quarter with both nonaccruals and restructured Loans were acting modest decreases in. As you can see the gap between Old National and it appears in this particular metric has favorably narrow over the last several years.
We continue to perform well in the net charge-offs and non-performing Loan category, as you can see over the past three years. Our peers results our brains from roughly 21% to 28% while we have reflected Reserve in the 1% to 4% range, but the net recovery results in the current quarter, we're off to a good start in this category for 2021 sent the combination of Swift vaccine rollout and generous government stimulus programs. If certainly led to a more rapid economic recovery in many of us could have imagined 12 months ago. I believe we all acknowledge and understand how fortunate we are to have escaped a longer and more severe economic downturn and wage experienced. However, in our opinion, we need to take this opportunity to step back and see how we might change approaches to forward views of risk identification and management.
I think the industry does a relatively good job of understanding credit risk based on historical performance. But many of us had to scramble back in March of last year to try to figure out how an unprecedented event like a pandemic was going to impact our loan portfolio going forward in retrospect. We were able to get the job done. But the way we accomplished this was not as efficient or is specifically for word risk oriented as we might have wished we have on going to the bank attentive on learning from this experience and attend to take steps even in the near-term to make ourselves better on this front, but that'll turn the call back over to Brenda.
Thank you. Darryl was like thirteen you will see the details for first quarter allowance of $100, which is a decline of $17 from 2 for the improving economic outlook on life including the impact of the successful vaccine rollout and most recent government stimulus led to an 11 million dollar decrease in reserve needs improving underlying quality of our loan portfolio led to an additional seven million dollars a month as you recall. We were measured in our approach to reserve build at the onset of this crisis and will be similarly thoughtful as the economy improves.
you know and although the
Thomas clearly strengthening The Remains an above average amount of uncertainty as a result. We are holding a larger amount of qualitative Reserve today than is typical and we will continue to closely monitor our portfolio performance and make adjustments to reserve the future quarters would also like to remind you that we continue to carry forty six million dollars and unadvertised marks from our require portfolios. And while these marks will not directly off to charge offs off remaining mark what was pretty through margin on resolution.
The wrap up my comments. Here are some key takeaways. We were very pleased with the fundamental results of the quarter record first record first-quarter commercial production and earning asset growth help us deliver on the stable manager Thursday. We got it to you last quarter are fee businesses particularly mortgage and well continue to perform well and our credit quality metrics continue to exceed expectations selects fourteen includes thoughts and our outlook for 12:31. We ended the quarter with a healthy two point six billion dollar commercial pipeline which included 623 million dollars in the accepted category lower new businesses lower new business and reinvest money will continue to put pressure on interest margin, but we expect net interest income to remain stable through continued earning asset growth the PPP loan forgiveness process continues for around 1 clients and real life is going well. We expect run off of Route to balance of to occur in the latter half of 2021 and the recognition of most of the related twenty six million dollars in front amortized feeds to occur at that time.
We thank her feed business if you continue to perform. Well, we were encouraged by the momentum in our mortgage and wealth businesses. But performance will be subject to Industry Trends the strong commercial activity and rate environment help maintain the high level of performance in our Capital markets business deposit service charges continue to lack historical levels with the receipt of additional stimulus further delaying the return of this Revenue line to prepay endemic levels off other felines are expect to be stable in the near-term.
Expensive shyt increase in anticipate any additional material recapture in a reserve for unfunded commitments. We are generally comfortable with the correct estimates on expenses for the remainder of the Year. Lastly a brief update on Texas. We continue to expect a reduction in the volatility caused by our tax credits as we work through the last of the remaining one year history has already committed in total. We were expecting approximately five million dollars in tax credits for the year, but the corresponding full year effective tax rate of approximately 20%
That we're happy to answer any questions that you may have and we do have the full team here including Jim Sanders.
Add reminder ladies and gentlemen, if you would like to ask a question, please press star at the number one on your telephone keypad. Our first question comes from Scott's office Chandler. Your line is open Scott. I know you remember didn't need a repeat of last quarter, but I appreciate so hey, good morning. I hope you guys are doing well. I appreciate the question or are you taking the question maybe first place to start off just on sort of the Nuance of the month and the core core margin paas and PPP down to about 270 for maybe sort of thoughts on kind of what's going on there. Um, I I guess more importantly sort of order of magnitude of further pressure just as as you see it.
Yes, this is Brendan. Yeah, I think it's difficult for us to
And pinpoint where the margin is headed, obviously the excess liquidity in the system is is putting pressure on margins, but our Focus has been and will continue to be maintaining interesting stable. We think we have the earning asset growth potential to to do that and that's where that's what we'll be focused. Okay. All right, perfect. And then just on the uh, sort of the Lending Club. I mean you guys are really sort of bucking the trend by showing, you know any growth on the the commercial side which which is good. I guess I'm curious Jim to hear your thoughts on competition and the dynamic there, you know now that we're off or more successfully reopening broadly speaking are your competitors doing the same thing or is it is it still sort of an environment where you guys are just really well positioned to to kind of control to take market share particularly in some of your newer markets.
Yes, got you in Sanford here. Yeah, we continue to be really opportunistic. I think is we've shared in past calls. We've been out we're out calling. Our leadership has been out in the markets the last few months and you know, if clients and Prospects are willing to see us we're out making calls. So really like the frame of mind that will tell you the competition is certainly starting to heat up on the commercial real estate side. We're seeing some you know, some brake compression. They're also extended interest-only periods on construction deals with being kind of longer-term fixed rates without swaps and without prepayment penalties again, we're maintaining discipline and we're still winning and so to see the growth that we had in the first quarter with commercial line utilization down and we're starting to see the secondary Market refinancing start picking up. But again, I think our frame of mind has been very opportunistic and and we've been out following and I think I think yep.
Thanks for starting to certainly pick up. So competition is is is fierce. But I like I like our chances. We you know, obviously built the pipeline up quite a bit in the quarter. We finished the first quarter of South with production and feel good about second floor as well Scott. This is Jim I would also add that I think you're starting to see the fruits of all of our efforts regarding new hires start start to impact us life. You know, I can think of we were just in Wisconsin and we've got some great new hires in Wisconsin that are really starting to get some traction at C and I space and as we continue to fill out and key markets, you know new hire I think will continue to opportunities to grow particularly as there are non-competes we're off and and you know, they can be active calling on their their former clients in the marketplace. So this is this is the way we're driving new business is, you know, we we've got it incredibly focused effort gym and I are out polling regularly and we're hiring new people to help augment, you know some markets and some product glasses wage.
So you want to grow? Okay, perfect. Sounds great. So, thank you guys very much.
Thanks, Scott. Great great to hear from you.
Why would Stevens Caroline hi, good morning, everyone.
Our next question comes from Terry Mac.
More quick question this last quarter. Just looking at the the releases you kind of shifted from the allowance for loan losses to the allowance for credit losses. And I'm just wondering do you have a reserve against Securities or unfunded loan commitments? Just cuz the the fourth quarter matches up with what was disclosed today? And and then can you just repeat again what the unfunded loan commitment expense was in in a in the first quarter and maybe what that was last year.
Tu Cari be allowed front commitments is related to credit updates with any of those flooded construction drawers or revolvers and and we've had that on the books for some time. We enjoy the the Border one point three million dollars lower than we did last quarter and and that and that really runs through our Cecil models and and the same drivers that drive or allowance for credit losses or Thursday driver allows for 20 minutes.
Okay. Thanks for clearing that up and then Jim just the last page of the investor. You're twenty pure Banks. I just noticed too announced an m o e last week another one included in a deal this morning. I guess my question is what does that say about mid-sized Banks? And and what does that what does that say for Old National?
Well, you know, I think it's continues to be a difficult environment out there. Right? I mean the operating environments not getting any easier. There's lots of competition. There's lots of need to continue investing in technology. And and I think Revenue growth can be challenging for our industry. So I think all those things are driving, you know, those types of conversations as I have said previously off, you know, we're open to all those kinds of any kind of transactions that will ultimately Drive stakeholder value and and we'll just have to think but but anything in the Emily space, I think requires a home right now, you got to be really focused on culture and strategy and fit in addition to the financials because if you can't get those things right then the financial won't come so obviously open anything that makes a board of directors would have to take a look at those things but a slightly higher bar.
Right. Thanks Jim. Thank you.
My next question comes from Chris McGarity with KBW your line is open.
Morning, Chris. Hey guys. Good morning. Jim. Maybe a question on on Capitol you talked about the growth, you know, the movers of the drivers of the growth is quarter-page. Can you speak to your appetite for BuyBacks? Obviously, I heard the comments about a little bit cautious on the uncertainty with the economy, but you guys have a ton of capital. I'm just interested of buyback priority.
Yeah, definitely on the table for us to consider, you know, and we're going to bounce those out with kind of near-term outlook on any potential m&a Partnerships and and wage go through the trade-offs clearly as the economy gets a more stable footing we get more comfortable. I think they become more viable option. But again, I think we'll want to look at how we can better deploy capital. What's the better use of capital you off my back or or an m and a partnership opportunity? Okay, but but I guess I shouldn't read into the lack of a buyback meaning proximity to a deal.
No.
That that's been our stance entire year. Yeah. Okay, and then maybe just on the reserve obviously your credits been spectacular over Cycles. How do we think about just the absolute level of Reserve today versus maybe fast forward a year when we fully emerge. Could you just remind us where the day one was and how you're thinking about that bogie? This is Bridget. Yeah, so we started day one see so what that ninety six million dollars worth $114 today a big chunk of that difference in our models. They is the qualitative Reserve which were holding a significantly more than we did at a one just reflectively uncertain of the economy. So that is that is that is that comparison with that said we're not sure what the economy will look like three quarters from now, we're comfortable with where the reserve stands today and and will be flexible and move it up or down accordingly.
Okay, and then if I could just speak one of the clarifying, the nii stability was that excluding both trouble peeing accretion or is that a a gap number? No choice or Cortland?
All right. Awesome. Thanks, Randy.
My next question comes from John Armstrong. What was RBC Capital markets morning? Good morning. Good morning question for you Brendan just on the expensive clarify that I see a consensus of $185 million for the year. Is that is that the number you're looking at? Or should we be looking at something? I'm thinking job the second third and fourth quarter numbers, um are are reflective of our expectations. So give ourselves credit for the for the three million dollar feed relative to what the street had. Yeah rough and tough. That's pretty close.
Back on loan growth any differences in recovery expectations across the footprint in in a few had to you know, put your finger on what is really driving home. So optimism, what would that be?
You know, I'm going to start us off John and I'll let Jim jump in. You know, clearly. I think we've demonstrated our willingness to be out seeing clients looking for opportunities. If it's all driven by the Comfort around our home in our portfolios, right we came in, you know, we we're known to me that relatively conservative lender. So we came in feeling pretty good about our portfolios. We were quickly able to jump in and analyze the portfolios and confirm we should continue to feel good about that. So it didn't stop us were many of our peers, you know took a pause there. They took a pause for a couple degrees that they could pause because they think they're worried about their own portfolios, but they also took a pause because they had people off maybe not as proactive as our team members were and and so we continue to do that, you know places like Michigan continue to you know have you know Dead Set backs in terms of their their COVID-19 numbers, so that will probably put, you know, maybe a little bit of pressure at least on the on the psyche of some of those people up there and so continue to watch that.
When I don't see a big change.
In in our markets, it's still a Midwest focused organization and they all seemed to be recovering kind of an equal basis. But I do think it will, you know, various competitors and come back up his ways and it's Jim said we've seen it most acutely on the commercial real estate sector where they seem to be come back in a pretty significant way, but we'll continue to be active. Yeah. The only thing I would add, you know, our our clients and Prospects were talking to certainly in the manufacturing space some of the contract and I mean very very optimistic in it. The biggest challenge across the footprint is just finding skilled labor and that's the big thing that's holding people back and there's been some supply chain challenges as well. But overall, I mean, it's really an optimistic Outlook and and and they they continue to do with those other challenges fairly. Well, so
optimistic just two more follow-ups slide twelve the credit slide, you know the non-performing loans, you know, they're coming down in there gradually coming down and I'm just curious if you could share with share with us the profile of what is in mpls and maybe kind of a flows in and out in terms of what you're seeing the
Yeah, let me start by saying what's interesting in this environment is there are still what I would consider making probably smaller Banks and Old National that are really aggressive and taking some deadlines and so through any cycle that that has a big influence on your ability to manage nonperformers or not. The farmers out is kind of liquidity in the market who's taking his lungs and so we may never I think maybe for a quarter maybe two quarters that slowed down a little bit but really not like you might think so, so that's the first kind of ability for us to manage those thoughts on the non-performing, you know.
We had a little less than ten million dollars in actual pay down out of that portfolio. So again to the to the extent that you know, they're able to find other banks that are doing that with the the profile on our nonperformers is really across the board leaders really don't have any industries that are concentrated in any of that. Really? No Cena versus sorry is it is just individual borrowers throughout the many different industries that that have come on this list and I think it's to Jim's comment earlier. It's the way we've underrated coming into cycle and John, you know our history here right where we tend to call very early and I think if you look in to the to the graph to the right, you know, in terms of what our charge off looks like relative that portfolio because wage to call them and really decide whether this is a credit that we think we can stick with or this is a credit that we think we need to work out. I think that gives us an advantage when it comes to that the actual loss experience.
So that we have with those individual Borrowers.
And quite often, you know, we're able to rehabilitate them and they go back to the book and we recapture, you know, that interest income that we were we didn't take all the time. They were in that bucket, but I think it's just being proactive and took those those situations and and try to get as accurately as possible when we see weakness.
That's interesting. You look at that chart in the upper-right hand slide 12 and we look at it every quarter. But when you really look at it, it's you're right on that. It's impressive and that's the last thing Chris and Terry asked around it as well. But what what is your appetite on m&a and you know, excluding the mo-ee piece of it because I agree that's you know, rifle sticky situations on a lot of that. But what is your appetite and what are you seeing in terms of you know Gil flow and attractiveness of potential sellers.
I give consistent with my previously previous comments on the quarter. We're not seeing a lot of books being passed around and those smaller opportunities their appetite wage. I think it's back, you know, 2019. We were internally focused 2020 was the year of the pandemic and executing our own be way. And I think now we're in a position particularly as we get more comfortable with credit app that we could be in a position and and it doesn't mean that it wasn't active over those two year period of time I can tell you I was very active I still continue to do that a lot of that personally and so absolutely are in a position to if one comes along that's attractive that that you know meets all of our hurdle rates. We would absolutely take a look at it and this kind of environment particularly given are you know better ability to assess credit risk?
Okay. All right. Thank you.
Our next question comes from Ben Gerling. I was Hub Group your line is open. Good morning. I just wanted to kind of all up a little bit more kind of hypothetically on credit and have you look over the past couple of recessions. You see net charge-offs speaking a bit of a double curve manner about two or three quarters after the bottom from like a GP perspective. I guess you could say so this this recession and kind of recovery is a bit different authors because a lot of the stimulus and government programs intervening preventing a lot of aspects through deferrals. So it just kind of thinking hypothetically. It's probably going to be a bit of a bell curve elongated and a less less of a peek at the top. So as you guys kind of work through this year and your qualitative factors kind of holding it back.
Do you need to see continued Improvement or just more time passing by before you feel more comfortable with that total allowance working back down to that kind of load nine years and I think you characterized it really. Well. I do think this recession is different probably is could be elongated. Maybe a lower Peak and I think the time is is what's going to tell that story and and then the opening Thursday. We're going to be thoughtful and about our approach to reserving over the course of the you giving you a thirty. I think your your comments are appropriate and how we're making it on yourself.
Thanks, and then just kind of thinking about loan growth in general. A lot of the bigger Banks like you guys are all loaded to pulled back and then the most recently come back and some of the commentary at least from last week on the the really big Regional Banks. It seems as though the the second half of the year is going to be the area where you see actual growth being that you should have seen Coral own growth late last year and early this year. Do you feel as though that the competitive aspects are going to prevent you from them and growing up a pace that often or as the markets going to be recovering like just trying to figure out a sense of your loan growth? Is it a drive of you taking share or you just knowing your customer you are competing for slightly smaller customers or from a more nuanced Dynamic. Is there areas within the lending whether you see an IR theory that you feel as though dead?
You can make a and while the other people are still on the sidelines.
Yeah, I'll just add it's a little bit of both right? I mean we we are taking share we're taking share because we're just a little bit more Nimble a little bit more focused we're taking share cuz we're hiring new people. We know our customers pretty darn well and we're out making sure that we're meeting their needs and their demands and working with them and looking forward, you know, it's it's really hard. Obviously. That's that's why we we try to provide the pipeline perspective. It's really hard to to look out, you know, two or three or four quarters out in terms of what growth might might translate. We we feel really good about obviously we gave our pipeline numbers for the for the court accepted category, you know, that gives us more Comfort it's hard to know how competitions ultimately going to change those pipeline numbers. But what I tell you this it won't stop our Focus don't stop our efforts off work it out hustle. Everybody around us. We're going to work really hard we continue to put, you know, Attractive people on the team to go out and grow grow this business.
And then finally, my last question came kind of looks up more the the the fee income obviously mortgage is a bit out of your control given the national dynamics of it, but faith in the areas where you can send you to see some outsized growth. I know that both management had a good quarter service charges were downloaded, but that's probably a big factor any areas within a month fee income or you can adding some talent that maybe the market isn't looking at it correctly.
Well, you know, I'm just saying the wealth manager space in the area. We continue to grow and look for talent and and and fundamentally, we're changing our approach that business. We're really focused on holistic Financial Planning and less focused on individual transactions or to grow revenue. And so I think those are probably as we've always said a little longer term play, you know, they don't don't translate into results, but I think the the quarter you're starting to see, you know, both we benefited from obviously a better Market by and large but also continuing to hire people in that space continue to have a focus on that space. I've never felt better about that business than I do today for us to continue to drive, you know, better than ours torque run growth profile. I think treasury Management areas do we're also investing a lot in in terms of people and Technology. We feel really good about that business again, that's a little longer playing them as big as impact, you know in the short run but over the long term, I feel better about our ability to grow that business.
Reminder ladies and gentlemen to ask a question, please. Press star one on your telephone keypad. Our next question comes from Scott siefers with Piper Sandler. Your line is open. Hey just don't want to make you put too fine a point on the PPP Outlook. But so most of what you've got left in fees is is round to you know, just as we sort out the Cadence of things with most of the round one forgiveness, um fees. Does that come in the second quarter? And then how are you thinking about the the round to forgiveness in the second half of the years that can be sort of lump. Geared toward the fourth quarter or kind of evenly split, um through the two cords in the second half of the year. And then at this point would you say, I mean we pretty much done with origination Zin in Rome in other words what we sort of what we see is what we get and this is a good base to to go off of yeah, I would say a vast majority of the origination that we quoted we rented gave you the first quarter, you know through the fog.
Okay, great. I appreciate all the answers solid quarter. Hope you guys keep it up and you have a great year.
azure
Order and then I quoted, you know, year-to-date the $578 that that's more than likely, you know, the bulk of what we're going to be doing for the year given the programs likely to run out of here very soon. That's probably loaded towards the fourth quarter that round two numbers probably loaded towards the fourth quarter and let's just say, you know, ninety percent of that number probably is collected this year. It's really hard to put a finer point at than that, but I think I think you otherwise accurately, you know, understand the situation. Okay, sorry. All right. Thank you. I appreciate you taking the follow-up. Thanks Scott.
Bryan no further questions in queue at this time. I'll turn the call back over to Jim Ryan for closing comments. Thank you so much. We appreciate your participation. One thing that I want to make sure we pointed you towards, you know, we just published our first ESG report. We're awfully proud of the work we do we're awfully proud of our ability to tell that story. So hopefully you had a chance to take a look at that report. We think it's indicative of all of our hard work and energy in addition to, you know, the commercial and all the other things that we're doing and think it's how we support our communities how we support team members the environment things like that are governance practices. I think are all well captured within that report and just want to thank you for your support as always lynell Walton and Brennan are available for any phone calls, and he follows you have. Thanks so much.
This concludes Old National call. Once again every play along with the presentation slides will be available for 12 months on the investor relations page of Old National website month old national a replay of the call will also be available by dialing 1-800. +585-966-913-5118 says replay will be available through May 3rd. If anyone has additional questions, please contact me at 812-464-1366. Thank you for your participation in today's conference call.
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