Item 2.02 Results of Operations and Financial Condition.
On January 21, 2020, Old National Bancorp (the "Company") issued a press release
("Press Release") reporting its financial results for the fourth quarter and
full year 2019. The Press Release is furnished as Exhibit 99.1 hereto and is
incorporated herein by reference. A slide presentation outlining fourth quarter
and full year 2019 earnings, strategic developments, and the Company's financial
outlook will be available on the "Investor Relations" section of the Company's
website to complement the conference call to be held on January 21, 2020, at
7:00 a.m. CDT and will be accessible at http://www.oldnational.com immediately
before the conference call begins.
Item 2.05 Costs Associated with Exit or Disposal Activities
On January 15, 2020, the Company commenced implementation of the ONB Way
strategic plan, which has various detailed business objectives designed to keep
the Company's clients at the center of all it does. The Company expects to incur
an estimated aggregate of $53 million of related cash expenses. An estimate of
each major type of cost is set forth below. Of the $53 million aggregate cash
expenses, the Company has expensed $8.2 million, $1.8 million, and $1.4 million
in the fourth, third and second quarters of 2019, respectively. The Company
expects that the remaining $41.6 million of related cash expenses will all be
incurred over the course of 2020. To optimize the Company's branch network, the
Company plans to close 31 retail banking centers in smaller markets: 10 banking
centers in each of Wisconsin and Indiana, five in Michigan, four in Minnesota
and two in Kentucky. The Company expects to incur an estimated $25 million in
costs associated with the branch optimization and expects to complete the
optimization by April 24, 2020.
In connection with the ONB Way strategic plan the Company is realigning its
organizational structure and expects to incur an estimated $10 million in
severance charges.
In addition the Company expects to incur an estimated $10 million in
professional fees and $8 million in non-branch facilities and miscellaneous
charges.
A copy of the press release describing the objectives of the ONB Way is attached
hereto as Exhibit 99.1 and the information set forth therein is incorporated
herein by reference.
Forward Looking Statements
In this report, we have made various statements regarding current expectations
or forecasts of future events, which speak only as of the date the statements
are made. These statements are "forward-looking statements" within the meaning
of the Private Securities Litigation Reform Act of 1995. Forward-looking
statements are also made from time-to-time in press releases and in oral
statements made by the officers of the Company. Forward-looking statements can
be identified by the use of the words "expect," "may," "could," "intend,"
"project," "estimate," "believe," "anticipate," and other words of similar
meaning. Such forward-looking statements are based on assumptions and estimates,
which although believed to be reasonable, may turn out to be incorrect.
Therefore, undue reliance should not be placed upon these estimates and
statements. We cannot assure that any of these statements, estimates, or beliefs
will be realized and actual results may differ from those contemplated in these
"forward-looking statements." We undertake no obligation to publicly update any
forward-looking statements, whether as a result of new information, future
events, or otherwise. You are advised to consult further disclosures we may make
on related subjects in our filings with the SEC.
Item 8.01 Other Events
On January 15, 2020, the Company's Board of Directors declared a quarterly cash
dividend of $0.14 per common share, an increase from the $0.13 paid on
December 16, 2019. The dividend is payable March 16, 2020, to shareholders of
record on March 2, 2020. For purposes of broker trading, the ex-date of the cash
dividend is February 28, 2020.
On January 15, 2020, the Board of Directors also approved the adoption of a
stock repurchase plan that authorizes up to 7.0 million shares of Old National
Bancorp common stock which may be repurchased, from time to time, through
January 31, 2021.
On January 21, 2020, the Company issued a press release announcing the addition
of four new executive leaders. A copy of the press release is attached hereto as
Exhibit 99.1 and the information set forth therein is incorporated herein by
reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit
No. Description
99.1 Press Release issued by Old National Bancorp on January 21, 2020
104 Cover Page Interactive Data File (embedded within the Inline XBRL
document).
2
--------------------------------------------------------------------------------
© Edgar Online, source Glimpses