Evansville, Ind.-based Old National Bancorp embarked on a transformation shortly after President and CEO Robert G. Jones joined the community bank in late 2004. The change it planned and implemented qualifies as both straightforward and profound for a community banking company that celebrated its 1 7 5th anniversary in 2009.
At the most basic level, Old National Bank shifted its orientation from a reactive business to a proactive one. This shift in decision-making perspective also required an extensive, multi-year overhaul of the "enterprise management reporting" capabilities (a phrase the company uses to broadly define budgeting, forecasting, balanced scorecard and other business performance management processes). The transformation so far has delivered significant improvements within each of the company's three core strategic imperatives:
- Strengthen the Risk Profile
- Enhance Management Discipline
- Achieve Consistent Quality Earnings
The improvements have helped Old National Bank become one of the top 25 best performing banks in the United States, according to Forbes, for the past two years. Old National also was among the first four banks in 2009 to return all of the money it received through the Troubled Asset Relief Program (TARP) the U .S. Treasury Department created in the wake of the global financial crisis. In addition to the honors and recognition Old National has received for its community-support activities and its commitment to workforce diversity the bank continues to deliver on its mission of consistently exceeding the expectations of clients, associates and shareholders. The company's 2010 financial performance reflected both a vast improvement in net income (up 290 percent compared to 2009) and an ongoing commitment to cost-reduction efforts. Old National reduced expenses by more than 7 percent, or S24.7 million, during 2010.
Despite these achievements, the transformation continues as the executive team and the corporate finance function, with the active support of the board of directors and its finance committee, strive to further strengthen the execution of the company's three strategic imperatives.