Old National Bancorp(ONB)

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Old National Bancorp(ONB) - 2023 Q1 - Quarterly Report
2023-05-03 14:44
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission File Number 001-15817 Old National Bancorp (Exact name of registrant as specified in its charter) Indiana 35-1539838 (State or ot ...
Old National Bancorp(ONB) - 2023 Q1 - Earnings Call Transcript
2023-04-25 17:52
Financial Data and Key Metrics Changes - The company reported adjusted EPS of $0.54 per common share, with adjusted ROA and ROATCE of 1.4% and 23.4% respectively [4] - GAAP net income applicable to common shares was $143 million or $0.49 per share, including $15 million in pretax merger-related charges [9] - Total asset growth was $1.1 billion, driven by disciplined loan growth and higher cash balances [10] Business Line Data and Key Metrics Changes - Total loans grew by 2%, with consumer loans remaining stable quarter-over-quarter [18] - Adjusted noninterest income was $76 million, with improvements in capital markets and wealth revenues [25] - Adjusted noninterest expense was $235 million, resulting in an adjusted efficiency ratio of 48.8% [26] Market Data and Key Metrics Changes - Total deposits were stable quarter-over-quarter despite public fund outflows, with average deposits reflecting a shift from noninterest-bearing accounts to money market and CDs [11] - Total deposit costs increased by 38 basis points quarter-over-quarter to 72 basis points, with interest-bearing deposit costs rising by 57 basis points to 1.09% [12] Company Strategy and Development Direction - The company aims for disciplined loan growth in 2023, focusing on maintaining a low deposit cost to drive funding advantage [7] - There is a continued emphasis on organic growth in the wealth management client base and disciplined expense management [7] - The company plans to maintain a strong liquidity position with a coverage ratio of approximately 150% for uninsured deposits [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the client selection and underwriting processes, despite potential economic uncertainties [7] - The outlook for 2023 includes expectations for net interest income growth in the range of 9% to 12%, although margins may face pressure from higher deposit costs [30] - Management remains watchful of credit conditions but does not foresee significant concerns compared to previous quarters [91] Other Important Information - The company has a strong capital position, with TCE ratio increasing to 6.37% [27] - The company repurchased 1.8 million shares of common stock earlier in the quarter but does not anticipate further repurchases in the near term [28] Q&A Session Summary Question: Thoughts on deposit mix and noninterest-bearing levels - Management indicated that average core deposit account balances are lower than peers, with a significant portion of customers having long-standing relationships with the bank [16] Question: Comments on loan growth and areas of focus - Management noted that C&I remains strong, with a positive outlook despite a more muted environment compared to previous quarters [39] Question: Expectations for net interest income and deposit beta - Management provided a range for deposit beta from 30% to 40% by the end of the year, with a bias towards the higher end [54] Question: Concerns about credit conditions - Management stated they are not significantly more concerned about credit than in previous quarters, emphasizing proactive management of the loan portfolio [91]
Old National Bancorp(ONB) - 2023 Q1 - Earnings Call Presentation
2023-04-25 15:55
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Old National Bancorp(ONB) - 2022 Q4 - Annual Report
2023-02-22 19:57
Financial Performance - Old National's net interest income increased to $1.3 billion in 2022, up from $596.4 million in 2021, driven by the First Midwest merger and loan growth [201]. - Noninterest income rose from $214.2 million in 2021 to $399.8 million in 2022, including a $90.7 million gain from the sale of health savings accounts [201]. - Net income applicable to common shareholders was $414.2 million, or $1.50 per diluted common share, reflecting strong performance [201]. - The net interest margin expanded by 58 basis points, supported by robust loan growth of 12% [201]. - Net interest income for 2022 reached $1,327,936, a significant increase from $596,400 in 2021, representing a growth of approximately 122.3% [215]. - Noninterest income increased to $399,779 in 2022, up from $214,219 in 2021, reflecting an increase of about 86.5% [215]. - Net income applicable to common shareholders increased to $414,169 in 2022, compared to $277,538 in 2021, marking a growth of approximately 49% [227]. - The return on tangible common equity for 2022 was 15.72%, up from 14.74% in 2021, indicating improved profitability [227]. Asset and Loan Growth - Total assets reached $46.76 billion as of December 31, 2022, compared to $46.22 billion in the previous quarter [212]. - Old National's total loans increased to $31.12 billion, up from $30.53 billion in the previous quarter [212]. - Total loans grew to $31,123,641 in 2022, compared to $13,601,846 in 2021, marking an increase of approximately 129.0% [215]. - Average earning assets increased to $38,751,786 in 2022 from $21,152,209 in 2021, reflecting growth in the asset base [225]. - The loan portfolio totaled $31.1 billion at December 31, 2022, compared to $13.6 billion at December 31, 2021, with significant increases in commercial and commercial real estate loans [265]. - Commercial and commercial real estate loans increased to $22.0 billion at December 31, 2022, up $12.2 billion from the previous year, representing 53% of earning assets [267]. Merger Impact - Old National completed its merger with First Midwest, acquiring $21.9 billion in assets and assuming $17.2 billion in deposits [202]. - Average non-interest-bearing deposits increased by $5.6 billion in 2022 compared to 2021, largely due to the First Midwest merger [243]. - Total deposits rose to $35.0 billion at December 31, 2022, an increase of $16.4 billion or 88% compared to $18.6 billion in 2021 [279]. - Goodwill and other intangible assets totaled $2.1 billion at December 31, 2022, an increase of $1.1 billion due to the First Midwest merger [276]. - Total under-performing assets increased to $267.0 million at December 31, 2022, compared to $127.1 million at December 31, 2021, largely due to the First Midwest merger [303]. Credit Quality and Losses - The provision for credit losses was $144,799 in 2022, compared to a reversal of $(29,622) in 2021, reflecting a significant shift in credit quality assessment [215]. - The allowance for credit losses on loans increased to $303.7 million at December 31, 2022, compared to $107.3 million in 2021, reflecting adjustments from the First Midwest merger [273]. - Net charge-offs for the year 2022 totaled $16.1 million, compared to a recovery of $4.8 million in 2021 [316]. - The allowance for credit losses on loans as a percentage of year-end loans was 1.08% at December 31, 2022, compared to 0.87% in 2021 [315]. - The company may experience volatility in provision expense due to changes in credit quality and macroeconomic conditions [317]. Operational Efficiency - The efficiency ratio improved to 49.12% in Q4 2022, down from 55.26% in Q3 2022 [212]. - The efficiency ratio improved to 57.97% in 2022 from 59.75% in 2021, showing enhanced operational efficiency [215]. - Total noninterest expense rose to $1,038.2 million in 2022, a 107.1% increase from $501.4 million in 2021, reflecting additional operating costs from the First Midwest merger and $120.9 million in merger-related expenses [248]. Tax and Regulatory Compliance - The effective tax rate increased to 21.4% in 2022 from 18.1% in 2021, attributed to higher pre-tax book income and increased state effective tax rates post-merger [251]. - The company is subject to various legal actions and proceedings incidental to its business operations [341]. - Compliance with applicable regulatory requirements is embedded within the company's culture and mission [336]. Shareholder and Equity Information - Cash dividends remained stable at $0.56 per share for both 2022 and 2021, with the common dividend payout ratio increasing to 37% from 33% [215]. - Shareholders' equity increased to $5.1 billion, representing 11% of total assets, up from $3.0 billion or 12% of total assets in 2021 [282]. - The company repurchased 3.5 million shares of Common Stock in 2022, reducing equity by $63.8 million [283].
Old National Bancorp(ONB) - 2022 Q4 - Earnings Call Transcript
2023-01-24 17:59
Old National Bancorp (NASDAQ:ONB) Q4 2022 Earnings Conference Call January 24, 2022 10:00 AM ET Company Participants Jim Ryan - CEO Brendon Falconer - CFO Mark Sander - President and COO Conference Call Participants Ben Gerlinger - Hovde Group Scott Siefers - Piper Sandler Terry McEvoy - Stephens Chris McGratty - KBW David Long - Raymond James Jon Arfstrom - RBC Operator Welcome to the Old National Bancorp's Fourth Quarter 2022 Earnings Conference Call. This call is being recorded and has been made accessib ...
Old National Bancorp(ONB) - 2022 Q4 - Earnings Call Presentation
2023-01-24 14:36
Financial Performance Highlights - Adjusted EPS reached $0.56, while net income was $164 million[10] - Adjusted Return on Average Assets (ROA) stood at 1.46%[10] - Adjusted Return on Average Tangible Common Equity (ROATCE) was 26.5%[11] - The adjusted efficiency ratio was 47.5%[11] - Net Interest Margin (NIM) expanded by 14 bps, driven by loan growth and a higher rate environment[11] Loan and Deposit Growth - Total loan growth was 8% annualized, with commercial loans also up by 8%[11, 13] - Total loans reached $31.091 billion[13] - Deposits totaled $35.001 billion, impacted by the sale of $382 million in Health Savings Accounts (HSAs)[13] Strategic Actions and Credit Quality - The company completed the sale of health savings accounts, resulting in a $91 million pre-tax gain, partially offset by $27 million in pre-tax losses from property optimization[11] - Net charge-offs remained low at 5 bps[11] Full Year 2022 Performance - Adjusted EPS for the full year was $1.96, with net income at $541 million[12] - Adjusted ROA for the year was 1.28%[12] - Total loan growth for the year was 12%, with commercial loans up 13%[12]
Old National Bancorp(ONB) - 2022 Q3 - Quarterly Report
2022-11-02 14:51
[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Consolidated financial statements reflect significant balance sheet expansion and operational shifts due to the First Midwest merger, with total assets nearly doubling [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets grew to **$46.2 billion** (89% increase) due to the First Midwest merger, with significant increases in net loans and deposits, offset by AOCI losses Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2022 | Dec 31, 2021 | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **$46,215,526** | **$24,453,564** | **+89.0%** | | Net Loans | $30,226,679 | $13,494,505 | +124.0% | | Goodwill | $2,002,599 | $1,036,994 | +93.1% | | **Total Liabilities** | **$41,272,143** | **$21,441,546** | **+92.5%** | | Total Deposits | $36,053,663 | $18,569,195 | +94.2% | | **Total Shareholders' Equity** | **$4,943,383** | **$3,012,018** | **+64.1%** | | Accumulated Other Comprehensive Loss | ($808,450) | ($2,375) | N/M | [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) Net income for Q3 2022 significantly increased due to the First Midwest merger and rising rates, while nine-month net income slightly decreased due to credit loss provisions Q3 2022 vs Q3 2021 Performance (in thousands) | Metric | Q3 2022 | Q3 2021 | % Change | | :--- | :--- | :--- | :--- | | Net Interest Income | $376,589 | $151,572 | +148.5% | | Provision for Credit Losses | $11,287 | ($4,613) | N/M | | Noninterest Income | $80,385 | $54,515 | +47.5% | | Noninterest Expense | $266,647 | $121,274 | +119.9% | | Net Income to Common Shareholders | $136,119 | $71,746 | +89.7% | | Diluted EPS | $0.47 | $0.43 | +9.3% | Nine Months 2022 vs 2021 Performance (in thousands) | Metric | Nine Months 2022 | Nine Months 2021 | % Change | | :--- | :--- | :--- | :--- | | Net Interest Income | $936,846 | $449,619 | +108.4% | | Provision for Credit Losses | $118,101 | ($26,898) | N/M | | Noninterest Income | $234,742 | $162,735 | +44.2% | | Noninterest Expense | $770,798 | $368,632 | +109.1% | | Net Income to Common Shareholders | $217,468 | $221,350 | -1.8% | | Diluted EPS | $0.80 | $1.33 | -39.8% | [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail the significant impact of the First Midwest merger, covering accounting, acquired assets, goodwill, loan portfolio increase, and the large negative AOCI balance [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=58&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes strong Q3 2022 results to robust loan growth and net interest margin expansion from the First Midwest merger and rising rates, emphasizing strong capital and risk management [Executive Summary](index=62&type=section&id=Executive%20Summary) Old National reported strong Q3 2022 results with net income of **$136.1 million**, driven by robust loan growth and net interest margin expansion from the First Midwest merger, and an agreement to sell the HSA business - Q3 2022 net income was **$136.1 million**, or **$0.47 per diluted share**, up from **$111.0 million**, or **$0.38 per share**, in Q2 2022[225](index=225&type=chunk) - Loan balances grew by **$1.0 billion** (13% annualized) from Q2 2022, driven by strong commercial and consumer production[227](index=227&type=chunk) - Net interest income increased by **$39.1 million** from Q2 2022, benefiting from higher interest rates and loan growth[228](index=228&type=chunk) - An agreement was made to sell the Health Savings Account (HSA) business to UMB Bank, expecting a premium of approximately **$95 million**[224](index=224&type=chunk) [Results of Operations](index=63&type=section&id=Results%20of%20Operations) Results were significantly shaped by the First Midwest merger, with Q3 net interest income surging 148.5% to **$376.6 million**, noninterest income growing, and noninterest expense rising, including merger costs - Net interest income for Q3 2022 increased **148.5%** YoY, primarily due to the merger, loan growth, higher rates, and accretion income Accretion income was **$25.4 million** in Q3 2022 vs **$3.0 million** in Q3 2021[247](index=247&type=chunk) - The net interest margin (tax-equivalent) expanded to **3.71%** in Q3 2022 from **2.92%** in Q3 2021, driven by higher asset yields[213](index=213&type=chunk)[248](index=248&type=chunk) - Provision for credit losses was an expense of **$11.3 million** in Q3 2022, compared to a recapture of **$4.6 million** in Q3 2021 For the nine-month period, the provision was **$118.1 million**, including **$96.3 million** to establish an allowance for acquired non-PCD loans[253](index=253&type=chunk) - Q3 2022 noninterest income increased **47.5%** YoY, despite a **50.7%** decline in mortgage banking revenue due to the higher rate environment[254](index=254&type=chunk) - Q3 2022 noninterest expense increased **119.9%** YoY, reflecting additional operating costs from the merger and **$22.7 million** in merger-related expenses[255](index=255&type=chunk) [Financial Condition](index=69&type=section&id=Financial%20Condition) Old National's financial condition was substantially larger and reshaped by the First Midwest merger, with total assets at **$46.2 billion**, earning assets at **$41.2 billion**, and a **$10.3 billion** investment portfolio carrying **$860.3 million** in unrealized losses - Total assets increased by **$21.8 billion** to **$46.2 billion** at Sept 30, 2022, from Dec 31, 2021, primarily due to the First Midwest merger[259](index=259&type=chunk) - Commercial and commercial real estate loans grew by **$11.8 billion** to **$21.5 billion** since year-end 2021, driven by the merger and strong organic production[266](index=266&type=chunk) - The investment securities portfolio had net unrealized losses of **$860.3 million** at Sept 30, 2022, compared to **$6.0 million** at year-end 2021, due to rising interest rates[264](index=264&type=chunk) - Total deposits increased by **$17.5 billion** to **$36.1 billion**, and total wholesale borrowings increased by **$1.7 billion** to **$4.3 billion** since year-end 2021[275](index=275&type=chunk) - Shareholders' equity increased to **$4.9 billion**, reflecting **$2.4 billion** in stock issued for the merger, but was reduced by a **$651.4 million** decrease from unrealized losses on AFS securities[277](index=277&type=chunk)[279](index=279&type=chunk) [Risk Management](index=73&type=section&id=Risk%20Management) The company manages credit, market, and liquidity risks, with asset quality metrics reflecting the First Midwest merger, and an asset-sensitive balance sheet positioned to benefit from rising interest rates, supported by strong liquidity and credit ratings - Under-performing assets were **$260.1 million** (**0.85%** of total loans and OREO) at Sept 30, 2022, an increase in dollar amount but a decrease in ratio compared to Dec 31, 2021 (**$127.1 million**, **0.93%**) The change was driven by the First Midwest merger[301](index=301&type=chunk)[302](index=302&type=chunk)[303](index=303&type=chunk) - The allowance for credit losses for loans increased to **$302.3 million** from **$107.3 million** at year-end 2021, primarily due to an **$89.1 million** allowance on acquired PCD loans and a **$96.3 million** provision for acquired non-PCD loans from the merger[320](index=320&type=chunk) - Net interest income sensitivity analysis shows a projected **4.01%** increase in NII over two years with a **+100 basis point** rate shock, indicating an asset-sensitive position[327](index=327&type=chunk) - The company maintains strong credit ratings, with Moody's affirming a long-term deposit rating of 'Aa3' and a short-term rating of 'P-1' for Old National Bank[333](index=333&type=chunk)[335](index=335&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=83&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section refers readers to the 'Market Risk' and 'Liquidity Risk' sections within Item 2, Management's Discussion and Analysis, for detailed disclosures - The report directs readers to the MD&A section for detailed information on market and liquidity risk[345](index=345&type=chunk) [Controls and Procedures](index=83&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective at a reasonable assurance level as of September 30, 2022, with no material changes to internal control over financial reporting during the quarter - The principal executive officer and principal financial officer concluded that disclosure controls and procedures are effective at a reasonable assurance level as of the end of the reporting period[346](index=346&type=chunk) - No material changes to the company's internal control over financial reporting were identified during the quarter[349](index=349&type=chunk) [PART II. OTHER INFORMATION](index=84&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Risk Factors](index=84&type=section&id=Item%201A.%20Risk%20Factors) The company states no material changes to the risk factors previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2021 - There have been no material changes to the risk factors disclosed in the 2021 Form 10-K[351](index=351&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=84&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q3 2022, Old National acquired **34,195** shares from employee tax withholdings, with no repurchases under the **$200 million** stock repurchase program, which has **$136.1 million** remaining authorization - No shares were repurchased during Q3 2022 under the publicly announced stock repurchase program[353](index=353&type=chunk) - The company acquired **34,195** shares during the quarter, which were surrendered by employees to cover tax obligations on vested restricted stock[352](index=352&type=chunk) - The stock repurchase program, authorizing up to **$200 million** in repurchases, remains in effect through January 31, 2023[353](index=353&type=chunk) [Exhibits](index=85&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate governance documents, Sarbanes-Oxley certifications, and financial statements in inline XBRL format - Exhibits filed include corporate governance documents, Sarbanes-Oxley certifications by the CEO and CFO, and financial data in inline XBRL format[356](index=356&type=chunk)
Old National Bancorp(ONB) - 2022 Q3 - Earnings Call Transcript
2022-10-25 20:07
Old National Bancorp. (NASDAQ:ONB) Q3 2022 Earnings Conference Call October 25, 2022 10:00 AM ET Company Participants Jim Ryan - Chief Executive Officer Brendon Falconer - Chief Financial Officer James Sandgren - Chief Executive Officer, Commercial Banking Mark Sander - President and Chief Operating Officer Conference Call Participants Scott Siefers - Piper Sandler Ben Gerlinger - Hovde Group Terry McEvoy - Stephens Chris McGratty - KBW Jon Arfstrom - RBC Capital Markets Operator Welcome to the Old National ...
Old National Bancorp(ONB) - 2022 Q3 - Earnings Call Presentation
2022-10-25 13:52
3rd Quarter 2022 Financial Review October 25, 2022 Forward-Looking Statements These materials contain certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, descriptions of Old National's financial condition, results of operations, asset and credit quality trends, profitability and business plans or opportunities. Forward-looking statements can be identified by the use of the words "anticipate," "beli ...
Old National Bancorp(ONB) - 2022 Q2 - Quarterly Report
2022-08-03 15:08
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission File Number 001-15817 Old National Bancorp (Exact name of registrant as specified in its charter) Indiana 35-1539838 (State or oth ...