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Old National Bancorp (ONB) Q3 Earnings call transcript Oct 22, 2024

Daily EarningsMonday, Oct 28, 2024 8:28 pm ET

1min read

ONB -- PUK --

In the latest earnings call, Old National Bancorp showcased a robust performance in the third quarter of 2024, highlighting its strategic execution and financial health. The call, led by Chairman and CEO Jim Ryan, revealed a company that is not only delivering solid results but also navigating market challenges with confidence.

Earnings Highlights

Old National reported GAAP earnings of $0.44 per common share, in line with expectations. The company's strong organic deposit growth, prudent loan growth, and disciplined expense management were key drivers of this performance. The adjusted earnings per share stood at $0.46, reflecting a 16.8% adjusted return on tangible common equity.

Financial Metrics and Trends

The call emphasized Old National's focus on organic growth and its ability to fund loan growth with low-cost core deposits. The company's total deposit growth, led by strong core deposits, is a testament to its deposit strategy. Meanwhile, the tangible common book value per share has seen an impressive 8% increase since the second quarter of 2024 and a 21% year-over-year rise, demonstrating a solid capital position.

Credit and Risk Management

Old National's credit management was a highlight of the call, with total net charge-offs at a low 19 basis points, excluding PCD loans. The company's proactive approach to credit monitoring has led to above-peer levels of nonperforming loans, but delinquency and charge-off ratios that are well below peer averages. The allowance for credit losses to total loans, including the reserve for unfunded commitments, stands at nearly 160 basis points, providing ample reserve coverage.

Looking Ahead

The call provided insights into Old National's outlook for the future, with expectations of modest net interest income growth in the fourth quarter. The company's focus on organic deposit growth, maintaining a neutral rate risk position, and continued investment in fee income businesses positions it well for future growth.

Analyst Questions

Analysts probed Old National's management on various aspects, including net interest income guidance, credit dynamics, and potential M&A opportunities. The company's responses indicated a strategic focus on growth, capital management, and maintaining a strong competitive position.

Conclusion

Old National Bancorp's Q3 2024 earnings call underscored its strong financial position, strategic focus, and effective management. The company's performance in the face of market challenges and its proactive approach to risk and credit management bode well for its future growth prospects. As Old National continues to execute its strategy, it remains well-positioned to navigate the evolving banking landscape.

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