Old National Bancorp (NASDAQ:ONB) Q2 2023 Earnings Call Transcript July 25, 2023 10:00 AM ET
Company Participants
Jim Ryan - Chief Executive Officer
Brendon Falconer - Chief Financial Officer
Mark Sander - President and Chief Operating Officer
Conference Call Participants
Ben Gerlinger - Hovde Group
Scott Siefers - Piper Sandler
David Long - Raymond James
Chris McGratty - KBW
Terry McEvoy - Stephens
Brody Preston - UBS
Jon Arfstrom - RBC Capital Markets
Operator
Welcome to the Old National Bancorp Second Quarter 2023 Earnings Conference Call. This call is being recorded and has been accessible to the public in accordance with the SEC's Regulation FD. Corresponding presentation slides can be found on the Investor Relations page at oldnational.com and will be archived there for 12 months.
Management would like to remind everyone that certain statements 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 or outcomes to differ from those discussed. The company refers you to its forward-looking statements legend in the earnings release and presentation slides. The company's risk factors are fully disclosed and discussed within the SEC filings.
In addition, certain slides contain non-GAAP measures, which management believes provide more appropriate comparisons. These non-GAAP measures are intended to assist investors understanding of performance trends. Reconciliations for those numbers are contained within the appendix of the presentation.
I'd now like to turn the call over to Old National CEO, Jim Ryan. Mr. Ryan, please go ahead.
Jim Ryan
Good morning. We are pleased to be with you today to share details about our strong second quarter performance. Simply put, the quarter was business as usual for Old National, with growth in deposits, solid liquidity and credit quality, disciplined loan growth and well-managed expenses.
The strength of our franchise remains evident in the results outlined on Slide 4. We reported EPS of $0.52 for the quarter, adjusted EPS was $0.54 per common share with adjusted ROA and ROATCE of 1.33% and 22%, respectively. Our adjusted efficiency ratio was a low 49%. Tangible book value, excluding AOCI, also increased 15% year-over-year. Deposit balances were up 4% during the quarter, with growth in core deposits of 2% as we continue to compete for new banking relationships effectively.
Our total cost of deposits was 115 basis points and we maintained our deposit pricing discipline with a low 23% total deposit beta cycle to date. Our credit quality remained stable with 6 basis points of non-PCD related charge-offs. We remain watchful and consistent with other banks, are focused on potential pockets of softness. Like our deposit portfolio, our loan portfolio is granular and relationship driven, which should continue to serve us well.