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 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 statement legend in the earnings release and presentation slides. The company's risk factors are fully disclosed and discussed within its 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 these numbers are contained within the appendix of the presentation.
I'd now like to turn the call over to Old National's CEO, Jim Ryan, for opening remarks. Mr. Ryan, please go ahead.
Jim Ryan
Good morning. Earlier this morning, we reported strong fourth quarter earnings, which put an exclamation point on an incredible year for Old National, one that saw the closing of our transformational merger with First Midwest, successful completion of all related systems conversions, tremendous client growth, and strong talent retention and attraction. The strength of our combined franchise is evident in the results outlined on Slide 4.
Adjusted EPS was $0.56 per common share, representing a 10% increase quarter-over-quarter with a strong adjusted ROA and ROATCE of 1.46% and 26.5%, respectively. Our efficiency ratio was a record low of 47.5%. I'm pleased to share that we achieved the quarterly expense run rate necessary to fulfill our $109 million of modeled merger expense savings.
Moving to Slide 5, we reported GAAP earnings for the entire year of $1.50 per common share. Our adjusted EPS was $1.96 per common share, representing a 13% increase over 2021. These robust quarterly and annual results with peer-leading returns were driven by a focused execution on our successful merger, maintaining our strong low-cost deposit franchise, growing loans with consistent strong credit standards, and disciplined expense management.