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 Bancorp Third 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 Jim Ryan for opening remarks. Mr. Ryan?

Jim Ryan

Thank you, [Pom] [ph]. Good morning, we are pleased to discuss our outstanding third quarter results and update you on our transformational merger. We completed our systems conversion and branding changes during the quarter. Internally, we have branded our merger as better together. And these last two quarters of strong results demonstrate how we are truly better together to all stakeholders. I also want to take this opportunity to acknowledge and thank our team members for their hard work and dedication to serving our clients, communities and supporting one another throughout this process.

Let’s start on Slide 4. We reported GAAP earnings for the third quarter of $0.47 per share. The third quarter included pre-tax charges of $23 million in merger expenses. Excluding these charges from the quarter, adjusted EPS was $0.51 per common share. This quarters’ adjusted EPS was almost 11% higher than the second quarter. Our adjusted return on average tangible common equity and assets were a strong 23% and 1.35%, respectively, and our adjusted efficiency ratio was at low 51%, which is the best efficiency ratio I can remember in my 20-year plus career at Old National.