Old National Bancorp (NASDAQ:ONB) Q3 2023 Earnings Call Transcript October 24, 2023 10:00 AM ET
Company Participants
Jim Ryan - CEO
Brendon Falconer - CFO
Mark Sander - President & COO
Conference Call Participants
Scott Siefers - Piper Sandler
Terry McEvoy - Stephens
Jon Arfstrom - RBC Capital Markets
Chris McGratty - KBW
Brody Preston - UBS
Operator
Welcome to the Old National Bancorp Third Quarter 2023 Earnings Conference Call. This call is being recorded and has been made accessible to the public in accordance with SEC's regulations, 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 [Technical Issues] provide appropriate comparisons. These non-GAAP measures are intended to assist investors understanding of performance trends. Reconciliation of these numbers are contained within an appendix of the presentation.
And now to turn the call over to National's CEO, Jim Ryan for opening remarks.
Jim Ryan
Good morning. We're pleased to be with you today to share details about our strong third quarter performance. The strength of our franchise remains evident in the results outlined on slide four. This quarter was like our last; business as usual for Old National with growth in deposits, well-controlled funding cost, ample liquidity and stable credit quality. We also saw a slightly positive loan growth despite loan sales. We've reported an EPS of $0.49 for the quarter, adjusted EPS was $0.51 per common share with adjusted ROAA and ROATCE of 1.26% and 21% respectively.
Importantly, we achieved significant year-over-year tangible book value growth. Our adjusted efficiency ratio remained under 50%. Total and core deposit balances were up 3% during the quarter as we compete effectively for new deposits. Our total cost of deposits was 161 basis points, and we maintained our deposit pricing discipline with a low-30% total deposit beta cycle-to-date. As a result, we beat our own margin expectations. Our credit quality remained stable. Net charge-offs were 24 basis points, 15 of which related to a single charge-off that we don't believe indicates a broader weakness in the portfolio. We remain diligent in managing the portfolio consistent with our past strong credit management practices.