Q4 2024 Old National Bancorp Earnings Call Transcript
Key Points
- Old National Bancorp (ONB) reported strong results for the fourth quarter and full year 2024, with a 10% growth in both core deposits and loans.
- The company achieved a compounded annual growth rate of 8% in total deposits and loans since 2022.
- Old National Bancorp (ONB) maintained a low cost of deposits at 1.93%, with a 93% down beta on exception price deposits.
- The adjusted return on average tangible common equity was 16.9%, and the adjusted efficiency ratio stood at 52%.
- The tangible book value per share grew by 8% year-over-year, and total shareholder return significantly outperformed the KRX and executive peer group in 2024.
- Loan growth was slightly muted with a 1.6% annualized decrease from the last quarter due to outsized payoffs and lower line utilization.
- The company experienced a 17 basis point decrease in deposit rates compared to the prior quarter.
- There were $600 million of outsized payoffs in the commercial book, which could pose a challenge if such trends continue.
- The fourth quarter allowance for credit losses to total loans increased by 2 basis points from the prior quarter.
- The company is facing leadership changes with the retirement of President and COO Mark Sander, which may impact strategic continuity.
Welcome to the National Bank and Full Year 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 investors' understanding of performance trends. Reconciliations for these numbers are contained within the appendix of the presentation.
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