Old National Bancorp (NASDAQ:ONB) Q4 2022 Earnings Call Transcript

Brendon B. Falconer: We would call it $925 million. We would exclude the entire tax credit amortization. So $925 million of the asset because I know analysts treat that differently. Many of them exclude… Yes.

Scott Siefers: Okay. So $925 million is kind of the underlying projection in there? Okay. And then the — I appreciate that clarification, Brendon. And then when you talk about the 24% core FTE tax expectation for full year 2023 does that include or exclude the tax credit benefits?

Brendon B. Falconer: Include — it includes all the tax credit benefits. Yes.

Scott Siefers: Okay, perfect. Thank you guys very much.

Brendon B. Falconer: Thanks Scott.

Operator: Our next question is a follow-up from Chris McGratty with KBW. Please go ahead, Chris.

Christopher McGratty: Oh, great, thanks. Brendon, the $1.1 billion that’s coming off the bond book, I think you alluded that you probably will shrink the bond portfolio and put it into the loan book. I guess a question on how much of a remix we should think about for this year, ultimately, I’m trying to get at two things: the level of borrowings that you’re going to have to do and your ultimate comfort with the loan-to-deposit ratio.

Brendon B. Falconer: Yes, we’re comfortable with letting the loan deposit ratio increase from here. I think we have plenty of room. We have plenty of wholesale funding capacity. I think how much of that is — how much of the borrowings are used for loan growth will be a function of how effective we are in maintaining stable deposits.

Christopher McGratty: Okay. But the goal is roughly stable deposit, right?

Brendon B. Falconer: Right.

Christopher McGratty: Okay, thank you.

James C. Ryan III: Thanks Chris.

Operator: . There are no further questions at this time. I’d like to turn the call back to Jim Ryan for closing remarks.

James C. Ryan III: Well, thanks for all your attendance. I appreciate all the questions. We will be around all day long to answer any follow-up questions. Thanks, and look forward to talking with you soon.

Operator: This concludes Old National’s call. Once again, a replay along with the presentation slides will be available for 12 months on the Investor Relations page of Old National’s website, oldnational.com. A replay of the call will also be available by dialing 866-813-9403 and the access code 104806. This replay will be available through February 7th. If anyone has any additional questions, please contact Lynell Walton at 812-464-1366. Thank you for your participation in today’s conference call.