ONB - Earnings call transcript Q2 2022

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Operator

Welcome to the Old National Bancorp Second 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. to presentation statement slides. you earnings in refers and release company its legend forward-looking the The The and SEC discussed risk within company's factors its filings. are fully disclosed

for which appropriate In presentation. believes investors' I'd remarks. of please turn are understanding opening Reconciliations to are non-GAAP contained slides trends. addition, assist the measures, now proceed. performance to these certain intended to like provides These Jim comparisons. Ryan, call the for more of non-GAAP within measures contain appendix Ryan management Mr. over numbers the

Jim Ryan

Good morning. discuss changes our systems quarter second from you outstanding branding update on We're pleased and to results and merger. our transformational our

and X. been the very well systems Let's Slide We start clients It's completed overall and brand a our our on quickly to of systems adapted commercial and couple successfully conversion. data conversion and busy have new went recently The systems. weeks.

can't gratified our better the outstanding to but in fill progress will Completing to the results imagine given team ability activity to synergies. dedication and As systems normalize. have that growth experienced work communities. hard distractions. our merger expected, elevated to should accelerate loan robust share you want our convergence I presentation. results, all build data contact on centers and serving model our achieve clients activities, have pipelines. Brendon our achieved I'm started to despite branches later teams to for the their continue especially thank and levels the of and I our members our

markets and from good in Chicago land we some those campaigns our feedback and Lastly, receiving started metropolitan of are efforts. branding

second reported $X.XX GAAP Moving share. of to quarter per Slide earnings for We the X.

merger of included $XX.X The million charges second expenses. pretax in quarter

from was the quarter, Excluding or share per $X.XX $XXX these million. EPS common adjusted charges current

in equity a respectively. X.XX%, tangible XX% was Our adjusted strong and common assets average

ratio adjusted efficiency XX%. approximately Our was

nearly annualized every and was and and business. returns. on our across saw portfolio execution in commercial our merger loan growth and quality leading higher a requests. and remain business rates loan business XX% community excellent, growing point with new Credit XX%, We growth diligent expansion. but robust higher primarily an benefit on commercial with the higher these grew we the commercial results basis. market interest margin balances focused contributed remains to XX of our banking The Our basis paired drove Total credit

municipal and at record in a Our pipeline. our our sheets billion. balance record quarter. by quarter-over-quarter, balances while evidenced of to ended managers XX clients our deposits new clients quick yet during quarter. to the grew were government discipline. and client-facing be strong wealth stimulates A We pipeline during and deposit high grow management the pricing We hiring. Much markets hold Overall, successfully therefore, expand, $X.X and maintaining on continue the funds and have update are as to relationship welcomed commercial remained invested; pleased

remains Our more pipeline continue robust, throughout and to talent we year. new make the investments will

optimistic are grow. that Business sheet to bring continue very sentiment are remain slightly, but and set its unique worsening consumer While our performing businesses to XXXX our challenges, continues well. we of own balance will

to We withstand now any to further details. for over are challenges. Thank positioned the turn well you. call I will Brendon new

Brendon Falconer

Thanks, Jim.

by per net income on merger-related common $XXX share. the $XX reported $X.XX to Turning in X. quarter's Slide We million earnings charges. of million Reported results GAAP or shares applicable impacted to were

money is which and growth commercial consumer mortgage, the by by The production the growth combined end shift investment reflects we the XX%. mix annualized an And a balance transactional X.X%. million of modestly loans The the with securities of improved was the driven quarter deployed cash in loans. Growth basis, shorter $XX quarter-over-quarter, well runoff growth. consumer $XXX earnings transactional duration Slide of outstanding have as book adjusted at on as million. by unchanged. and loan growth of QX approximately loans per in represents end. basis, overall yield XX% X.XX%, trend significant within eighth loan $X.XX. robust significantly debt organic quarter Effective $X.X purchases last the of despite on yield with shows our money was remaining growth support historical approximately total Investment the to book the with charges of gains, largely driven on our PPP end increasing with dramatic I'd stable the portion quarter decreased excluding in total portfolio net of curve . consecutive was these note a lower portfolio at residential X XX% Excluding yields share new saleable was of loan billion. of new focused of

The transferred with strong distributed well HTM impact. In OCI growth second in growth was X future to $X growth addition, C&I billion annualized we another pipeline. Slide and securities quarter XX% into loans and further CRE. of mitigate our help details of commercial portfolio XX% annualized our in provides

production, strong X% the pleased QX. over are is second despite increase We that quarter our billion at a ended also which a pipeline quarter the record $X.X

to briefly pricing. Turning

billion The XX New points to lines Slide billion continued was X But all market. by production of money legacy details production well. basis major product $X.X our yields on QX points yields our commercial momentum expansion and $X C&I XX X.X%, to with CRE increased balanced markets nearly Chicago up shows of new strong quarters across its well all The basis end of production strong product and as from markets. production. with QX had market X.XX%. of

product growth, strong the throughout demand posted a of loan quarter-over-quarter In addition, our of loan reflection footprint. lines clear all our

up XX. points, we just basis the government largely continues to and from increases at cost period deposits did in were quarter-over-quarter, municipal offset see deposits deployment was in seasonal X Slide Total although of and some of End low by retail to stable of Moving that funds. commercial point basis quarter. client be our prior X deposits

necessary, deposits sources if funding actions, defend future are but rate commercial We ample have growth. asset we to loan and to support liquidity prepared through

have December quarter-over-quarter meaningfully interest and and earning growth, policy. remain margin, through expanded NIM landing details possibility interest income both down on protect quick protection, asset that albeit we margin, the Fed to longer XX of well X% been last of for expand loan remixing Next, balance strong higher projected increased at rates. at to growth, deposit positioned the X.XX%. mix cycle-to-date proactively several X.XX%. a excluding continued we have our a continue strong on earning economic reversal and hedging margins and Also, additional you of basis and rising currently range. over We including rate $X billion details over assets to the a points the have hard of quarters We two our on Fed while of from margin provides and and income, Margin million XX, improved rates, sheet to we better year-end, related assumptions build due improved trends points charged-off of believe Slide million to slower sheet don't Core of pricing funds will balance from lag. is due betas returns our a which basis in the outlook acquired to production increased X.X% to expected in expected for anticipated. in rate to to XX%. to items we outperform asset recoveries loans and static than we $X slightly XX range was this position recur. a deposit from which net loan next of adjusted collars, shows remainder to to investment XX $XX The pace. the XX will and opportunities noninterest accretion quarter, Slide XX% beta discrete the higher Mortgage PPP than equity to the that our continue fully see target Slide liability today income, floors a quarters, expect over was year. meaningfully over outlook include

However, on negatively higher sale a and the rev. impact production normalizing of percentage did gain portfolio margins

for adjusted were ratio the to our XX better-than-planned expense Expenses a tax was trend higher charges was in credit year-to-date $XXX amortization, efficiency incentive performance. and noninterest adjusted due shows slightly to anticipated of accruals expenses. and XX.X%. Adjusting true-up merger Slide than million, Next, reflect noninterest

our tracking the the of Merger million third savings run cost bulk remaining. are the provides to late to Slide slightly We of of XX in quarter. line expect achieving approximately planned $XXX on also details $XX our estimates, with path to continue synergies, charges but begin with further million. cost ahead diligence our savings

pessimistic in reserves Net both $XXX incentive-related run clients all credit to milestone Slide prudent loan to first in be and of are with build end of credit and updated realized XX% and cloud elevated the our uncertainty and completed well. last continue in stands QX. our resulting charge-offs any required to deterioration And the believe of at health prior are strong QX shows driven specific economic to Reserve economic allowance, commercial Slide our it benign, quality book. signs annualized timing while partly XX was consumer us, to rate million we were commercial metrics. of include by our The With XQ will come million, on the improved an is better-than-planned remain the continue by historical the Old quarter better-than-peer up qualitative Expectations unchanged results higher from XX, see exceptionally X reserves the not our and cost the the trends major lifts. on at cost XXXX. lower basis until Note, On today, to remainder Midwest. seeing financial forecast, strong. of realizing in ended dates. points. with positive more portfolios asset from synergies we remaining First basis early quarter a expenses our we of now conversion modest and portfolio of the National and our key systems performance. We $XXX in maintain levels fourth behind details credit growth perform Credit conditions which trends of you offset have was

in position provides carry total Slide quarter at In million end. our XX to the credit $XXX addition on in $XXX capital details we marks. reserves, also million

As strong earnings. offset loan CETX of reflects our with X.X%. strong than growth, ratio more retained can XX quarterly you decrease it which robust see, a remains modest basis point The

GAAP economic levels. comfortable our We very continue to stress feel for our with monitor and sheet balance

our takeaways: major welcome of been remain than recently led up broad-based waning completed planned of our are key quarter includes thoughts outlook on our of We brought ahead full for loan XXXX. record I ended outlook to expansion tracking by was margin the We retention our my cost growth, synergies. has the some and of conditions margin quarter are scripted the peers. and guidance remainder conversion the benefit our a quarter outlined in than As market. slower consumer which Chicago better favorable from the a sentiment. pace benign Slide commercial another we comments that increases Net a pipeline, RM Fed consistent and Client couldn't should XX on Rate have folded partnership. rate leading schedule, result albeit and closing our loan the potentially wrap and on QX, increases, supports with margin at exceptional, interest first with given loan following we growth we systems meaningfully growth earlier. higher income credit here continued business

fee headwinds. to despite our perform continue businesses expect well to We

with income. patterns organic business, pressure fixed a on percentage industry deposit pressure Mortgage for fluctuations lastly, support in gain And AUM anticipate will margins solid growth activity continued of service capital trends. expect We be under as pressure portfolio equities production. continue should revenue wealth as we is industry under higher on Commercial from following revenues. consistent markets normalizing fee both well charges, to with market but sale our and in strong

targeting We expenses million [Technical $XXX are of QX Difficulty] adjusted

Operator

on. presentation. gentlemen, Please speaker the do we the and have back line with Ladies proceed

Brendon Falconer

you. Thank

reserving take conditions We adjusted the conservative and will $XXX QX to expect near expenses to benign, continue are synergies million majority by the in approach of a year-end. of to cost realize term. are targeting Credit we but

brief a taxes. Lastly, on update

as year we tax from for approximately amortization head closing, the effective finish have into and rate approximately year and with are of earnings XX% peers, a in on core FTE full basis catalysts of the In should on $X our expecting strong the year us differentiate remainder a million credit the we believe We XX% that we XXXX. GAAP corresponding tax basis.

narrow, and to like Mark comments, Moran. and deposit John execute as your equity the our expansion. best-in-class do for we discipline promised customary growth, us call our to questions, markets have margin on for deliver commercial should Jim we including relative synergies, to discounted I'd franchise With peers, team available, cost open the have better-than-peer continue the full maintain While this our believe and those Sandgren loan we leverage Sander, credit a

Operator

Sandler. [Operator Instructions] line is comes your Our of Siefers the line first Piper Scott from open. Scott with question now

Brendon Falconer

morning, to you. Scott. Good absolutely. Good from hear Yes,

with the about this the Sorry challenge line morning.

Scott Siefers

I problems. to have beat. without That say, up Brendon, a no missing was picked Likewise, it very back impressive.

Brendon Falconer

of complete appreciate back a but lot I spot the in up you question room, the on to can there's frantic one Well, rightful as coming movement imagine, number able you as glad, to we're And the your call. patch list.

good So job.

Scott Siefers

to wanted questions. of just have I a couple

there. what outlook expand you the you I that I could so because when are sort that written slowing, customers potentially the So noted in guess to outlook XQ strong, was growth of was seeing to and just comments the about your mean in you guys? comment hoping talked the I on saying client loan you and in just extraordinarily sentiment meant just

Brendon Falconer

give view I'll Mark or high-level a jump you let maybe here. and in Yes. Jim

think to good ways innovative still add? are their record the just about those our kind everybody things they grew will else. we are but we rates, sentiment still higher Would on everybody feel clients pipeline. weighing fact and cautiously really the Just can't of account done. all pipeline, like interest cautious also somewhat, find optimistic we And good. still you to else, I mind, close our very declining to it But feel But into continue we're that that our are we take like deals the levels get

Jim Ryan

add, you a alluded strong would had we I really second Well, as quarter. to,

as quarter, indicate And and the that But the and revenues quite there. perhaps -- expecting be grew second are every would million strong pipeline profitability we great a -- things clients might even bit had So commercial $XXX a much. out indicate still pipeline our clients' would quarter. we our

near million again, perhaps not would say the term, about $XX for outlook we good I So in at our feel growth. But loan level.

boosted This little dollars Line also a million of picked got quarter, couple has we up raws. hundred line by bit a that. of draw

Scott Siefers

the then if great commentary to for Virtually And funding costs, appreciate in I beta no the in switch deck. the and which a side increase deposit could over is second.

deposit And Just pricing that are there's betas portion curious sort Fed you what guys the for be would I words, through-the-cycle if the raising that in National legacy sort the year-end the Old you are pressure once of cite of versus the see footprint? curious other in thinking any versus old full there? then in rates, stops difference newer you footprint seeing guys or the Chicago of the beta

Jim Ryan

think is time. to We're not I it little see pressure but the pricing starting picking first unexpectedly. a bit, for up

more accordingly. So we're the cost from customers, the typical price-sensitive getting we're responding and

our franchise a through to the ends the this. total this models deposit what it around the we Right up. of of now, terms our tell XX%, we'll We but where is the and expectation know our at showing point. of cycle, are betas cycle the that average better hard we at see at bank -- believe have In we'll end advantage be than end the with it competitive

Operator

Hovde line Our Gerlinger is next Ben open. of the question Group. your Ben, comes from with line

Ben Gerlinger

in I a like minutes new there. slides deserves deck put earlier. The I especially want got couple a dial very two very, round the is Looks in of helpful, thing a of slide applause. Anyway, to together

I bit When are So of you on the points following there are frequently have funding balance pricing kind more of the clients guys about of up sensitive balance guess the you or to headache more guys the starting to seeing? side? kind just on the a But more any pressure pricing, calling the is sheet answering to that pressure relative Scott's bit -- kind question see more that of you a loan or about still here. you are is little deposits. both think sides funding on

Brendon Falconer

I side has would held on spreads say the well. up quite loan

there. not seeing pressure we're So

it guess, competitive to coming I And side, right stay than deposit marketplaces. it anticipating in our going seeing we're the On we're now. more

won't of we be kind the thing. won't but so And last be first, we the

Ben Gerlinger

guidance, guess first of and a Fed approaching technical a kind lending XX on the any you're And in that being are growth way be some Are Friday, degree guys you get Does recession. that look of Wednesday. the pressing areas assuming you across loans? overall on gas But there change to have the broadly might tapping or just on categories? GDP loans suspicion on the then that the QX speaking, brakes your we in I sneaky

Jim Ryan

Again, I'll are vulnerable and think our may There cautious lend numbers I clients maybe some you that the a changed and we'll really jump here situation. it's And it we at industries are to all Again, it more in get But industries what right. don't in outlook believe team regardless to client-by-client GDP some maybe to. don't continue where up so. that hasn't I but some ask of there's than about, then be the follow report.

very the I our continue the And this overall we're I'm talked approach that marketplace and don't or prepared. business and hearing our -- much others. are come country, is think clients the I what side healthy, than very from across it's side, think whether healthy as I different personal to into in don't banks other very well Our overall to

opportunities, I business. optimistic do want that think we're there I we'll growth think to still and all continue to to to continue healthy out very there's have demand

Ben Gerlinger

You credit issue. guys of really you a never -- had much

feeling like your like economic last be? high one level high anything into there that do is end, for on it a would me, a is and nowhere have balance or thoughts where much clients, bigger comfort of on ratio? big guide-rails the of The I'm have the but any kind you your end sheet, you for which new positive So good slowdown. near updated going seems the any we're potential kind loan-to-deposit

Jim Ryan

targets Well, but our think internally do the that of we balance certainly, withstand a some the got time sheet. commercial we quite labor seeing for to out is about balance growth. there. that could we've strong sheet. published think stated been the remix I goal I fruits here, a of talk ours of That's with no remix And better you're

So and at I look forecast capital growth. we're on kind comfortable any limits. feel near of and do don't of -- positioned think and forecast multiyear we're at trend with the items these and line We today liquidity where very anywhere

Operator

of Chris, your from McGratty open. is Our the line line with next KBW. question Chris comes

Chris McGratty

Yes. Slide all guys Maybe, detail and Brendon, you thing start sticks those how the the with level a you the do components cash if that of dynamic quarter, the great bit core in but is little you on you would the maybe balance the one redeployed growth? of have metrics margin balance the walk assumption. not same given through, XX, outlook. on sheet out Can a sheet, The sensitivity growth, of static the get

Brendon Falconer

I Yes, solid go that -- year and maybe with range, the that's that Chris, in assumptions, maybe remainder be end top then the range short end we'd the be normalized over but the betas think loan some of the deposit of these remaining of near the hand the hand. growth probably short would higher from better performance through

Chris McGratty

just It to trying point. of a seems lay lift-off end inflation I'm costs, of baking next on the by the year, year? get that we a maybe trying the a sense XXX that in then will just assume be in? And XXX-plus what the all quarter? the exiting or like level out like for I'm cost quarter to saves cost the get should fourth you range

Brendon Falconer

cost XX% of saves. Yes, that's the

to another basis on annualized million So in rough come you'd 'XX. have an $XX tough and

Chris McGratty

could I one if sneak maybe then in. And

and you attrition relationship I You call the new today? commercial are talked any XX out? about markets would the, wealth that given managers. competitive how to for talent unexpected Anything about What think, date

Jim Ryan

our I -- just company. kind broadly very been so. certainly, really attrition will attrition of we'll average, the have three-year I do speaking, entire And replacing positions. to had strong And recruit not honestly, replacing talent. across don't pockets think has more continue reports and always But close here we're really think We our at we've -- there, we look running And numbers. to those but regularly. not it's attrition

specialty we invest us where that to and markets to We our some certainly bigger talent are adding grow in have opportunity Midwest And think with we to balance to businesses continue grow. also brought right, the of have we First and those sheet, to opportunities businesses. to continue the

so particularly more think broader as And about our we footprint.

that. numbers do little, anything managers market in if we But historically, attrition had our as So market. in of relationship attrition have that Chicago fact, see we'll just pause. talked continue in many about been don't any, And the We've that to very excellent. in kind that I

showing great good First And we about feel success a legacy having of footprint. in the success really And think right? Midwest So our particularly ability. deal helps, I we're

Chris McGratty

then last maybe on X And buyback. the

about You one I obviously, growth rebuild talked near the, I the loan know that, consideration? medium-term thoughts guess, term. just are is What on resuming

Brendon Falconer

like no that start. we medium No, on. plans we to build see back to Chris, in near term We'd before yes, have back the or capital turn

Operator

Our of your Terry from the comes Terry, is next Stephens. line open. line with McEvoy question

Terry McEvoy

reported. for quarter, maybe given ran through to puts of deposits the it talk your to You conversion what then And your occurred in flat over half second in of month Could and in quarter-over-quarter competitors any this have given last noticeable change deposits second month? some expectations the you that the deposit but this balances about balances see the the of year? nice was takes some

Brendon Falconer

I'll the No in First, deposit over I'll notable the months. take start. balances -- change past

deposits as in into liquidity people cycle. is things along come that working liquidity. deploy deposit said, as That is growing we this year probably out to this we are head on pressure, there all start under and expectations Our

prepared offense defend deposits. and proactively gathering we we're so what have on get start to And and

Terry McEvoy

Brendon. you, question another And for

items, pressure. fees, wealth, service good it as the Your feel then discussion started some momentum. of the with kind you But implied your you outlook mortgage, for of I charges, look about some at

and that are outlook? you So that about fee could precise a little in on trends then your if Slide lose kind other Operator, line the we think connection normalize more the did be XX, again? you of

Operator

It we has connection [Technical the them. like reconnect been looks Please standby, lost. Difficulty] as once again

Our speaker Terry, call, on still is open. back team is line the your and

Jim Ryan

Sorry will Terry. now. your answer Brendon about question that,

Terry McEvoy

Yes.

Okay.

Brendon Falconer

but is pressure. think I gist fee of it, I under the I let Yes, clearly know got the me Terry, if something. Yes, missed please,

mortgage I strong think you're line. so the and the had story and the come but in Obviously, is equity growth industry. pressure, really pressure and -- will under feel markets brokerage, the that putting same growth income good that on as in But wealth organic everybody in we be we AUM else and to fee the space. is really markets starting lines see organic through obviously fee fixed but yes, those about in -- those

Terry McEvoy

then last question. And one

Slide production? new There markets. quarter. of color opened behind added, up it million your that? you a new some was just was talk last production about You Was on where LPOs? loan you've versus $XX And Could X, what new

James Sandgren

Sandgren. Terry, Jim this is

have out about, we've are and So talked -- since job. president got built great that Louis in we've nice a doing been a team St. two corporate RMs and market We've a as now XXXX there.

really in a We to earlier grow have RMs, and side. really bank January good year, estate big to corporate recently and both there City hired real middle-market they've St. got two Kansas on commercial great into the start. a and credit treasury management a this We just person continued representative and and off background Louis, in

markets. middle two spur combination helped those of in have a kind the opportunities growth that market CRE of and So

Operator

Jon, comes next the open. line Jon with from now question line is of your RBC. Arfstrom Our

Jon Arfstrom

call going say, bad I you're to not supposed to have drop on was quarter. quarters, the Jim, good

Jim Ryan

ever that This here. is first the been I've

and going drops It's know row. right three don't out on. have like I cats We a now. what's in raining dogs

don't but if weather the technical know I bad issues here, causing some us apologize. So is we

Jon Arfstrom

strategy? It's a all anything hedging Brendon, about Slide you of -- not? on goals can XX, couple more in little what's are this or And go overall in up giving right. of upside pursuing detail just the you follow-ups. a the

Brendon Falconer

take us hedging of upside, the protects structure downside. the to advantage to trying We're actually all to from allow but the No.

is So bets. to And the that's to back why structure top, the collar place. when reach manages a peak It right? position in making Fed X% any be neutral objective asset-sensitive the hit are at without funds the big the slowly as we not

last did same the So thing here. thing rate we the we're same to cycle, in trying do

Jon Arfstrom

more cumulative little McGratty under balance asked XX% Chris high. since anything just down. and the just almost outperform to already deposit I we're The of the in budge by to X to sheet. year-end August type see you of further bit static beta end XX% year? that cumulative opportunity a of by to about of go XX% wanted seems barely your assumption assumption XX% --

Brendon Falconer

is our different. and Yes, happening were, I rate assumption some cycle the it That it's last was starting where much pressure. the where opportunity. of think costs at there's but Fed this faster, We're to XXX rate an deposit off see built looking funds when was at was

So an little It's definitely have a we opportunity lag opportunity pricing to to might longer. an outperform.

Jon Arfstrom

your of because reserve it pretty Slide going model A But have as built all reserves here it's on levels, thinking guess provisioning challenging what's also I couple your input economic you that. more XX, a from loans scenarios percentage of seems appreciate and draconian here. the a applaud here, in? But already information I and like for you forward some for pretty

Brendon Falconer

play to we're economic the to this might and out. forecast see watch Yes, continue where this, going

optimistic I And are expect near be through believe build that. -- near for more forecast forecast, the we're not to will continue in to term. fairly grow to pulling in grow continue a will to -- going a pessimistic We to the term, putting provision have loans we so don't we but related we back

Jim Ryan

this reserves of the in see approach right great Yes. and just for us I thing right just year. much to to we out so is we the obviously, there. and just the make growth the We're provides the expect for feel do to plenty like continue this have environment. economic sure There's going of uncertainty for rest

Jon Arfstrom

in between about You all numbers numbers your a we're segue question, a there's bank Jim. difference last seeing into my obviously, we read and what provided well. But as other kind of and what

maybe So and some easy maybe a been integration well challenging it. segue There's but integration. as amplify the cherry that pick is go to scenario stuff didn't public to it's pretty as the the planned,

how So it's comments, do update us that. on So starting you give your an did? in earlier normalize it you think sounded just And you like again? to said

Jim Ryan

We incredibly couple balanced sure. I all, of on early here like on the the Sunday systems first went -- and Sundays data morning. Yes, a in ago, very of conversion we was out feel well.

of we there's our -- a to and adapted mobile just getting debit channels. lot new online to very through their clients of have commercial them a Our XXX,XXX lot clients retail and systems register cards There's clients, well. getting just them and

So to that really the maybe it's believe, pick certainly, about have said good again, easy clients in it, forward. the we But the overall, ad. largely behind continue with we we And us handful pleased of really feel importantly, overall. mirror to going rearview feel something. And it's more

don't Mark, to else what I know, add So would you that?

Unidentified Company Representative

business I with clients all think a our of in spot we're in our good segments.

of now. had Jim, the on said back you of a busy earlier, weeks we're that we couple As half

out last in visiting so of commercial couple weeks spent and with time banking of lot clients centers. a I And in the

have the with think And connection teams we're good spot so it's I -- that a their total. you in see in our really clients,

Operator

from the comes Long David, question next open. line Our your David with James. now of is line Raymond

David Long

of the to accretion pick see you NIM the I net accounting wanes you XXXX, next as maybe up bit? the term out pressure on do quarters. at ask on look appreciate couple of the a about -- guidance deposit you And to wanted little XXXX. looking all the the margin, maybe reported the as bit gave and -- some interest I a to for longer But betas purchase some that

Brendon Falconer

Yes, we got as get are 'XX. into But burn chunk obviously, to big kind funds also we now, increases moving to benefit start book off medium-term we're repricing that right beyond, we'll a accretion a of yield. And higher up of set much at we'll that. loan our rate so from continue

room So I think to margin 'XX. that and grow we into still that that some expand have

David Long

appetite or to of step thinking are larger but on any for year? cycle of about it across next you industry, Is sort just acquisition? like the maybe Do And Or right you are bolt side then you curious how how talks things, the on appetite next guys? guys down into another sounds that? M&A M&A are about an now, you make have thinking in for the there the something

Jim Ryan

on Well, the work feel never integrate good never. we with and the I really the in at still and partnership. with team focused would partnership say but clients incredibly where integration we're we of members, this are there's But start This was transformational do. continuing a to about to

And as a so come continue we'll need think first. integration very to there. And out at we And do if that But on we along, things a growing take team. organically really current the do I be opportunities look definitely them. quiet will and focused to are

if the very imagine, to look. organically. a grow still can first and in and But take the is is close you on are definitely clients split pricing is is existing to our good and I what's things out take right, As of And we'll timing opportunity job there. enough, going our I think very the the right world, care quiet

Operator

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

Jim Ryan

Well, in Hope great team a has times ready John, great to day, is whole we appreciate be everybody here. forward couple talking questions. quarter. soon. the Thank patience this with Lynell We and Brendon your had as to look you. you I and for and a to with follow-up any everybody of dial

Operator

A will Once X. website, Old will (XXX) (XXX) replay available call XXX-X-XXX, be Old a Lynell Relations slides National's questions, for months XXXXXX. along concludes presentation conference on page replay please XXX-XXXX. also has Walton This Thank contact for call. Investor XX of participation through oldnational.com. replay call. your anyone the be dialing again, National's be code of the If with by August in at access you available additional This will available today's the

Old National Bancorp (ONB) 26 Jul 222022 Q2 Earnings call transcript