Executive Vice President & Chief Executive Officer of Commercial Banking, Old National Bancorp
Search every verified James Sandgren interview, podcast appearance, and on-the-record quote — each transcript cross-checked by AI and human review to confirm speaker identity. During Old National Bancorp's first quarter 2023 earnings call, James Sandgren discussed the bank's financial performance and strategy. He stated that deposit balances were stable during the quarter, with a total cost of deposits at 72 basis points and a low 15 percent total deposit beta cycle to date. Sandgren noted that the bank maintains a 150 percent liquidity coverage in excess of uninsured deposits, including $10.3 billion in immediately available funds. He said the bank expects near-term loan growth in the mid-single digit range and year-over-year net interest income growth of 9 to 12 percent in 2023. Sandgren also mentioned that the bank does not anticipate repurchasing additional shares in the near term, citing a need for more economic stability and clarity before considering capital actions like buybacks. Sandgren emphasized the bank's approach to credit management, stating that Old National has worked aggressively to address some purchased credit deteriorated (PCD) credits from a merger. He said the bank maintains elevated reserves reflecting a weighted Moody's S3 scenario with negative GDP of 3.1 percent and unemployment of 7.1 percent. Sandgren added that the bank expects fee businesses to continue performing well despite headwinds in mortgage, with continued revenue momentum in wealth from strategic hires made over the last two years.
“Our deposit balances were stable during the quarter despite the normal first quarter seasonal patterns and public fund balances. Our total cost of deposits at 72 basis points is well below peers and we maintain our deposit pricing discipline with a low 15 percent total deposit beta cycle to date.”
“We remain confident in our client selection and underwriting and as you know Old National has taken an active approach to credit management. This approach is service well in various economic cycles as evidenced this quarter we've worked aggressively to address some PCD credit from the merger.”
“Our liquidity coverage and excess of our uninsured deposits is 150 percent including unencumbered assets. Likewise, our credit remains strong with five basis points of non-PCD related charge-offs and stable asset quality.”
“We have ample liquidity with approximately 150 percent coverage of our uninsured deposits including 10.3 billion dollars in immediately available funds from cash equivalents, Federal Home Loan Bank, that discount window and the BTSP. We also have 5.4 billion dollars in capacity from high quality unencumbered collateral...”
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