Old National Bancorp has released its 10-K report, providing a comprehensive overview of its financial performance and business outlook. The company operates as the bank holding company for Old National Bank, offering various financial services to individual and commercial customers in the United States. The company's corporate headquarters and principal executive office are located in Evansville, Indiana, with commercial and consumer banking operations headquartered in Chicago, Illinois.
In 2023, Old National Bancorp achieved record full-year results despite a challenging interest rate environment and industry-wide liquidity pressures. The company reported net income applicable to common shareholders of $565.9 million, or $1.94 per diluted common share, reflecting growth in deposits of 6% and disciplined loan growth of 6%. The net interest income increased to $1.5 billion in 2023, compared to $1.3 billion in 2022, driven by the higher interest rate environment and loan growth. Additionally, the company maintained stable credit metrics, including net charge-offs to average loans of 0.17%.
However, noninterest income decreased from $399.8 million in 2022 to $333.3 million in 2023, primarily due to specific one-time gains and the full-period 2023 impact of the First Midwest merger, which occurred in February 2022. Noninterest expense decreased by $11.9 million in 2023 compared to 2022, excluding specific expenses related to the First Midwest merger and other one-time charges.
Looking ahead, Old National Bancorp is cautiously optimistic about its business outlook for 2024. The company aims to position its balance sheet well approaching the end of the interest rate cycle, with a focus on deposit and organic loan growth. The pending merger with CapStar is expected to expand the company's business to dynamic markets in Nashville and broader Tennessee, as well as Asheville, North Carolina, creating opportunities to acquire new clients and build on existing relationships within this footprint.
Financial highlights for the year-ended December 31, 2023, include a return on average assets of 1.21%, an increase from 0.99% in the previous year. The company's net interest margin also improved to 3.54% in 2023, compared to 3.47% in 2022. Old National Bancorp's tangible common book value increased to $11.00 per share in 2023 from $9.42 per share in 2022, reflecting the company's capital strength.
In summary, Old National Bancorp's 10-K report outlines its resilient performance in 2023, driven by robust deposit franchise, disciplined loan growth, and strong credit quality. The company remains focused on strategic initiatives, including the pending merger with CapStar, to expand its footprint and create value for its shareholders and communities. Following these announcements, the company's shares moved 2.3%, and are now trading at a price of $16.64. For more information, read the company's full 10-K submission here.
