Company: ONBPP
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0000707179-25-000009
Chunk: 90

Company: OLD NATIONAL BANCORP /IN/
Filing Date: 2025-04-30
Form: 10-Q
Item: Item 1
Chunk 90
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Risk Factors” in the Company’s 2024 Annual Report on Form 10-K.

Credit Risk

Credit risk represents the risk of loss arising from an obligor’s inability or failure to meet contractual payment or performance terms. Our primary credit risks result from our investment and lending activities.

Asset Quality

We lend to commercial and commercial real estate clients in many diverse industries including, among others, real estate rental and leasing, manufacturing, healthcare, wholesale trade, construction, and agriculture. Old National manages concentrations of credit exposure by industry, product, geography, client relationship, and loan size. At March 31, 2025, our average commercial loan size was approximately $759,000 and our average commercial real estate loan size was approximately $1,578,000. In addition, while loans to lessors of residential and non-residential real estate exceed 10% of total loans, no individual sub-segment category within those broader categories reaches the 10% threshold, other than multifamily. At March 31, 2025, we had minimal exposure to foreign borrowers and no sovereign debt. Our policy is to concentrate our lending activity in the geographic market areas we serve, primarily in the Midwest and Southeast regions of the United States.

The following table presents a summary of under-performing assets as well as criticized and classified assets:

(dollars in thousands)March 31,2025December 31, 2024Nonaccrual loans$469,211 $447,979 Past due loans (90 days or more and still accruing)6,757 4,060 Foreclosed assets6,301 4,294 Total under-performing assets$482,269 $456,333 Classified loans (includes nonaccrual, past due 90 days    or more, and other problem loans)$1,955,598 $1,525,452 Other classified assets (1)53,239 58,954 Special mention loans828,314 908,630 Total criticized and classified assets$2,837,151 $2,493,036 Asset Quality Ratios: Nonaccrual loans/total loans (2)1.29 %1.23 %Under-performing assets/total loans (2)1.32 1.26 Under-performing assets/total assets0.90 0.85 Allowance for credit losses on loans/under-performing assets83.34 86