Company: ONBPP
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0000707179-25-000009
Chunk: 181

Company: OLD NATIONAL BANCORP /IN/
Filing Date: 2025-04-30
Form: 10-Q
Item: Item 8
Chunk 181
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WellCapitalized"GuidelinesMarch 31,2025December 31, 2024Tier 1 capital to total average assets (leverage   ratio)4.00 %N/A%9.44 %9.21 %Common equity Tier 1 capital to risk-weighted   total assets7.00 N/A11.62 11.38 Tier 1 capital to risk-weighted total assets8.50 6.00 12.23 11.98 Total capital to risk-weighted total assets10.50 10.00 13.68 13.37 Shareholders’ equity to assetsN/AN/A12.13 11.84 

Old National Bank, Old National’s bank subsidiary, maintained a strong capital position as evidenced by the following key industry ratios.

RegulatoryGuidelinesMinimumPromptCorrectiveAction "WellCapitalized"GuidelinesMarch 31,2025December 31, 2024Tier 1 capital to total average assets (leverage   ratio)4.00 %5.00 %9.28 %9.07 %Common equity Tier 1 capital to risk-weighted   total assets7.00 6.50 12.03 11.82 Tier 1 capital to risk-weighted total assets8.50 8.00 12.03 11.82 Total capital to risk-weighted total assets10.50 10.00 13.00 12.72 

During 2020, the OCC, the Board of Governors of the Federal Reserve System, and the FDIC issued final rules to delay the estimated impact on regulatory capital stemming from the implementation of CECL guidance. The final rules provided banking organizations the option to delay for two years an estimate of CECL’s effect on regulatory capital, relative to the incurred loss methodology’s effect on regulatory capital, followed by a three-year transition period (five-year transition option). Old National adopted the capital transition relief over the permissible five-year period. This five-year transition option is no longer applicable for periods subsequent to December 31, 2024.

Management views stress testing as an integral part of the Company’s risk management and strategic planning activities. Old National performs stress testing periodically throughout the year. The primary objective of the stress test is to ensure that Old National has a robust, forward-looking stress testing process and maintains sufficient capital to continue operations throughout times of economic and financial stress. Management also