Company: ONBPP
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0000707179-25-000005
Chunk: 107

Company: OLD NATIONAL BANCORP /IN/
Filing Date: 2025-02-19
Form: 10-K
Item: Item 7
Chunk 107
---
 and December 31, 2023, respectively. The investment securities held-to-maturity portfolio had net unrealized losses of $483.7 million and $412.3 million at December 31, 2024 and December 31, 2023, respectively.

The investment securities available-for-sale portfolio including securities hedges had an effective duration of 4.11 at December 31, 2024, compared to 4.24 at December 31, 2023. The total investment securities portfolio had an effective duration of 5.09 at December 31, 2024, compared to 5.35 at December 31, 2023. Effective duration represents the percentage change in the fair value of the portfolio in response to a change in interest rates and is used to evaluate the portfolio’s price volatility at a single point in time. Generally, there is more uncertainty in interest rates over a longer average maturity, resulting in a higher duration percentage. The weighted average yields on investment securities, on a taxable equivalent basis, were 3.57% in 2024 and 3.18% in 2023.

Loan Portfolio

We lend to commercial and commercial real estate clients in many diverse industries including real estate rental and leasing, manufacturing, healthcare, wholesale trade, construction, and agriculture, among others. Old National manages concentrations of credit exposure by industry, product, geography, client relationship, and loan size. 

50

The following table presents the composition of the loan portfolio at December 31.

(dollars in thousands)20242023$ Change% ChangeCommercial$10,288,560 $9,512,230 $776,330 8.2 %Commercial real estate16,307,486 14,140,629 2,166,857 15.3 Residential real estate6,797,586 6,699,443 98,143 1.5 Consumer2,892,255 2,639,625 252,630 9.6 Total loans36,285,887 32,991,927 3,293,960 10.0 Allowance for credit losses on loans(392,522)(307,610)(84,912)27.6 Net loans$35,893,365 $32,684,317 $3,209,048 9.8 %

The following table presents the contractual maturity distribution and rate sensitivity