Company: ONBPP
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0000707179-25-000064
Chunk: 261

Company: OLD NATIONAL BANCORP /IN/
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 2
Chunk 261
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 December 31, 2024 primarily due to the Bremer acquisition. Under-performing assets as a percentage of total loans at September 30, 2025 were 1.25%, a 1 basis point decrease from 1.26% at December 31, 2024.

Nonaccrual loans increased $142.8 million from December 31, 2024 to September 30, 2025 reflecting $136.1 million of nonaccrual loans acquired in the Bremer acquisition. As a percentage of nonaccrual loans, the allowance for credit losses on loans was 96.84% at September 30, 2025, compared to 87.62% at December 31, 2024.

Total criticized and classified assets were $3.4 billion at September 30, 2025, an increase of $909.1 million from December 31, 2024 primarily due to $1.2 billion of criticized and classified loans related to the Bremer acquisition. Other classified assets include investment securities that fell below investment grade rating totaling $35.4 million at September 30, 2025, compared to $59.0 million at December 31, 2024.

Allowance for Credit Losses on Loans and Unfunded Commitments

Net charge-offs on loans totaled $30.0 million during the three months ended September 30, 2025, compared to $17.5 million for the same period in 2024. Annualized, net charge-offs to average loans were 0.25% and 0.19% for the three months ended September 30, 2025 and 2024, respectively. The three months ended September 30, 2025 and 2024 included net charge-offs on PCD loans totaling 0.09% and 0.04% on an annualized basis of average loans, respectively. Net charge-offs on loans totaled $78.2 million during the nine months ended September 30, 2025, compared to $43.3 million for the same period in 2024. Annualized, net charge-offs to average loans were 0.24% and 0.16% for the nine months ended September 30, 2025 and 2024, respectively. The nine months ended September 30, 2025 and 2024 included net charge-offs on PCD loans totaling 0.05% on an annualized basis of average loans