Company: ONBPP
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0000707179-25-000064
Chunk: 110

Company: OLD NATIONAL BANCORP /IN/
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 1
Chunk 110
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 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 in both periods.

Credit quality within the loans held for investment portfolio is continuously monitored by management and is reflected within the allowance for credit losses on loans. The allowance for credit losses is an estimate of expected losses inherent within the Company’s