Company: ONBPP
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0000707179-25-000005
Chunk: 101

Company: OLD NATIONAL BANCORP /IN/
Filing Date: 2025-02-19
Form: 10-K
Item: Item 7
Chunk 101
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 billion increase in average interest-bearing deposits, partially offset by a reduction in average borrowed funds. Average noninterest-bearing deposits decreased by $1.2 billion.

The increase in average earning assets in 2024 compared to 2023 was primarily due to loans and securities acquired in the CapStar transaction as well as strong loan growth. The loan portfolio, including loans held-for-sale, which generally has an average yield higher than the investment portfolio, was 76% of average interest earning assets in 2024, compared to 75% in 2023.

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Average loans, including loans held-for-sale, increased $3.3 billion in 2024 compared to 2023 primarily due to loans acquired in the CapStar transaction as well as strong commercial real estate loan growth. Loans acquired in the CapStar transaction totaled $2.1 billion at transaction close.

Average non-interest-bearing deposits decreased $1.2 billion in 2024 compared to 2023 while average interest-bearing deposits increased $5.0 billion reflecting a mix shift as a result of the current rate environment, deposits assumed in the CapStar transaction, and organic growth. Total deposit growth in 2024 has allowed us to organically fund loan growth. Deposits assumed in the CapStar transaction totaled $2.6 billion at the close of the transaction.

Provision for Credit Losses

The following table details the components of provision for credit losses:

Years Ended December 31,% Change FromPrior Year(dollars in thousands)20242023202220242023Provision for credit losses on loans$120,191 $59,849 $123,340 100.8 %(51.5)%Provision (release) for credit losses on    unfunded loan commitments(9,572)(962)21,309 895.0 (104.5)Provision for credit losses on held-to-   maturity securities— — 150 N/A     (100.0)Total provision for credit losses$110,619 $58,887 $144,799 87.8 %(59.3)%Net (charge-offs) recoveries on non-PCD   loans$(44,675)$(31,432)$(4,911)42.1 %540.0 %Net (charge-offs) recoveries on PCD   loans(17,329