Company: ONBPP
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0000707179-25-000018
Chunk: 137

Company: OLD NATIONAL BANCORP /IN/
Filing Date: 2025-07-30
Form: 10-Q
Item: Item 8
Chunk 137
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 and $0.1 million during the three and six months ended June 30, 2024, respectively.Alternative InvestmentsOld National has alternative investments without readily determinable fair values that are included in other assets totaling $920.5 million at June 30, 2025 and $609.2 million at December 31, 2024. These investments consisted of $543.4 million of illiquid investments in partnerships, limited liability companies, and other ownership interests that support affordable housing and $377.0 million of economic development and community revitalization initiatives in low-to-moderate income neighborhoods at June 30, 2025, compared to $318.5 million and $290.7 million for the same investment types, respectively, at December 31, 2024. There have been no impairments or adjustments on alternative investments without readily determinable fair values, except for amortization of tax credit investments in the six months ended June 30, 2025 and 2024. See Note 9 to the consolidated financial statements for detail regarding these investments.

NOTE 6 – LOANS AND ALLOWANCE FOR CREDIT LOSSES

LoansOld National’s loans consist primarily of loans made to consumers and commercial clients in many diverse industries, including real estate rental and leasing, manufacturing, healthcare, wholesale trade, construction, and agriculture, among others. Most of Old National’s lending activity occurs within our principal geographic markets in the Midwest and Southeast regions of the United States. Old National manages concentrations of credit exposure by industry, product, geography, client relationship, and loan size.Old National has loan participations, which qualify as participating interests, with other financial institutions. At June 30, 2025, these loans totaled $4.2 billion, of which $2.2 billion had been sold to other financial institutions and $2.0 billion was retained by Old National. The loan participations convey proportionate ownership rights with equal priority to each participating interest holder; involve no recourse (other than ordinary representations and warranties) to, or subordination by, any participating interest holder; all cash flows are divided among the participating interest holders in proportion to each holder’s share of ownership; and no holder has the right to pledge the entire financial asset unless all participating interest holders agree.

18

The loan categories used to monitor and analyze interest income and yields are different than the portfolio segments used to determine the allowance for credit losses on loans. The allowance for credit losses was calculated by pooling loans of similar credit