Company: ONBPP
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0000707179-25-000064
Chunk: 260

Company: OLD NATIONAL BANCORP /IN/
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 2
Chunk 260
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 from an obligor’s inability or failure to meet contractual payment or performance terms. Our primary credit risks result from our investment and lending activities.

Asset Quality

We lend to consumer and commercial clients in many diverse industries including, among others, real estate rental and leasing, manufacturing, healthcare, wholesale trade, construction, and agriculture. Old National manages concentrations of credit exposure by industry, product, geography, client relationship, and loan size. At September 30, 2025, our average commercial loan size was approximately $740,000 and our average commercial real estate loan size was approximately $1,465,000. At September 30, 2025, we had minimal exposure to foreign borrowers and no sovereign debt. Our policy is to concentrate our lending activity in the geographic market areas we serve, primarily in the Midwest and Southeast regions of the United States.

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The following table presents a summary of under-performing assets as well as criticized and classified assets:

(dollars in thousands)September 30,2025December 31, 2024Nonaccrual loans$590,820 $447,979 Past due loans (90 days or more and still accruing)1,525 4,060 Foreclosed assets6,325 4,294 Total under-performing assets$598,670 $456,333 Classified loans (includes nonaccrual, past due 90 days    or more, and other problem loans)$2,473,639 $1,525,452 Other classified assets (1)35,373 58,954 Special mention loans893,109 908,630 Total criticized and classified assets$3,402,121 $2,493,036 Asset Quality Ratios: Nonaccrual loans/total loans (2)1.23 %1.23 %Under-performing assets/total loans (2)1.25 1.26 Under-performing assets/total assets0.84 0.85 Allowance for credit losses on loans/under-performing assets95.57 86.02 Allowance for credit losses on loans/nonaccrual loans96.84 87.62 

(1)Includes investment securities that fell below investment grade rating.

(2)Loans exclude loans held-for-sale.

Under-performing assets increased to $598.7 million at September 30, 2025, compared to $456.3 million at