Company: ONBPP
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0000707179-25-000018
Chunk: 116

Company: OLD NATIONAL BANCORP /IN/
Filing Date: 2025-07-30
Form: 10-Q
Item: Item 1
Chunk 116
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 from base$(80,714)$(82,778)$(39,309)$23,083 $21,263 $29,394 $43,629 % change from base(2.54)%(2.60)%(1.24)%0.73 %0.67 %0.92 %1.37 %

75

The following table illustrates the upper bound, Federal Funds Rate assumed in the simulation above at June 30, 2025 and 2024:

June 30, 2025June 30, 2024Basis Point Change ScenarioFederal FundsRate (1)Month 12 (2)Federal FundsRate (1)Month 12 (2)+3004.5 %7.5 %5.5 %8.5 %+2004.5 %6.5 %5.5 %7.5 %+1004.5 %5.5 %5.5 %6.5 %Base4.5 %4.5 %5.5 %5.5 %-1004.5 %3.5 %5.5 %4.5 %-2004.5 %2.5 %5.5 %3.5 %-3004.5 %1.5 %5.5 %2.5 %

(1)Represents the upper bound, Federal Funds Rate.

(2)Represents the Federal Funds Rate in month 12 given a gradual, parallel “ramp” relative to the base implied forward scenario.

Our projected net interest income increased year over year driven by loan growth and asset repricing due to current interest rates and economic conditions. Our overall strategy is consistent period over period, as we continue to manage our balance sheet toward a neutral interest rate risk position in a disciplined manner.

A key element in the measurement and modeling of interest rate risk is the re-pricing assumptions of our transaction deposit accounts, which align with our approach to deposit pricing and are consistent period over period. Because the models are driven by expected behavior in various interest rate scenarios and many factors besides market interest rates affect our net interest income, we recognize that model outputs are not guarantees of actual results. For this reason, we model many different combinations of interest rates and balance sheet assumptions to understand our overall sensitivity to market interest rate changes, including shocks, ramps, yield curve flattening, yield curve