Company: ONBPP
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0000707179-25-000064
Chunk: 145

Company: OLD NATIONAL BANCORP /IN/
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 8
Chunk 145
---
ated by the fact that the loans are of smaller amounts spread over many borrowers, along with monitoring of updated borrower credit scores.

22

Allowance for Credit LossesLoansCredit loss assumptions used when computing the level of expected credit losses are estimated using a model that categorizes loan pools based on loss history, delinquency status, and other credit trends and risk characteristics, including current conditions and reasonable and supportable forecasts about the future. The base forecast scenario considers unemployment, gross domestic product, home price index, and the BBB ratio (BBB spread to the 10-year U.S. Treasury rate). In addition to the quantitative inputs, several qualitative factors are considered. These factors include the risk that macroeconomic forecasts of unemployment, gross domestic product, home price index, and the BBB ratio may prove to be more severe and/or prolonged than our baseline forecast due to a variety of considerations. Old National’s activity in the allowance for credit losses on loans by portfolio segment was as follows:(dollars in thousands)Balance atBeginning ofPeriodAllowanceEstablishedfor AcquiredPCD LoansCharge-offsRecoveriesProvisionfor LoanLossesBalance atEnd ofPeriodThree Months Ended September 30, 2025  Commercial$215,917 $6,666 $(22,068)$1,222 $33,246 $234,983 Commercial real estate294,303 6,438 (8,016)2,101 (11,999)282,827 BBCC2,488 — (419)25 364 2,458 Residential real estate31,850 — (25)51 (445)31,431 Indirect8,430 — (1,863)690 704 7,961 Direct2,564 — (2,907)648 2,113 2,418 Home equity9,557 — (104)627 20 10,100 Total$565,109 $13,104 $(35,402)$5,364 $24,003 $572,178 Three Months Ended September 30, 2024Commercial$138,460 $3,245 $(11,512)$308 $6,341 $136,842 Commercial real estate189,911 (442)(2,799)214 18,015 204,899 BBCC2,897 — (676)56