Company: ONBPP
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0000707179-25-000009
Chunk: 94

Company: OLD NATIONAL BANCORP /IN/
Filing Date: 2025-04-30
Form: 10-Q
Item: Item 1
Chunk 94
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 likely impact of changing interest rates on Old National’s results of operations. The model quantifies the effects of various possible interest rate scenarios on projected net interest income. The model measures the impact on net interest income relative to a base case scenario over a two-year cumulative horizon resulting from an immediate change in interest rates using multiple rate scenarios. The base case scenario assumes that the balance sheet and interest rates are held at current levels. The model shows our projected net interest income sensitivity based on interest rate changes only and does not consider other forecast assumptions. Due to the dynamics of future interest rate expectations, we also measure and monitor interest rate risk using the forward curve, which may be a more probable scenario of our interest rate exposure. The forward curve represents the relationship between the price of forward contracts and the time to maturity of the forward contracts at a point in time.

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The following table illustrates our projected net interest income sensitivity over a two-year cumulative horizon based on the asset/liability model at March 31, 2025 and 2024:

Immediate Rate DecreaseMarch 31, 2025ForwardCurveImmediate Rate Increase(dollars in thousands)-300Basis Points-200Basis Points-100Basis PointsBase+100Basis Points+200Basis Points+300Basis PointsMarch 31, 2025Projected interest income:Money market, other  interest earning  investments, and  investment  securities$735,762 $819,125 $889,605 $932,368 $951,705 $1,003,661 $1,050,600 $1,095,695 Loans2,956,373 3,451,449 3,917,555 4,146,729 4,349,117 4,756,641 5,157,898 5,558,484 Total interest   income3,692,135 4,270,574 4,807,160 5,079,097 5,300,822 5,760,302 6,208,498 6,654,179 Projected interest expense:Deposits403,236 736,130 1,072,666 1,214,250 1,430,577 1,793,479 2,135,026 2,476,598 Borrowings334,192 404,543 485,