Company: ONBPP
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0000707179-25-000009
Chunk: 91

Company: OLD NATIONAL BANCORP /IN/
Filing Date: 2025-04-30
Form: 10-Q
Item: Item 1
Chunk 91
---
.02 Allowance for credit losses on loans/nonaccrual loans85.66 87.62 

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

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

Under-performing assets increased to $482.3 million at March 31, 2025, compared to $456.3 million at December 31, 2024. Under-performing assets as a percentage of total loans at March 31, 2025 were 1.32%, a 6 basis point increase from 1.26% at December 31, 2024.

Nonaccrual loans increased $21.2 million from December 31, 2024 to March 31, 2025. As a percentage of nonaccrual loans, the allowance for credit losses on loans was 85.66% at March 31, 2025, compared to 87.62% at December 31, 2024.

Total criticized and classified assets were $2.8 billion at March 31, 2025, an increase of $344.1 million from December 31, 2024 primarily due to macroeconomic factors and the impact of the higher interest rate environment on borrowers. Other classified assets include investment securities that fell below investment grade rating totaling $53.2 million at March 31, 2025, compared to $59.0 million at December 31, 2024.

63

Allowance for Credit Losses on Loans and Unfunded Commitments

Net charge-offs on loans totaled $21.6 million during the three months ended March 31, 2025, compared to $11.8 million for the same period in 2024. Annualized, net charge-offs to average loans were 0.24% and 0.14% for the three months ended March 31, 2025 and 2024, respectively. The three months ended March 31, 2025 and 2024 included net charge-offs on PCD loans totaling 0.03% and 0.07% on an annualized basis of average loans, respectively.

Credit quality within the loans held for investment portfolio is continuously monitored by management and is reflected within the allowance for credit losses on loans. The allowance for credit losses is an estimate of expected losses inherent within the Company’s loans held for investment portfolio. Credit quality is assessed and monitored by evaluating various attributes and the results of those evaluations are utilized