Company: ONBPP
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0000707179-25-000018
Chunk: 242

Company: OLD NATIONAL BANCORP /IN/
Filing Date: 2025-07-30
Form: 10-Q
Item: Item 2
Chunk 242
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Provision for credit losses on loans$99,263 $36,745 170.1 %$130,289 $60,598 115.0 %Provision (release) for credit losses on    unfunded loan commitments7,572 (531)(1,526.0)7,949 (5,493)(244.7)Total provision for credit losses$106,835 $36,214 195.0 %$138,238 $55,105 150.9 %Net (charge-offs) recoveries on non-PCD   loans$(23,363)$(9,821)137.9 %$(42,199)$(15,882)165.7 %Net (charge-offs) recoveries on PCD   loans(3,165)(4,224)(25.1)(5,945)(9,913)(40.0)Total net (charge-offs) recoveries on   loans$(26,528)$(14,045)88.9 %$(48,144)$(25,795)86.6 %Net charge-offs (recoveries) to average   loans0.24 %0.16 %54.5 %0.24 %0.15 %60.9 

Total provision for credit losses on loans increased in the three and six months ended June 30, 2025 compared to the same periods in 2024 primarily due to $75.6 million to establish an allowance for credit losses on non-PCD Bremer loans and unfunded loan commitments acquired. In addition, higher net charge-offs and macroeconomic factors contributed to the increases. The provision for credit losses on loans in the three and six months ended June 30, 2024 included $15.3 million to establish an allowance for credit losses on non-PCD CapStar loans acquired. Continued loan growth in future periods, a decline in our current level of recoveries, or an increase in charge-offs could result in an increase in provision expense. Additionally, provision expense may be volatile due to changes in CECL model assumptions of credit quality, macroeconomic factors and conditions, and loan composition, which drive the allowance for credit losses balance.

Noninterest Income

We generate revenues in the form of noninterest income through client fees, sales commissions, and gains and losses from our core banking franchise and other related businesses