Company: ONBPP
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0000707179-25-000009
Chunk: 79

Company: OLD NATIONAL BANCORP /IN/
Filing Date: 2025-04-30
Form: 10-Q
Item: Item 1
Chunk 79
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release) for credit losses on    unfunded loan commitments377 (4,962)(107.6)Total provision for credit losses$31,403 $18,891 66.2 %Net (charge-offs) recoveries on non-PCD   loans$(18,836)$(6,061)210.8 %Net (charge-offs) recoveries on PCD   loans(2,780)(5,689)(51.1)Total net (charge-offs) recoveries on   loans$(21,616)$(11,750)84.0 %Net charge-offs (recoveries) to average   loans0.24 %0.14 %68.5 %

Total provision for credit losses on loans increased in the three months ended March 31, 2025 compared to the same period in 2024 primarily due to credit migration, higher net charge-offs, and macroeconomic factors. 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, such as wealth management, investment consulting, and investment products. The following table details the components in noninterest income:

Three Months EndedMarch 31,%(dollars in thousands)20252024ChangeWealth and investment services fees$29,648 $28,304 4.7 %Service charges on deposit accounts21,156 17,898 18.2 Debit card and ATM fees9,991 10,054 (0.6)Mortgage banking revenue6,879 4,478 53.6 Capital markets income4,506 2,900 55.4 Company-owned life insurance5,381 3,434 56.7 Debt securities gains (losses), net(76)(16)375.0 Other income16,309 10,470 55.8 Total noninterest income$93,794 $77,522 21.0 %

Noninterest income increased $16