Company: ONBPP
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0000707179-25-000064
Chunk: 246

Company: OLD NATIONAL BANCORP /IN/
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 2
Chunk 246
---
 $12.9 billion at the close of the acquisition. 

Provision for Credit Losses

The following table details the components of the provision for credit losses:

Three Months EndedSeptember 30,%Nine Months EndedSeptember 30,%(dollars in thousands)20252024Change20252024ChangeProvision for credit losses on loans$24,003 $29,176 (17.7)%$154,292 $89,774 71.9 %Provision (release) for credit losses on    unfunded loan commitments2,735 (679)(502.8)10,684 (6,172)(273.1)Total provision for credit losses$26,738 $28,497 (6.2)%$164,976 $83,602 97.3 %Net (charge-offs) recoveries on non-PCD   loans$(19,000)$(13,996)35.8 %$(61,199)$(29,878)104.8 %Net (charge-offs) recoveries on PCD   loans(11,038)(3,478)217.4 (16,983)(13,391)26.8 Total net (charge-offs) recoveries on   loans$(30,038)$(17,474)71.9 %$(78,182)$(43,269)80.7 %Net charge-offs (recoveries) to average   loans0.25 %0.19 %29.6 %0.24 %0.16 %48.3 

Total provision for credit losses on loans increased in the nine months ended September 30, 2025 compared to the same period in 2024 primarily due to credit migration, higher net charge-offs, and macroeconomic factors. In addition, the provision for credit losses on loans in the nine months ended September 30, 2025 included $75.6 million to establish an allowance for credit losses on non-PCD Bremer loans and unfunded loan commitments acquired. The provision for credit losses on loans in the nine months ended September 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