Company: ONBPP
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0000707179-25-000009
Chunk: 171

Company: OLD NATIONAL BANCORP /IN/
Filing Date: 2025-04-30
Form: 10-Q
Item: Item 8
Chunk 171
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 in the CapStar transaction as well as strong loan growth.

Average loans, including loans held-for-sale, increased $3.1 billion for the three months ended March 31, 2025 compared to the same period in 2024 primarily due to loans acquired in the CapStar transaction as well as strong commercial and commercial real estate loan growth. Loans acquired in the CapStar transaction totaled $2.1 billion at the close of the transaction.

Average noninterest-bearing deposits decreased $161.5 million while average interest-bearing deposits increased $3.6 billion for the three months ended March 31, 2025 when compared to the same period in 2024 reflecting a mix 

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shift as a result of the current rate environment, deposits assumed in the CapStar transaction, and organic growth. Deposits assumed in the CapStar transaction totaled $2.6 billion at the close of the transaction.

Provision for Credit Losses

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

Three Months EndedMarch 31,%(dollars in thousands)20252024ChangeProvision for credit losses on loans$31,026 $23,853 30.1 %Provision (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,