Company: ONBPP
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0000707179-25-000005
Chunk: 102

Company: OLD NATIONAL BANCORP /IN/
Filing Date: 2025-02-19
Form: 10-K
Item: Item 7
Chunk 102
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)(24,478)(11,188)(29.2)118.8 Total net (charge-offs) recoveries on   loans$(62,004)$(55,910)$(16,099)10.9 %247.3 %Net charge-offs (recoveries) to average loans0.17 %0.17 %0.06 %— %183.3 %

Total provision for credit losses increased $51.7 million in 2024 compared to 2023 primarily due to loan growth, credit migration, net charge-offs, and macroeconomic factors. In addition, the provision for credit losses on loans in 2024 included $15.3 million to establish an allowance for credit losses on non-PCD loans acquired in the CapStar transaction. 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. For additional information about non-performing loans, charge-offs, and additional items impacting the provision, refer to the “Risk Management – Credit Risk” section of Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

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. This source of revenue as a percentage of total revenue was 19% in 2024 compared to 18% in 2023.

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The following table details the components of noninterest income:

Years Ended December 31,% Change FromPrior Year(dollars in thousands)20242023202220242023Wealth and investment services fees$116,791 $107,784 $100,851 8.4 %6.9 %Service charges on deposit accounts78,175 71,945 72,501 8.7 (0.8)Debit card and ATM fees43,400 42,153 40,227 3.0 4.8 Mortgage banking revenue26,237 16,319 23,015 60.8 (29.1)Capital markets income20,