v3.26.1
LOANS AND ALLOWANCE FOR CREDIT LOSSES
 6 Months Ended
Jun. 30, 2026
Receivables [Abstract]  
LOANS AND ALLOWANCE FOR CREDIT LOSSES LOANS AND ALLOWANCE FOR CREDIT LOSSES
Loans
Old National’s loans consist primarily of loans made to consumers and commercial clients in many diverse industries, including real estate rental and leasing, manufacturing, healthcare, wholesale trade, construction, and agriculture, among others. Most of Old National’s lending activity occurs within our principal geographic markets in the Midwest and Southeast regions of the United States. Old National manages concentrations of credit exposure by industry, product, geography, client relationship, and loan size.
Old National has loan participations, which qualify as participating interests, with other financial institutions. At June 30, 2026, these loans totaled $3.7 billion, of which $1.8 billion had been sold to other financial institutions and $1.9 billion was retained by Old National. The loan participations convey proportionate ownership rights with equal priority to each participating interest holder; involve no recourse (other than ordinary representations and warranties) to, or subordination by, any participating interest holder; all cash flows are divided among the participating interest
holders in proportion to each holder’s share of ownership; and no holder has the right to pledge the entire financial asset unless all participating interest holders agree.
The loan categories used to monitor and analyze interest income and yields are different than the portfolio segments used to determine the allowance for credit losses on loans. The allowance for credit losses was calculated by pooling loans of similar credit risk characteristics and credit monitoring procedures. The four loan portfolios used to monitor and analyze interest income and yields – commercial, commercial real estate, residential real estate, and consumer – are reclassified into seven segments of loans – commercial, commercial real estate, business banking credit center (“BBCC”), residential real estate, indirect, direct, and home equity for purposes of determining the allowance for credit losses on loans. The commercial and commercial real estate loan categories shown on the balance sheet include the same pool of loans as the commercial, commercial real estate, and BBCC portfolio segments. The consumer loan category shown on the balance sheet is comprised of the same loans in the indirect, direct, and home equity portfolio segments. The portfolio segment reclassifications follow:
Balance Sheet
Line Item		Portfolio
Segment
Reclassifications		Portfolio
Segment After
Reclassifications
(dollars in thousands)
June 30, 2026
Commercial (1)
$16,112,685 $(251,056)$15,861,629 
Commercial real estate22,535,229 (185,429)22,349,800 
BBCCN/A436,485 436,485 
Residential real estate8,760,832 — 8,760,832 
Consumer3,363,838 (3,363,838)N/A
IndirectN/A1,183,585 1,183,585 
DirectN/A597,607 597,607 
Home equityN/A1,582,646 1,582,646 
Total loans (2)
$50,772,584 $— $50,772,584 
Allowance for credit losses on loans(580,511)— (580,511)
Net loans$50,192,073 $— $50,192,073 
December 31, 2025
Commercial (1)
$14,983,861 $(220,410)$14,763,451 
Commercial real estate22,050,007 (175,670)21,874,337 
BBCCN/A396,080 396,080 
Residential real estate8,467,496 — 8,467,496 
Consumer3,262,798 (3,262,798)N/A
IndirectN/A1,075,235 1,075,235 
DirectN/A649,297 649,297 
Home equityN/A1,538,266 1,538,266 
Total loans (2)
$48,764,162 $— $48,764,162 
Allowance for credit losses on loans(569,520)— (569,520)
Net loans$48,194,642 $— $48,194,642 
(1)Includes direct finance leases of $58.8 million at June 30, 2026 and $75.1 million at December 31, 2025.
(2)    Includes unamortized premiums and discounts, and unamortized deferred fees and costs of $455.6 million at June 30, 2026 and $540.1 million at December 31, 2025.
The risk characteristics of each loan portfolio segment are as follows:
Commercial
Commercial loans are classified primarily on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee; however, some loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its clients.
Commercial Real Estate
Commercial real estate loans are classified primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts, and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be adversely affected by conditions in the real estate markets or in the general economy. The properties securing Old National’s commercial real estate portfolio are diverse in terms of type and geographic location. Management monitors and evaluates commercial real estate loans based on collateral, geography, and risk grade criteria. In addition, management tracks the level of owner-occupied commercial real estate loans versus non-owner-occupied loans.
Included with commercial real estate are construction loans, which are underwritten utilizing independent appraisal reviews, sensitivity analysis of absorption and lease rates, financial analysis of the developers and property owners, and feasibility studies, if available. Construction loans are generally based on estimates of costs and value associated with the complete project. These estimates may be inaccurate. Construction loans often involve the disbursement of substantial funds with repayment substantially dependent on the success of the ultimate project. Sources of repayment for these types of loans may be pre-committed permanent loans from approved long-term lenders (including Old National), sales of developed property, or an interim loan commitment from Old National until permanent financing is obtained. These loans are closely monitored by on-site inspections and are considered to have higher risks than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, governmental regulation of real property, general economic conditions, and the availability of long-term financing.
At 254%, Old National Bank’s applicable investor commercial real estate loans as a percentage of its Tier 1 capital plus the allowance for credit losses attributable to loans and leases remained below the regulatory guideline limit of 300% at June 30, 2026.
BBCC
BBCC loans are typically granted to small businesses with gross revenues of less than $5 million and aggregate debt of less than $1 million. Old National has established minimum debt service coverage ratios, minimum Fair Isaac Corporation (“FICO”) scores for owners and guarantors, and the ability to show relatively stable earnings as criteria to help mitigate risk. Repayment of these loans depends on the personal income of the borrowers and the cash flows of the business. These factors can be affected by such changes as economic conditions and unemployment levels.
Residential
With respect to residential loans that are secured by 1 - 4 family residences and are generally owner occupied, Old National typically establishes a maximum loan-to-value ratio and generally requires private mortgage insurance if that ratio is exceeded. Repayment of these loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Repayment can also be impacted by changes in residential property values. Portfolio risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers.
Indirect
Indirect loans are secured by automobile collateral, generally new and used cars and trucks from auto dealers that operate within our footprint. Old National typically mitigates the risk of indirect loans by establishing minimum FICO scores, maximum loan-to-value ratios, and maximum debt-to-income ratios. Repayment of these loans depends largely on the personal income of the borrowers, which can be affected by changes in economic conditions such as unemployment levels. Portfolio risk is mitigated by the fact that the loans are of smaller amounts spread over many borrowers and ongoing reviews of dealer relationships.
Direct
Direct loans are typically secured by collateral such as auto or real estate or are unsecured. Old National has established underwriting standards such as minimum FICO scores, maximum loan-to-value ratios, and maximum debt-to-income ratios. Repayment of these loans depends largely on the personal income of the borrowers, which can be affected by changes in economic conditions such as unemployment levels. Portfolio risk is mitigated by the fact that the loans are of smaller amounts spread over many borrowers.
Home Equity
Home equity loans are generally secured by 1 - 4 family residences that are owner-occupied. Old National has established underwriting standards such as minimum FICO scores, maximum loan-to-value ratios, and maximum debt-to-income ratios. Repayment of these loans depends largely on the personal income of the borrowers, which can be affected by changes in economic conditions such as unemployment levels. Portfolio risk is mitigated by the fact that the loans are of smaller amounts spread over many borrowers, along with monitoring of updated borrower credit scores.
Allowance for Credit Losses
Loans
Credit loss assumptions used when computing the level of expected credit losses are estimated using a model that categorizes loan pools based on loss history, delinquency status, and other credit trends and risk characteristics, including current conditions and reasonable and supportable forecasts about the future. The base forecast scenario considers unemployment, gross domestic product, home price index, and the BBB ratio (BBB spread to the 10-year U.S. Treasury rate). In addition to the quantitative inputs, several qualitative factors are considered. These factors include the risk that macroeconomic forecasts of unemployment, gross domestic product, home price index, and the BBB ratio may prove to be more severe and/or prolonged than our baseline forecast due to a variety of considerations. Old National’s activity in the allowance for credit losses on loans by portfolio segment was as follows:
(dollars in thousands)Balance at
Beginning of
Period		Allowance
Established
for Acquired
PCD Loans		Charge-offsRecoveriesProvision
for Loan
Losses		Balance at
End of
Period
Three Months Ended June 30, 2026  
Commercial$244,640 $— $(19,638)$6,670 $22,182 $253,854 
Commercial real estate266,797 — (18,155)1,018 14,046 263,706 
BBCC2,779 — (486)118 550 2,961 
Residential real estate39,764 — (74)59 701 40,450 
Indirect8,309 — (1,395)661 (347)7,228 
Direct2,412 — (1,735)689 907 2,273 
Home equity9,657 — (57)78 361 10,039 
Total$574,358 $— $(41,540)$9,293 $38,400 $580,511 
Three Months Ended June 30, 2025
Commercial$157,587 $30,492 $(16,805)$973 $43,670 $215,917 
Commercial real estate198,110 59,611 (9,438)123 45,897 294,303 
BBCC2,695 — (53)99 (253)2,488 
Residential real estate24,214 148 (247)150 7,585 31,850 
Indirect9,063 6 (1,766)905 222 8,430 
Direct2,053 47 (1,480)701 1,243 2,564 
Home equity8,210 138 (165)475 899 9,557 
Total$401,932 $90,442 $(29,954)$3,426 $99,263 $565,109 
Six Months Ended June 30, 2026
Commercial$244,670 $— $(43,152)$10,061 $42,275 $253,854 
Commercial real estate268,332 — (26,622)1,426 20,570 263,706 
BBCC2,371 — (1,296)240 1,646 2,961 
Residential real estate34,394 — (386)124 6,318 40,450 
Indirect8,021 — (3,207)1,338 1,076 7,228 
Direct2,478 — (4,026)1,196 2,625 2,273 
Home equity9,254 — (158)199 744 10,039 
Total$569,520 $— $(78,847)$14,584 $75,254 $580,511 
Six Months Ended June 30, 2025
Commercial$148,722 $30,492 $(26,116)$2,253 $60,566 $215,917 
Commercial real estate200,309 59,611 (21,098)393 55,088 294,303 
BBCC2,813 — (57)399 (667)2,488 
Residential real estate22,922 148 (277)238 8,819 31,850 
Indirect8,434 6 (3,700)1,344 2,346 8,430 
Direct2,304 47 (3,081)1,213 2,081 2,564 
Home equity7,018 138 (165)510 2,056 9,557 
Total$392,522 $90,442 $(54,494)$6,350 $130,289 $565,109 
The allowance for credit losses on loans at June 30, 2026 and June 30, 2025 included the impact of acquisition accounting adjustments and provision related to the Bremer acquisition which was completed on May 1, 2025. In addition, the provision for credit losses on loans in the three and six months ended June 30, 2025 included $69.1 million to establish an allowance for credit losses on non-PCD Bremer loans acquired. Accrued interest
receivable on loans is excluded from the estimate of credit losses and totaled $223.7 million at June 30, 2026, compared to $228.6 million at December 31, 2025.
Unfunded Loan Commitments
Old National maintains an allowance for credit losses on unfunded loan commitments to provide for the risk of loss inherent in these arrangements. The allowance is computed using a methodology similar to that used to determine the allowance for credit losses on loans, modified to take into account the probability of a drawdown on the commitment. The allowance for credit losses on unfunded loan commitments is classified as a liability account on the balance sheet within accrued expenses and other liabilities, while the corresponding provision for unfunded loan commitments is included in the provision for credit losses. Old National’s activity in the allowance for credit losses on unfunded loan commitments was as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
(dollars in thousands)2026202520262025
Balance at beginning of period$33,725 $22,031 $35,633 $21,654 
Provision for credit losses on unfunded loan commitments
   acquired during the period		— 6,458 — 6,458 
Provision (release) for credit losses on unfunded loan
   commitments		(2,194)1,114 (4,102)1,491 
Balance at end of period$31,531 $29,603 $31,531 $29,603 
Credit Quality
Old National’s management monitors the credit quality of its loans on an ongoing basis with the asset quality rating (“AQR”) for commercial, commercial real estate, and BBCC loans reviewed annually or at renewal and the performance of its residential and consumer loans based upon the accrual status refreshed at least quarterly. Internally, management assigns an AQR to each non-homogeneous commercial, commercial real estate, and BBCC loan in the portfolio. The primary determinants of the AQR are the reliability of the primary source of repayment and the past, present, and projected financial condition of the borrower. The AQR will also consider current industry conditions. Major factors used in determining the AQR can vary based on the nature of the loan, but commonly include factors such as debt service coverage, internal cash flow, liquidity, leverage, operating performance, debt burden, FICO scores, occupancy, interest rate sensitivity, and expense burden. Old National uses the following definitions for risk ratings:
Special Mention. Loans categorized as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of Old National’s credit position at some future date.
Classified – Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that Old National will sustain some loss if the deficiencies are not corrected.
Classified – Nonaccrual. Loans classified as nonaccrual have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection in full, on the basis of currently existing facts, conditions, and values, in doubt.
Classified – Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as nonaccrual, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.
Pass rated loans are those loans that are other than special mention, classified – substandard, classified – nonaccrual, or classified – doubtful.
The following table summarizes the amortized cost of term loans by risk category of commercial, commercial real estate, and BBCC loans by class of loan and origination year:
(dollars in thousands)Origination YearRevolving to Term
20262025202420232022PriorRevolvingTotal
June 30, 2026
Commercial:
Pass$1,871,092 $2,956,426 $1,671,586 $985,812 $836,604 $1,915,799 $3,702,028 $796,631 $14,735,978 
Special Mention26,182 31,903 95,687 72,440 20,039 11,691 121,703 8,147 387,792 
Classified:
Substandard6,033 12,860 75,756 100,408 30,899 102,488 127,855 103,241 559,540 
Nonaccrual— 748 2,256 2,440 631 4,422 — 12,471 22,968 
Doubtful— 8,884 10,627 31,482 27,869 23,644 9,571 43,274 155,351 
Total$1,903,307 $3,010,821 $1,855,912 $1,192,582 $916,042 $2,058,044 $3,961,157 $963,764 $15,861,629 
Commercial real estate:
Pass$2,222,955 $3,929,498 $2,334,253 $2,073,302 $2,790,586 $6,115,231 $151,653 $902,194 $20,519,672 
Special Mention2,669 14,374 14,760 28,664 90,982 143,033 3,681 8,244 306,407 
Classified:
Substandard1,002 36,595 116,300 308,911 398,088 423,298 8,395 61,581 1,354,170 
Nonaccrual— — 3,539 2,178 2,497 3,818 — 743 12,775 
Doubtful— — 2,968 32,617 35,095 68,465 — 17,631 156,776 
Total$2,226,626 $3,980,467 $2,471,820 $2,445,672 $3,317,248 $6,753,845 $163,729 $990,393 $22,349,800 
BBCC:
Pass$37,165 $53,988 $47,789 $42,235 $30,268 $94,373 $85,108 $27,457 $418,383 
Special Mention564 54 389 253 494 1,695 2,810 4,696 10,955 
Classified:
Substandard22 77 217 598 233 530 1,681 1,651 5,009 
Nonaccrual— — — 333 105 395 — 319 1,152 
Doubtful— — — — — 355 — 631 986 
Total$37,751 $54,119 $48,395 $43,419 $31,100 $97,348 $89,599 $34,754 $436,485 
Origination YearRevolving to Term
20252024202320222021PriorRevolvingTotal
December 31, 2025
Commercial:
Pass$3,073,330 $1,895,772 $1,186,468 $1,064,904 $619,076 $1,567,563 $3,458,502 $774,686 $13,640,301 
Special Mention23,368 84,827 88,803 18,830 7,878 8,161 82,334 14,990 329,191 
Classified:
Substandard16,253 89,293 113,232 62,649 68,265 56,616 129,209 85,729 621,246 
Nonaccrual140 1,617 6,003 7,053 1,001 654 8,659 1,944 27,071 
Doubtful— 7,337 34,925 27,218 2,409 24,547 — 49,206 145,642 
Total$3,113,091 $2,078,846 $1,429,431 $1,180,654 $698,629 $1,657,541 $3,678,704 $926,555 $14,763,451 
Commercial real estate:
Pass$3,746,158 $2,363,809 $2,510,901 $3,325,135 $1,945,116 $5,082,931 $169,450 $886,279 $20,029,779 
Special Mention12,351 20,695 85,266 97,148 102,821 107,590 16,239 24,962 467,072 
Classified:
Substandard14,773 34,761 184,806 294,789 116,261 321,725 45,692 120,284 1,133,091 
Nonaccrual— 4,721 1,282 6,905 5,442 24,308 — 23,642 66,300 
Doubtful— 3,120 23,039 38,716 22,966 60,503 — 29,751 178,095 
Total$3,773,282 $2,427,106 $2,805,294 $3,762,693 $2,192,606 $5,597,057 $231,381 $1,084,918 $21,874,337 
BBCC:
Pass$57,344 $53,469 $50,466 $35,366 $20,106 $75,805 $65,971 $20,036 $378,563 
Special Mention— 663 834 512 535 1,490 2,281 3,323 9,638 
Classified:
Substandard86 191 474 304 26 724 203 2,877 4,885 
Nonaccrual50 — 60 98 359 345 — 1,115 2,027 
Doubtful— — 463 205 — 31 — 268 967 
Total$57,480 $54,323 $52,297 $36,485 $21,026 $78,395 $68,455 $27,619 $396,080 
For residential real estate and consumer loan classes, Old National evaluates credit quality based on the aging status of the loan and by payment activity. The performing or nonperforming status is updated on an on-going basis dependent upon improvement and deterioration in credit quality. The following table presents the amortized cost of term residential real estate and consumer loans based on payment activity and origination year:
Origination YearRevolving to Term
(dollars in thousands)20262025202420232022PriorRevolvingTotal
June 30, 2026
Residential real estate:
Risk Rating:
Performing$577,590 $1,096,002 $469,884 $544,155 $1,606,443 $4,386,908 $— $578 $8,681,560 
Nonperforming156 5,299 5,484 10,839 18,409 39,085 — — 79,272 
Total$577,746 $1,101,301 $475,368 $554,994 $1,624,852 $4,425,993 $— $578 $8,760,832 
Indirect:
Risk Rating:
Performing$342,588 $354,289 $234,222 $128,792 $84,982 $33,017 $143 $— $1,178,033 
Nonperforming93 1,110 1,132 1,401 1,191 625 — — 5,552 
Total$342,681 $355,399 $235,354 $130,193 $86,173 $33,642 $143 $— $1,183,585 
Direct:
Risk Rating:
Performing$33,487 $61,641 $43,786 $39,378 $55,357 $133,931 $219,672 $5,525 $592,777 
Nonperforming13 11 228 346 1,467 2,545 6 214 4,830 
Total$33,500 $61,652 $44,014 $39,724 $56,824 $136,476 $219,678 $5,739 $597,607 
Home equity:
Risk Rating:
Performing$— $53 $71 $281 $1,193 $14,646 $1,467,822 $76,540 $1,560,606 
Nonperforming— — 40 64 871 4,465 2,539 14,061 22,040 
Total$— $53 $111 $345 $2,064 $19,111 $1,470,361 $90,601 $1,582,646 
Origination YearRevolving to Term
20252024202320222021PriorRevolvingTotal
December 31, 2025
Residential real estate:
Risk Rating:
Performing$955,730 $539,011 $584,626 $1,668,796 $1,960,186 $2,684,743 $— $598 $8,393,690 
Nonperforming1,639 5,684 10,409 17,917 5,328 32,829 — — 73,806 
Total$957,369 $544,695 $595,035 $1,686,713 $1,965,514 $2,717,572 $— $598 $8,467,496 
Indirect:
Risk Rating:
Performing$417,924 $296,068 $170,873 $124,182 $42,664 $17,567 $155 $— $1,069,433 
Nonperforming574 1,299 1,747 1,332 638 212 — — 5,802 
Total$418,498 $297,367 $172,620 $125,514 $43,302 $17,779 $155 $— $1,075,235 
Direct:
Risk Rating:
Performing$72,393 $54,308 $49,357 $53,343 $41,664 $132,876 $236,832 $4,193 $644,966 
Nonperforming43 404 435 402 345 2,691 — 11 4,331 
Total$72,436 $54,712 $49,792 $53,745 $42,009 $135,567 $236,832 $4,204 $649,297 
Home equity:
Risk Rating:
Performing$11 $71 $395 $1,227 $651 $16,913 $1,443,256 $58,538 $1,521,062 
Nonperforming42 40 45 938 95 3,359 546 12,139 17,204 
Total$53 $111 $440 $2,165 $746 $20,272 $1,443,802 $70,677 $1,538,266 
The following table summarizes the gross charge-offs of loans by loan portfolio segment and origination year:
Origination Year
(dollars in thousands)20262025202420232022PriorRevolvingTotal
Three Months Ended June 30, 2026
Commercial$478 $1,920 $124 $8,973 $1,657 $6,486 $— $19,638 
Commercial real estate— — — 2,713 4,610 10,832 — 18,155 
BBCC— — 36 357 93 — — 486 
Residential real estate— — — — — 74 — 74 
Indirect103 408 383 314 119 68 — 1,395 
Direct68 133 89 226 309 315 595 1,735 
Home equity— — — — — 57 — 57 
Total gross charge-offs$649 $2,461 $632 $12,583 $6,788 $17,832 $595 $41,540 
Origination Year
20252024202320222021PriorRevolvingTotal
Three Months Ended June 30, 2025
Commercial$— $6,459 $676 $6,970 $583 $2,117 $— $16,805 
Commercial real estate— — — 1,205 4,000 4,233 — 9,438 
BBCC— — 13 31 9 — — 53 
Residential real estate— — — — — 247 — 247 
Indirect12 631 557 317 193 56 — 1,766 
Direct171 205 223 300 304 251 26 1,480 
Home equity— — — — — 165 — 165 
Total gross charge-offs$183 $7,295 $1,469 $8,823 $5,089 $7,069 $26 $29,954 
Origination Year
20262025202420232022PriorRevolvingTotal
Six Months Ended June 30, 2026
Commercial$478 $6,163 $10,724 $14,590 $3,729 $7,077 $391 $43,152 
Commercial real estate— — — 4,783 6,185 15,654 — 26,622 
BBCC— 50 325 537 384 — — 1,296 
Residential real estate— — — — 26 360 — 386 
Indirect103 877 848 751 479 149 — 3,207 
Direct68 321 424 378 625 1,241 969 4,026 
Home equity— — — — — 57 101 158 
Total gross charge-offs$649 $7,411 $12,321 $21,039 $11,428 $24,538 $1,461 $78,847 
Origination Year
20252024202320222021PriorRevolvingTotal
Six Months Ended June 30, 2025
Commercial$— $6,881 $4,795 $11,056 $589 $2,795 $— $26,116 
Commercial real estate— — 303 1,956 11,996 6,843 — 21,098 
BBCC— — 13 31 13 — — 57 
Residential real estate— — — — — 277 — 277 
Indirect12 1,330 1,234 704 293 127 — 3,700 
Direct214 335 333 743 842 588 26 3,081 
Home equity— — — — — 165 — 165 
Total gross charge-offs$226 $8,546 $6,678 $14,490 $13,733 $10,795 $26 $54,494 
Nonaccrual and Past Due Loans
Old National does not record interest on nonaccrual loans until principal is recovered. For all loan classes, a loan is generally placed on nonaccrual status when principal or interest becomes 90 days past due unless it is well secured and in the process of collection, or earlier when concern exists as to the ultimate collectability of principal or interest. Interest accrued but not received is reversed against earnings. Cash interest received on these loans is applied to the principal balance until the principal is recovered or until the loan returns to accrual status. Loans may
be returned to accrual status when all the principal and interest amounts contractually due are brought current, remain current for a prescribed period, and future payments are reasonably assured.
The following table presents the aging of the amortized cost basis in past due loans by class of loans:
(dollars in thousands)30-59 Days
Past Due		60-89 Days
Past Due		Past Due
90 Days or
More		Total
Past Due		CurrentTotal
Loans
June 30, 2026
Commercial$8,864 $9,604 $68,458 $86,926 $15,774,703 $15,861,629 
Commercial real estate14,771 26,215 57,736 98,722 22,251,078 22,349,800 
BBCC802 303 739 1,844 434,641 436,485 
Residential61,821 16,778 42,376 120,975 8,639,857 8,760,832 
Indirect8,345 2,122 1,662 12,129 1,171,456 1,183,585 
Direct11,900 1,077 2,778 15,755 581,852 597,607 
Home equity7,161 2,990 7,781 17,932 1,564,714 1,582,646 
Total$113,664 $59,089 $181,530 $354,283 $50,418,301 $50,772,584 
December 31, 2025
Commercial$23,702 $7,200 $68,776 $99,678 $14,663,773 $14,763,451 
Commercial real estate20,870 8,151 122,781 151,802 21,722,535 21,874,337 
BBCC1,297 1,359 463 3,119 392,961 396,080 
Residential45,817 13,650 40,512 99,979 8,367,517 8,467,496 
Indirect8,844 2,263 1,877 12,984 1,062,251 1,075,235 
Direct3,644 1,605 1,762 7,011 642,286 649,297 
Home equity7,186 2,956 8,307 18,449 1,519,817 1,538,266 
Total$111,360 $37,184 $244,478 $393,022 $48,371,140 $48,764,162 
The following table presents the amortized cost basis of loans on nonaccrual status and loans past due 90 days or more and still accruing by class of loan:
June 30, 2026December 31, 2025
(dollars in thousands)Nonaccrual
Amortized
Cost		Nonaccrual
With No
Related
Allowance		Past Due
90 Days or
More and
Accruing		Nonaccrual
Amortized
Cost		Nonaccrual
With No
Related
Allowance		Past Due
90 Days or
More and
Accruing
Commercial$178,319 $11,899 $984 $172,713 $9,665 $1,310 
Commercial real estate169,551 33,979 3,695 244,395 57,647 — 
BBCC2,138 — 162 2,994 — 177 
Residential79,272 — 127 73,806 — 599 
Indirect5,552 — 62 5,802 — 203 
Direct4,830 — 272 4,331 — 74 
Home equity22,040 — 1,530 17,204 — 328 
Total$461,702 $45,878 $6,832 $521,245 $67,312 $2,691 
Interest income recognized on nonaccrual loans was insignificant during the three and six months ended June 30, 2026 and 2025.
When management determines that foreclosure is probable, expected credit losses for collateral dependent loans are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. A loan is considered collateral dependent when the borrower is experiencing financial difficulty, and the loan is expected to be repaid substantially through the operation or sale of the collateral. The class of loan represents the primary collateral type associated with the loan. Significant period-over-period changes are reflective of changes in nonaccrual status and not necessarily associated with credit quality indicators like appraisal value. The following table presents the amortized cost basis of collateral dependent loans by class of loan:
Type of Collateral
(dollars in thousands)Real
Estate		Blanket
Lien		Investment
Securities/Cash		AutoOther
June 30, 2026
Commercial$15,059 $147,640 $10,172 $2,796 $977 
Commercial real estate166,521 12 285 — 109 
BBCC1,253 483 246 156 — 
Residential79,272 — — — — 
Indirect— — — 5,552 — 
Direct4,149 6 — 235 34 
Home equity22,040 — — — — 
Total loans$288,294 $148,141 $10,703 $8,739 $1,120 
December 31, 2025
Commercial$17,098 $131,107 $6,851 $5,411 $1,942 
Commercial real estate237,984 3,381 1,238 — 116 
BBCC1,364 832 269 260 — 
Residential73,806 — — — — 
Indirect— — — 5,802 — 
Direct3,676 15 — 324 16 
Home equity17,204 — — — — 
Total loans$351,132 $135,335 $8,358 $11,797 $2,074 
Financial Difficulty Modifications
Occasionally, Old National modifies loans to borrowers experiencing financial difficulty in the form of principal forgiveness, term extension, an other-than-insignificant payment delay, or interest rate reduction (or a combination thereof). When principal forgiveness is provided, the amount forgiven is charged-off against the allowance for credit losses on loans.
The following table presents the amortized cost basis of financial difficulty modifications that were modified by class of loans and type of modification:
(dollars in thousands)Term
Extension		Payment
Delay		Interest
Rate
Reduction		Total
Class of
Loans
Three Months Ended June 30, 2026
Commercial$36,103 $— $— 0.2 %
Commercial real estate81,922 — — 0.4 %
Total$118,025 $— $— 0.2 %
Three Months Ended June 30, 2025
Commercial$39,797 $— $— 0.3 %
Commercial real estate44,835 — — 0.2 %
Total$84,632 $— $— 0.2 %
Six Months Ended June 30, 2026
Commercial$57,363 $— $6,383 0.4 %
Commercial real estate96,918 4,592 — 0.5 %
Total$154,281 $4,592 $6,383 0.3 %
Six Months Ended June 30, 2025
Commercial$94,248 $— $— 0.7 %
Commercial real estate146,609 — — 0.7 %
Total$240,857 $— $— 0.5 %
Old National monitors the performance of financial difficulty modifications to understand the effectiveness of its efforts. The following table presents the performance of financial difficulty modifications in the twelve months following modification:
(dollars in thousands)30-59 Days
Past Due		60-89 Days
Past Due		Past Due
90 Days or
More		Total
Past Due		CurrentTotal
Loans
June 30, 2026
Commercial$— $— $18,479 $18,479 $45,267 $63,746 
Commercial real estate— 16,702 — 16,702 84,808 101,510 
Total$— $16,702 $18,479 $35,181 $130,075 $165,256 
June 30, 2025
Commercial$1,468 $2,449 $4,511 $8,428 $85,820 $94,248 
Commercial real estate6,311 — 4,566 10,877 135,732 146,609 
Total$7,779 $2,449 $9,077 $19,305 $221,552 $240,857 
The following table summarizes the nature of the financial difficulty modifications by class of loans:
Weighted-
Average
Term
Extension
(in months)		Weighted-
Average
Payment
Delay
(in months)		Weighted-
Average
Interest Rate
Reduction
Three Months Ended June 30, 2026
Commercial4.6—— %
Commercial real estate7.4—— %
Total6.6—— %
Three Months Ended June 30, 2025
Commercial6.5—— %
Commercial real estate9.8—— %
Total8.2—— %
Six Months Ended June 30, 2026
Commercial5.7—1.50 %
Commercial real estate7.35.0— %
Total6.75.01.50 %
Six Months Ended June 30, 2025
Commercial7.1—— %
Commercial real estate8.4—— %
Total7.9—— %
There were payment defaults on $12.1 million and $18.5 million of loans during the three and six months ended June 30, 2026, respectively, to borrowers whose loans were modified due to financial difficulties within the previous twelve months. There were payment defaults on $4.6 million and $9.1 million of loans during the three and six months ended June 30, 2025, respectively, to borrowers whose loans had been modified within the previous twelve months. The payment defaults did not materially impact the allowance for credit losses on loans.
Old National had not committed to lend any material additional funds to the borrowers whose loans were modified due to financial difficulties at June 30, 2026 or December 31, 2025.
Purchased Credit Deteriorated Loans
Old National has purchased loans, for which there was, at acquisition, evidence of more than insignificant deterioration of credit quality since origination. The carrying amount of those loans at acquisition was as follows:
(dollars in thousands)
Bremer (1)
Purchase price of loans at acquisition$1,876,226 
Allowance for credit losses at acquisition103,546 
Non-credit discount at acquisition75,826 
Par value of acquired loans at acquisition$2,055,598 
(1)Old National acquired Bremer effective May 1, 2025.