v3.26.3
LOANS AND ALLOWANCE FOR CREDIT LOSSES
 9 Months Ended
Sep. 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 September 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 loan 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. During the third quarter of 2026, the Company completed a realignment of the loan portfolio segments for determining the allowance for credit losses on loans. Loans previously included in the business banking credit center (“BBCC”) portfolio segment now remain in their respective commercial and commercial real estate categories, as the risk characteristics are not materially different. Additionally, loans previously included in the direct portfolio segment have been reclassified to consumer loan portfolio segments based upon collateral and repayment risks. At September 30, 2026, the consumer loan category is comprised of residential real estate, indirect, home equity, and other consumer loan portfolio segments. The change did not have a material impact on the allowance for credit losses. Prior to the third quarter of 2026, the four loan portfolios used to monitor and analyze interest income and yields – commercial, commercial real estate, residential real estate, and consumer – were reclassified into seven loan portfolio segments – commercial, commercial real estate, 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 included the same pool of loans as the commercial, commercial real estate, and BBCC portfolio segments. The consumer loan category shown on the balance sheet was 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)
September 30, 2026
Commercial (1)
$16,260,724 $— $16,260,724 
Commercial real estate22,692,502 — 22,692,502 
Residential real estate8,770,515 165,020 8,935,535 
Consumer3,424,322 (3,424,322)N/A
IndirectN/A1,288,306 1,288,306 
Home equityN/A1,620,884 1,620,884 
Other consumerN/A350,112 350,112 
Total loans (2)
$51,148,063 $— $51,148,063 
Allowance for credit losses on loans(579,658)— (579,658)
Net loans$50,568,405 $— $50,568,405 
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 $51.0 million at September 30, 2026 and $75.1 million at December 31, 2025.
(2)    Includes unamortized premiums and discounts, and unamortized deferred fees and costs of $422.5 million at September 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 251%, 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 September 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.
Other Consumer
Other consumer loans are typically revolving lines of credit, cash secured or are unsecured. Old National has established underwriting standards such as minimum FICO scores 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.
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. During the third quarter of 2026, the Company completed a recalibration of its estimated credit loss models, incorporating additional loan performance history, enhancements to the expected cash flows assumptions, and multiple forward-looking economic forecasts, which did not have a material impact on the overall allowance for loan loss coverage or the related significant accounting policy. As previously noted, the Company also completed a realignment of the loan portfolio segments for determining the allowance for credit losses on loans.
The forecast scenarios consider multiple economic variables, including unemployment, gross domestic product, real estate price indices, and interest rates. In addition to the quantitative inputs, several qualitative factors are considered. These factors include portfolio, collateral, and credit trends along with the risk that macroeconomic forecasts of unemployment, gross domestic product, real estate price indices, and interest rates may prove to be more severe and/or prolonged than our forecasts due to a variety of considerations. Old National’s activity in the allowance for credit losses on loans for the three and nine months ended September 30, 2026 by portfolio segment was as follows:
(dollars in thousands)Balance at
Beginning of
Period		Realignment
of Loan
Portfolio
Segments		Charge-offsRecoveriesProvision
for Loan
Losses		Balance at
End of
Period
Three Months Ended September 30, 2026
Commercial$253,854 $1,999 $(41,827)$10,050 $29,138 $253,214 
Commercial real estate263,706 962 (1,810)2,844 (24,646)241,056 
BBCC2,961 (2,961)— — — — 
Residential real estate40,450 580 (72)78 13,567 54,603 
Indirect7,228 357 (2,539)584 1,683 7,313 
Direct2,273 (2,273)— — — — 
Home equity10,039 — (120)174 9,751 19,844 
Other consumer— 1,336 (1,907)455 3,744 3,628 
Total$580,511 $— $(48,275)$14,185 $33,237 $579,658 
Nine Months Ended September 30, 2026
Commercial$244,670 $1,999 $(84,979)$20,111 $71,413 $253,214 
Commercial real estate268,332 962 (28,432)4,270 (4,076)241,056 
BBCC2,371 (2,961)(1,296)240 1,646 — 
Residential real estate34,394 580 (458)202 19,885 54,603 
Indirect8,021 357 (5,746)1,922 2,759 7,313 
Direct2,478 (2,273)(4,026)1,196 2,625 — 
Home equity9,254 — (278)373 10,495 19,844 
Other consumer— 1,336 (1,907)455 3,744 3,628 
Total$569,520 $— $(127,122)$28,769 $108,491 $579,658 
Old National’s activity in the allowance for credit losses on loans for the three and nine months ended September 30, 2025 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 September 30, 2025
Commercial$215,917 $6,666 $(22,068)$1,222 $33,246 $234,983 
Commercial real estate294,303 6,438 (8,016)2,101 (11,999)282,827 
BBCC2,488 — (419)25 364 2,458 
Residential real estate31,850 — (25)51 (445)31,431 
Indirect8,430 — (1,863)690 704 7,961 
Direct2,564 — (2,907)648 2,113 2,418 
Home equity9,557 — (104)627 20 10,100 
Total$565,109 $13,104 $(35,402)$5,364 $24,003 $572,178 
Nine Months Ended September 30, 2025
Commercial$148,722 $37,158 $(48,185)$3,477 $93,811 $234,983 
Commercial real estate200,309 66,049 (29,114)2,494 43,089 282,827 
BBCC2,813 — (476)423 (302)2,458 
Residential real estate22,922 148 (302)288 8,375 31,431 
Indirect8,434 6 (5,562)2,033 3,050 7,961 
Direct2,304 47 (5,988)1,862 4,193 2,418 
Home equity7,018 138 (269)1,137 2,076 10,100 
Total$392,522 $103,546 $(89,896)$11,714 $154,292 $572,178 
The allowance for credit losses on loans at September 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 nine months ended September 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 $237.3 million at September 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
September 30,		Nine Months Ended
September 30,
(dollars in thousands)2026202520262025
Balance at beginning of period$31,531 $29,603 $35,633 $21,654 
Provision for credit losses on unfunded loan commitments
   acquired during the period		— — — 6,458 
Provision (release) for credit losses on unfunded loan
   commitments		343 2,735 (3,759)4,226 
Balance at end of period$31,874 $32,338 $31,874 $32,338 
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 tables summarize the amortized cost of term loans by risk rating, class of loan, and origination year:
(dollars in thousands)Origination YearRevolving to Term
20262025202420232022PriorRevolvingTotal
September 30, 2026
Commercial:
Pass$2,714,397 $2,654,598 $1,615,999 $907,248 $813,799 $1,776,103 $3,846,565 $864,773 $15,193,482 
Special Mention22,542 48,943 71,426 47,929 18,447 13,440 71,041 12,199 305,967 
Classified:
Substandard6,531 30,463 113,231 75,154 31,471 79,151 154,392 64,815 555,208 
Nonaccrual— 2,550 2,670 2,398 3,392 2,120 767 5,261 19,158 
Doubtful— 5,703 11,001 58,868 6,158 34,332 7,170 63,677 186,909 
Total$2,743,470 $2,742,257 $1,814,327 $1,091,597 $873,267 $1,905,146 $4,079,935 $1,010,725 $16,260,724 
Commercial real estate:
Pass$3,243,624 $4,116,584 $2,288,401 $1,970,734 $2,587,533 $5,744,807 $116,931 $990,403 $21,059,017 
Special Mention1,317 21,714 21,311 26,065 56,273 166,237 1,185 8,737 302,839 
Classified:
Substandard805 28,939 137,863 328,502 275,962 365,490 228 44,692 1,182,481 
Nonaccrual— — 4,835 813 3,460 10,060 — 8 19,176 
Doubtful— — 3,560 31,261 29,212 45,332 — 19,624 128,989 
Total$3,245,746 $4,167,237 $2,455,970 $2,357,375 $2,952,440 $6,331,926 $118,344 $1,063,464 $22,692,502 
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
September 30, 2026
Residential real estate:
Risk Rating:
Performing$706,570 $914,125 $450,122 $522,737 $1,578,121 $4,675,359 $— $569 $8,847,603 
Nonperforming606 8,636 7,307 12,049 15,855 43,479 — — 87,932 
Total$707,176 $922,761 $457,429 $534,786 $1,593,976 $4,718,838 $— $569 $8,935,535 
Indirect:
Risk Rating:
Performing$478,444 $320,041 $206,793 $109,391 $69,087 $98,675 $137 $— $1,282,568 
Nonperforming350 904 1,274 1,505 1,029 676 — — 5,738 
Total$478,794 $320,945 $208,067 $110,896 $70,116 $99,351 $137 $— $1,288,306 
Home equity:
Risk Rating:
Performing$— $52 $71 $235 $1,124 $15,100 $1,503,359 $78,995 $1,598,936 
Nonperforming— — 40 54 765 3,524 2,295 15,270 21,948 
Total$— $52 $111 $289 $1,889 $18,624 $1,505,654 $94,265 $1,620,884 
Other consumer:
Risk Rating:
Performing$47,825 $48,956 $39,012 $34,691 $48,599 $25,916 $98,523 $6,244 $349,766 
Nonperforming— 17 130 37 42 120 — — 346 
Total$47,825 $48,973 $39,142 $34,728 $48,641 $26,036 $98,523 $6,244 $350,112 
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 $1,538,266 
The following table summarizes the gross charge-offs of loans by loan portfolio segment and origination year:
Origination Year
(dollars in thousands)20262025202420232022PriorRevolvingTotal
Three Months Ended September 30, 2026
Commercial$— $165 $2,309 $21,516 $1,458 $15,357 $1,022 $41,827 
Commercial real estate— — — 21 265 1,524 — 1,810 
Residential real estate— — — — — 72 — 72 
Indirect149 1,089 680 314 207 100 — 2,539 
Home equity— — — — 37 83 — 120 
Other consumer49 38 67 216 90 235 1,212 1,907 
Total gross charge-offs$198 $1,292 $3,056 $22,067 $2,057 $17,371 $2,234 $48,275 
Origination Year
20252024202320222021PriorRevolvingTotal
Three Months Ended September 30, 2025
Commercial$684 $6,106 $2,235 $7,155 $2,229 $3,659 $— $22,068 
Commercial real estate— — 603 1,024 2,787 3,602 — 8,016 
BBCC— — 303 94 10 12 — 419 
Residential real estate— — — — — 25 — 25 
Indirect213 504 634 291 146 75 — 1,863 
Direct13 93 114 154 103 1,741 689 2,907 
Home equity— — — 101 — 3 — 104 
Total gross charge-offs$910 $6,703 $3,889 $8,819 $5,275 $9,117 $689 $35,402 
Origination Year
20262025202420232022PriorRevolvingTotal
Nine Months Ended September 30, 2026
Commercial$478 $6,328 $13,033 $36,106 $5,187 $22,434 $1,413 $84,979 
Commercial real estate— — — 4,804 6,450 17,178 — 28,432 
BBCC— 50 325 537 384 — — 1,296 
Residential real estate— — — — 26 432 — 458 
Indirect252 1,966 1,528 1,065 686 249 — 5,746 
Direct68 321 424 378 625 1,241 969 4,026 
Home equity— — — — 37 140 101 278 
Other consumer49 38 67 216 90 235 1,212 1,907 
Total gross charge-offs$847 $8,703 $15,377 $43,106 $13,485 $41,909 $3,695 $127,122 
Origination Year
20252024202320222021PriorRevolvingTotal
Nine Months Ended September 30, 2025
Commercial$684 $12,987 $7,030 $18,212 $2,818 $6,454 $— $48,185 
Commercial real estate— — 906 2,980 14,783 10,445 — 29,114 
BBCC— — 316 125 23 12 — 476 
Residential real estate— — — — — 302 — 302 
Indirect225 1,834 1,867 995 439 202 — 5,562 
Direct227 428 447 897 945 2,329 715 5,988 
Home equity— — — 101 — 168 — 269 
Total gross charge-offs$1,136 $15,249 $10,566 $23,310 $19,008 $19,912 $715 $89,896 
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
September 30, 2026
Commercial$20,681 $8,607 $89,676 $118,964 $16,141,760 $16,260,724 
Commercial real estate26,421 17,843 63,093 107,357 22,585,145 22,692,502 
Residential54,217 19,469 43,285 116,971 8,818,564 8,935,535 
Indirect8,338 2,344 1,609 12,291 1,276,015 1,288,306 
Home equity9,245 2,630 8,052 19,927 1,600,957 1,620,884 
Other consumer1,188 809 2,795 4,792 345,320 350,112 
Total$120,090 $51,702 $208,510 $380,302 $50,767,761 $51,148,063 
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:
September 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$206,067 $5,971 $1,770 $172,713 $9,665 $1,310 
Commercial real estate148,165 33,946 2,087 244,395 57,647 — 
BBCC (1)
N/AN/AN/A2,994 — 177 
Residential87,932 — 99 73,806 — 599 
Indirect5,738 — 47 5,802 — 203 
Direct (1)
N/AN/AN/A4,331 — 74 
Home equity21,948 — — 17,204 — 328 
Other consumer346 — 76 N/AN/AN/A
Total$470,196 $39,917 $4,079 $521,245 $67,312 $2,691 
(1)At September 30, 2026, loans previously included in the BBCC portfolio segment are now presented in their respective commercial and commercial real estate categories. Loans previously included in the direct portfolio segment have been reclassified to consumer loan portfolio segments based upon collateral and repayment risks.
Interest income recognized on nonaccrual loans was insignificant during the three and nine months ended September 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
September 30, 2026
Commercial$12,651 $175,557 $8,473 $1,556 $821 
Commercial real estate146,340 167 281 — 106 
Residential87,932 — — — — 
Indirect— — — 5,738 — 
Home equity21,948 — — — — 
Other consumer— 4 — — 39 
Total loans$268,871 $175,728 $8,754 $7,294 $966 
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 September 30, 2026
Commercial$65,847 $7,918 $— 0.5 %
Commercial real estate46,358 19,830 — 0.3 %
Total$112,205 $27,748 $— 0.3 %
Three Months Ended September 30, 2025
Commercial$— $— $8,376 0.1 %
Commercial real estate68,546 — — 0.3 %
Total$68,546 $— $8,376 0.2 %
Nine Months Ended September 30, 2026
Commercial$83,581 $7,918 $— 0.6 %
Commercial real estate85,533 19,830 — 0.5 %
Total$169,114 $27,748 $— 0.4 %
Nine Months Ended September 30, 2025
Commercial$63,035 $— $8,376 0.5 %
Commercial real estate162,698 — — 0.7 %
Total$225,733 $— $8,376 0.5 %
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 September 30, 2026
Commercial6.36.7— %
Commercial real estate9.05.5— %
Total7.65.7— %
Three Months Ended September 30, 2025
Commercial——1.50 %
Commercial real estate8.3—— %
Total8.3—1.50 %
Nine Months Ended September 30, 2026
Commercial6.56.7— %
Commercial real estate8.15.5— %
Total7.45.7— %
Nine Months Ended September 30, 2025
Commercial4.5—1.50 %
Commercial real estate8.1—— %
Total7.0—1.50 %
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
September 30, 2026
Commercial$3,331 $— $7,022 $10,353 $81,146 $91,499 
Commercial real estate— — — — 105,363 105,363 
Total$3,331 $— $7,022 $10,353 $186,509 $196,862 
September 30, 2025
Commercial$— $— $8,222 $8,222 $63,189 $71,411 
Commercial real estate— — 8,655 8,655 154,043 162,698 
Total$— $— $16,877 $16,877 $217,232 $234,109 
There were no payment defaults on loans and payment defaults on $7.0 million of loans during the three and nine months ended September 30, 2026, respectively, to borrowers whose loans were modified due to financial difficulties within the twelve months prior to September 30, 2026. There were no payment defaults on loans and payment defaults on $16.9 million of loans during the three and nine months ended September 30, 2025, respectively, to borrowers whose loans had been modified within the twelve months prior to September 30, 2025. 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 September 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.