10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to ____________

Commission File Number 001-15817

Old National Bancorp

(Exact name of registrant as specified in its charter)

 

Indiana		35-1539838
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
One Main Street		47708
Evansville,	Indiana	(Zip Code)
(Address of principal executive offices)

(800) 731-2265

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, no par value	ONB	NASDAQ	Global Select Market
Depositary Shares, each representing a 1/40th interest in a share of Non-Cumulative Perpetual Preferred Stock, Series A	ONBPP	NASDAQ	Global Select Market
Depositary Shares, each representing a 1/40th interest in a share of Non-Cumulative Perpetual Preferred Stock, Series C	ONBPO	NASDAQ	Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☑    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes   ☑   No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer	☑	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☑

The registrant has one class of common stock (no par value) with 318,971,000 shares outstanding at April 30, 2024.

OLD NATIONAL BANCORP

FORM 10-Q

TABLE OF CONTENTS

			Page
PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements
	Consolidated Balance Sheets (unaudited)		4
	Consolidated Statements of Income (unaudited)		5
	Consolidated Statements of Comprehensive Income (Loss) (unaudited)		6
	Consolidated Statements of Changes in Shareholders’ Equity (unaudited)		7
	Consolidated Statements of Cash Flows (unaudited)		8
	Notes to Consolidated Financial Statements (unaudited)		10
	Note 1.	Basis of Presentation	10
	Note 2.	Recent Accounting Pronouncements	10
	Note 3.	Acquisition and Divestiture Activity	11
	Note 4.	Net Income Per Common Share	12
	Note 5.	Investment Securities	13
	Note 6.	Loans and Allowance for Credit Losses	16
	Note 7.	Leases	26
	Note 8.	Goodwill and Other Intangible Assets	28
	Note 9.	Qualified Affordable Housing Projects and Other Tax Credit Investments	29
	Note 10.	Securities Sold Under Agreements to Repurchase	30
	Note 11.	Federal Home Loan Bank Advances	30
	Note 12.	Other Borrowings	31
	Note 13.	Accumulated Other Comprehensive Income (Loss)	33
	Note 14.	Income Taxes	34
	Note 15.	Derivative Financial Instruments	34
	Note 16.	Commitments, Contingencies, and Financial Guarantees	38
	Note 17.	Fair Value	38
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		45
	Forward-Looking Statements		45
	Financial Highlights		46
	Non-GAAP Financial Measures		47
	Executive Summary		49
	Results of Operations		50
	Financial Condition		54
	Risk Management		58
	Critical Accounting Estimates		64
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		64
Item 4.	Controls and Procedures		65
PART II.	OTHER INFORMATION		66
Item 1A.	Risk Factors		66
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		66
Item 5.	Other Information		66
Item 6.	Exhibits		67
SIGNATURE			68

2

GLOSSARY OF ABBREVIATIONS AND ACRONYMS

As used in this report, references to “Old National,” “the Company,” “we,” “our,” “us,” and similar terms refer to the consolidated entity consisting of Old National Bancorp and its wholly-owned subsidiaries. Old National Bancorp refers solely to the parent holding company, and Old National Bank refers to Old National Bancorp’s wholly-owned bank subsidiary.

The acronyms and abbreviations identified below are used throughout this report, including the Notes to Consolidated Financial Statements (Unaudited). You may find it helpful to refer to this page as you read this report.

AOCI:  accumulated other comprehensive income (loss)

AQR:  asset quality rating

ASC:  Accounting Standards Codification

ASU:  Accounting Standards Update

ATM:  automated teller machine

BBCC: business banking credit center (small business)

CapStar:  CapStar Financial Holdings, Inc.

CECL: current expected credit loss

Common Stock:  Old National Bancorp common stock, no par value

DTI:  debt-to-income

FASB:  Financial Accounting Standards Board

FDIC:  Federal Deposit Insurance Corporation

FHLB:  Federal Home Loan Bank

FHTC:  Federal Historic Tax Credit

FICO:  Fair Isaac Corporation

GAAP:  U.S. generally accepted accounting principles

LGD:  loss given default

LIBOR:  London Interbank Offered Rate

LIHTC:  Low Income Housing Tax Credit

LTV:  loan-to-value

N/A:  not applicable

N/M:  not meaningful

NASDAQ: NASDAQ Global Select Market

NMTC: New Markets Tax Credit

NOW:  negotiable order of withdrawal

OCC:  Office of the Comptroller of the Currency

PCD: purchased credit deteriorated

PD:  probability of default

Renewable Energy:  investment tax credits for solar projects

SEC:  U.S. Securities and Exchange Commission

SOFR: Secured Overnight Financing Rate

3

OLD NATIONAL BANCORP

CONSOLIDATED BALANCE SHEETS

(dollars and shares in thousands, except per share data)	March 31, 2024		December 31, 2023
	(unaudited)
Assets
Cash and due from banks	$	350,990	$	430,866
Money market and other interest-earning investments	588,509		744,192
Total cash and cash equivalents	939,499		1,175,058
Equity securities, at fair value	84,954		80,372
Investment securities - available-for-sale, at fair value (amortized cost    $7,834,082 and $7,684,889, respectively)	6,791,652		6,713,055
Investment securities - held-to-maturity, at amortized cost (fair value    $2,547,576 and $2,601,188, respectively)	3,001,349		3,013,493
Federal Home Loan Bank/Federal Reserve Bank stock, at cost	365,588		365,588
Loans held-for-sale, at fair value	19,418		32,006
Loans:
Commercial	9,648,269		9,512,230
Commercial real estate	14,653,958		14,140,629
Residential real estate	6,661,379		6,699,443
Consumer	2,659,713		2,639,625
Total loans, net of unearned income	33,623,319		32,991,927
Allowance for credit losses on loans	(319,713)		(307,610)
Net loans	33,303,606		32,684,317
Premises and equipment, net	564,007		565,396
Goodwill	1,998,716		1,998,716
Other intangible assets	96,795		102,250
Company-owned life insurance	767,423		767,902
Accrued interest receivable and other assets	1,601,911		1,591,683
Total assets	$	49,534,918	$	49,089,836
Liabilities
Deposits:
Noninterest-bearing demand	$	9,257,709	$	9,664,247
Interest-bearing:
Checking and NOW	7,236,667		7,331,487
Savings	5,020,095		5,099,186
Money market	10,234,113		9,561,116
Time deposits	5,950,834		5,579,144
Total deposits	37,699,418		37,235,180
Federal funds purchased and interbank borrowings	50,416		390
Securities sold under agreements to repurchase	274,493		285,206
Federal Home Loan Bank advances	4,193,039		4,280,681
Other borrowings	813,213		764,870
Accrued expenses and other liabilities	908,931		960,609
Total liabilities	43,939,510		43,526,936
Shareholders’ Equity
Preferred stock, 2,000 shares authorized, 231 shares issued and outstanding	230,500		230,500
Common stock, no par value, $1.00 per share stated value, 600,000 shares authorized,    293,330 and 292,655 shares issued and outstanding, respectively	293,330		292,655
Capital surplus	4,157,542		4,159,924
Retained earnings	1,693,664		1,618,630
Accumulated other comprehensive income (loss), net of tax	(779,628)		(738,809)
Total shareholders’ equity	5,595,408		5,562,900
Total liabilities and shareholders’ equity	$	49,534,918	$	49,089,836

The accompanying notes to consolidated financial statements are an integral part of these statements.

4

OLD NATIONAL BANCORP

CONSOLIDATED STATEMENTS OF INCOME (unaudited)

	Three Months Ended March 31,
(dollars and shares in thousands, except per share data)	2024		2023
Interest Income
Loans including fees:
Taxable	$	487,361	$	410,375
Nontaxable	13,102		10,212
Investment securities:
Taxable	75,027		60,801
Nontaxable	10,506		11,163
Money market and other interest-earning investments	9,985		3,098
Total interest income	595,981		495,649
Interest Expense
Deposits	185,439		62,593
Federal funds purchased and interbank borrowings	961		4,839
Securities sold under agreements to repurchase	917		779
Federal Home Loan Bank advances	41,167		37,996
Other borrowings	11,039		7,954
Total interest expense	239,523		114,161
Net interest income	356,458		381,488
Provision for credit losses	18,891		13,437
Net interest income after provision for credit losses	337,567		368,051
Noninterest Income
Wealth and investment services fees	28,304		26,920
Service charges on deposit accounts	17,898		17,003
Debit card and ATM fees	10,054		9,982
Mortgage banking revenue	4,478		3,400
Capital markets income	2,900		6,939
Company-owned life insurance	3,434		3,186
Debt securities gains (losses), net	(16)		(5,216)
Other income	10,470		8,467
Total noninterest income	77,522		70,681
Noninterest Expense
Salaries and employee benefits	149,803		137,364
Occupancy	27,019		28,282
Equipment	8,671		7,389
Marketing	10,634		9,417
Technology	20,023		19,202
Communication	4,000		4,461
Professional fees	6,406		6,732
FDIC assessment	11,313		10,404
Amortization of intangibles	5,455		6,186
Amortization of tax credit investments	2,749		2,761
Other expense	16,244		18,513
Total noninterest expense	262,317		250,711
Income before income taxes	152,772		188,021
Income tax expense	32,488		41,421
Net income	120,284		146,600
Preferred dividends	(4,034)		(4,034)
Net income applicable to common shareholders	$	116,250	$	142,566
Net income per common share - basic	$	0.40	$	0.49
Net income per common share - diluted	0.40		0.49
Weighted average number of common shares outstanding - basic	290,980		291,088
Weighted average number of common shares outstanding - diluted	292,207		292,756
Dividends per common share	$	0.14	$	0.14

The accompanying notes to consolidated financial statements are an integral part of these statements.

5

OLD NATIONAL BANCORP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (unaudited)

	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Net income	$	120,284	$	146,600
Other comprehensive income (loss):
Change in debt securities available-for-sale:
Unrealized holding gains (losses) for the period	(44,709)		24,724
Reclassification adjustment for securities (gains) losses    realized in income	16		5,216
Income tax effect	11,242		1,146
Unrealized gains (losses) on available-for-sale securities	(33,451)		31,086
Change in securities held-to-maturity:
Amortization of unrealized losses on securities transferred     from available-for-sale	4,318		5,829
Income tax effect	(1,097)		(131)
Changes from securities held-to-maturity	3,221		5,698
Change in hedges:
Net unrealized derivative gains (losses) on hedges	(19,159)		47,849
Reclassification adjustment for (gains) losses realized in net    income	4,877		7,292
Income tax effect	3,693		(13,720)
Changes from hedges	(10,589)		41,421
Change in defined benefit pension plans:
Amortization of net (gains) losses recognized in income	—		(188)
Income tax effect	—		47
Changes from defined benefit pension plans	—		(141)
Other comprehensive income (loss), net of tax	(40,819)		78,064
Comprehensive income (loss)	$	79,465	$	224,664

The accompanying notes to consolidated financial statements are an integral part of these statements.

6

OLD NATIONAL BANCORP

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (unaudited)

(dollars in thousands, except per    share data)	Preferred Stock		Common Stock		Capital Surplus		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total Shareholders’ Equity
Balance, December 31, 2022	$	230,500	$	292,903	$	4,174,265	$	1,217,349	$	(786,422)	$	5,128,595
Net income	—		—		—		146,600		—		146,600
Other comprehensive income (loss)	—		—		—		—		78,064		78,064
Cash dividends:
Common ($0.14 per share)	—		—		—		(41,088)		—		(41,088)
Preferred ($17.50 per share)	—		—		—		(4,034)		—		(4,034)
Common stock issued	—		15		247		—		—		262
Common stock repurchased	—		(2,598)		(41,112)		—		—		(43,710)
Share-based compensation expense	—		—		12,742		—		—		12,742
Stock activity under incentive    compensation plans	—		1,602		(1,412)		(195)		—		(5)
Balance, March 31, 2023	$	230,500	$	291,922	$	4,144,730	$	1,318,632	$	(708,358)	$	5,277,426
December 31, 2023	$	230,500	$	292,655	$	4,159,924	$	1,618,630	$	(738,809)	$	5,562,900
Net income	—		—		—		120,284		—		120,284
Other comprehensive income (loss)	—		—		—		—		(40,819)		(40,819)
Cash dividends:
Common ($0.14 per share)	—		—		—		(41,060)		—		(41,060)
Preferred ($17.50 per share)	—		—		—		(4,034)		—		(4,034)
Common stock issued	—		17		248		—		—		265
Common stock repurchased	—		(434)		(6,748)		—		—		(7,182)
Share-based compensation expense	—		—		5,491		—		—		5,491
Stock activity under incentive    compensation plans	—		1,092		(1,373)		(156)		—		(437)
Balance, March 31, 2024	$	230,500	$	293,330	$	4,157,542	$	1,693,664	$	(779,628)	$	5,595,408

The accompanying notes to consolidated financial statements are an integral part of these statements.

7

OLD NATIONAL BANCORP

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Cash Flows From Operating Activities
Net income	$	120,284	$	146,600
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation	9,678		9,121
Amortization of other intangible assets	5,455		6,186
Amortization of tax credit investments	2,749		2,761
Net premium amortization on investment securities	1,133		3,603
Accretion income related to acquired loans	(3,612)		(6,410)
Share-based compensation expense	5,491		12,742
Provision for credit losses	18,891		13,437
Debt securities (gains) losses, net	16		5,216
Net (gains) losses on sales of loans and other assets	(1,245)		829
Increase in cash surrender value of company-owned life insurance	(3,434)		(3,186)
Residential real estate loans originated for sale	(112,818)		(65,148)
Proceeds from sales of residential real estate loans	112,552		67,468
(Increase) decrease in interest receivable	5,349		1,533
(Increase) decrease in other assets	14,135		(3,833)
Increase (decrease) in accrued expenses and other liabilities	(70,391)		(137,230)
Net cash flows provided by (used in) operating activities	104,233		53,689
Cash Flows From Investing Activities
Purchases of investment securities available-for-sale	(483,506)		(44,413)
Purchases of investment securities held-to-maturity	—		(1,941)
Purchases of Federal Home Loan Bank/Federal Reserve Bank stock	—		(99,158)
Purchases of equity securities	(3,791)		(20,807)
Proceeds from maturities, prepayments, and calls of investment securities available-for-sale	318,810		164,893
Proceeds from sales of investment securities available-for-sale	15,195		51,522
Proceeds from maturities, prepayments, and calls of investment securities held-to-maturity	15,619		24,744
Proceeds from sales of equity securities	1,834		615
Loan originations and payments, net	(639,530)		(708,752)
Proceeds from sales of commercial loans	13,819		—
Proceeds from company-owned life insurance death benefits	3,891		2,257
Proceeds from sales of premises and equipment and other assets	—		1,410
Purchases of premises and equipment and other assets	(8,482)		(10,456)
Net cash flows provided by (used in) investing activities	(766,141)		(640,086)
Cash Flows From Financing Activities
Net increase (decrease) in:
Deposits	464,238		(83,038)
Federal funds purchased and interbank borrowings	50,026		37,466
Securities sold under agreements to repurchase	(10,713)		(39,786)
Other borrowings	49,809		(4,002)
Payments for maturities of Federal Home Loan Bank advances	(825,000)		(750,150)
Proceeds from Federal Home Loan Bank advances	750,000		1,900,000
Cash dividends paid	(45,094)		(45,122)
Common stock repurchased	(7,182)		(43,710)
Common stock issued	265		262
Net cash flows provided by (used in) financing activities	426,349		971,920
Net increase (decrease) in cash and cash equivalents	(235,559)		385,523
Cash and cash equivalents at beginning of period	1,175,058		728,412
Cash and cash equivalents at end of period	$	939,499	$	1,113,935

8

OLD NATIONAL BANCORP

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) – (Continued)

	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Supplemental cash flow information:
Total interest paid	$	241,927	$	104,917
Total income taxes paid (net of refunds)	2,429		1,182
Operating lease right-of-use assets obtained in exchange for lease obligations	(193)		222
Finance lease right-of-use assets obtained in exchange for lease obligations	10,400		9,141

The accompanying notes to consolidated financial statements are an integral part of these statements.

9

OLD NATIONAL BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

NOTE 1 – BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements include the accounts of Old National Bancorp and its wholly-owned subsidiaries (hereinafter collectively referred to as “Old National”) and have been prepared in conformity with accounting principles generally accepted in the United States of America and prevailing practices within the banking industry. Such principles require management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and the disclosures of contingent assets and liabilities at the date of the financial statements and amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In the opinion of management, the consolidated financial statements contain all the normal and recurring adjustments necessary for a fair statement of the financial position of Old National as of March 31, 2024 and December 31, 2023, and the results of its operations for the three months ended March 31, 2024 and 2023. Interim results do not necessarily represent annual results. Certain information and disclosures normally included in notes to consolidated annual financial statements prepared in accordance with GAAP have been condensed or omitted in this Quarterly Report on Form 10-Q pursuant to SEC rules and regulations. These financial statements should be read in conjunction with Old National’s Annual Report on Form 10-K for the year ended December 31, 2023.

All intercompany transactions and balances have been eliminated. Certain prior year amounts have been reclassified to conform to the current presentation. Such reclassifications had no effect on prior period net income or shareholders’ equity and were insignificant amounts.

NOTE 2 – RECENT ACCOUNTING PRONOUNCEMENTS

Accounting Guidance Adopted in 2024

FASB ASC 820 – In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, to clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. The adoption of this guidance on January 1, 2024 did not have a material impact on the consolidated financial statements.

FASB ASC 323 – In March 2023, the FASB issued ASU 2023-02, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method, which allows reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits. This ASU is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. The adoption of this guidance on a modified retrospective basis on January 1, 2024 did not have a material impact on the consolidated financial statements.

FASB ASC 848 – In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides temporary, optional guidance to ease the potential burden in accounting for, or recognizing the effects of, the transition away from LIBOR or other interbank offered rate on financial reporting. The guidance is applicable only to contracts or hedge accounting relationships that reference LIBOR or another reference rate expected to be discontinued.

In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which defers the sunset date of relief provisions within Topic 848 from December 31, 2022 to December 31, 2024. The objective of the guidance in Topic 848 is to provide relief during the transition period.

The amendments in this ASU are effective March 12, 2020 through December 31, 2024. As of March 31, 2024, substantially all of the Company’s LIBOR exposure was addressed and remaining LIBOR-based contracts are expected to transition to alternate reference rates at their next index reset dates. Old National believes the adoption of this guidance on activities subsequent to March 31, 2024 will not have a material impact on the consolidated financial statements.

10

Accounting Guidance Pending Adoption 

FASB ASC 280 – In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments are intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. The purpose of the amendments is to enable investors to better understand an entity’s overall performance and assess potential future cash flows. A public entity should apply the amendments retrospectively to all prior periods presented in the financial statements. Upon transition, the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. Old National is currently evaluating the impact of adopting the new guidance on the consolidated financial statements.

FASB ASC 740 – In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. Among other things, these amendments require that public business entities on an annual basis disclose additional information in specified categories with respect to the reconciliation of the effective tax rate to the statutory rate for federal, state, and foreign income taxes. It also requires greater detail about individual reconciling items in the rate reconciliation to the extent the impact of those items exceeds a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income (loss) by the applicable statutory income tax rate). In addition, the ASU requires information pertaining to taxes paid (net of refunds received) to be disaggregated for federal, state, and foreign taxes and further disaggregated for specific jurisdictions to the extent the related amounts are equal to or greater than 5 percent of total income taxes paid (net of refunds received). The amendments in this ASU are effective for annual periods beginning after December 15, 2024. Early adoption is permitted. Old National is currently evaluating the impact of adopting the new guidance on the consolidated financial statements.

NOTE 3 – ACQUISITION AND DIVESTITURE ACTIVITY

Pending Acquisition

CapStar Financial Holdings, Inc.

On October 26, 2023, Old National announced that it had entered into a definitive merger agreement to acquire CapStar Financial Holdings, Inc. (“CapStar”) and its wholly-owned subsidiary, CapStar Bank, in an all-stock transaction. On April 1, 2024, Old National completed its acquisition of CapStar. This partnership strengthens Old National’s Nashville, Tennessee presence and adds several new high-growth markets. At closing, CapStar had approximately $3.0 billion of total assets, $2.3 billion of total loans, and $2.6 billion of deposits. Under the terms of the merger agreement, each outstanding share of CapStar common stock was converted into the right to receive 1.155 shares of Old National common stock plus cash in lieu of fractional shares, resulting in consideration paid of $418 million based on Old National’s stock price of $17.41 per share at close. Old National expects systems conversions related to the transaction to be completed in the third quarter of 2024.

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NOTE 4 – NET INCOME PER COMMON SHARE

Basic and diluted net income per common share are calculated using the two-class method. Net income applicable to common shares is divided by the weighted-average number of common shares outstanding during the period. Adjustments to the weighted-average number of common shares outstanding are made only when such adjustments will dilute net income per common share. Net income applicable to common shares is then divided by the weighted-average number of common shares and common share equivalents during the period.

The following table presents the calculation of basic and diluted net income per common share:

	Three Months Ended March 31,
(dollars and shares in thousands, except per share data)	2024		2023
Net income	$	120,284	$	146,600
Preferred dividends	(4,034)		(4,034)
Net income applicable to common shares	$	116,250	$	142,566
Weighted average common shares outstanding:
Weighted average common shares outstanding (basic)	290,980		291,088
Effect of dilutive securities:
Restricted stock	1,227		1,666
Stock appreciation rights	—		2
Weighted average diluted shares outstanding	292,207		292,756
Basic Net Income Per Common Share	$	0.40	$	0.49
Diluted Net Income Per Common Share	$	0.40	$	0.49

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NOTE 5 – INVESTMENT SECURITIES

The following table summarizes the amortized cost and fair value of the available-for-sale and held-to-maturity investment securities portfolios and the corresponding amounts of gross unrealized gains, unrealized losses, and basis adjustments in AOCI and gross unrecognized gains and losses.

(dollars in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses		Basis Adjustments (1)		Fair Value
March 31, 2024
Available-for-Sale
U.S. Treasury	$	291,538	$	19	$	(9,956)	$	(48,550)	$	233,051
U.S. government-sponsored entities and agencies	1,448,561		—		(184,941)		(80,601)		1,183,019
Mortgage-backed securities - Agency	5,223,119		1,996		(675,092)		—		4,550,023
States and political subdivisions	537,930		404		(24,180)		950		515,104
Pooled trust preferred securities	13,800		—		(2,526)		—		11,274
Other securities	319,134		391		(20,344)		—		299,181
Total available-for-sale securities	$	7,834,082	$	2,810	$	(917,039)	$	(128,201)	$	6,791,652
Held-to-Maturity
U.S. government-sponsored entities and agencies	$	827,684	$	—	$	(164,949)	$	—	$	662,735
Mortgage-backed securities - Agency	1,016,858		—		(159,201)		—		857,657
States and political subdivisions	1,156,957		864		(130,487)		—		1,027,334
Allowance for securities held-to-maturity	(150)		—		—		—		(150)
Total held-to-maturity securities	$	3,001,349	$	864	$	(454,637)	$	—	$	2,547,576
December 31, 2023
Available-for-Sale
U.S. Treasury	$	449,817	$	154	$	(11,941)	$	(41,297)	$	396,733
U.S. government-sponsored entities and agencies	1,487,879		33		(192,717)		(63,931)		1,231,264
Mortgage-backed securities - Agency	4,835,319		3,093		(621,852)		—		4,216,560
States and political subdivisions	554,509		878		(23,057)		2,930		535,260
Pooled trust preferred securities	13,797		—		(2,460)		—		11,337
Other securities	343,568		449		(22,116)		—		321,901
Total available-for-sale securities	$	7,684,889	$	4,607	$	(874,143)	$	(102,298)	$	6,713,055
Held-to-Maturity
U.S. government-sponsored entities and agencies	$	825,953	$	—	$	(154,827)	$	—	$	671,126
Mortgage-backed securities - Agency	1,029,131		—		(147,137)		—		881,994
States and political subdivisions	1,158,559		1,800		(112,141)		—		1,048,218
Allowance for securities held-to-maturity	(150)		—		—		—		(150)
Total held-to-maturity securities	$	3,013,493	$	1,800	$	(414,105)	$	—	$	2,601,188

(1)    Basis adjustments represent the amount of fair value hedging adjustments included in the carrying amounts of fixed-rate investment securities assets designated in fair value hedging arrangements. See Note 15 to the consolidated financial statements for additional information regarding these derivative financial instruments.

Substantially all of the mortgage-backed securities in the investment portfolio are residential mortgage-backed securities.

Proceeds from sales or calls of available-for-sale investment securities and the resulting realized gains and realized losses were as follows:

	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Proceeds	$	61,250	$	57,955
Realized gains	3		909
Realized losses	(19)		(6,125)

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The table below shows the amortized cost and fair value of the investment securities portfolio by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Weighted average yield is based on amortized cost.

	March 31, 2024
(dollars in thousands)	Amortized Cost		Fair Value		Weighted Average Yield
Maturity
Available-for-Sale
Within one year	$	177,458	$	174,950	3.39	%
One to five years	1,991,571		1,848,581		3.44
Five to ten years	4,193,417		3,608,726		2.57
Beyond ten years	1,471,636		1,159,395		2.58
Total	$	7,834,082	$	6,791,652	2.81	%
Held-to-Maturity
Within one year	$	157	$	147	2.23	%
One to five years	160,838		132,056		2.63
Five to ten years	1,161,402		1,006,755		2.62
Beyond ten years	1,678,952		1,408,618		2.73
Total	$	3,001,349	$	2,547,576	2.68	%

The following table summarizes the available-for-sale investment securities with unrealized losses for which an allowance for credit losses has not been recorded by aggregated major security type and length of time in a continuous unrealized loss position:

	Less than 12 months				12 months or longer				Total
(dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
March 31, 2024
Available-for-Sale
U.S. Treasury	$	13,882	$	(77)	$	183,031	$	(9,879)	$	196,913	$	(9,956)
U.S. government-sponsored entities    and agencies	3,983		(74)		1,179,036		(184,867)		1,183,019		(184,941)
Mortgage-backed securities - Agency	498,441		(4,781)		3,710,045		(670,311)		4,208,486		(675,092)
States and political subdivisions	132,681		(691)		282,382		(23,489)		415,063		(24,180)
Pooled trust preferred securities	—		—		11,274		(2,526)		11,274		(2,526)
Other securities	36,511		(133)		215,927		(20,211)		252,438		(20,344)
Total available-for-sale	$	685,498	$	(5,756)	$	5,581,695	$	(911,283)	$	6,267,193	$	(917,039)
December 31, 2023
Available-for-Sale
U.S. Treasury	$	8,937	$	(42)	$	191,027	$	(11,899)	$	199,964	$	(11,941)
U.S. government-sponsored entities    and agencies	—		—		1,189,314		(192,717)		1,189,314		(192,717)
Mortgage-backed securities - Agency	90,145		(710)		3,835,552		(621,142)		3,925,697		(621,852)
States and political subdivisions	86,865		(495)		259,767		(22,562)		346,632		(23,057)
Pooled trust preferred securities	—		—		11,337		(2,460)		11,337		(2,460)
Other securities	39,032		(229)		255,888		(21,887)		294,920		(22,116)
Total available-for-sale	$	224,979	$	(1,476)	$	5,742,885	$	(872,667)	$	5,967,864	$	(874,143)

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The following table summarizes the held-to-maturity investment securities with unrecognized losses aggregated by major security type and length of time in a continuous loss position:

	Less than 12 months				12 months or longer				Total
(dollars in thousands)	Fair Value		Unrecognized Losses		Fair Value		Unrecognized Losses		Fair Value		Unrecognized Losses
March 31, 2024
Held-to-Maturity
U.S. government-sponsored entities    and agencies	$	—	$	—	$	662,735	$	(164,949)	$	662,735	$	(164,949)
Mortgage-backed securities - Agency	—		—		857,657		(159,201)		857,657		(159,201)
States and political subdivisions	19,953		(100)		957,362		(130,387)		977,315		(130,487)
Total held-to-maturity	$	19,953	$	(100)	$	2,477,754	$	(454,537)	$	2,497,707	$	(454,637)
December 31, 2023
Held-to-Maturity
U.S. government-sponsored entities    and agencies	$	—	$	—	$	671,126	$	(154,827)	$	671,126	$	(154,827)
Mortgage-backed securities - Agency	—		—		881,994		(147,137)		881,994		(147,137)
States and political subdivisions	—		—		977,154		(112,141)		977,154		(112,141)
Total held-to-maturity	$	—	$	—	$	2,530,274	$	(414,105)	$	2,530,274	$	(414,105)

The unrecognized losses on held-to-maturity investment securities presented in the table above do not include unrecognized losses on securities that were transferred from available-for-sale to held-to-maturity totaling $123.3 million at March 31, 2024 and $127.6 million at December 31, 2023. These unrecognized losses are included as a separate component of shareholders’ equity and are being amortized over the remaining term of the securities.

No allowance for credit losses on available-for-sale debt securities was needed at March 31, 2024 or December 31, 2023.

An allowance on held-to-maturity debt securities is maintained for certain municipal bonds to account for expected lifetime credit losses. Substantially all of the U.S. government-sponsored entities and agencies and agency mortgage-backed securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major credit rating agencies, and have a long history of no credit losses. Therefore, for those securities, we do not record expected credit losses. The allowance for credit losses on held-to-maturity debt securities was $0.2 million at March 31, 2024 and December 31, 2023. Accrued interest receivable on the securities portfolio is excluded from the estimate of credit losses and totaled $40.3 million at March 31, 2024 and $50.3 million at December 31, 2023.

At March 31, 2024, Old National’s securities portfolio consisted of 2,941 securities, 2,702 of which were in an unrealized loss position. The unrealized losses attributable to our U.S. Treasury, U.S. government-sponsored entities and agencies, agency mortgage-backed securities, states and political subdivisions, and other securities are the result of fluctuations in interest rates and market movements. Old National’s pooled trust preferred securities are evaluated using collateral-specific assumptions to estimate the expected future interest and principal cash flows. At March 31, 2024, we had no intent to sell any securities that were in an unrealized loss position nor is it expected that we would be required to sell the securities prior to their anticipated recovery.

Old National’s pooled trust preferred securities have experienced credit defaults. However, we believe that the value of the instruments lies in the full and timely interest payments that will be received through maturity, the steady amortization that will be experienced until maturity, and the full return of principal by the final maturity of the collateralized debt obligations. Old National did not recognize any losses on these securities for the three months ended March 31, 2024 or 2023.

Equity Securities

Equity securities consist of mutual funds for Community Reinvestment Act qualified investments and diversified investment securities held in a grantor trust for participants in the Company’s nonqualified deferred compensation plan. Old National’s equity securities with readily determinable fair values totaled $85.0 million at March 31, 2024 and $80.4 million at December 31, 2023. There were gains on equity securities of $0.3 million during the three months ended March 31, 2024, compared to losses of $0.8 million during the three months ended March 31, 2023.

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Alternative Investments

Old National has alternative investments without readily determinable fair values that are included in other assets totaling $474.7 million at March 31, 2024, consisting of $270.6 million of illiquid investments in partnerships, limited liability companies, and other ownership interests that support affordable housing and $204.1 million of economic development and community revitalization initiatives in low-to-moderate income neighborhoods. These alternative investments totaled $449.3 million at December 31, 2023. There have been no impairments or adjustments on equity securities without readily determinable fair values, except for amortization of tax credit investments in the three months ended March 31, 2024 and 2023. See Note 9 to the consolidated financial statements for detail regarding these investments.

NOTE 6 – 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 region 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 March 31, 2024, these loans totaled $3.0 billion, of which $1.3 billion had been sold to other financial institutions and $1.7 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.

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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, 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)
March 31, 2024
Commercial (1)	$	9,648,269	$	(232,045)	$	9,416,224
Commercial real estate	14,653,958		(172,659)		14,481,299
BBCC	N/A		404,704		404,704
Residential real estate	6,661,379		—		6,661,379
Consumer	2,659,713		(2,659,713)		N/A
Indirect	N/A		1,091,998		1,091,998
Direct	N/A		506,305		506,305
Home equity	N/A		1,061,410		1,061,410
Total loans (2)	$	33,623,319	$	—	$	33,623,319
Allowance for credit losses on loans	(319,713)		—		(319,713)
Net loans	$	33,303,606	$	—	$	33,303,606
December 31, 2023
Commercial (1)	$	9,512,230	$	(232,764)	$	9,279,466
Commercial real estate	14,140,629		(169,058)		13,971,571
BBCC	N/A		401,822		401,822
Residential real estate	6,699,443		—		6,699,443
Consumer	2,639,625		(2,639,625)		N/A
Indirect	N/A		1,050,982		1,050,982
Direct	N/A		523,172		523,172
Home equity	N/A		1,065,471		1,065,471
Total loans (2)	$	32,991,927	$	—	$	32,991,927
Allowance for credit losses on loans	(307,610)		—		(307,610)
Net loans	$	32,684,317	$	—	$	32,684,317

(1)Includes direct finance leases of $161.7 million at March 31, 2024 and $169.7 million at December 31, 2023.

(2)    Includes unearned income of $88.9 million at March 31, 2024 and $93.7 million at December 31, 2023.

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 viewed 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

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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 242%, 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 March 31, 2024.

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 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 factors such as changes in 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

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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, 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 unemployment, gross domestic product, housing product index, and the BBB ratio prove to be more severe and/or prolonged than our baseline forecast due to a variety of factors including monetary actions to control inflation, recent instability in the banking sector, global military conflicts, and global supply chain issues. 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		Charge-offs		Recoveries		Provision for Loan Losses		Balance at End of Period
Three Months Ended March 31, 2024
Commercial	$	118,333	$	(3,659)	$	334	$	8,429	$	123,437
Commercial real estate	155,099		(6,641)		1,035		11,147		160,640
BBCC	2,887		(76)		18		334		3,163
Residential real estate	20,837		—		19		1,043		21,899
Indirect	1,236		(1,138)		332		788		1,218
Direct	3,169		(2,428)		487		1,724		2,952
Home equity	6,049		(78)		45		388		6,404
Total	$	307,610	$	(14,020)	$	2,270	$	23,853	$	319,713
Three Months Ended March 31, 2023
Commercial	$	120,612	$	(12,423)	$	283	$	17,296	$	125,768
Commercial real estate	138,244		(1,189)		263		(1,970)		135,348
BBCC	2,431		(28)		73		(160)		2,316
Residential real estate	21,916		(23)		72		(1,758)		20,207
Indirect	1,532		(1,197)		412		687		1,434
Direct	12,116		(3,238)		581		(2,693)		6,766
Home equity	6,820		(82)		67		67		6,872
Total	$	303,671	$	(18,180)	$	1,751	$	11,469	$	298,711

Accrued interest receivable on loans is excluded from the estimate of credit losses and totaled $171.6 million at March 31, 2024, compared to $169.8 million at December 31, 2023.

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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 March 31,
(dollars in thousands)	2024		2023
Allowance for credit losses on unfunded loan commitments:
Balance at beginning of period	$	31,226	$	32,188
Provision (release) for credit losses on unfunded loan    commitments	(4,962)		1,968
Balance at end of period	$	26,264	$	34,156

Credit Quality

Old National’s management monitors the credit quality of its loans on an ongoing basis with the AQR for commercial 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:

Criticized. Special mention loans that 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 the institution’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 the institution 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 criticized, classified – substandard, classified – nonaccrual, or classified – doubtful.

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The following table summarizes the amortized cost of term loans by risk category of commercial, commercial real estate, and BBCC loans by loan portfolio segment, class of loan, and origination year:

(dollars in thousands)	Origination Year														Revolving to Term
	2024		2023		2022		2021		2020		Prior		Revolving				Total
March 31, 2024
Commercial:
Pass	$	410,201	$	1,750,748	$	1,366,887	$	874,692	$	478,725	$	799,327	$	2,162,262	$	891,572	$	8,734,414
Criticized	1,087		23,697		66,438		16,667		36,943		50,076		123,117		15,698		333,723
Classified:
Substandard	6,680		8,148		37,790		32,816		33,303		27,990		60,662		67,681		275,070
Nonaccrual	—		8,206		—		—		—		1,623		603		2,285		12,717
Doubtful	—		12,237		35,110		6,343		4,523		2,087		—		—		60,300
Total	$	417,968	$	1,803,036	$	1,506,225	$	930,518	$	553,494	$	881,103	$	2,346,644	$	977,236	$	9,416,224
Commercial real estate:
Pass	$	461,150	$	2,274,374	$	3,680,370	$	2,438,872	$	1,479,830	$	2,057,232	$	98,657	$	988,203	$	13,478,688
Criticized	7,746		51,975		48,071		132,220		38,258		112,902		7,869		80,231		479,272
Classified:
Substandard	280		10,079		66,381		37,954		33,966		142,537		—		57,157		348,354
Nonaccrual	—		206		19,344		11,850		2,599		19,159		—		2,465		55,623
Doubtful	—		5,217		21,775		24,349		2,224		65,797		—		—		119,362
Total	$	469,176	$	2,341,851	$	3,835,941	$	2,645,245	$	1,556,877	$	2,397,627	$	106,526	$	1,128,056	$	14,481,299
BBCC:
Pass	$	20,205	$	82,522	$	63,561	$	41,025	$	35,964	$	41,883	$	65,020	$	31,595	$	381,775
Criticized	122		—		571		872		528		324		2,004		10,003		14,424
Classified:
Substandard	73		444		191		248		126		82		575		994		2,733
Nonaccrual	—		—		—		470		—		1,169		—		1,962		3,601
Doubtful	—		904		564		229		252		222		—		—		2,171
Total	$	20,400	$	83,870	$	64,887	$	42,844	$	36,870	$	43,680	$	67,599	$	44,554	$	404,704

(dollars in thousands)	Origination Year														Revolving to Term
	2023		2022		2021		2020		2019		Prior		Revolving				Total
December 31, 2023
Commercial:
Pass	$	1,826,289	$	1,573,669	$	985,964	$	520,883	$	450,911	$	495,979	$	2,051,985	$	651,953	$	8,557,633
Criticized	20,038		90,031		19,953		36,906		25,756		47,357		89,765		44,348		374,154
Classified:
Substandard	27,271		41,164		27,990		37,618		10,461		29,981		72,703		56,716		303,904
Nonaccrual	32		7,034		—		—		823		3,411		—		5,461		16,761
Doubtful	—		7,261		5,925		4,875		1,742		7,211		—		—		27,014
Total	$	1,873,630	$	1,719,159	$	1,039,832	$	600,282	$	489,693	$	583,939	$	2,214,453	$	758,478	$	9,279,466
Commercial real estate:
Pass	$	2,177,841	$	3,515,702	$	2,563,638	$	1,576,044	$	1,010,351	$	1,161,119	$	103,332	$	960,386	$	13,068,413
Criticized	69,648		69,946		68,708		27,059		52,107		95,896		3,893		64,730		451,987
Classified:
Substandard	26,638		56,423		21,401		28,983		61,186		49,558		—		48,760		292,949
Nonaccrual	—		21,919		10,706		1,975		1,634		8,632		—		1,400		46,266
Doubtful	5,360		429		30,897		2,306		37,777		35,187		—		—		111,956
Total	$	2,279,487	$	3,664,419	$	2,695,350	$	1,636,367	$	1,163,055	$	1,350,392	$	107,225	$	1,075,276	$	13,971,571
BBCC:
Pass	$	81,102	$	64,583	$	44,307	$	38,086	$	27,557	$	19,028	$	68,807	$	33,361	$	376,831
Criticized	—		—		857		700		1,001		349		2,144		12,728		17,779
Classified:
Substandard	436		193		252		—		—		604		15		1,006		2,506
Nonaccrual	—		—		482		—		4		1,105		—		1,402		2,993
Doubtful	302		727		254		286		60		84		—		—		1,713
Total	$	81,840	$	65,503	$	46,152	$	39,072	$	28,622	$	21,170	$	70,966	$	48,497	$	401,822

21

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 Year														Revolving to Term
(dollars in thousands)	2024		2023		2022		2021		2020		Prior		Revolving				Total
March 31, 2024
Residential real estate:
Risk Rating:
Performing	$	52,693	$	475,237	$	1,494,593	$	1,857,010	$	1,615,143	$	1,119,364	$	74	$	243	$	6,614,357
Nonperforming	—		1,366		6,461		6,151		3,771		29,273		—		—		47,022
Total	$	52,693	$	476,603	$	1,501,054	$	1,863,161	$	1,618,914	$	1,148,637	$	74	$	243	$	6,661,379
Indirect:
Risk Rating:
Performing	$	139,067	$	373,733	$	321,837	$	143,848	$	69,757	$	39,133	$	—	$	215	$	1,087,590
Nonperforming	—		695		1,668		1,110		450		485		—		—		4,408
Total	$	139,067	$	374,428	$	323,505	$	144,958	$	70,207	$	39,618	$	—	$	215	$	1,091,998
Direct:
Risk Rating:
Performing	$	19,941	$	92,696	$	123,339	$	82,175	$	29,248	$	73,369	$	79,443	$	611	$	500,822
Nonperforming	—		18		522		386		658		3,886		3		10		5,483
Total	$	19,941	$	92,714	$	123,861	$	82,561	$	29,906	$	77,255	$	79,446	$	621	$	506,305
Home equity:
Risk Rating:
Performing	$	—	$	2	$	396	$	299	$	—	$	4,911	$	1,012,484	$	25,360	$	1,043,452
Nonperforming	—		1		7		131		242		4,688		3,618		9,271		17,958
Total	$	—	$	3	$	403	$	430	$	242	$	9,599	$	1,016,102	$	34,631	$	1,061,410

	Origination Year														Revolving to Term
	2023		2022		2021		2020		2019		Prior		Revolving				Total
December 31, 2023
Residential real estate:
Risk Rating:
Performing	$	453,743	$	1,508,671	$	1,836,078	$	1,705,131	$	430,783	$	722,987	$	—	$	279	$	6,657,672
Nonperforming	116		4,563		4,004		3,375		4,078		25,635		—		—		41,771
Total	$	453,859	$	1,513,234	$	1,840,082	$	1,708,506	$	434,861	$	748,622	$	—	$	279	$	6,699,443
Indirect:
Risk Rating:
Performing	$	393,369	$	355,822	$	162,735	$	82,871	$	37,967	$	13,815	$	—	$	196	$	1,046,775
Nonperforming	372		1,472		1,207		547		318		291		—		—		4,207
Total	$	393,741	$	357,294	$	163,942	$	83,418	$	38,285	$	14,106	$	—	$	196	$	1,050,982
Direct:
Risk Rating:
Performing	$	109,372	$	90,310	$	92,491	$	48,387	$	29,659	$	67,129	$	75,080	$	4,852	$	517,280
Nonperforming	67		531		517		560		210		3,872		124		11		5,892
Total	$	109,439	$	90,841	$	93,008	$	48,947	$	29,869	$	71,001	$	75,204	$	4,863	$	523,172
Home equity:
Risk Rating:
Performing	$	290	$	164	$	160	$	140	$	679	$	4,483	$	1,019,389	$	23,918	$	1,049,223
Nonperforming	—		310		328		404		741		4,327		2,844		7,294		16,248
Total	$	290	$	474	$	488	$	544	$	1,420	$	8,810	$	1,022,233	$	31,212	$	1,065,471

22

The following table summarizes the gross charge-offs of loans by loan portfolio segment and origination year:

	Origination Year
(dollars in thousands)	2024		2023		2022		2021		2020		Prior		Revolving		Total
Three Months Ended March 31, 2024
Commercial	$	—	$	—	$	3,481	$	33	$	8	$	4	$	133	$	3,659
Commercial real estate	—		—		—		2,176		—		4,465		—		6,641
BBCC	—		—		76		—		—		—		—		76
Residential real estate	—		—		—		—		—		—		—		—
Indirect	—		370		472		225		33		38		—		1,138
Direct	—		116		576		529		113		223		871		2,428
Home equity	—		—		—		34		—		44		—		78
Total gross charge-offs	$	—	$	486	$	4,605	$	2,997	$	154	$	4,774	$	1,004	$	14,020
	Origination Year
	2023		2022		2021		2020		2019		Prior		Revolving		Total
Three Months Ended March 31, 2023
Commercial	$	—	$	—	$	5,230	$	—	$	6,789	$	239	$	165	$	12,423
Commercial real estate	—		54		735		400		—		—		—		1,189
BBCC	—		—		28		—		—		—		—		28
Residential real estate	—		—		—		—		—		23		—		23
Indirect	—		514		430		93		111		49		—		1,197
Direct	—		471		794		286		327		195		1,165		3,238
Home equity	—		—		—		—		—		82		—		82
Total gross charge-offs	$	—	$	1,039	$	7,217	$	779	$	7,227	$	588	$	1,330	$	18,180

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.

23

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		Current		Total Loans
March 31, 2024
Commercial	$	10,099	$	1,620	$	10,023	$	21,742	$	9,394,482	$	9,416,224
Commercial real estate	8,838		27,844		32,539		69,221		14,412,078		14,481,299
BBCC	1,268		1,111		1,240		3,619		401,085		404,704
Residential	31,319		5,030		14,216		50,565		6,610,814		6,661,379
Indirect	5,488		1,351		1,205		8,044		1,083,954		1,091,998
Direct	4,751		1,115		3,454		9,320		496,985		506,305
Home equity	4,948		1,045		7,921		13,914		1,047,496		1,061,410
Total	$	66,711	$	39,116	$	70,598	$	176,425	$	33,446,894	$	33,623,319
December 31, 2023
Commercial	$	16,128	$	1,332	$	4,861	$	22,321	$	9,257,145	$	9,279,466
Commercial real estate	9,081		5,254		30,660		44,995		13,926,576		13,971,571
BBCC	1,368		134		977		2,479		399,343		401,822
Residential	12,358		367		15,249		27,974		6,671,469		6,699,443
Indirect	7,025		1,854		1,342		10,221		1,040,761		1,050,982
Direct	5,436		1,455		1,787		8,678		514,494		523,172
Home equity	7,791		2,347		6,659		16,797		1,048,674		1,065,471
Total	$	59,187	$	12,743	$	61,535	$	133,465	$	32,858,462	$	32,991,927

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:

	March 31, 2024						December 31, 2023
(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	$	73,017	$	16,707	$	1,167	$	43,775	$	13,143	$	242
Commercial real estate	174,985		56,216		742		158,222		24,507		585
BBCC	5,772		—		98		4,706		—		95
Residential	47,022		—		10		41,771		—		—
Indirect	4,408		—		108		4,207		—		8
Direct	5,483		—		42		5,892		—		31
Home equity	17,958		—		5		16,248		—		—
Total	$	328,645	$	72,923	$	2,172	$	274,821	$	37,650	$	961

Interest income recognized on nonaccrual loans was insignificant during the three months ended March 31, 2024 and 2023.

24

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 quarter-over-quarter 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		Auto		Other
March 31, 2024
Commercial	$	11,284	$	39,258	$	5,728	$	11,582	$	319
Commercial real estate	163,753		—		1,133		—		6,031
BBCC	3,793		1,701		—		278		—
Residential	47,022		—		—		—		—
Indirect	—		—		—		4,408		—
Direct	4,559		—		7		386		48
Home equity	17,958		—		—		—		—
Total loans	$	248,369	$	40,959	$	6,868	$	16,654	$	6,398
December 31, 2023
Commercial	$	14,303	$	24,729	$	2,577	$	280	$	328
Commercial real estate	146,425		—		1,167		—		6,107
BBCC	3,522		794		—		390		—
Residential	41,771		—		—		—		—
Indirect	—		—		—		4,207		—
Direct	4,727		1		3		366		29
Home equity	16,248		—		—		—		—
Total loans	$	226,996	$	25,524	$	3,747	$	5,243	$	6,464

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 of forgiveness 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 for borrowers experiencing financial difficulty, by class of loans and type of modification:

(dollars in thousands)	Term Extension		Total Class of Loans
Three Months Ended March 31, 2024
Commercial	$	29,426	0.3	%
Commercial real estate	120,891		0.8	%
Total	$	150,317	0.4	%
Three Months Ended March 31, 2023
Commercial	$	17,342	0.2	%
Commercial real estate	9,926		0.1	%
Total	$	27,268	0.1	%

25

Old National closely monitors the performance of financial difficulty modifications to understand the effectiveness of its efforts. The following table presents the performance of loans identified as financial difficulty modifications:

(dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		Past Due 90 Days or More		Total Past Due		Current		Total Loans
March 31, 2024
Commercial	$	—	$	—	$	—	$	—	$	29,426	$	29,426
Commercial real estate	4,059		31,222		—		35,281		85,610		120,891
Total	$	4,059	$	31,222	$	—	$	35,281	$	115,036	$	150,317
December 31, 2023
Commercial	$	—	$	—	$	—	$	—	$	21,631	$	21,631
Commercial real estate	5,287		—		—		5,287		116,242		121,529
Total	$	5,287	$	—	$	—	$	5,287	$	137,873	$	143,160

The following table summarizes the nature of the financial difficulty modifications by class of loans:

(dollars in thousands)	Weighted- Average Term Extension (in months)
Three Months Ended March 31, 2024
Commercial	9.1
Commercial real estate	8.1
Total	8.6
Three Months Ended March 31, 2023
Commercial	6.8
Commercial real estate	4.1
Total	5.6

There were no payment defaults on these loans subsequent to their modifications during the three months ended March 31, 2024 or 2023. Old National had not committed to lend any material additional funds to the borrowers whose loans were modified due to financial difficulties at March 31, 2024 or December 31, 2023.

NOTE 7 – LEASES

Old National has operating and finance leases for land, office space, banking centers, and equipment. These leases are generally for periods of 5 to 20 years with various renewal options. We include certain renewal options in the measurement of our right-of-use assets and lease liabilities if they are reasonably certain to be exercised. Variable lease payments that are dependent on an index or a rate are initially measured using the index or rate at the commencement date and are included in the measurement of the lease liability. Variable lease payments that are not dependent on an index or a rate are excluded from the measurement of the lease liability and are recognized in profit and loss when incurred. Variable lease payments are defined as payments made for the right to use an asset that vary because of changes in facts or circumstances occurring after the commencement date, other than the passage of time.

Old National has lease agreements with lease and non-lease components, which are generally accounted for separately. For real estate leases, non-lease components and other non-components, such as common area maintenance charges, real estate taxes, and insurance are not included in the measurement of the lease liability since they are generally able to be segregated. For certain equipment leases, Old National accounts for the lease and non-lease components as a single lease component using the practical expedient available for that class of assets. Old National does not have any material sub-lease agreements.

26

The components of lease expense were as follows:

	Affected Line Item in the Statement of Income	Three Months Ended March 31,
(dollars in thousands)		2024		2023
Operating lease cost	Occupancy/Equipment expense	$	7,826	$	8,638
Finance lease cost:
Amortization of right-of-use assets	Occupancy expense	751		691
Interest on lease liabilities	Interest expense	181		169
Sub-lease income	Occupancy expense	(125)		(60)
Total		$	8,633	$	9,438

Supplemental balance sheet information related to leases was as follows:

(dollars in thousands)	March 31, 2024			December 31, 2023
Operating Leases
Operating lease right-of-use assets	$	189,593		$	185,506
Operating lease liabilities	208,868			204,960
Finance Leases
Premises and equipment, net	18,877			19,820
Other borrowings	20,108			20,955
Weighted-Average Remaining Lease Term (in Years)
Operating leases	8.4			8.5
Finance leases	10.3			10.5
Weighted-Average Discount Rate
Operating leases	3.05		%	3.04		%
Finance leases	3.91		%	3.90		%

Supplemental cash flow information related to leases was as follows:

	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	8,005	$	7,932
Operating cash flows from finance leases	181		169
Financing cash flows from finance leases	655		628

The following table presents a maturity analysis of the Company’s lease liability by lease classification at March 31, 2024:

(dollars in thousands)	Operating Leases		Finance Leases
2024	$	23,964	$	2,520
2025	32,022		3,377
2026	31,257		2,151
2027	30,266		2,152
2028	26,608		2,050
Thereafter	94,333		12,451
Total undiscounted lease payments	238,450		24,701
Amounts representing interest	(29,582)		(4,593)
Lease liability	$	208,868	$	20,108

27

NOTE 8 – GOODWILL AND OTHER INTANGIBLE ASSETS

The following table presents the changes in the carrying amount of goodwill:

	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Balance at beginning of period	$	1,998,716	$	1,998,716
Acquisitions and adjustments	—		—
Balance at end of period	$	1,998,716	$	1,998,716

Old National performed the required annual goodwill impairment test as of August 31, 2023 and there was no impairment. No events or circumstances since the August 31, 2023 annual impairment test were noted that would indicate it was more likely than not a goodwill impairment exists.

The gross carrying amounts and accumulated amortization of other intangible assets were as follows: 

(dollars in thousands)	Gross Carrying Amount		Accumulated Amortization and Impairment		Net Carrying Amount
March 31, 2024
Core deposit	$	143,511	$	(77,249)	$	66,262
Customer trust relationships	52,621		(22,088)		30,533
Total other intangible assets	$	196,132	$	(99,337)	$	96,795
December 31, 2023
Core deposit	$	143,511	$	(72,940)	$	70,571
Customer trust relationships	52,621		(20,942)		31,679
Total other intangible assets	$	196,132	$	(93,882)	$	102,250

Other intangible assets consist of core deposit intangibles and customer relationship intangibles and are being amortized primarily on an accelerated basis over their estimated useful lives, generally over a period of 5 to 15 years.

Old National reviews other intangible assets for possible impairment whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. No impairment charges were recorded during the three months ended March 31, 2024 or 2023. Total amortization expense associated with intangible assets was $5.5 million for the three months ended March 31, 2024, compared to $6.2 million for the three months ended March 31, 2023.

Estimated amortization expense for future years is as follows:

(dollars in thousands)
2024 remaining	$	15,784
2025	18,358
2026	15,555
2027	12,867
2028	10,356
Thereafter	23,875
Total	$	96,795

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NOTE 9 – QUALIFIED AFFORDABLE HOUSING PROJECTS AND OTHER TAX CREDIT INVESTMENTS

Old National is a limited partner in several tax-advantaged limited partnerships whose purpose is to invest in approved qualified affordable housing, renewable energy, or other renovation or community revitalization projects. These investments are included in other assets on the balance sheet, with any unfunded commitments included with other liabilities. As of March 31, 2024, Old National expects to recover its remaining investments through the use of the tax credits that are generated by the investments.

The following table summarizes Old National’s investments in qualified affordable housing projects and other tax credit investments:

(dollars in thousands)		March 31, 2024				December 31, 2023
Investment	Accounting Method	Investment		Unfunded Commitment (1)		Investment		Unfunded Commitment
LIHTC	Proportional amortization	$	119,914	$	67,310	$	114,991	$	75,981
FHTC	Proportional amortization (2)	32,757		27,148		34,220		27,421
NMTC	Consolidation	51,421		—		47,727		—
Renewable Energy	Equity	15		—		201		—
Total		$	204,107	$	94,458	$	197,139	$	103,402

(1)All commitments will be paid by Old National by December 31, 2027.

(2)Old National’s FHTC investments were previously accounted for under the Equity method of accounting prior to the adoption of ASU 2023-02 on January 1, 2024.

The following table summarizes the amortization expense and tax benefit recognized for Old National’s qualified affordable housing projects and other tax credit investments:

(dollars in thousands)	Amortization Expense (1)		Tax Expense (Benefit) Recognized (2)
Three Months Ended March 31, 2024
LIHTC	$	2,486	$	(3,331)
FHTC	534		(663)
NMTC	2,546		(3,175)
Renewable Energy	186		—
Total	$	5,752	$	(7,169)
Three Months Ended March 31, 2023
LIHTC	$	1,463	$	(1,908)
FHTC	424		(512)
NMTC	2,091		(2,611)
Renewable Energy	246		—
Total	$	4,224	$	(5,031)

(1)The amortization expense for the LIHTC and FHTC investments is included in our income tax expense. Prior to the adoption of ASU 2023-02, FHTC amortization expense was included in noninterest expense. NMTC amortization is recognized in noninterest expense in correlation to the recognition of tax credits on our tax return. Amortization expense for the Renewable Energy tax credits is included in noninterest expense.

(2)All of the tax benefits recognized are included in our income tax expense. The tax benefit recognized for the NMTC and Renewable Energy investments primarily reflects the tax credits generated from the investments and excludes the net tax expense (benefit) and deferred tax liability of the investments’ income (loss).

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NOTE 10 – SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

Securities sold under agreements to repurchase are secured borrowings. Old National pledges investment securities to secure these borrowings. The following table presents securities sold under agreements to repurchase and related weighted-average interest rates:

	At or for the Three Months Ended March 31,
(dollars in thousands)	2024			2023
Outstanding at period end	$	274,493		$	393,018
Average amount outstanding during the period	296,236			412,819
Maximum amount outstanding at any month-end during the period	319,423			430,537
Weighted-average interest rate:
During the period	1.25		%	0.77		%
At period end	3.61		%	0.88		%

At December 31, 2023, securities sold under agreements to repurchase totaled $285.2 million with a weighted-average interest rate of 3.64%.

The following table presents the contractual maturity of our secured borrowings and class of collateral pledged:

	At March 31, 2024
	Remaining Contractual Maturity of the Agreements
(dollars in thousands)	Overnight and Continuous		Up to 30 Days		30-90 Days		Greater Than 90 days		Total
Repurchase Agreements:
U.S. Treasury and agency securities	$	274,493	$	—	$	—	$	—	$	274,493
Total	$	274,493	$	—	$	—	$	—	$	274,493

NOTE 11 – FEDERAL HOME LOAN BANK ADVANCES

The following table summarizes Old National Bank’s FHLB advances:

(dollars in thousands)	March 31, 2024		December 31, 2023
FHLB advances (fixed rates 2.19% to 5.53%    and variable rates 5.33% to 5.36%) maturing    June 2024 to March 2044	$	4,225,528	$	4,300,528
Fair value hedge basis adjustments and unamortized    prepayment fees	(32,489)		(19,847)
Total	$	4,193,039	$	4,280,681

FHLB advances had weighted-average rates of 3.58% at March 31, 2024 and 3.45% at December 31, 2023. FHLB advances are collateralized by designated assets that may include qualifying commercial real estate loans, residential and multifamily mortgages, home equity loans, and certain investment securities.

At March 31, 2024, total unamortized prepayment fees related to all FHLB advance debt modifications completed in prior years totaled $12.7 million, compared to $14.2 million at December 31, 2023.

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Contractual maturities of FHLB advances at March 31, 2024 were as follows:

(dollars in thousands)
Due in 2024	$	100,243
Due in 2025	550,285
Due in 2026	100,000
Due in 2028	850,000
Thereafter	2,625,000
Fair value hedge basis adjustments and unamortized prepayment fees	(32,489)
Total	$	4,193,039

NOTE 12 – OTHER BORROWINGS

The following table summarizes Old National’s other borrowings:

(dollars in thousands)	March 31, 2024		December 31, 2023
Old National Bancorp:
Senior unsecured notes (fixed rate 4.125%) maturing August 2024	$	175,000	$	175,000
Unamortized debt issuance costs related to senior unsecured notes	(52)		(91)
Subordinated debentures (fixed rate 5.875%) maturing September 2026	150,000		150,000
Junior subordinated debentures (rates of 6.95% to 9.15%) maturing    July 2031 to September 2037	136,643		136,643
Other basis adjustments	16,916		18,207
Old National Bank:
Finance lease liabilities	20,108		20,955
Subordinated debentures (3-month SOFR plus 4.618%; variable rate 9.94%)    maturing October 2025	12,000		12,000
Leveraged loans for NMTC (fixed rates of 1.00% to 1.43%)    maturing December 2046 to June 2060	168,228		154,284
Other (1)	134,370		97,872
Total other borrowings	$	813,213	$	764,870

(1)Includes overnight borrowings to collateralize certain derivative positions totaling $134.2 million at March 31, 2024 and $97.6 million at December 31, 2023.

Contractual maturities of other borrowings at March 31, 2024 were as follows:

(dollars in thousands)
Due in 2024	$	311,233
Due in 2025	14,747
Due in 2026	151,582
Due in 2027	1,641
Due in 2028	1,598
Thereafter	315,407
Unamortized debt issuance costs and other basis adjustments	17,005
Total	$	813,213

Junior Subordinated Debentures

Junior subordinated debentures related to trust preferred securities are classified in “other borrowings.” Junior subordinated debentures qualify as Tier 2 capital for regulatory purposes, subject to certain limitations.

Through various mergers and acquisitions, Old National assumed junior subordinated debenture obligations related to various trusts that issued trust preferred securities. Old National guarantees the payment of distributions on the trust preferred securities issued by the trusts. Proceeds from the issuance of each of these securities were used to purchase junior subordinated debentures with the same financial terms as the securities issued by the trusts.

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Old National, at any time, may redeem the junior subordinated debentures at par and, thereby cause a redemption of the trust preferred securities in whole or in part.

The following table summarizes the terms of our outstanding junior subordinated debentures at March 31, 2024:

(dollars in thousands)					Rate at March 31, 2024
Name of Trust	Issuance Date	Issuance Amount		Rate		Maturity Date
Bridgeview Statutory Trust I	July 2001	$	15,464	3-month SOFR plus 3.58%	9.15%	July 31, 2031
Bridgeview Capital Trust II	December 2002	15,464		3-month SOFR plus 3.35%	8.93%	January 7, 2033
First Midwest Capital Trust I	November 2003	37,825		6.95% fixed	6.95%	December 1, 2033
St. Joseph Capital Trust II	March 2005	5,155		3-month SOFR plus 1.75%	7.34%	March 17, 2035
Northern States Statutory Trust I	September 2005	10,310		3-month SOFR plus 1.80%	7.39%	September 15, 2035
Anchor Capital Trust III	August 2005	5,000		3-month SOFR plus 1.55%	7.11%	September 30, 2035
Great Lakes Statutory Trust II	December 2005	6,186		3-month SOFR plus 1.40%	6.99%	December 15, 2035
Home Federal Statutory    Trust I	September 2006	15,464		3-month SOFR plus 1.65%	7.24%	September 15, 2036
Monroe Bancorp Capital    Trust I	July 2006	3,093		3-month SOFR plus 1.60%	7.18%	October 7, 2036
Tower Capital Trust 3	December 2006	9,279		3-month SOFR plus 1.69%	7.29%	March 1, 2037
Monroe Bancorp Statutory    Trust II	March 2007	5,155		3-month SOFR plus 1.60%	7.19%	June 15, 2037
Great Lakes Statutory Trust III	June 2007	8,248		3-month SOFR plus 1.70%	7.29%	September 15, 2037
Total		$	136,643

Leveraged Loans

The leveraged loans are directly related to the NMTC structure. As part of the transaction structure, Old National has the right to sell its interest in the entity that received the leveraged loans at an agreed upon price to the leveraged lender at the end of the NMTC seven-year compliance period. See Note 9 to the consolidated financial statements for additional information on the Company’s NMTC investments.

Finance Lease Liabilities

Old National has long-term finance lease liabilities for certain banking centers and equipment totaling $20.1 million at March 31, 2024. See Note 7 to the consolidated financial statements for a maturity analysis of the Company’s finance lease liabilities.

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NOTE 13 – ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following table summarizes the changes within each classification of AOCI, net of tax:

(dollars in thousands)	Unrealized Gains and Losses on Available- for-Sale Debt Securities		Unrealized Gains and Losses on Held-to- Maturity Securities		Gains and Losses on Hedges		Defined Benefit Pension Plans		Total
Three Months Ended March 31, 2024
Balance at beginning of period	$	(652,518)	$	(95,472)	$	9,181	$	—	$	(738,809)
Other comprehensive income (loss) before    reclassifications	(33,463)		—		(14,205)		—		(47,668)
Amounts reclassified from AOCI to income (1)	12		3,221		3,616		—		6,849
Balance at end of period	$	(685,969)	$	(92,251)	$	(1,408)	$	—	$	(779,628)
Three Months Ended March 31, 2023
Balance at beginning of period	$	(642,346)	$	(112,664)	$	(31,549)	$	137	$	(786,422)
Other comprehensive income (loss) before    reclassifications	27,219		1,325		35,985		—		64,529
Amounts reclassified from AOCI to income (1)	3,867		4,373		5,436		(141)		13,535
Balance at end of period	$	(611,260)	$	(106,966)	$	9,872	$	(4)	$	(708,358)

(1)See table below for details about reclassifications to income.

The following table summarizes the amounts reclassified out of each component of AOCI for the three months ended March 31, 2024 and 2023:

	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Details about AOCI Components	Amount Reclassified from AOCI				Affected Line Item in the Statement of Income
Unrealized gains and losses on    available-for-sale securities	$	(16)	$	(5,216)	Debt securities gains (losses), net
	4		1,349		Income tax (expense) benefit
	$	(12)	$	(3,867)	Net income
Amortization of unrealized losses on    held-to-maturity securities transferred    from available-for-sale	$	(4,318)	$	(5,829)	Interest income (expense)
	1,097		1,456		Income tax (expense) benefit
	$	(3,221)	$	(4,373)	Net income
Gains and losses on hedges    Interest rate contracts	$	(4,877)	$	(7,292)	Interest income (expense)
	1,261		1,856		Income tax (expense) benefit
	$	(3,616)	$	(5,436)	Net income
Amortization of defined benefit    pension items
Actuarial gains (losses)	$	—	$	188	Salaries and employee benefits
	—		(47)		Income tax (expense) benefit
	$	—	$	141	Net income
Total reclassifications for the period	$	(6,849)	$	(13,535)	Net income

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NOTE 14 – INCOME TAXES

The following is a summary of the major items comprising the differences in taxes from continuing operations computed at the federal statutory rate and as recorded in the consolidated statements of income:

	Three Months Ended March 31,
(dollars in thousands)	2024			2023
Provision at statutory rate of 21%	$	32,082		$	39,484
Tax-exempt income:
Tax-exempt interest	(4,958)			(4,486)
Section 291/265 interest disallowance	885			386
Company-owned life insurance income	(694)			(627)
Tax-exempt income	(4,767)			(4,727)
State income taxes	5,147			8,142
Interim period effective rate adjustment	944			(1,717)
Tax credit investments - federal	(3,055)			(2,526)
Officer compensation limitation	765			1,040
Non-deductible FDIC premiums	1,747			2,110
Other, net	(375)			(385)
Income tax expense	$	32,488		$	41,421
Effective tax rate	21.3		%	22.0		%

Net Deferred Tax Assets

Net deferred tax assets are included in other assets on the balance sheet. At March 31, 2024, net deferred tax assets totaled $418.3 million, compared to $423.3 million at December 31, 2023. No valuation allowance was required on the Company’s deferred tax assets at March 31, 2024 or December 31, 2023.

The Company’s retained earnings at March 31, 2024 included an appropriation for acquired thrifts’ tax bad debt allowances totaling $58.6 million for which no provision for federal or state income taxes has been made. If in the future, this portion of retained earnings were distributed as a result of the liquidation of the Company or its subsidiaries, federal and state income taxes would be imposed at the then applicable rates.

Old National has federal net operating loss carryforwards totaling $60.1 million at March 31, 2024 and $63.6 million at December 31, 2023. This federal net operating loss was acquired from the acquisition of Anchor BanCorp Wisconsin Inc. in 2016 and First Midwest Bancorp, Inc. in 2022. If not used, the federal net operating loss carryforwards will begin expiring in 2030 and later. Old National has recorded state net operating loss carryforwards totaling $114.2 million at March 31, 2024 and $116.9 million at December 31, 2023. If not used, the state net operating loss carryforwards will expire from 2027 to 2036.

The federal and recorded state net operating loss carryforwards are subject to an annual limitation under Internal Revenue Code section 382. Old National believes that all of the federal and recorded state net operating loss carryforwards will be used prior to expiration.

NOTE 15 – DERIVATIVE FINANCIAL INSTRUMENTS

As part of our overall interest rate risk management, Old National uses derivative instruments, including interest rate swaps, collars, caps, and floors. The notional amount does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual agreements. Derivative instruments are recognized on the balance sheet at their fair value and are not reported on a net basis.

Credit risk arises from the possible inability of counterparties to meet the terms of their contracts. Old National’s exposure is limited to the termination value of the contracts rather than the notional, principal, or contract amounts. There are provisions in our agreements with the counterparties that allow for certain unsecured credit exposure up to an agreed threshold. Exposures in excess of the agreed thresholds are collateralized. In addition, we minimize credit risk through credit approvals, limits, and monitoring procedures.

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Derivatives Designated as Hedges

Subsequent changes in fair value for a hedging instrument that has been designated and qualifies as part of a hedging relationship are accounted for in the following manner:

Cash flow hedges: changes in fair value are recognized as a component in other comprehensive income (loss).

Fair value hedges: changes in fair value are recognized concurrently in earnings.

As long as a hedging instrument is designated and the results of the effectiveness testing support that the instrument qualifies for hedge accounting treatment, 100% of the periodic changes in fair value of the hedging instrument are accounted for as outlined above. This is the case whether or not economic mismatches exist in the hedging relationship. As a result, there is no periodic measurement or recognition of ineffectiveness. Rather, the full impact of hedge gains and losses is recognized in the period in which the hedged transactions impact earnings.

The change in fair value of the hedging instrument that is included in the assessment of hedge effectiveness is presented in the same income statement line item that is used to present the earnings effect of the hedged item.

Cash Flow Hedges

Interest rate swaps of certain borrowings were designated as cash flow hedges totaling $150.0 million notional amount at both March 31, 2024 and December 31, 2023. Interest rate swaps, collars, and floors related to variable-rate commercial loan pools were designated as cash flow hedges totaling $1.8 billion notional amount at March 31, 2024 and $1.6 billion notional amount at December 31, 2023. The hedges were determined to be effective during all periods presented and we expect them to remain effective during the remaining terms.

Old National has designated its interest rate collars as cash flow hedges. The structure of these instruments is such that Old National pays the counterparty an incremental amount if the collar index exceeds the cap rate. Conversely, Old National receives an incremental amount if the index falls below the floor rate. No payments are required if the collar index falls between the cap and floor rates. 

Old National has designated its interest rate floor transactions as cash flow hedges. The structure of these instruments is such that Old National receives an incremental amount if the index falls below the floor strike rate. No payments are required if the index remains above the floor strike rate.

Fair Value Hedges

Interest rate swaps of certain borrowings were designated as fair value hedges totaling $900.0 million notional amount at both March 31, 2024 and December 31, 2023. Interest rate swaps of certain available-for-sale investment securities were designated as fair value hedges totaling $998.1 million notional amount at both March 31, 2024 and December 31, 2023. The hedges were determined to be effective during all periods presented and we expect them to remain effective during the remaining terms.

The following table summarizes Old National’s derivatives designated as hedges:

	March 31, 2024						December 31, 2023
			Fair Value						Fair Value
(dollars in thousands)	Notional		Assets (1)		Liabilities (2)		Notional		Assets (1)		Liabilities (2)
Cash flow hedges
Interest rate swaps, collars, and floors on loan    pools	$	1,800,000	$	2,670	$	15,063	$	1,600,000	$	10,472	$	6,014
Interest rate swaps on borrowings (3)	150,000		—		—		150,000		—		—
Fair value hedges
Interest rate swaps on investment securities (3)	998,107		—		—		998,107		—		—
Interest rate swaps on borrowings (3)	900,000		—		—		900,000		—		—
Total			$	2,670	$	15,063			$	10,472	$	6,014

(1)Derivative assets are included in other assets on the balance sheet.

(2)Derivative liabilities are included in other liabilities on the balance sheet.

(3)The fair values of certain counterparty interest rate swaps are zero due to the settlement of centrally cleared variation margin rules.

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The effect of derivative instruments in fair value hedging relationships on the consolidated statements of income were as follows:

(dollars in thousands)						Gain (Loss) Recognized in Income on Related Hedged Items
Derivatives in Fair Value Hedging Relationships	Location of Gain or (Loss) Recognized in Income on Derivative	Gain (Loss) Recognized in Income on Derivative		Hedged Items in Fair Value Hedging Relationships	Location of Gain or (Loss) Recognized in in Income on Related Hedged Item
Three Months Ended March 31, 2024
Interest rate contracts	Interest income/(expense)	$	(13,970)	Fixed-rate debt	Interest income/(expense)	$	14,127
Interest rate contracts	Interest income/(expense)	25,848		Fixed-rate investment securities	Interest income/(expense)	(25,903)
Total		$	11,878			$	(11,776)
Three Months Ended March 31, 2023
Interest rate contracts	Interest income/(expense)	$	2,153	Fixed-rate debt	Interest income/(expense)	$	(2,218)
Interest rate contracts	Interest income/(expense)	(63,115)		Fixed-rate investment securities	Interest income/(expense)	63,251
Total		$	(60,962)			$	61,033

The effect of derivative instruments in cash flow hedging relationships on the consolidated statements of income were as follows:

		Three Months Ended March 31,				Three Months Ended March 31,
(dollars in thousands)		2024		2023		2024		2023
Derivatives in Cash Flow Hedging Relationships	Location of Gain or (Loss) Reclassified from AOCI into Income	Gain (Loss) Recognized in Other Comprehensive Income on Derivative				Gain (Loss) Reclassified from AOCI into Income
Interest rate contracts	Interest income/(expense)	$	(19,159)	$	6,603	$	(5,910)	$	(7,637)

Amounts reported in AOCI related to cash flow hedges will be reclassified to interest income or interest expense as interest payments are received or paid on Old National’s derivative instruments. During the next 12 months, we estimate that $23.3 million will be reclassified to interest income and $4.5 million will be reclassified to interest expense.

Derivatives Not Designated as Hedges

Commitments to fund certain mortgage loans (interest rate lock commitments) and forward commitments for the future delivery of mortgage loans to third party investors are considered derivatives. These derivative contracts do not qualify for hedge accounting. At March 31, 2024, the notional amounts of the interest rate lock commitments were $68.0 million and forward commitments were $77.6 million. At December 31, 2023, the notional amounts of the interest rate lock commitments were $25.2 million and forward commitments were $39.5 million. It is our practice to enter into forward commitments for the future delivery of residential mortgage loans to third party investors when interest rate lock commitments are entered into in order to economically hedge the effect of changes in interest rates resulting from our commitment to fund the loans.

Old National also enters into derivative instruments for the benefit of its clients. The notional amounts of these customer derivative instruments and the offsetting counterparty derivative instruments were $5.9 billion at March 31, 2024 and $6.0 billion at December 31, 2023. These derivative contracts do not qualify for hedge accounting. These instruments include interest rate swaps, caps, and collars. Commonly, Old National will economically hedge significant exposures related to these derivative contracts entered into for the benefit of clients by entering into offsetting contracts with approved, reputable, independent counterparties with substantially matching terms.

Old National enters into derivative financial instruments as part of its foreign currency risk management strategies. These derivative instruments consist of foreign currency forward contracts to accommodate the business

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needs of its clients. Old National does not designate these foreign currency forward contracts for hedge accounting treatment.

The following table summarizes Old National’s derivatives not designated as hedges:

	March 31, 2024						December 31, 2023
			Fair Value						Fair Value
(dollars in thousands)	Notional		Assets (1)		Liabilities (2)		Notional		Assets (1)		Liabilities (2)
Interest rate lock commitments	$	67,995	$	317	$	—	$	25,151	$	291	$	—
Forward mortgage loan contracts	77,584		144		—		39,529		—		566
Customer interest rate swaps	5,886,639		11,328		270,910		5,954,216		33,182		228,750
Counterparty interest rate swaps (3)	5,886,639		152,855		11,380		5,954,216		121,969		33,346
Customer foreign currency contracts	10,317		57		43		12,455		320		59
Counterparty foreign currency contracts	10,484		108		7		12,308		68		181
Total			$	164,809	$	282,340			$	155,830	$	262,902

(1)Derivative assets are included in other assets on the balance sheet.

(2)Derivative liabilities are included in other liabilities on the balance sheet.

(3)The fair values of certain counterparty interest rate swaps are zero due to the settlement of centrally cleared variation margin rules.

The effect of derivatives not designated as hedging instruments on the consolidated statements of income were as follows:

		Three Months Ended March 31,
(dollars in thousands)		2024		2023
Interest rate contracts (1)	Other income/(expense)	$	568	$	(138)
Mortgage contracts	Mortgage banking revenue	737		107
Foreign currency contracts	Other income/(expense)	(34)		(1)
Total		$	1,271	$	(32)

(1)Includes the valuation differences between the customer and offsetting swaps.

Fair Value of Offsetting Derivatives

Certain derivative instruments are subject to master netting agreements with counterparties that provide rights of setoff. The Company records these transactions at their gross fair values and does not offset derivative assets and liabilities in the Consolidated Balance Sheet. The following table presents the fair value of the Company’s derivatives and offsetting positions:

	March 31, 2024				December 31, 2023
(dollars in thousands)	Assets		Liabilities		Assets		Liabilities
Gross amounts recognized	$	167,479	$	297,403	$	166,302	$	268,916
Less: amounts offset in the Consolidated Balance Sheet	—		—		—		—
Net amount presented in the Consolidated Balance Sheet	167,479		297,403		166,302		268,916
Gross amounts not offset in the Consolidated Balance Sheet
Offsetting derivative positions	(26,443)		(26,443)		(39,360)		(39,360)
Cash collateral pledged	—		(134,459)		—		(97,840)
Net credit exposure	$	141,036	$	136,501	$	126,942	$	131,716

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NOTE 16 – COMMITMENTS, CONTINGENCIES, AND FINANCIAL GUARANTEES

Litigation

At March 31, 2024, there were certain legal proceedings pending against the Company and its subsidiaries in the ordinary course of business. While the outcome of any legal proceeding is inherently uncertain, based on information currently available, the Company’s management does not expect that any potential liabilities arising from pending litigation will have a material adverse effect on the Company’s business, financial position, or results of operations.

Credit-Related Financial Instruments

Old National holds instruments, in the normal course of business with clients, that are considered financial guarantees and are recorded at fair value. Standby letters of credit guarantees are issued in connection with agreements made by clients to counterparties. Standby letters of credit are contingent upon failure of the client to perform the terms of the underlying contract. Credit risk associated with standby letters of credit is essentially the same as that associated with extending loans to clients and is subject to normal credit policies. The term of these standby letters of credit is typically one year or less. These commitments are not recorded in the consolidated financial statements.

The following table summarizes Old National Bank’s unfunded loan commitments and standby letters of credit:

(dollars in thousands)	March 31, 2024		December 31, 2023
Unfunded loan commitments	$	8,716,398	$	8,912,587
Standby letters of credit (1)	172,444		192,237

(1)Notional amount, which represents the maximum amount of future funding requirements. The carrying value was $1.4 million at March 31, 2024 and $1.3 million at December 31, 2023.

At March 31, 2024, approximately 4% of the unfunded loan commitments had fixed rates, with the remainder having floating rates ranging from 2.10% to 22.49%. The allowance for unfunded loan commitments totaled $26.3 million at March 31, 2024 and $31.2 million at December 31, 2023.

Old National is a party in risk participation transactions of interest rate swaps, which had total notional amounts of $589.2 million at March 31, 2024 and $557.8 million at December 31, 2023.

NOTE 17 – FAIR VALUE

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values:

•Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

•Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

•Level 3 – Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

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Old National used the following methods and significant assumptions to estimate the fair value of each type of financial instrument:

Investment securities and equity securities: The fair values for investment securities and equity securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Discounted cash flows are calculated using swap and SOFR curves plus spreads that adjust for loss severities, volatility, credit risk, and optionality. During times when trading is more liquid, broker quotes are used (if available) to validate the model. Rating agency and industry research reports as well as defaults and deferrals on individual securities are reviewed and incorporated into the calculations.

Loans held-for-sale: The fair value of loans held-for-sale is determined using quoted prices for a similar asset, adjusted for specific attributes of that loan (Level 2).

Derivative financial instruments: The fair values of derivative financial instruments are based on market quotes developed using observable inputs as of the valuation date (Level 2).

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Recurring Basis

Assets and liabilities measured at fair value on a recurring basis, including financial assets and liabilities for which we have elected the fair value option, are summarized below: 

			Fair Value Measurements at March 31, 2024 Using
(dollars in thousands)	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets
Equity securities	$	84,954	$	84,954	$	—	$	—
Investment securities available-for-sale:
U.S. Treasury	233,051		233,051		—		—
U.S. government-sponsored entities and agencies	1,183,019		—		1,183,019		—
Mortgage-backed securities - Agency	4,550,023		—		4,550,023		—
States and political subdivisions	515,104		—		515,104		—
Pooled trust preferred securities	11,274		—		11,274		—
Other securities	299,181		—		299,181		—
Loans held-for-sale	19,418		—		19,418		—
Derivative assets	167,479		—		167,479		—
Financial Liabilities
Derivative liabilities	297,403		—		297,403		—

			Fair Value Measurements at December 31, 2023 Using
(dollars in thousands)	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets
Equity securities	$	80,372	$	80,372	$	—	$	—
Investment securities available-for-sale:
U.S. Treasury	396,733		396,733		—		—
U.S. government-sponsored entities and agencies	1,231,264		—		1,231,264		—
Mortgage-backed securities - Agency	4,216,560		—		4,216,560		—
States and political subdivisions	535,260		—		535,260		—
Pooled trust preferred securities	11,337		—		11,337		—
Other securities	321,901		—		321,901		—
Loans held-for-sale	32,006		—		32,006		—
Derivative assets	166,302		—		166,302		—
Financial Liabilities
Derivative liabilities	268,916		—		268,916		—

Non-Recurring Basis

Assets measured at fair value at March 31, 2024 on a non-recurring basis are summarized below:

			Fair Value Measurements at March 31, 2024 Using
(dollars in thousands)	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Collateral Dependent Loans:
Commercial loans	$	26,057	$	—	$	—	$	26,057
Commercial real estate loans	83,492		—		—		83,492
Foreclosed Assets:
Commercial	1,669		—		—		1,669

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Commercial and commercial real estate loans that are deemed collateral dependent are valued using the discounted cash flows. The liquidation amounts are based on the fair value of the underlying collateral using the most recently available appraisals with certain adjustments made based on the type of property, age of appraisal, current status of the property, and other related factors to estimate the current value of the collateral. These commercial and commercial real estate loans had a principal amount of $142.2 million, with a valuation allowance of $32.7 million at March 31, 2024. Old National recorded provision expense associated with these loans totaling $9.6 million for the three months ended March 31, 2024, compared to $11.9 million for the three months ended March 31, 2023.

Other real estate owned and other repossessed property is measured at fair value less costs to sell on a non-recurring basis. Old National did not have any other real estate owned or other repossessed property measured at fair value on a non-recurring basis at March 31, 2024. There were no write-downs on other real estate owned for the three months ended March 31, 2024, compared to $27 thousand for the three months ended March 31, 2023.

Assets measured at fair value at December 31, 2023 on a non-recurring basis are summarized below:

			Fair Value Measurements at December 31, 2023 Using
(dollars in thousands)	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Collateral Dependent Loans:
Commercial loans	$	11,017	$	—	$	—	$	11,017
Commercial real estate loans	95,457		—		—		95,457
Foreclosed Assets:
Commercial real estate	1,669		—		—		1,669

At December 31, 2023, commercial and commercial real estate loans that are deemed collateral dependent had a principal amount of $134.3 million, with a valuation allowance of $27.9 million.

The table below provides quantitative information about significant unobservable inputs used in fair value measurements within Level 3 of the fair value hierarchy:

(dollars in thousands)	Fair Value		Valuation Techniques	Unobservable Input	Range (Weighted Average) (1)
March 31, 2024
Collateral Dependent Loans
Commercial loans	$	26,057	Discounted	Discount for type of property,	2% - 38% (29%)
			cash flow	age of appraisal, and current status
Commercial real estate loans	83,492		Discounted	Discount for type of property,	1% - 34% (13%)
			cash flow	age of appraisal, and current status
Foreclosed Assets
Commercial real estate	1,669		Fair value of	Discount for type of property,	4% - 8% (4%)
			collateral	age of appraisal, and current status
December 31, 2023
Collateral Dependent Loans
Commercial loans	$	11,017	Discounted	Discount for type of property,	5% - 37% (27%)
			cash flow	age of appraisal, and current status
Commercial real estate loans	95,457		Discounted	Discount for type of property,	2% - 38% (16%)
			cash flow	age of appraisal, and current status
Foreclosed Assets
Commercial real estate	1,669		Fair value of	Discount for type of property,	4% - 8% (4%)
			collateral	age of appraisal, and current status

(1)Unobservable inputs were weighted by the relative fair value of the instruments.

Fair Value Option

Old National may elect to report most financial instruments and certain other items at fair value on an instrument-by-instrument basis with changes in fair value reported in net income. After the initial adoption, the election is made at the acquisition of an eligible financial asset, financial liability, or firm commitment or when certain specified reconsideration events occur. The fair value election may not be revoked once an election is made.

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Loans Held-For-Sale

Old National has elected the fair value option for loans held-for-sale. For these loans, interest income is recorded in the consolidated statements of income based on the contractual amount of interest income earned on the financial assets (except any that are on nonaccrual status). None of these loans are 90 days or more past due, nor are any on nonaccrual status. Interest income for loans held-for-sale is included in the income statement totaling $0.3 million for the three months ended March 31, 2024, compared to $0.2 million for the three months ended March 31, 2023.

Newly originated conforming fixed-rate and adjustable-rate first mortgage loans are intended for sale and are hedged with derivative instruments. Old National has elected the fair value option to mitigate accounting mismatches in cases where hedge accounting is complex and to achieve operational simplification. The fair value option was not elected for loans held for investment.

The difference between the aggregate fair value and the aggregate remaining principal balance for loans for which the fair value option has been elected was as follows: 

(dollars in thousands)	Aggregate Fair Value		Difference		Contractual Principal
March 31, 2024
Loans held-for-sale	$	19,418	$	414	$	19,004
December 31, 2023
Loans held-for-sale	$	32,006	$	621	$	31,385

Accrued interest at period end is included in the fair value of the instruments.

The following table presents the amount of gains and losses from fair value changes included in income before income taxes for financial assets carried at fair value:

(dollars in thousands)	Other Gains and (Losses)		Interest Income		Interest (Expense)		Total Changes in Fair Values Included in Current Period Earnings
Three Months Ended March 31, 2024
Loans held-for-sale	$	(202)	$	—	$	(5)	$	(207)
Three Months Ended March 31, 2023
Loans held-for-sale	$	(53)	$	—	$	(3)	$	(56)

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Financial Instruments Not Carried at Fair Value

The carrying amounts and estimated fair values of financial instruments not carried at fair value were as follows: 

			Fair Value Measurements at March 31, 2024 Using
(dollars in thousands)	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets
Cash, due from banks, money market,    and other interest-earning investments	$	939,499	$	939,499	$	—	$	—
Investment securities held-to-maturity:
U.S. government-sponsored entities and agencies	827,684		—		662,735		—
Mortgage-backed securities - Agency	1,016,858		—		857,657		—
State and political subdivisions	1,156,807		—		1,027,184		—
Loans, net:
Commercial	9,522,947		—		—		9,357,300
Commercial real estate	14,492,040		—		—		14,005,872
Residential real estate	6,639,480		—		—		5,682,754
Consumer credit	2,649,139		—		—		2,607,831
Accrued interest receivable	219,809		1,133		47,057		171,619
Financial Liabilities
Deposits:
Noninterest-bearing demand deposits	$	9,257,709	$	9,257,709	$	—	$	—
Checking, NOW, savings, and money market    interest-bearing deposits	22,490,875		22,490,875		—		—
Time deposits	5,950,834		—		5,913,854		—
Federal funds purchased and interbank borrowings	50,416		50,416		—		—
Securities sold under agreements to repurchase	274,493		274,493		—		—
FHLB advances	4,193,039		—		3,994,880		—
Other borrowings	813,213		—		798,748		—
Accrued interest payable	54,690		—		54,690		—
Standby letters of credit	1,379		—		—		1,379
Off-Balance Sheet Financial Instruments
Commitments to extend credit	$	—	$	—	$	—	$	3,824

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			Fair Value Measurements at December 31, 2023 Using
(dollars in thousands)	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets
Cash, due from banks, money market,    and other interest-earning investments	$	1,175,058	$	1,175,058	$	—	$	—
Investment securities held-to-maturity:
U.S. government-sponsored entities and agencies	825,953		—		671,126		—
Mortgage-backed securities - Agency	1,029,131		—		881,994		—
State and political subdivisions	1,158,409		—		1,048,068		—
Loans, net:
Commercial	9,392,267		—		—		9,258,193
Commercial real estate	13,984,273		—		—		13,640,868
Residential real estate	6,678,606		—		—		5,579,999
Consumer credit	2,629,171		—		—		2,555,121
Accrued interest receivable	225,159		859		54,465		169,835
Financial Liabilities
Deposits:
Noninterest-bearing demand deposits	$	9,664,247	$	9,664,247	$	—	$	—
Checking, NOW, savings, and money market    interest-bearing deposits	21,991,789		21,991,789		—		—
Time deposits	5,579,144		—		5,552,538		—
Federal funds purchased and interbank borrowings	390		390		—		—
Securities sold under agreements to repurchase	285,206		285,206		—		—
FHLB advances	4,280,681		—		4,090,954		—
Other borrowings	764,870		—		755,592		—
Accrued interest payable	57,094		—		57,094		—
Standby letters of credit	1,318		—		—		1,318
Off-Balance Sheet Financial Instruments
Commitments to extend credit	$	—	$	—	$	—	$	3,839

The methods utilized to measure the fair value of financial instruments at March 31, 2024 and December 31, 2023 represent an approximation of exit price, however, an actual exit price may differ.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following is an analysis and discussion of our results of operations for the three months ended March 31, 2024 compared to the three months ended March 31, 2023, and financial condition as of March 31, 2024 compared to December 31, 2023. This discussion and analysis should be read in conjunction with the consolidated financial statements and related notes, as well as our 2023 Annual Report on Form 10-K.

FORWARD-LOOKING STATEMENTS

This report contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”), notwithstanding that such statements are not specifically identified as such. In addition, certain statements may be contained in our future filings with the SEC, in press releases, and in oral and written statements made by us that are not statements of historical fact and constitute forward‐looking statements within the meaning of the Act. These statements include, but are not limited to, descriptions of Old National’s financial condition, results of operations, asset and credit quality trends, profitability and business plans or opportunities. Forward-looking statements can be identified by the use of words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “should,” “would,” and “will,” and other words of similar meaning. These forward-looking statements express management’s current expectations or forecasts of future events and, by their nature, are subject to risks and uncertainties. There are a number of factors that could cause actual results or outcomes to differ materially from those in such statements, including, but not limited to: competition; government legislation, regulations and policies; the ability of Old National to execute its business plan; unanticipated changes in our liquidity position, including but not limited to changes in our access to sources of liquidity and capital to address our liquidity needs; changes in economic conditions and economic and business uncertainty which could materially impact credit quality trends and the ability to generate loans and gather deposits; inflation and governmental responses to inflation, including increasing interest rates; market, economic, operational, liquidity, credit, and interest rate risks associated with our business; our ability to successfully manage our credit risk and the sufficiency of our allowance for credit losses; the expected cost savings, synergies, and other financial benefits from the merger (the “Merger”) between Old National and CapStar not being realized within the expected time frames and costs or difficulties relating to integration matters being greater than expected; potential adverse reactions or changes to business or employee relationships, including those resulting from the completion of the Merger; the potential impact of future business combinations on our performance and financial condition, including our ability to successfully integrate the businesses and the success of revenue-generating and cost reduction initiatives; failure or circumvention of our internal controls; operational risks or risk management failures by us or critical third parties, including without limitation with respect to data processing, information systems, cybersecurity, technological changes, vendor issues, business interruption, and fraud risks; significant changes in accounting, tax or regulatory practices or requirements; new legal obligations or liabilities; disruptive technologies in payment systems and other services traditionally provided by banks; failure or disruption of our information systems; computer hacking and other cybersecurity threats; the effects of climate change on Old National and its customers, borrowers, or service providers; political and economic uncertainty and instability; the impacts of pandemics, epidemics, and other infectious disease outbreaks; other matters discussed in this report; and other factors identified in filings with the SEC. These forward-looking statements are made only as of the date of this report and are not guarantees of future results, performance, or outcomes.

Such forward-looking statements are based on assumptions and estimates, which although believed to be reasonable, may turn out to be incorrect. Therefore, undue reliance should not be placed upon these estimates and statements. We cannot assure that any of these statements, estimates, or beliefs will be realized and actual results or outcomes may differ from those contemplated in these forward-looking statements. Old National does not undertake an obligation to update these forward-looking statements to reflect events or conditions after the date of this report. You are advised to consult further disclosures we may make on related subjects in our filings with the SEC.

Investors should consider these risks, uncertainties, and other factors in addition to the factors under the heading “Risk Factors” included in our other filings with the SEC.

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FINANCIAL HIGHLIGHTS

The following table sets forth certain financial highlights of Old National for the previous five quarters:

	Three Months Ended
(dollars and shares in thousands, except per share data)	March 31,			December 31,			September 30,			June 30,			March 31,
	2024			2023			2023			2023			2023
Income Statement:
Net interest income	$	356,458		$	364,408		$	375,086		$	382,171		$	381,488
Taxable equivalent adjustment (1) (3)	6,253			6,100			5,837			5,825			5,666
Net interest income - taxable equivalent basis (3)	362,711			370,508			380,923			387,996			387,154
Provision for credit losses	18,891			11,595			19,068			14,787			13,437
Noninterest income	77,522			100,094			80,938			81,629			70,681
Noninterest expense	262,317			284,235			244,776			246,584			250,711
Net income available to common shareholders	116,250			128,446			143,842			151,003			142,566
Per Common Share Data:
Weighted average diluted common shares	292,207			292,029			291,717			291,266			292,756
Net income (diluted)	$	0.40		$	0.44		$	0.49		$	0.52		$	0.49
Cash dividends	0.14			0.14			0.14			0.14			0.14
Common dividend payout ratio (2)	35		%	32		%	29		%	27		%	29		%
Book value	$	18.24		$	18.18		$	17.07		$	17.25		$	17.24
Stock price	17.41			16.89			14.54			13.94			14.42
Tangible common book value (3)	11.10			11.00			9.87			10.03			9.98
Performance Ratios:
Return on average assets	0.98		%	1.09		%	1.22		%	1.29		%	1.25		%
Return on average common equity	8.74			10.20			11.39			12.01			11.58
Return on average tangible common equity (3)	14.93			18.11			20.18			21.35			21.03
Net interest margin (3)	3.28			3.39			3.49			3.60			3.69
Efficiency ratio (3)	58.34			59.05			51.66			51.22			52.81
Net charge-offs (recoveries) to average loans	0.14			0.12			0.24			0.13			0.21
Allowance for credit losses on loans to ending loans	0.95			0.93			0.93			0.93			0.94
Allowance for credit losses (4) to ending loans	1.03			1.03			1.03			1.04			1.05
Non-performing loans to ending loans	0.98			0.83			0.80			0.91			0.74
Balance Sheet:
Total loans	$	33,623,319		$	32,991,927		$	32,577,834		$	32,432,473		$	31,822,374
Total assets	49,534,918			49,089,836			49,059,448			48,496,755			47,842,644
Total deposits	37,699,418			37,235,180			37,252,676			36,231,315			34,917,792
Total borrowed funds	5,331,161			5,331,147			5,556,010			6,034,008			6,740,454
Total shareholders’ equity	5,595,408			5,562,900			5,239,537			5,292,095			5,277,426
Capital Ratios:
Risk-based capital ratios:
Tier 1 common equity	10.76		%	10.70		%	10.41		%	10.14		%	9.98		%
Tier 1	11.40			11.35			11.06			10.79			10.64
Total	12.74			12.64			12.32			12.14			11.96
Leverage ratio (to average assets)	8.96			8.83			8.70			8.59			8.53
Total equity to assets (averages)	11.32			10.81			10.88			10.96			11.00
Tangible common equity to tangible assets (3)	6.86			6.85			6.15			6.33			6.37
Nonfinancial Data:
Full-time equivalent employees	3,955			3,940			3,981			4,021			4,023
Banking centers	258			258			257			256			256

(1)Calculated using the federal statutory tax rate in effect of 21% for all periods.

(2)Cash dividends per common share divided by net income per common share (basic).

(3)Represents a non-GAAP financial measure. Refer to the “Non-GAAP Financial Measures” section for reconciliations to GAAP financial measures.

(4)Includes the allowance for credit losses on loans and unfunded loan commitments.

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NON-GAAP FINANCIAL MEASURES

The Company’s accounting and reporting policies conform to GAAP and general practices within the banking industry. As a supplement to GAAP, the Company provides non-GAAP performance results, which the Company believes are useful because they assist users of the financial information in assessing the Company’s operating performance. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the following table.

The Company presents net income per common share and net income applicable to common shares, adjusted for certain notable items. These items include gain on sale of Visa Class B restricted shares, the expense associated with the distribution of excess pension assets, FDIC special assessment expense, contract termination charges, merger-related charges associated with completed and pending acquisitions, debt securities gains/losses, expenses related to the tragic April 10, 2023 event at our downtown Louisville location (“Louisville expenses”), and property optimization charges. Management believes excluding these items from net income per common share and net income applicable to common shares may be useful in assessing the Company's underlying operational performance since these items do not pertain to its core business operations and their exclusion may facilitate better comparability between periods. Management believes that excluding merger-related charges from these metrics may be useful to the Company, as well as analysts and investors, since these expenses can vary significantly based on the size, type, and structure of each acquisition. Additionally, management believes excluding these items from these metrics may enhance comparability for peer comparison purposes.

The taxable equivalent adjustment to net interest income and net interest margin recognizes the income tax savings when comparing taxable and tax-exempt assets. Interest income and yields on tax-exempt securities and loans are presented using the current federal income tax rate of 21%. Management believes that it is standard practice in the banking industry to present net interest income and net interest margin on a fully tax-equivalent basis and that it may enhance comparability for peer comparison purposes.

In management’s view, tangible common equity measures are capital adequacy metrics that may be meaningful to the Company, as well as users of the financial information, in assessing the Company’s use of equity and in facilitating comparisons with peers. These non-GAAP measures are valuable indicators of a financial institution’s capital strength since they eliminate intangible assets from shareholders’ equity and retain the effect of AOCI in shareholders’ equity.

Although intended to enhance understanding of the Company’s business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP. In addition, these non-GAAP financial measures may differ from those used by other financial institutions to assess their business and performance. See the previously provided tables and the following reconciliations in the “Non-GAAP Reconciliations” section for details on the calculation of these measures to the extent presented herein.

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The following table presents GAAP to non-GAAP reconciliations for the previous five quarters:

	Three Months Ended
(dollars and shares in thousands, except per share data)	March 31,			December 31,			September 30,			June 30,			March 31,
	2024			2023			2023			2023			2023
Net income per common share:
Net income applicable to common shares	$	116,250		$	128,446		$	143,842		$	151,003		$	142,566
Adjustments:
Distribution of excess pension assets expense	13,318			—			—			—			—
FDIC special assessment	2,994			19,052			—			—			—
Merger-related charges	2,908			5,529			6,257			2,372			14,558
Debt securities (gains) losses	16			825			241			(17)			5,216
Gain on sale of Visa Class B restricted shares	—			(21,635)			—			—			—
Contract termination charge	—			4,413			—			—			—
Louisville expenses	—			—			—			3,361			—
Property optimization charges	—			—			—			242			1,317
Less: tax effect on net total adjustments (2)	(4,695)			(1,988)			(1,082)			(695)			(4,596)
Net income applicable to common shares, adjusted (1)	$	130,791		$	134,642		$	149,258		$	156,266		$	159,061
Weighted average diluted common shares outstanding	292,207			292,029			291,717			291,266			292,756
Net income per common share, diluted	$	0.40		$	0.44		$	0.49		$	0.52		$	0.49
Adjusted net income per common share, diluted (1)	$	0.45		$	0.46		$	0.51		$	0.54		$	0.54
Tangible common book value:
Shareholders’ common equity	$	5,351,689		$	5,319,181		$	4,995,818		$	5,048,376		$	5,033,707
Deduct: Goodwill and intangible assets	2,095,511			2,100,966			2,106,835			2,112,875			2,118,935
Tangible shareholders’ common equity (1)	$	3,256,178		$	3,218,215		$	2,888,983		$	2,935,501		$	2,914,772
Period end common shares	293,330			292,655			292,586			292,597			291,922
Tangible common book value (1)	11.10			11.00			9.87			10.03			9.98
Return on average tangible common equity:
Net income applicable to common shares	$	116,250		$	128,446		$	143,842		$	151,003		$	142,566
Add:  Intangible amortization (net of tax) (2)	4,091			4,402			4,530			4,545			4,639
Tangible net income (1)	$	120,341		$	132,848		$	148,372		$	155,548		$	147,205
Average shareholders’ common equity	$	5,321,823		$	5,037,768		$	5,050,353		$	5,030,083		$	4,922,469
Deduct: Average goodwill and intangible assets	2,098,338			2,103,935			2,109,944			2,115,894			2,122,157
Average tangible shareholders’ common equity (1)	$	3,223,485		$	2,933,833		$	2,940,409		$	2,914,189		$	2,800,312
Return on average tangible common equity (1)	14.93		%	18.11		%	20.18		%	21.35		%	21.03		%
Net interest margin:
Net interest income	$	356,458		$	364,408		$	375,086		$	382,171		$	381,488
Taxable equivalent adjustment	6,253			6,100			5,837			5,825			5,666
Net interest income - taxable equivalent basis (1)	$	362,711		$	370,508		$	380,923		$	387,996		$	387,154
Average earning assets	$	44,175,079		$	43,701,283		$	43,617,456		$	43,097,198		$	41,941,913
Net interest margin (1)	3.28		%	3.39		%	3.49		%	3.60		%	3.69		%
Efficiency ratio:
Noninterest expense	$	262,317		$	284,235		$	244,776		$	246,584		$	250,711
Deduct:  Intangible amortization expense	5,455			5,869			6,040			6,060			6,186
Adjusted noninterest expense (1)	$	256,862		$	278,366		$	238,736		$	240,524		$	244,525
Net interest income - taxable equivalent basis (1)    (see above)	$	362,711		$	370,508		$	380,923		$	387,996		$	387,154
Noninterest income	77,522			100,094			80,938			81,629			70,681
Deduct:  Debt securities gains (losses), net	(16)			(825)			(241)			17			(5,216)
Adjusted total revenue (1)	$	440,249		$	471,427		$	462,102		$	469,608		$	463,051
Efficiency ratio (1)	58.34		%	59.05		%	51.66		%	51.22		%	52.81		%
Tangible common equity to tangible assets:
Tangible shareholders’ equity (1) (see above)	$	3,256,178		$	3,218,215		$	2,888,983		$	2,935,501		$	2,914,772
Assets	$	49,534,918		$	49,089,836		$	49,059,448		$	48,496,755		$	47,842,644
Deduct: Goodwill and intangible assets	2,095,511			2,100,966			2,106,835			2,112,875			2,118,935
Tangible assets (1)	$	47,439,407		$	46,988,870		$	46,952,613		$	46,383,880		$	45,723,709
Tangible common equity to tangible assets (1)	6.86		%	6.85		%	6.15		%	6.33		%	6.37		%

(1)Represents a non-GAAP financial measure.

(2)Calculated using management’s estimate of the annual fully taxable equivalent income tax rates (federal and state).

48

EXECUTIVE SUMMARY

Old National is the sixth largest commercial bank headquartered in the Midwest by asset size and ranks among the top 30 banking companies headquartered in the United States with consolidated assets of approximately $50 billion at March 31, 2024. The Company’s corporate headquarters and principal executive office is located in Evansville, Indiana with commercial and consumer banking operations headquartered in Chicago, Illinois. Through our wholly-owned banking subsidiary and non-bank affiliates, we provide a wide range of services primarily throughout the Midwest region of the United States and elsewhere, including commercial and consumer loan and depository services, as well as private banking, capital markets, brokerage, wealth management, trust, investment advisory, and other traditional banking services.

Net income applicable to common shares for the first quarter of 2024 was $116.3 million, or $0.40 per diluted common share, compared to $128.4 million, or $0.44 per diluted common share, for the fourth quarter of 2023.

Results for the first quarter of 2024 were impacted by a $13.3 million non-cash, pre-tax expense associated with the distribution of excess pension plan assets with the resolution of the legacy First Midwest defined benefit pension plan, as well as pre-tax charges of $3.0 million for an FDIC special assessment and $2.9 million of merger-related charges. Results for the fourth quarter of 2023 were impacted by the $21.6 million pre-tax gain on sale of Visa Class B restricted shares, $19.1 million for an FDIC special assessment, and $9.9 million of merger-related and other expenses. Excluding these items, net income applicable to common shares for the first quarter of 2024 was $130.8 million, or $0.45 per diluted common share on an adjusted basis1, compared to $134.6 million, or $0.46 per diluted common share on an adjusted basis1, for the fourth quarter of 2023.

We achieved strong results during the first quarter of 2024, including growth in total loans and deposits, modest compression of net interest income reflective of the rate environment, strong credit quality, and disciplined expense management.

Deposits:  Period-end total deposits increased $464.2 million to $37.7 billion, reflecting continued efforts to compete for new client relationships as well as normal seasonally lower patterns in business checking and public funds compared to December 31, 2023.

Loans:  Our loan balances, excluding loans held-for-sale, increased $631.4 million to $33.6 billion at March 31, 2024 compared to December 31, 2023. This was primarily driven by broad-based, disciplined commercial and commercial real estate loan growth.

Net Interest Income: Net interest income decreased $8.0 million to $356.5 million compared to the fourth quarter of 2023 driven by higher funding costs and fewer days in the quarter, partly offset by loan growth.

Provision for Credit Losses:  Provision for credit losses increased $7.3 million to $18.9 million compared to the fourth quarter of 2023 reflecting net charge-offs and loan growth, as well as economic factors.

Noninterest Income:  Noninterest income decreased $22.6 million to $77.5 million compared to the fourth quarter of 2023 reflecting the $21.6 million pre-tax gain on sale of Visa Class B restricted shares in the fourth quarter of 2023. Excluding this gain, noninterest income decreased slightly driven by lower capital markets income, partially offset by increases in mortgage fees, wealth fees, and other income.

Noninterest Expense:  Noninterest expense decreased $21.9 million compared to the fourth quarter of 2023.  For the first quarter of 2024, noninterest expense included a $13.3 million non-cash, pre-tax expense associated with the distribution of excess pension assets with the resolution of the legacy First Midwest plan, as well as pre-tax charges of $3.0 million for the FDIC special assessment, and $2.9 million of merger-related expenses compared to pre-tax charges of $19.1 million for the FDIC special assessment and $9.9 million of merger-related and other expenses in the fourth quarter of 2023. Excluding these expenses, noninterest expense decreased $12.1 million compared to the fourth quarter of 2023 primarily due to elevated performance-driven incentive accruals and higher amortization of tax credit investments for the fourth quarter of 2023, as well as lower professional fees and other expense for the first quarter of 2024, partially offset by higher payroll taxes due to timing.

(1)Represents a non-GAAP financial measure. Refer to “Non-GAAP Financial Measures” section for reconciliations to GAAP financial measures.

49

RESULTS OF OPERATIONS

The following table sets forth certain income statement information of Old National:

(dollars in thousands, except    per share data)	Three Months Ended March 31,						% Change
	2024			2023
Income Statement Summary:
Net interest income	$	356,458		$	381,488		(6.6)	%
Provision for credit losses	18,891			13,437			40.6
Noninterest income	77,522			70,681			9.7
Noninterest expense	262,317			250,711			4.6
Net income applicable to common shareholders	116,250			142,566			(18.5)
Net income per common share - diluted	0.40			0.49			(18.4)
Other Data:
Return on average common equity	8.74		%	11.58		%
Return on average tangible common equity (1)	14.93			21.03
Efficiency ratio (1)	58.34			52.81
Tier 1 leverage ratio	8.96			8.53
Net charge-offs (recoveries) to average loans	0.14			0.21

(1)Represents a non-GAAP financial measure. Refer to “Non-GAAP Financial Measures” section for reconciliations to GAAP financial measures.

Net Interest Income

Net interest income is the most significant component of our earnings, comprising 82% of revenues for the three months ended March 31, 2024. Net interest income and net interest margin are influenced by many factors, primarily the volume and mix of earning assets, funding sources, and interest rate fluctuations. Other factors include the level of accretion income on purchased loans, prepayment risk on mortgage and investment-related assets, and the composition and maturity of interest-earning assets and interest-bearing liabilities.

The Federal Reserve held its interest rates steady during the first quarter of 2024 and increased interest rates compared to March 31, 2023. The Federal Reserve’s Federal Funds Rate is currently in a target range of 5.25% to 5.50%, with the Effective Federal Funds Rate of 5.33% at March 31, 2024. Management actively takes balance sheet restructuring, derivative, and deposit pricing actions to help mitigate interest rate risk. See the section of this Item 7 titled “Market Risk” for additional information regarding this risk.

Loans typically generate more interest income than investment securities with similar maturities. Funding from client deposits generally costs less than wholesale funding sources. Factors such as general economic activity, Federal Reserve monetary policy, and price volatility of competing alternative investments can also exert significant influence on our ability to optimize our mix of assets and funding, net interest income, and net interest margin.

Net interest income is the excess of interest received from interest-earning assets over interest paid on interest-bearing liabilities. For analytical purposes, net interest income is presented in the table that follows, adjusted to a taxable equivalent basis to reflect what our tax-exempt assets would need to yield in order to achieve the same after-tax yield as a taxable asset. We used the current federal statutory tax rate in effect of 21% for all periods. This analysis portrays the income tax benefits related to tax-exempt assets and helps to facilitate a comparison between taxable and tax-exempt assets. Management believes that it is a standard practice in the banking industry to present net interest margin and net interest income on a fully taxable equivalent basis and that it may enhance comparability for peer comparison purposes for both management and investors.

50

The following table presents the average balance sheet for each major asset and liability category, its related interest income and yield, or its expense and rate.

(Tax equivalent basis, dollars in thousands)	Three Months Ended March 31, 2024						Three Months Ended March 31, 2023
Earning Assets	Average Balance		Income (1)/ Expense		Yield/ Rate		Average Balance		Income (1)/ Expense		Yield/ Rate
Money market and other interest-earning    investments	$	757,244	$	9,985	5.30	%	$	497,953	$	3,098	2.52	%
Investment securities:
Treasury and government sponsored agencies	2,362,477		23,266		3.94	%	2,197,426		16,531		3.01	%
Mortgage-backed securities	5,357,085		38,888		2.90	%	5,429,200		35,090		2.59	%
States and political subdivisions	1,680,175		13,976		3.33	%	1,808,316		14,690		3.25	%
Other securities	770,438		12,173		6.32	%	738,139		8,604		4.66	%
Total investment securities	10,170,175		88,303		3.47	%	10,173,081		74,915		2.95	%
Loans: (2)
Commercial	9,540,385		167,263		7.01	%	9,457,089		147,620		6.24	%
Commercial real estate	14,368,370		230,086		6.41	%	12,654,366		179,475		5.67	%
Residential real estate loans	6,693,814		63,003		3.76	%	6,523,074		58,099		3.56	%
Consumer	2,645,091		43,594		6.63	%	2,636,350		38,108		5.86	%
Total loans	33,247,660		503,946		6.07	%	31,270,879		423,302		5.42	%
Total earning assets	44,175,079		$	602,234	5.46	%	41,941,913		$	501,315	4.79	%
Deduct: Allowance for credit losses on loans	(313,470)						(304,393)
Non-Earning Assets
Cash and due from banks	362,676						437,872
Other assets	4,961,595						4,907,115
Total assets	$	49,185,880					$	46,982,507
Interest-Bearing Liabilities
Checking and NOW	$	7,141,201	$	25,252	1.42	%	$	7,988,579	$	19,359	0.98	%
Savings	5,025,400		5,017		0.40	%	6,183,409		2,230		0.15	%
Money market	9,917,572		94,213		3.82	%	5,641,288		20,010		1.44	%
Time deposits, excluding brokered deposits	4,689,136		47,432		4.07	%	3,057,870		15,289		2.03	%
Brokered deposits	1,047,140		13,525		5.19	%	500,530		5,705		4.62	%
Total interest-bearing deposits	27,820,449		185,439		2.68	%	23,371,676		62,593		1.09	%
Federal funds purchased and interbank    borrowings	69,090		961		5.59	%	419,291		4,839		4.68	%
Securities sold under agreements to repurchase	296,236		917		1.25	%	412,819		779		0.77	%
FHLB advances	4,386,492		41,167		3.77	%	4,273,343		37,996		3.61	%
Other borrowings	825,846		11,039		5.38	%	781,221		7,954		4.13	%
Total borrowed funds	5,577,664		54,084		3.90	%	5,886,674		51,568		3.55	%
Total interest-bearing liabilities	$	33,398,113	$	239,523	2.88	%	$	29,258,350	$	114,161	1.58	%
Noninterest-Bearing Liabilities and    Shareholders’ Equity
Demand deposits	$	9,258,136					$	11,526,267
Other liabilities	964,089						1,031,702
Shareholders’ equity	5,565,542						5,166,188
Total liabilities and shareholders’ equity	$	49,185,880					$	46,982,507
Net interest income - taxable equivalent basis			$	362,711	3.28	%			$	387,154	3.69	%
Taxable equivalent adjustment			(6,253)						(5,666)
Net interest income (GAAP)			$	356,458	3.23	%			$	381,488	3.64	%

(1)Interest income is reflected on a fully taxable equivalent basis.

(2)Includes loans held-for-sale.

51

The following table presents the dollar amount of changes in taxable equivalent net interest income attributable to changes in the average balances of assets and liabilities and the yields earned or rates paid.

	From Three Months Ended March 31, 2023 to Three Months Ended March 31, 2024
	Total Change (1)		Attributed to
(dollars in thousands)			Volume		Rate
Interest Income
Money market and other interest-earning investments	$	6,887	$	2,531	$	4,356
Investment securities (2)	13,388		(23)		13,411
Loans (3)	80,644		28,471		52,173
Total interest income	100,919		30,979		69,940
Interest Expense
Checking and NOW deposits	5,893		(2,482)		8,375
Savings deposits	2,787		(791)		3,578
Money market deposits	74,203		27,993		46,210
Time deposits, excluding brokered deposits	32,143		12,406		19,737
Brokered deposits	7,820		6,711		1,109
Federal funds purchased and interbank borrowings	(3,878)		(4,466)		588
Securities sold under agreements to repurchase	138		(290)		428
FHLB advances	3,171		1,195		1,976
Other borrowings	3,085		556		2,529
Total interest expense	125,362		40,832		84,530
Net interest income	$	(24,443)	$	(9,853)	$	(14,590)

(1)The variance not solely due to rate or volume is allocated equally between the rate and volume variances.

(2)Interest income on investment securities includes taxable equivalent adjustments of $2.8 million during the three months ended March 31, 2024 using the federal statutory rate in effect of 21%.

(3)Interest income on loans includes taxable equivalent adjustments of $3.5 million during the three months ended March 31, 2024 using the federal statutory rate in effect of 21%.

The decrease in net interest income for the three months ended March 31, 2024 when compared to the same period in 2023 was primarily due to higher costs and balances of average interest-bearing liabilities, partially offset by higher rates on loans as well as loan growth. Accretion income associated with acquired loans and borrowings totaled $5.1 million in the three months ended March 31, 2024 compared to $7.9 million in the three months ended March 31, 2023.

The decrease in the net interest margin on a fully taxable equivalent basis for the three months ended March 31, 2024 compared to the same period in 2023 was primarily due to higher costs of interest-bearing liabilities, partially offset by higher yields on interest earning assets. The yield on interest earning assets increased 67 basis points and the cost of interest-bearing liabilities increased 130 basis points in the three months ended March 31, 2024 compared to the same quarter a year ago. Accretion income represented 5 basis points of the net interest margin in three months ended March 31, 2024, compared to 8 basis points in the three months ended March 31, 2023.

Average earning assets were $44.2 billion and $41.9 billion for the three months ended March 31, 2024 and 2023, respectively, an increase of $2.2 billion, or 5%, primarily due to strong loan growth.

Average loans, including loans held-for-sale, increased $2.0 billion for the three months ended March 31, 2024 when compared to the same period in 2023 primarily due to strong commercial real estate loan growth.

Average noninterest-bearing deposits decreased $2.3 billion while average interest-bearing deposits increased $4.4 billion for the three months ended March 31, 2024 when compared to the same period in 2023 reflecting a mix shift as a result of the current rate environment and organic growth.

52

Provision for Credit Losses

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

	Three Months Ended March 31,						%
(dollars in thousands)	2024			2023			Change
Provision for credit losses on loans	$	23,853		$	11,469		108.0	%
Provision (release) for credit losses on    unfunded loan commitments	(4,962)			1,968			(352.1)
Total provision for credit losses	$	18,891		$	13,437		40.6	%
Net (charge-offs) recoveries on non-PCD    loans	$	(6,061)		$	(4,038)		50.1	%
Net (charge-offs) recoveries on PCD    loans	(5,689)			(12,391)			(54.1)
Total net (charge-offs) recoveries on    loans	$	(11,750)		$	(16,429)		(28.5)	%
Net charge-offs (recoveries) to average loans	0.14		%	0.21		%	(32.7)	%

Total provision for credit losses on loans increased in the three months ended March 31, 2024 reflecting loan growth 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, and loan composition, which drive the allowance for credit losses balance.

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. The following table details the components in noninterest income:

	Three Months Ended March 31,				%
(dollars in thousands)	2024		2023		Change
Wealth and investment services fees	$	28,304	$	26,920	5.1	%
Service charges on deposit accounts	17,898		17,003		5.3
Debit card and ATM fees	10,054		9,982		0.7
Mortgage banking revenue	4,478		3,400		31.7
Capital markets income	2,900		6,939		(58.2)
Company-owned life insurance	3,434		3,186		7.8
Debt securities gains (losses), net	(16)		(5,216)		(99.7)
Other income	10,470		8,467		23.7
Total noninterest income	$	77,522	$	70,681	9.7	%

Noninterest income increased $6.8 million for the three months ended March 31, 2024 compared to the same period in 2023 primarily due to $5.2 million of net losses on sales of debt securities in the three months ended March 31, 2023.

Mortgage banking revenue increased $1.1 million for the three months ended March 31, 2024 compared to the same period in 2023 primarily due to higher mortgage originations and increased loan sales.

Capital markets income decreased $4.0 million for the three months ended March 31, 2024 compared to the same period in 2023 primarily due to lower levels of commercial real estate client interest rate swap fees.

Other income increased $2.0 million for the three months ended March 31, 2024 compared to the same period in 2023 primarily due to higher commercial loan fees.

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Noninterest Expense

The following table details the components in noninterest expense:

	Three Months Ended March 31,				%
(dollars in thousands)	2024		2023		Change
Salaries and employee benefits	$	149,803	$	137,364	9.1	%
Occupancy	27,019		28,282		(4.5)
Equipment	8,671		7,389		17.4
Marketing	10,634		9,417		12.9
Technology	20,023		19,202		4.3
Communication	4,000		4,461		(10.3)
Professional fees	6,406		6,732		(4.8)
FDIC assessment	11,313		10,404		8.7
Amortization of intangibles	5,455		6,186		(11.8)
Amortization of tax credit investments	2,749		2,761		(0.4)
Other expense	16,244		18,513		(12.3)
Total noninterest expense	$	262,317	$	250,711	4.6	%

Noninterest expense increased $11.6 million for the three months ended March 31, 2024 compared to the same period in 2023 primarily due to a $13.3 million non-cash, pre-tax expense associated with the distribution of excess pension assets with the resolution of the legacy First Midwest plan in the three months ended March 31, 2024. Merger-related expenses totaled $2.9 million in the three months ended March 31, 2024, compared to $14.6 million in the three months ended March 31, 2023. In addition, the three months ended March 31, 2024 were impacted by $3.0 million for the FDIC special assessment and the three months ended March 31, 2023 were impacted by $1.3 million of property optimization charges. Excluding these items, total noninterest expense was $243.1 million and $234.8 million for the three months ended March 31, 2024 and 2023, respectively. The resulting $8.3 million increase in noninterest expense was driven by higher salary and employee benefits reflecting merit and performance-driven incentive accruals.

Provision for Income Taxes

We record a provision for income taxes currently payable and for income taxes payable or benefits to be received in the future, which arise due to timing differences in the recognition of certain items for financial statement and income tax purposes. The major difference between the effective tax rate applied to our financial statement income and the federal statutory tax rate is caused by a tax benefit from our tax credit investments and interest on tax-exempt securities and loans. The effective tax rate was 21.3% for the three months ended March 31, 2024, compared to 22.0% for the same period in 2023 reflecting decreases in pre-tax book income and state income taxes combined with an increase in tax credits. See Note 14 to the consolidated financial statements for additional information.. In accordance with ASC 740-270, Accounting for Interim Reporting, the provision for income taxes was recorded at March 31, 2024 based on the current estimate of the effective annual rate.

FINANCIAL CONDITION

Overview

At March 31, 2024, our assets were $49.5 billion, a $445.1 million increase compared to assets of $49.1 billion at December 31, 2023. The increase was driven by disciplined loan growth, partially offset by lower cash balances.

Earning Assets

Our earning assets are comprised of investment securities, portfolio loans, loans held-for-sale, money market investments, interest-earning accounts with the Federal Reserve, and equity securities. Earning assets were $44.5 billion at March 31, 2024, a $534.2 million increase compared to earning assets of $43.9 billion at December 31, 2023 driven primarily by loan growth.

54

Investment Securities

We classify the majority of our investment securities as available-for-sale to give management the flexibility to sell the securities prior to maturity based on fluctuating interest rates or changes in our funding requirements.

The investment securities portfolio, including equity securities, was $10.2 billion and represented 23% of earning assets at both March 31, 2024 and December 31, 2023. At March 31, 2024, we had no intent to sell any securities that were in an unrealized loss position nor is it expected that we would be required to sell the securities prior to their anticipated recovery.

The investment securities available-for-sale portfolio had net unrealized losses of $914.2 million and $869.5 million at March 31, 2024 and December 31, 2023, respectively. The investment securities held-to-maturity portfolio had net unrealized losses of $453.8 million and $412.3 million at March 31, 2024 and December 31, 2023, respectively.

The investment securities available-for-sale portfolio including securities hedges had an effective duration of 4.35 at March 31, 2024, compared to 4.24 at December 31, 2023. The total investment securities portfolio had an effective duration of 5.42 at March 31, 2024, compared to 5.35 at December 31, 2023. Effective duration represents the percentage change in the fair value of the portfolio in response to a change in interest rates and is used to evaluate the portfolio’s price volatility at a single point in time. Generally, there is more uncertainty in interest rates over a longer average maturity, resulting in a higher duration percentage. The annualized average yields on investment securities, on a taxable equivalent basis, were 3.47% for the three months ended March 31, 2024, compared to 2.95% for the three months ended March 31, 2023.

Loan Portfolio

We lend to commercial and commercial real estate clients in many diverse industries including real estate rental and leasing, manufacturing, healthcare, wholesale trade, construction, and agriculture, among others. Old National manages concentrations of credit exposure by industry, product, geography, client relationship, and loan size. The following table presents the composition of the loan portfolio:

(dollars in thousands)	March 31, 2024		December 31, 2023		$ Change		% Change
Commercial	$	9,648,269	$	9,512,230	$	136,039	1.4	%
Commercial real estate	14,653,958		14,140,629		513,329		3.6
Residential real estate	6,661,379		6,699,443		(38,064)		(0.6)
Consumer	2,659,713		2,639,625		20,088		0.8
Total loans	$	33,623,319	$	32,991,927	$	631,392	1.9	%

Commercial and Commercial Real Estate Loans

Commercial and commercial real estate loans are the largest classifications within earning assets, representing 55% of earning assets at both March 31, 2024, compared to 54% at December 31, 2023. The increase in commercial and commercial real estate loans at March 31, 2024 from December 31, 2023 was driven by disciplined loan production that was well balanced across our market footprint and product lines.

55

The following table provides detail on commercial loans by industry classification (as defined by the North American Industry Classification System) and by loan size.

	March 31, 2024									December 31, 2023
(dollars in thousands)	Outstanding			Exposure(1)			Nonaccrual			Outstanding			Exposure(1)			Nonaccrual
By Industry:
Manufacturing	$	1,686,178		$	2,704,095		$	22,875		$	1,589,727		$	2,734,935		$	7,408
Health care and social assistance	1,582,963			1,935,359			1,399			1,567,286			1,949,250			7,390
Wholesale trade	831,579			1,606,395			2,631			748,058			1,541,951			3,789
Real estate rental and leasing	703,259			1,079,752			12,158			686,008			1,035,073			700
Finance and insurance	622,012			947,319			1			637,630			966,842			1
Construction	617,536			1,460,350			3,186			554,312			1,437,025			2,040
Professional, scientific, and   technical services	527,070			911,381			5,913			458,133			821,738			3,825
Transportation and warehousing	508,817			675,547			8,430			453,630			703,976			1,746
Accommodation and food services	397,555			462,738			649			389,591			503,990			705
Retail trade	347,604			607,787			5,128			345,944			620,308			5,273
Administrative and support and   waste management and   remediation services	341,772			512,538			1,837			321,018			487,359			347
Educational services	259,003			404,835			6			263,539			406,867			7
Agriculture, forestry, fishing,   and hunting	246,224			395,107			344			255,811			392,098			415
Other services	222,294			393,164			10,128			208,012			400,195			9,328
Public administration	199,888			269,746			—			216,939			285,963			—
Other	554,515			811,045			1,338			816,592			1,111,030			1,537
Total	$	9,648,269		$	15,177,158		$	76,023		$	9,512,230		$	15,398,600		$	44,511
By Loan Size:
Less than $200,000	3		%	3		%	3		%	3		%	3		%	5		%
$200,000 to $1,000,000	12			11			17			11			10			20
$1,000,000 to $5,000,000	24			25			38			24			25			48
$5,000,000 to $10,000,000	15			15			—			16			16			7
$10,000,000 to $25,000,000	30			28			42			31			28			20
Greater than $25,000,000	16			18			—			15			18			—
Total	100		%	100		%	100		%	100		%	100		%	100		%

(1)    Includes unfunded loan commitments.

The following table provides detail on commercial real estate loans classified by property type.

	March 31, 2024						December 31, 2023
(dollars in thousands)	Outstanding		Exposure(1)		Nonaccrual		Outstanding		Exposure(1)		Nonaccrual
By Property Type:
Multifamily	$	5,020,755	$	6,487,938	$	25,915	$	4,794,605	$	6,422,311	$	6,050
Warehouse / Industrial	2,817,785		3,308,618		7,662		2,704,656		3,308,273		6,459
Retail	1,940,200		2,013,691		27,314		1,886,233		1,958,254		29,823
Office	1,898,240		2,054,203		51,554		1,948,430		2,112,157		58,111
Senior housing	1,016,129		1,102,460		40,742		848,903		947,168		41,632
Single family	449,803		474,628		2,659		450,560		476,946		3,187
Other (2)	1,511,046		1,756,731		21,830		1,507,242		1,824,177		15,530
Total	$	14,653,958	$	17,198,269	$	177,676	$	14,140,629	$	17,049,286	$	160,792

(1)    Includes unfunded loan commitments.

(2)    Other includes commercial development, agriculture real estate, hotels, self-storage, land development, religion, and mixed-use properties.

The mix of properties securing the loans in our commercial real estate portfolio is balanced between owner-occupied and non-owner-occupied categories and is diverse in terms of type and geographic location, generally within the

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Company’s primary market area. Approximately 28% of the commercial real estate portfolio is owner-occupied as of March 31, 2024, compared to 25% at December 31, 2023.

The Company actively reviews its broader loan portfolio in the normal course of business and has performed a targeted review of contractual maturities in its non-owner-occupied commercial real estate portfolio as part of its response to current market conditions to identify exposure to credit risk associated with renewals. At March 31, 2024, the Company held $430.2 million of non-owner-occupied commercial real estate loans, or 1.3% of total loans, that mature within 18 months with an interest rate below 4%.

Residential Real Estate Loans

At March 31, 2024, residential real estate loans held in our loan portfolio were $6.7 billion, a decrease of $38.1 million compared to December 31, 2023. Changes in interest rates may impact the number of refinancings and new originations of residential real estate loans. If interest rates decrease in the future, there may be an increase in refinancings and new originations of residential real estate loans. Conversely, future increases in interest rates may result in a decline in the level of refinancings and new originations of residential real estate loans.

Consumer Loans

Consumer loans, including automobile loans, personal, and home equity loans and lines of credit, increased $20.1 million to $2.7 billion at March 31, 2024 compared to December 31, 2023 reflecting higher indirect loans.

Funding

The following table summarizes Old National’s total funding, comprised of deposits and wholesale borrowings:

(dollars in thousands)	March 31, 2024		December 31, 2023		$ Change		% Change
Deposits:
Noninterest-bearing demand	$	9,257,709	$	9,664,247	$	(406,538)	(4.2)	%
Interest-bearing:
Checking and NOW	7,236,667		7,331,487		(94,820)		(1.3)	%
Savings	5,020,095		5,099,186		(79,091)		(1.6)	%
Money market	10,234,113		9,561,116		672,997		7.0	%
Time deposits	5,950,834		5,579,144		371,690		6.7	%
Total deposits	37,699,418		37,235,180		464,238		1.2	%
Wholesale borrowings:
Federal funds purchased and interbank borrowings	50,416		390		50,026		N/M
Securities sold under agreements to repurchase	274,493		285,206		(10,713)		(3.8)	%
Federal Home Loan Bank advances	4,193,039		4,280,681		(87,642)		(2.0)	%
Other borrowings	813,213		764,870		48,343		6.3	%
Total wholesale borrowings	5,331,161		5,331,147		14		—	%
Total funding	$	43,030,579	$	42,566,327	$	464,252	1.1	%

We use wholesale funding to augment deposit funding and to help maintain our desired interest rate risk position. Wholesale funding as a percentage of total funding was 12% at March 31, 2024, compared to 13% at December 31, 2023.

Capital 

Shareholders’ equity totaled $5.6 billion at both March 31, 2024 and December 31, 2023. Retained earnings were offset by dividends and changes in unrealized gains (losses) on available-for-sale investment securities and derivatives during the three months ended March 31, 2024.

Capital Adequacy

Old National and the banking industry are subject to various regulatory capital requirements administered by the federal banking agencies. At March 31, 2024, Old National and its bank subsidiary exceeded the regulatory minimums and Old National Bank met the regulatory definition of “well-capitalized” based on the most recent regulatory definition.

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Old National’s consolidated capital position remains strong as evidenced by the following key industry ratios. 

	Regulatory Guidelines Minimum		Prompt Corrective Action "Well Capitalized" Guidelines		March 31, 2024		December 31, 2023
Tier 1 capital to total average assets (leverage    ratio)	4.00	%	N/A	%	8.96	%	8.83	%
Common equity Tier 1 capital to risk-weighted    total assets	7.00		N/A		10.76		10.70
Tier 1 capital to risk-weighted total assets	8.50		6.00		11.40		11.35
Total capital to risk-weighted total assets	10.50		10.00		12.74		12.64
Shareholders’ equity to assets	N/A		N/A		11.30		11.33

Old National Bank, Old National’s bank subsidiary, maintained a strong capital position as evidenced by the following key industry ratios.

	Regulatory Guidelines Minimum		Prompt Corrective Action "Well Capitalized" Guidelines		March 31, 2024		December 31, 2023
Tier 1 capital to total average assets (leverage    ratio)	4.00	%	5.00	%	9.04	%	8.99	%
Common equity Tier 1 capital to risk-weighted    total assets	7.00		6.50		11.50		11.57
Tier 1 capital to risk-weighted total assets	8.50		8.00		11.50		11.57
Total capital to risk-weighted total assets	10.50		10.00		12.32		12.33

During 2020, the OCC, the Board of Governors of the Federal Reserve System, and the FDIC issued final rules to delay the estimated impact on regulatory capital stemming from the implementation of CECL. The final rules provide banking organizations the option to delay for two years an estimate of CECL’s effect on regulatory capital, relative to the incurred loss methodology’s effect on regulatory capital, followed by a three-year transition period (five-year transition option). Old National adopted the capital transition relief over the permissible five-year period.

Management views stress testing as an integral part of the Company’s risk management and strategic planning activities. Old National performs stress testing periodically throughout the year. The primary objective of the stress test is to ensure that Old National has a robust, forward-looking stress testing process and maintains sufficient capital to continue operations throughout times of economic and financial stress. Management also uses the stress testing framework to evaluate decisions relating to pricing, loan concentrations, capital deployment, and mergers and acquisitions to ensure that strategic decisions align with Old National’s risk appetite statement. Old National’s stress testing process incorporates key risks that include strategic, market, liquidity, credit, operational, regulatory, compliance, legal, and reputational risks. Old National’s stress testing policy outlines steps that will be taken if stress test results do not meet internal thresholds under severely adverse economic scenarios.

RISK MANAGEMENT

Overview

Old National has adopted a Risk Appetite Statement to enable our Board of Directors, Executive Leadership Team, and Senior Management to better assess, understand, monitor, and mitigate Old National’s risks. The Risk Appetite Statement addresses the following major risks: strategic, market, liquidity, credit, operational, talent management, compliance and regulatory, legal, and reputational. Our Chief Risk Officer provides quarterly reports to the Board’s Enterprise Risk Committee on various risk topics. The following discussion addresses certain of these major risks including credit, market, and liquidity. Discussion of operational, compliance and regulatory, legal, strategic, talent management, and reputational risks is provided in the section entitled “Risk Factors” in the Company’s 2023 Annual Report on Form 10-K.

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Credit Risk

Credit risk represents the risk of loss arising from an obligor’s inability or failure to meet contractual payment or performance terms. Our primary credit risks result from our investment and lending activities.

Asset Quality

We lend to commercial and commercial real estate clients in many diverse industries including, among others, real estate rental and leasing, manufacturing, healthcare, wholesale trade, construction, and agriculture. Old National manages concentrations of credit exposure by industry, product, geography, client relationship, and loan size. At March 31, 2024, our average commercial loan size was approximately $720,000 and our average commercial real estate loan size was approximately $1,530,000. In addition, while loans to lessors of residential and non-residential real estate exceed 10% of total loans, no individual sub-segment category within those broader categories reaches the 10% threshold. At March 31, 2024, we had minimal exposure to foreign borrowers and no sovereign debt. Our policy is to concentrate our lending activity in the geographic market areas we serve, primarily in the Midwest region of the United States.

The following table presents a summary of under-performing, criticized, and classified assets:

(dollars in thousands)	March 31, 2024			December 31, 2023
Total nonaccrual loans	$	328,645		$	274,821
Total past due loans (90 days or more and still accruing)	2,172			961
Foreclosed assets	9,344			9,434
Total under-performing assets	$	340,161		$	285,216
Classified loans (includes nonaccrual, past due 90 days,     and other problem loans)	$	956,974		$	875,140
Other classified assets (1)	54,392			48,930
Criticized loans	827,419			843,920
Total criticized and classified assets	$	1,838,785		$	1,767,990
Asset Quality Ratios:
Nonaccrual loans/total loans (2)	0.98		%	0.83		%
Under-performing assets/total loans (2)	1.01			0.86
Under-performing assets/total assets	0.69			0.58
Allowance for credit losses on loans/under-performing assets	93.99			107.85
Allowance for credit losses on loans/nonaccrual loans	97.28			111.93

(1)Includes investment securities that fell below investment grade rating.

(2)Loans exclude loans held-for-sale.

Under-performing assets increased to $340.2 million at March 31, 2024, compared to $285.2 million at December 31, 2023. Under-performing assets as a percentage of total loans at March 31, 2024 were 1.01%, a 15 basis point increase from 0.86% at December 31, 2023.

Nonaccrual loans increased $53.8 million from December 31, 2023 to March 31, 2024 reflecting the migration of certain commercial credits as they progress to resolution. As a percentage of nonaccrual loans, the allowance for credit losses on loans was 97.28% at March 31, 2024, compared to 111.93% at December 31, 2023.

Total criticized and classified assets were $1.8 billion at March 31, 2024, an increase of $70.8 million from December 31, 2023 primarily due to higher criticized and classified commercial real estate loans. Other classified assets include investment securities that fell below investment grade rating totaling $54.4 million at March 31, 2024, compared to $48.9 million at December 31, 2023.

Allowance for Credit Losses on Loans and Unfunded Commitments

Net charge-offs on loans totaled $11.8 million during the three months ended March 31, 2024, compared to $16.4 million for the same period in 2023. Annualized, net charge-offs to average loans were 0.14% for the three months ended March 31, 2024, compared to 0.21% for the same period in 2023. The three months ended March 31, 2024 included net charge-offs on PCD loans totaling $5.7 million, or 0.07% on an annualized basis of average loans,

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compared to net charge-offs on PCD loans totaling $12.4 million, or 0.16% on an annualized basis of average loans for the same period in 2023.

Credit quality within the loans held for investment portfolio is continuously monitored by management and is reflected within the allowance for credit losses on loans. The allowance for credit losses is an estimate of expected losses inherent within the Company’s loans held for investment portfolio. Credit quality is assessed and monitored by evaluating various attributes and the results of those evaluations are utilized in underwriting new loans and in our process for estimating expected credit losses. Expected credit loss inherent in non-cancelable off-balance-sheet credit exposures is accounted for as a separate liability included in other liabilities on the balance sheet. The allowance for credit losses on loans held for investment and unfunded loan commitments is adjusted by a credit loss expense, which is reported in earnings, and reduced by the charge-off of loan amounts, net of recoveries. Accrued interest receivable is excluded from the estimate of credit losses.

The allowance for credit loss estimation process involves procedures to consider the unique characteristics of our loan portfolio segments. These segments are further disaggregated into loan classes based on the level at which credit risk of the loan is monitored. When computing the level of expected credit losses, credit loss assumptions 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. Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. In future periods, evaluations of the overall loan portfolio, in light of the factors and forecasts then prevailing, may result in significant changes in the allowance and credit loss expense in those future periods.

The allowance level is influenced by loan volumes, loan AQR migration or delinquency status, changes in historical loss experience, and other conditions influencing loss expectations, such as reasonable and supportable forecasts of economic conditions. The methodology for estimating the amount of expected credit losses reported in the allowance for credit losses on loans has two basic components: first, an asset-specific component involving individual loans that do not share risk characteristics with other loans and the measurement of expected credit losses for such individual loans; and second, a pooled component for estimated expected credit losses for pools of loans that share similar risk characteristics.

The allowance for credit losses on loans was $319.7 million at March 31, 2024, compared to $307.6 million at December 31, 2023. 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.

We maintain 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. The allowance for credit losses on unfunded loan commitments totaled $26.3 million at March 31, 2024, compared to $31.2 million at December 31, 2023.

See the section entitled “Risk Factors” in the Company’s 2023 Annual Report on Form 10-K for further discussion of our credit risk.

Market Risk

Market risk is the risk that the estimated fair value of our assets, liabilities, and derivative financial instruments will decline as a result of changes in interest rates or financial market volatility, or that our net income will be significantly reduced by interest rate changes.

The objective of our interest rate management process is to maximize net interest income while operating within acceptable limits established for interest rate risk and maintaining adequate levels of funding and liquidity.

Potential cash flows, sales, or replacement value of many of our assets and liabilities, especially those that earn or pay interest, are sensitive to changes in the general level of interest rates. This interest rate risk arises primarily from our normal business activities of gathering deposits and extending loans. Many factors affect our exposure to

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changes in interest rates, such as general economic and financial conditions, client preferences, historical pricing relationships, and re-pricing characteristics of financial instruments. Our earnings can also be affected by the monetary and fiscal policies of the U.S. Government and its agencies, particularly the Federal Reserve.

In managing interest rate risk, we establish guidelines for asset and liability management, including measurement of short and long-term sensitivities to changes in interest rates, which are reviewed with the Enterprise Risk Committee of our Board of Directors. Based on the results of our analysis, we may use different techniques to manage changing trends in interest rates including:

•adjusting balance sheet mix or altering interest rate characteristics of assets and liabilities;

•changing product pricing strategies;

•modifying characteristics of the investment securities portfolio; or

•using derivative financial instruments, to a limited degree.

A key element in our ongoing process is to measure and monitor interest rate risk using a model to quantify the likely impact of changing interest rates on Old National’s results of operations. The model quantifies the effects of various possible interest rate scenarios on projected net interest income. The model measures the impact on net interest income relative to a base case scenario over a two-year cumulative horizon resulting from an immediate change in interest rates using multiple rate scenarios. The base case scenario assumes that the balance sheet and interest rates are held at current levels. The model shows our projected net interest income sensitivity based on interest rate changes only and does not consider other forecast assumptions. Due to the dynamics of future interest rate expectations, we also measure and monitor interest rate risk using the forward curve, which may be a more probable scenario of our interest rate exposure. The forward curve represents the relationship between the price of forward contracts and the time to maturity of the forward contracts at a point in time. Presentation of the forward curve model is included in the following table as of March 31, 2024.

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The following table illustrates our projected net interest income sensitivity over a two-year cumulative horizon based on the asset/liability model at March 31, 2024 and 2023:

	Immediate Rate Decrease									March 31, 2024 Forward Curve						Immediate Rate Increase
(dollars in thousands)	-300 Basis Points			-200 Basis Points			-100 Basis Points						Base			+100 Basis Points			+200 Basis Points			+300 Basis Points
March 31, 2024
Projected interest income:
Money market, other   interest earning   investments, and   investment securities	$	731,811		$	751,001		$	800,963		$	817,375		$	853,340		$	907,670		$	960,568		$	1,012,590
Loans	3,135,715			3,509,083			3,884,871			3,984,683			4,252,944			4,618,125			4,983,142			5,347,889
Total interest    income	3,867,526			4,260,084			4,685,834			4,802,058			5,106,284			5,525,795			5,943,710			6,360,479
Projected interest expense:
Deposits	604,784			894,474			1,197,697			1,232,929			1,478,601			1,783,767			2,101,956			2,415,479
Borrowings	354,555			416,191			492,897			516,442			583,388			665,070			746,785			828,459
Total interest    expense	959,339			1,310,665			1,690,594			1,749,371			2,061,989			2,448,837			2,848,741			3,243,938
Net interest    income	$	2,908,187		$	2,949,419		$	2,995,240		$	3,052,687		$	3,044,295		$	3,076,958		$	3,094,969		$	3,116,541
Change from base	$	(136,108)		$	(94,876)		$	(49,055)		$	8,392					$	32,663		$	50,674		$	72,246
% change from base	(4.47)		%	(3.12)		%	(1.61)		%	0.28		%				1.07		%	1.66		%	2.37		%
	Immediate Rate Decrease												Immediate Rate Increase
	-300 Basis Points			-200 Basis Points			-100 Basis Points			Base			+100 Basis Points			+200 Basis Points			+300 Basis Points
March 31, 2023
Projected interest income:
Money market, other   interest earning   investments, and   investment securities	$	638,159		$	668,554		$	711,908		$	764,597		$	815,964		$	866,973		$	918,430
Loans	2,516,865			2,868,902			3,220,937			3,569,373			3,908,901			4,247,694			4,586,338
Total interest    income	3,155,024			3,537,456			3,932,845			4,333,970			4,724,865			5,114,667			5,504,768
Projected interest expense:
Deposits	347,614			520,021			699,243			879,315			1,063,942			1,248,569			1,433,196
Borrowings	333,258			441,566			539,054			636,325			736,439			836,612			936,862
Total interest    expense	680,872			961,587			1,238,297			1,515,640			1,800,381			2,085,181			2,370,058
Net interest    income	$	2,474,152		$	2,575,869		$	2,694,548		$	2,818,330		$	2,924,484		$	3,029,486		$	3,134,710
Change from base	$	(344,178)		$	(242,461)		$	(123,782)					$	106,154		$	211,156		$	316,380
% change from base	(12.21)		%	(8.60)		%	(4.39)		%				3.77		%	7.49		%	11.23		%

Our projected net interest income increased year over year due to loan growth and rising interest rates.

A key element in the measurement and modeling of interest rate risk is the re-pricing assumptions of our transaction deposit accounts, which have no contractual maturity dates. Because the models are driven by expected behavior in various interest rate scenarios and many factors besides market interest rates affect our net interest income, we recognize that model outputs are not guarantees of actual results. For this reason, we model many different combinations of interest rates and balance sheet assumptions to understand our overall sensitivity to market interest rate changes, including shocks, ramps, yield curve flattening, yield curve steepening, as well as forecasts of likely interest rate scenarios tested.

We use cash flow and fair value hedges, primarily interest rate swaps, collars, and floors, to mitigate interest rate risk. Derivatives designated as hedging instruments were in a net liability position with a fair value loss of $12.4 million at March 31, 2024, compared to a net asset position with a fair value gain of $4.5 million at

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December 31, 2023. See Note 15 to the consolidated financial statements for further discussion of derivative financial instruments.

Liquidity Risk

Liquidity risk arises from the possibility that we may not be able to satisfy current or future financial commitments or may become unduly reliant on alternative funding sources. We establish liquidity risk guidelines that we review with the Enterprise Risk Committee of our Board of Directors and monitor through our Asset/Liability Executive Management Committee. The objective of liquidity management is to ensure we have the ability to fund balance sheet growth and meet deposit and debt obligations in a timely and cost-effective manner. Management monitors liquidity through a regular review of asset and liability maturities, funding sources, and loan and deposit forecasts. We maintain strategic and contingency liquidity plans to ensure sufficient available funding to satisfy requirements for balance sheet growth, to properly manage capital markets’ funding sources, and to address unexpected liquidity requirements. On May 31, 2023, we filed an automatic shelf registration statement with the SEC that permits us to issue an unspecified amount of debt or equity securities.

Loan repayments and maturing investment securities are a relatively predictable source of funds. However, deposit flows, calls of investment securities, and prepayments of loans and mortgage-related securities are not as predictable as they are strongly influenced by interest rates, events at other banking organizations, the housing market, general and local economic conditions, and competition in the marketplace. We continually monitor marketplace trends to identify patterns that might improve the predictability of the timing of deposit flows or asset prepayments.

A maturity schedule for Old National Bank’s time deposits is shown in the following table at March 31, 2024.

(dollars in thousands)
Maturity Bucket	Amount		Rate
2024	$	4,898,915	4.54	%
2025	906,669		3.85
2026	81,108		1.49
2027	38,107		0.97
2028	14,494		1.48
2027 and beyond	11,541		1.40
Total	$	5,950,834	4.35	%

Our ability to acquire funding at competitive prices is influenced by rating agencies’ views of our credit quality, liquidity, capital, and earnings.

The credit ratings of Old National and Old National Bank at March 31, 2024 are shown in the following table.

	Moody’s Investors Service
	Long-term	Short-term
Old National	Baa1	N/A
Old National Bank	A1	P-1

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Old National Bank maintains relationships in capital markets with brokers and dealers to issue certificates of deposit and short-term and medium-term bank notes as well. At March 31, 2024, Old National and its subsidiaries had the following availability of liquid funds and borrowings:

(dollars in thousands)	Parent Company		Subsidiaries
Available liquid funds:
Cash and due from banks	$	313,936	$	625,563
Unencumbered government-issued debt securities	—		924,475
Unencumbered investment grade municipal securities	—		79,479
Unencumbered corporate securities	—		35,884
Availability of borrowings*:
Amount available from Federal Reserve discount window	—		5,049,450
Amount available from Federal Home Loan Bank	—		6,966,263
Total available funds	$	313,936	$	13,681,114

* Based on collateral pledged

Old National Bancorp has routine funding requirements consisting primarily of operating expenses, dividends to shareholders, debt service, net derivative cash flows, and funds used for acquisitions. Old National Bancorp can obtain funding to meet its obligations from dividends and management fees collected from its subsidiaries, operating line of credit, and through the issuance of debt securities. Additionally, Old National Bancorp has a shelf registration in place with the SEC permitting ready access to the public debt and equity markets. At March 31, 2024, Old National Bancorp’s other borrowings outstanding were $478.5 million. Management believes the Company has the ability to generate and obtain adequate amounts of liquidity to meet its requirements in the short-term and the long-term.

Federal banking laws regulate the amount of dividends that may be paid by Old National Bank to Old National Bancorp on an unconsolidated basis without obtaining prior regulatory approval. Prior regulatory approval is required if dividends to be declared in any year would exceed net earnings of the current year plus retained net profits for the preceding two years. Prior regulatory approval to pay dividends was not required in 2023 and is not currently required.

CRITICAL ACCOUNTING ESTIMATES

Our most significant accounting policies are described in Note 1 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023. Certain of these accounting policies require management to use significant judgment and estimates, which can have a material impact on the carrying value of certain assets and liabilities. We consider these policies to be our critical accounting estimates. The judgment and assumptions made are based upon historical experience, future forecasts, or other factors that management believes to be reasonable under the circumstances. Because of the nature of the judgment and assumptions, actual results could differ from estimates, which could have a material effect on our financial condition and results of operations.

For additional information regarding critical accounting estimates, see the section titled “Critical Accounting Estimates” included in Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2023. There have been no material changes in the Company’s application of critical accounting estimates since December 31, 2023.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

See Management’s Discussion and Analysis of Financial Condition and Results of Operations – Market Risk and Liquidity Risk.

64

ITEM 4.  CONTROLS AND PROCEDURES

Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures

Evaluation of Disclosure Controls and Procedures. Old National’s principal executive officer and principal financial officer have concluded that Old National’s disclosure controls and procedures (as defined in Exchange Act Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended), based on their evaluation of these controls and procedures as of the end of the period covered by this quarterly report on Form 10-Q, are effective at the reasonable assurance level as discussed below to ensure that information required to be disclosed by Old National in the reports it files under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC and that such information is accumulated and communicated to Old National’s management, including its principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

Limitations on the Effectiveness of Controls. Management, including the principal executive officer and principal financial officer, does not expect that Old National’s disclosure controls and internal controls will prevent all error and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of a simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people or by management override of the controls.

The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be only reasonable assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, the system of controls may become inadequate because of changes in conditions or the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

Changes in Internal Control over Financial Reporting. There were no changes in Old National’s internal control over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, Old National’s internal control over financial reporting.

65

PART II

OTHER INFORMATION

ITEM 1A.  RISK FACTORS

There have been no material changes from the risk factors disclosed in the section entitled “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.

ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

(c)ISSUER PURCHASES OF EQUITY SECURITIES

Period	Total Number of Shares Purchased (1)	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2)	Maximum Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (2)
01/01/24 - 01/31/24	1,208	$	16.91	—	$	170,476,849
02/01/24 - 02/29/24	229,379	$	16.53	—	$	200,000,000
03/01/24 - 03/31/24	203,382	$	16.56	—	$	200,000,000
Total	433,969	$	16.55	—	$	200,000,000

(1)Consists of shares acquired pursuant to the Company’s share-based incentive programs. Under the terms of the Company’s share-based incentive programs, the Company accepts previously owned shares of common stock surrendered to satisfy tax withholding obligations associated with the vesting of restricted stock or performance shares earned.

(2)On February 21, 2024, the Company’s Board of Directors approved a stock repurchase program, under which the Company is authorized to repurchase up to $200 million of its outstanding common stock through February 28, 2025. This stock repurchase program replaced the prior $200 million program that expired on February 29, 2024.

ITEM 5.  OTHER INFORMATION

(a)None

(b)There have been no material changes in the procedure by which security holders recommend nominees to the Company’s board of directors.

(c)During the three months ended March 31, 2024, no director or Section 16 officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408 of Regulation S-K.

66

ITEM 6.  EXHIBITS

Exhibit No.	Description
2.1	Agreement and Plan of Merger dated as of October 26, 2023 by and between Old National and CapStar Financial Holdings, Inc. (the schedules have been omitted pursuant to Item 601(a)(5) of Regulation S-K) (incorporated by reference to Exhibit 2.1 of Old National’s Current Report on Form 8-K filed with the Securities and Exchange Commission on October 31, 2023).
3.1	Fifth Amended and Restated Articles of Incorporation of Old National, amended April 30, 2020 (incorporated by reference to Exhibit 3.1 of Old National’s Current Report on Form 8-K filed with the Securities and Exchange Commission on May 18, 2020).
3.2	Articles of Amendment to the Fifth Amended and Restated Articles of Incorporation of Old National authorizing additional shares of Old National capital stock (incorporated by reference to Exhibit 3.2 of Old National’s Current Report on Form 8-K filed with the Securities and Exchange Commission on February 16, 2022).
3.3	Articles of Amendment to the Fifth Amended and Restated Articles of Incorporation of Old National designating the New Old National Series A Preferred Stock (incorporated by reference to Exhibit 3.3 of Old National’s Current Report on Form 8-K filed with the Securities and Exchange Commission on February 16, 2022).
3.4	Articles of Amendment to the Fifth Amended and Restated Articles of Incorporation of Old National designating the New Old National Series C Preferred Stock (incorporated by reference to Exhibit 3.4 of Old National’s Current Report on Form 8-K filed with the Securities and Exchange Commission on February 16, 2022).
3.5	Amended and Restated By-Laws of Old National, amended February 21, 2024 (incorporated by reference to Exhibit 3.1 of Old National’s Current Report on Form 8-K filed with the Securities and Exchange Commission on February 27, 2024).
31.1	Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	The following materials from Old National’s Form 10-Q Report for the quarterly period ended March 31, 2024, formatted in inline XBRL: (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income (Loss), (iv) the Consolidated Statements of Changes in Shareholders’ Equity, (v) the Consolidated Statements of Cash Flows, and (vi) the Notes to Consolidated Financial Statements.
104	The cover page from Old National’s Form 10-Q Report for the quarterly period ended March 31, 2024, formatted in inline XBRL and contained in Exhibit 101.

67

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	OLD NATIONAL BANCORP
	(Registrant)
By:	/s/  John V. Moran, IV
	John V. Moran, IV
	Executive Vice President, Interim Chief Financial Officer, and Chief Strategy Officer
	Duly Authorized Officer and Principal Financial Officer
	Date:  May 1, 2024

68

EX-31.1

Exhibit 31.1

FORM OF SECTION 302 CERTIFICATION

I, James C. Ryan, III, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Old National Bancorp;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 (e) and 15d-15 (e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	May 1, 2024	By:	/s/  James C. Ryan, III
			James C. Ryan, III
			Chairman and Chief Executive Officer
			(Principal Executive Officer)

EX-31.2

Exhibit 31.2

FORM OF SECTION 302 CERTIFICATION

I, John V. Moran, IV certify that:

1.I have reviewed this quarterly report on Form 10-Q of Old National Bancorp;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 (e) and 15d-15 (e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	May 1, 2024	By:	/s/  John V. Moran, IV
			John V. Moran, IV
			Executive Vice President, Interim Chief Financial Officer, and Chief Strategy Officer
			(Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Old National Bancorp (the “Company”) on Form 10-Q for the quarter ending March 31, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, James C. Ryan, III, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

By:	/s/  James C. Ryan, III
	James C. Ryan, III
	Chairman and Chief Executive Officer
	(Principal Executive Officer)
	Date:  May 1, 2024

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Old National Bancorp (the “Company”) on Form 10-Q for the quarter ending March 31, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, John V. Moran, IV, Executive Vice President, Interim Chief Financial Officer, and Chief Strategy Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

By:	/s/  John V. Moran, IV
	John V. Moran, IV
	Executive Vice President, Interim Chief Financial Officer, and Chief Strategy Officer
	(Principal Financial Officer)
	Date:  May 1, 2024

XML

Cover - shares	3 Months Ended
	Mar. 31, 2024	Apr. 30, 2024
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	001-15817
Entity Registrant Name	Old National Bancorp
Entity Incorporation, State or Country Code	IN
Entity Tax Identification Number	35-1539838
Entity Address, Address Line One	One Main Street
Entity Address, City or Town	Evansville,
Entity Address, State or Province	IN
Entity Address, Postal Zip Code	47708
City Area Code	(800)
Local Phone Number	731-2265
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		318,971,000
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Entity Central Index Key	0000707179
Current Fiscal Year End Date	--12-31
Common Stock
Entity Information [Line Items]
Title of 12(b) Security	Common stock, no par value
Trading Symbol	ONB
Security Exchange Name	NASDAQ
Depositary Shares, each representing a 1/40th interest in a share of Non-Cumulative Perpetual Preferred Stock, Series A
Entity Information [Line Items]
Title of 12(b) Security	Depositary Shares, each representing a 1/40th interest in a share of Non-Cumulative Perpetual Preferred Stock, Series A
Trading Symbol	ONBPP
Security Exchange Name	NASDAQ
Depositary Shares, each representing a 1/40th interest in a share of Non-Cumulative Perpetual Preferred Stock, Series C
Entity Information [Line Items]
Title of 12(b) Security	Depositary Shares, each representing a 1/40th interest in a share of Non-Cumulative Perpetual Preferred Stock, Series C
Trading Symbol	ONBPO
Security Exchange Name	NASDAQ

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Assets
Cash and due from banks	$ 350,990	$ 430,866
Money market and other interest-earning investments	588,509	744,192
Total cash and cash equivalents	939,499	1,175,058
Equity securities, at fair value	84,954	80,372
Investment securities - available-for-sale, at fair value (amortized cost $7,834,082 and $7,684,889, respectively)	6,791,652	6,713,055
Investment securities - held-to-maturity, at amortized cost (fair value $2,547,576 and $2,601,188, respectively)	3,001,349	3,013,493
Federal Home Loan Bank/Federal Reserve Bank stock, at cost	365,588	365,588
Loans held-for-sale, at fair value	19,418	32,006
Loans:
Total loans, net of unearned income	33,623,319	32,991,927
Allowance for credit losses on loans	(319,713)	(307,610)
Net loans	33,303,606	32,684,317
Premises and equipment, net	564,007	565,396
Goodwill	1,998,716	1,998,716
Other intangible assets	96,795	102,250
Company-owned life insurance	767,423	767,902
Accrued interest receivable and other assets	1,601,911	1,591,683
Total assets	49,534,918	49,089,836
Deposits:
Noninterest-bearing demand	9,257,709	9,664,247
Interest-bearing:
Checking and NOW	7,236,667	7,331,487
Savings	5,020,095	5,099,186
Money market	10,234,113	9,561,116
Time deposits	5,950,834	5,579,144
Total deposits	37,699,418	37,235,180
Federal funds purchased and interbank borrowings	50,416	390
Securities sold under agreements to repurchase	274,493	285,206
Federal Home Loan Bank advances	4,193,039	4,280,681
Other borrowings	813,213	764,870
Accrued expenses and other liabilities	908,931	960,609
Total liabilities	43,939,510	43,526,936
Shareholders’ Equity
Preferred stock, 2,000 shares authorized, 231 shares issued and outstanding	230,500	230,500
Common stock, no par value, $1.00 per share stated value, 600,000 shares authorized,    293,330 and 292,655 shares issued and outstanding, respectively	293,330	292,655
Capital surplus	4,157,542	4,159,924
Retained earnings	1,693,664	1,618,630
Accumulated other comprehensive income (loss), net of tax	(779,628)	(738,809)
Total shareholders’ equity	5,595,408	5,562,900
Total liabilities and shareholders’ equity	49,534,918	49,089,836
Commercial
Loans:
Total loans, net of unearned income	9,648,269	9,512,230
Allowance for credit losses on loans	(123,437)	(118,333)
Commercial real estate
Loans:
Total loans, net of unearned income	14,653,958	14,140,629
Allowance for credit losses on loans	(160,640)	(155,099)
Residential real estate
Loans:
Total loans, net of unearned income	6,661,379	6,699,443
Allowance for credit losses on loans	(21,899)	(20,837)
Consumer
Loans:
Total loans, net of unearned income	$ 2,659,713	$ 2,639,625

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Available-for-sale, amortized cost	$ 7,834,082	$ 7,684,889
Investment securities - held-to-maturity, fair value	$ 2,547,576	$ 2,601,188
Preferred stock, shares authorized (in shares)	2,000	2,000
Preferred stock, shares issued (in shares)	231	231
Preferred stock, shares outstanding (in shares)	231	231
Common stock, stated value (in dollars per share)	$ 1.00	$ 1.00
Authorized and unissued common shares reserved for issuance (in shares)	600,000	600,000
Common stock, shares issued (in shares)	293,330	292,655
Common stock, shares outstanding (in shares)	293,330	292,655

XML

Consolidated Statements of Income (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Loans including fees:
Taxable	$ 487,361	$ 410,375
Nontaxable	13,102	10,212
Investment securities:
Taxable	75,027	60,801
Nontaxable	10,506	11,163
Money market and other interest-earning investments	9,985	3,098
Total interest income	595,981	495,649
Interest Expense
Deposits	185,439	62,593
Federal funds purchased and interbank borrowings	961	4,839
Securities sold under agreements to repurchase	917	779
Federal Home Loan Bank advances	41,167	37,996
Other borrowings	11,039	7,954
Total interest expense	239,523	114,161
Net interest income	356,458	381,488
Provision for credit losses	18,891	13,437
Net interest income after provision for credit losses	337,567	368,051
Noninterest Income
Wealth and investment services fees	28,304	26,920
Service charges on deposit accounts	17,898	17,003
Debit card and ATM fees	10,054	9,982
Mortgage banking revenue	4,478	3,400
Capital markets income	2,900	6,939
Company-owned life insurance	3,434	3,186
Debt securities gains (losses), net	(16)	(5,216)
Other income	10,470	8,467
Total noninterest income	77,522	70,681
Noninterest Expense
Salaries and employee benefits	149,803	137,364
Occupancy	27,019	28,282
Equipment	8,671	7,389
Marketing	10,634	9,417
Technology	20,023	19,202
Communication	4,000	4,461
Professional fees	6,406	6,732
FDIC assessment	11,313	10,404
Amortization of intangibles	5,455	6,186
Amortization of tax credit investments	2,749	2,761
Other expense	16,244	18,513
Total noninterest expense	262,317	250,711
Income before income taxes	152,772	188,021
Income tax expense	32,488	41,421
Net income	120,284	146,600
Preferred dividends	(4,034)	(4,034)
Net income applicable to common shareholders	$ 116,250	$ 142,566
Net income per common share - basic (in dollars per share)	$ 0.40	$ 0.49
Net income per common share - diluted (in dollars per share)	$ 0.40	$ 0.49
Weighted average number of common shares outstanding - basic (in shares)	290,980	291,088
Weighted average number of common shares outstanding - diluted (in shares)	292,207	292,756
Dividends per common share (in dollars per share)	$ 0.14	$ 0.14

XML

Consolidated Statements of Comprehensive Income (Loss) (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 120,284	$ 146,600
Change in debt securities available-for-sale:
Unrealized holding gains (losses) for the period	(44,709)	24,724
Reclassification adjustment for securities (gains) losses realized in income	16	5,216
Income tax effect	11,242	1,146
Unrealized gains (losses) on available-for-sale securities	(33,451)	31,086
Change in securities held-to-maturity:
Amortization of unrealized losses on securities transferred     from available-for-sale	4,318	5,829
Income tax effect	(1,097)	(131)
Changes from securities held-to-maturity	3,221	5,698
Change in hedges:
Net unrealized derivative gains (losses) on hedges	(19,159)	47,849
Reclassification adjustment for (gains) losses realized in net income	4,877	7,292
Income tax effect	3,693	(13,720)
Changes from hedges	(10,589)	41,421
Change in defined benefit pension plans:
Amortization of net (gains) losses recognized in income	0	(188)
Income tax effect	0	47
Changes from defined benefit pension plans	0	(141)
Other comprehensive income (loss), net of tax	(40,819)	78,064
Comprehensive income (loss)	$ 79,465	$ 224,664

XML

Consolidated Statements of Changes in Shareholders' Equity (unaudited) - USD ($) $ in Thousands	Total	Preferred Stock	Common Stock	Capital Surplus	Retained Earnings	Accumulated Other Comprehensive Income (Loss)
Beginning balance at Dec. 31, 2022	$ 5,128,595	$ 230,500	$ 292,903	$ 4,174,265	$ 1,217,349	$ (786,422)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	146,600				146,600
Other comprehensive income (loss)	78,064					78,064
Cash dividends:
Dividends - common stock	(41,088)				(41,088)
Preferred ($17.50 per share)	(4,034)				(4,034)
Common stock issued	262		15	247
Common stock repurchased	(43,710)		(2,598)	(41,112)
Share-based compensation expense	12,742			12,742
Stock activity under incentive compensation plans	(5)		1,602	(1,412)	(195)
Ending balance at Mar. 31, 2023	5,277,426	230,500	291,922	4,144,730	1,318,632	(708,358)
Beginning balance at Dec. 31, 2023	5,562,900	230,500	292,655	4,159,924	1,618,630	(738,809)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	120,284				120,284
Other comprehensive income (loss)	(40,819)					(40,819)
Cash dividends:
Dividends - common stock	(41,060)				(41,060)
Preferred ($17.50 per share)	(4,034)				(4,034)
Common stock issued	265		17	248
Common stock repurchased	(7,182)		(434)	(6,748)
Share-based compensation expense	5,491			5,491
Stock activity under incentive compensation plans	(437)		1,092	(1,373)	(156)
Ending balance at Mar. 31, 2024	$ 5,595,408	$ 230,500	$ 293,330	$ 4,157,542	$ 1,693,664	$ (779,628)

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Consolidated Statements of Changes in Shareholders' Equity (unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Stockholders' Equity [Abstract]
Dividends per common share (in dollars per share)	$ 0.14	$ 0.14
Preferred dividends (in dollars per share)	$ 17.50	$ 17.50

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Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash Flows From Operating Activities
Net income	$ 120,284	$ 146,600
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation	9,678	9,121
Amortization of other intangible assets	5,455	6,186
Amortization of tax credit investments	2,749	2,761
Net premium amortization on investment securities	1,133	3,603
Accretion income related to acquired loans	(3,612)	(6,410)
Share-based compensation expense	5,491	12,742
Provision for credit losses	18,891	13,437
Debt securities (gains) losses, net	16	5,216
Net (gains) losses on sales of loans and other assets	(1,245)	829
Increase in cash surrender value of company-owned life insurance	(3,434)	(3,186)
Residential real estate loans originated for sale	(112,818)	(65,148)
Proceeds from sales of residential real estate loans	112,552	67,468
(Increase) decrease in interest receivable	5,349	1,533
(Increase) decrease in other assets	14,135	(3,833)
Increase (decrease) in accrued expenses and other liabilities	(70,391)	(137,230)
Net cash flows provided by (used in) operating activities	104,233	53,689
Cash Flows From Investing Activities
Purchases of investment securities available-for-sale	(483,506)	(44,413)
Purchases of investment securities held-to-maturity	0	(1,941)
Purchases of Federal Home Loan Bank/Federal Reserve Bank stock	0	(99,158)
Purchases of equity securities	(3,791)	(20,807)
Proceeds from maturities, prepayments, and calls of investment securities available-for-sale	318,810	164,893
Proceeds from sales of investment securities available-for-sale	15,195	51,522
Proceeds from maturities, prepayments, and calls of investment securities held-to-maturity	15,619	24,744
Proceeds from sales of equity securities	1,834	615
Loan originations and payments, net	(639,530)	(708,752)
Proceeds from sales of commercial loans	13,819	0
Proceeds from company-owned life insurance death benefits	3,891	2,257
Proceeds from sales of premises and equipment and other assets	0	1,410
Purchases of premises and equipment and other assets	(8,482)	(10,456)
Net cash flows provided by (used in) investing activities	(766,141)	(640,086)
Net increase (decrease) in:
Deposits	464,238	(83,038)
Federal funds purchased and interbank borrowings	50,026	37,466
Securities sold under agreements to repurchase	(10,713)	(39,786)
Other borrowings	49,809	(4,002)
Payments for maturities of Federal Home Loan Bank advances	(825,000)	(750,150)
Proceeds from Federal Home Loan Bank advances	750,000	1,900,000
Cash dividends paid	(45,094)	(45,122)
Common stock repurchased	(7,182)	(43,710)
Common stock issued	265	262
Net cash flows provided by (used in) financing activities	426,349	971,920
Net increase (decrease) in cash and cash equivalents	(235,559)	385,523
Cash and cash equivalents at beginning of period	1,175,058	728,412
Cash and cash equivalents at end of period	939,499	1,113,935
Supplemental cash flow information:
Total interest paid	241,927	104,917
Total income taxes paid (net of refunds)	2,429	1,182
Operating lease right-of-use assets obtained in exchange for lease obligations	(193)	222
Finance lease right-of-use assets obtained in exchange for lease obligations	$ 10,400	$ 9,141

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Basis of Presentation

3 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

Basis of Presentation

BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements include the accounts of Old National Bancorp and its wholly-owned subsidiaries (hereinafter collectively referred to as “Old National”) and have been prepared in conformity with accounting principles generally accepted in the United States of America and prevailing practices within the banking industry. Such principles require management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and the disclosures of contingent assets and liabilities at the date of the financial statements and amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In the opinion of management, the consolidated financial statements contain all the normal and recurring adjustments necessary for a fair statement of the financial position of Old National as of March 31, 2024 and December 31, 2023, and the results of its operations for the three months ended March 31, 2024 and 2023. Interim results do not necessarily represent annual results. Certain information and disclosures normally included in notes to consolidated annual financial statements prepared in accordance with GAAP have been condensed or omitted in this Quarterly Report on Form 10-Q pursuant to SEC rules and regulations. These financial statements should be read in conjunction with Old National’s Annual Report on Form 10-K for the year ended December 31, 2023.

All intercompany transactions and balances have been eliminated. Certain prior year amounts have been reclassified to conform to the current presentation. Such reclassifications had no effect on prior period net income or shareholders’ equity and were insignificant amounts.

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Recent Accounting Pronouncements

3 Months Ended

Mar. 31, 2024

Accounting Changes and Error Corrections [Abstract]

Recent Accounting Pronouncements

RECENT ACCOUNTING PRONOUNCEMENTS

Accounting Guidance Adopted in 2024

FASB ASC 820 – In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, to clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. The adoption of this guidance on January 1, 2024 did not have a material impact on the consolidated financial statements.

FASB ASC 323 – In March 2023, the FASB issued ASU 2023-02, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method, which allows reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits. This ASU is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. The adoption of this guidance on a modified retrospective basis on January 1, 2024 did not have a material impact on the consolidated financial statements.

FASB ASC 848 – In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides temporary, optional guidance to ease the potential burden in accounting for, or recognizing the effects of, the transition away from LIBOR or other interbank offered rate on financial reporting. The guidance is applicable only to contracts or hedge accounting relationships that reference LIBOR or another reference rate expected to be discontinued.

In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which defers the sunset date of relief provisions within Topic 848 from December 31, 2022 to December 31, 2024. The objective of the guidance in Topic 848 is to provide relief during the transition period.

The amendments in this ASU are effective March 12, 2020 through December 31, 2024. As of March 31, 2024, substantially all of the Company’s LIBOR exposure was addressed and remaining LIBOR-based contracts are expected to transition to alternate reference rates at their next index reset dates. Old National believes the adoption of this guidance on activities subsequent to March 31, 2024 will not have a material impact on the consolidated financial statements.

Accounting Guidance Pending Adoption 

FASB ASC 280 – In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments are intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. The purpose of the amendments is to enable investors to better understand an entity’s overall performance and assess potential future cash flows. A public entity should apply the amendments retrospectively to all prior periods presented in the financial statements. Upon transition, the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. Old National is currently evaluating the impact of adopting the new guidance on the consolidated financial statements.

FASB ASC 740 – In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. Among other things, these amendments require that public business entities on an annual basis disclose additional information in specified categories with respect to the reconciliation of the effective tax rate to the statutory rate for federal, state, and foreign income taxes. It also requires greater detail about individual reconciling items in the rate reconciliation to the extent the impact of those items exceeds a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income (loss) by the applicable statutory income tax rate). In addition, the ASU requires information pertaining to taxes paid (net of refunds received) to be disaggregated for federal, state, and foreign taxes and further disaggregated for specific jurisdictions to the extent the related amounts are equal to or greater than 5 percent of total income taxes paid (net of refunds received). The amendments in this ASU are effective for annual periods beginning after December 15, 2024. Early adoption is permitted. Old National is currently evaluating the impact of adopting the new guidance on the consolidated financial statements.

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Acquisition and Divestiture Activity

3 Months Ended

Mar. 31, 2024

Business Combination and Asset Acquisition [Abstract]

Acquisition and Divestiture Activity

ACQUISITION AND DIVESTITURE ACTIVITY

Pending Acquisition

CapStar Financial Holdings, Inc.

On October 26, 2023, Old National announced that it had entered into a definitive merger agreement to acquire CapStar Financial Holdings, Inc. (“CapStar”) and its wholly-owned subsidiary, CapStar Bank, in an all-stock transaction. On April 1, 2024, Old National completed its acquisition of CapStar. This partnership strengthens Old National’s Nashville, Tennessee presence and adds several new high-growth markets. At closing, CapStar had approximately $3.0 billion of total assets, $2.3 billion of total loans, and $2.6 billion of deposits. Under the terms of the merger agreement, each outstanding share of CapStar common stock was converted into the right to receive 1.155 shares of Old National common stock plus cash in lieu of fractional shares, resulting in consideration paid of $418 million based on Old National’s stock price of $17.41 per share at close. Old National expects systems conversions related to the transaction to be completed in the third quarter of 2024.

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Net Income Per Common Share

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

Net Income Per Common Share

NET INCOME PER COMMON SHARE

Basic and diluted net income per common share are calculated using the two-class method. Net income applicable to common shares is divided by the weighted-average number of common shares outstanding during the period. Adjustments to the weighted-average number of common shares outstanding are made only when such adjustments will dilute net income per common share. Net income applicable to common shares is then divided by the weighted-average number of common shares and common share equivalents during the period.

The following table presents the calculation of basic and diluted net income per common share:

	Three Months Ended March 31,
(dollars and shares in thousands, except per share data)	2024		2023
Net income	$	120,284	$	146,600
Preferred dividends	(4,034)		(4,034)
Net income applicable to common shares	$	116,250	$	142,566
Weighted average common shares outstanding:
Weighted average common shares outstanding (basic)	290,980		291,088
Effect of dilutive securities:
Restricted stock	1,227		1,666
Stock appreciation rights	—		2
Weighted average diluted shares outstanding	292,207		292,756
Basic Net Income Per Common Share	$	0.40	$	0.49
Diluted Net Income Per Common Share	$	0.40	$	0.49

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Investment Securities

3 Months Ended

Mar. 31, 2024

Investments, Debt and Equity Securities [Abstract]

Investment Securities

INVESTMENT SECURITIES

The following table summarizes the amortized cost and fair value of the available-for-sale and held-to-maturity investment securities portfolios and the corresponding amounts of gross unrealized gains, unrealized losses, and basis adjustments in AOCI and gross unrecognized gains and losses.

(dollars in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses		Basis Adjustments (1)		Fair Value
March 31, 2024
Available-for-Sale
U.S. Treasury	$	291,538	$	19	$	(9,956)	$	(48,550)	$	233,051
U.S. government-sponsored entities and agencies	1,448,561		—		(184,941)		(80,601)		1,183,019
Mortgage-backed securities - Agency	5,223,119		1,996		(675,092)		—		4,550,023
States and political subdivisions	537,930		404		(24,180)		950		515,104
Pooled trust preferred securities	13,800		—		(2,526)		—		11,274
Other securities	319,134		391		(20,344)		—		299,181
Total available-for-sale securities	$	7,834,082	$	2,810	$	(917,039)	$	(128,201)	$	6,791,652
Held-to-Maturity
U.S. government-sponsored entities and agencies	$	827,684	$	—	$	(164,949)	$	—	$	662,735
Mortgage-backed securities - Agency	1,016,858		—		(159,201)		—		857,657
States and political subdivisions	1,156,957		864		(130,487)		—		1,027,334
Allowance for securities held-to-maturity	(150)		—		—		—		(150)
Total held-to-maturity securities	$	3,001,349	$	864	$	(454,637)	$	—	$	2,547,576
December 31, 2023
Available-for-Sale
U.S. Treasury	$	449,817	$	154	$	(11,941)	$	(41,297)	$	396,733
U.S. government-sponsored entities and agencies	1,487,879		33		(192,717)		(63,931)		1,231,264
Mortgage-backed securities - Agency	4,835,319		3,093		(621,852)		—		4,216,560
States and political subdivisions	554,509		878		(23,057)		2,930		535,260
Pooled trust preferred securities	13,797		—		(2,460)		—		11,337
Other securities	343,568		449		(22,116)		—		321,901
Total available-for-sale securities	$	7,684,889	$	4,607	$	(874,143)	$	(102,298)	$	6,713,055
Held-to-Maturity
U.S. government-sponsored entities and agencies	$	825,953	$	—	$	(154,827)	$	—	$	671,126
Mortgage-backed securities - Agency	1,029,131		—		(147,137)		—		881,994
States and political subdivisions	1,158,559		1,800		(112,141)		—		1,048,218
Allowance for securities held-to-maturity	(150)		—		—		—		(150)
Total held-to-maturity securities	$	3,013,493	$	1,800	$	(414,105)	$	—	$	2,601,188

(1)    Basis adjustments represent the amount of fair value hedging adjustments included in the carrying amounts of fixed-rate investment securities assets designated in fair value hedging arrangements. See Note 15 to the consolidated financial statements for additional information regarding these derivative financial instruments.

Substantially all of the mortgage-backed securities in the investment portfolio are residential mortgage-backed securities.

Proceeds from sales or calls of available-for-sale investment securities and the resulting realized gains and realized losses were as follows:

	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Proceeds	$	61,250	$	57,955
Realized gains	3		909
Realized losses	(19)		(6,125)

The table below shows the amortized cost and fair value of the investment securities portfolio by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Weighted average yield is based on amortized cost.

	March 31, 2024
(dollars in thousands)	Amortized Cost		Fair Value		Weighted Average Yield
Maturity
Available-for-Sale
Within one year	$	177,458	$	174,950	3.39	%
One to five years	1,991,571		1,848,581		3.44
Five to ten years	4,193,417		3,608,726		2.57
Beyond ten years	1,471,636		1,159,395		2.58
Total	$	7,834,082	$	6,791,652	2.81	%
Held-to-Maturity
Within one year	$	157	$	147	2.23	%
One to five years	160,838		132,056		2.63
Five to ten years	1,161,402		1,006,755		2.62
Beyond ten years	1,678,952		1,408,618		2.73
Total	$	3,001,349	$	2,547,576	2.68	%

The following table summarizes the available-for-sale investment securities with unrealized losses for which an allowance for credit losses has not been recorded by aggregated major security type and length of time in a continuous unrealized loss position:

	Less than 12 months				12 months or longer				Total
(dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
March 31, 2024
Available-for-Sale
U.S. Treasury	$	13,882	$	(77)	$	183,031	$	(9,879)	$	196,913	$	(9,956)
U.S. government-sponsored entities    and agencies	3,983		(74)		1,179,036		(184,867)		1,183,019		(184,941)
Mortgage-backed securities - Agency	498,441		(4,781)		3,710,045		(670,311)		4,208,486		(675,092)
States and political subdivisions	132,681		(691)		282,382		(23,489)		415,063		(24,180)
Pooled trust preferred securities	—		—		11,274		(2,526)		11,274		(2,526)
Other securities	36,511		(133)		215,927		(20,211)		252,438		(20,344)
Total available-for-sale	$	685,498	$	(5,756)	$	5,581,695	$	(911,283)	$	6,267,193	$	(917,039)
December 31, 2023
Available-for-Sale
U.S. Treasury	$	8,937	$	(42)	$	191,027	$	(11,899)	$	199,964	$	(11,941)
U.S. government-sponsored entities    and agencies	—		—		1,189,314		(192,717)		1,189,314		(192,717)
Mortgage-backed securities - Agency	90,145		(710)		3,835,552		(621,142)		3,925,697		(621,852)
States and political subdivisions	86,865		(495)		259,767		(22,562)		346,632		(23,057)
Pooled trust preferred securities	—		—		11,337		(2,460)		11,337		(2,460)
Other securities	39,032		(229)		255,888		(21,887)		294,920		(22,116)
Total available-for-sale	$	224,979	$	(1,476)	$	5,742,885	$	(872,667)	$	5,967,864	$	(874,143)

The following table summarizes the held-to-maturity investment securities with unrecognized losses aggregated by major security type and length of time in a continuous loss position:

	Less than 12 months				12 months or longer				Total
(dollars in thousands)	Fair Value		Unrecognized Losses		Fair Value		Unrecognized Losses		Fair Value		Unrecognized Losses
March 31, 2024
Held-to-Maturity
U.S. government-sponsored entities    and agencies	$	—	$	—	$	662,735	$	(164,949)	$	662,735	$	(164,949)
Mortgage-backed securities - Agency	—		—		857,657		(159,201)		857,657		(159,201)
States and political subdivisions	19,953		(100)		957,362		(130,387)		977,315		(130,487)
Total held-to-maturity	$	19,953	$	(100)	$	2,477,754	$	(454,537)	$	2,497,707	$	(454,637)
December 31, 2023
Held-to-Maturity
U.S. government-sponsored entities    and agencies	$	—	$	—	$	671,126	$	(154,827)	$	671,126	$	(154,827)
Mortgage-backed securities - Agency	—		—		881,994		(147,137)		881,994		(147,137)
States and political subdivisions	—		—		977,154		(112,141)		977,154		(112,141)
Total held-to-maturity	$	—	$	—	$	2,530,274	$	(414,105)	$	2,530,274	$	(414,105)

The unrecognized losses on held-to-maturity investment securities presented in the table above do not include unrecognized losses on securities that were transferred from available-for-sale to held-to-maturity totaling $123.3 million at March 31, 2024 and $127.6 million at December 31, 2023. These unrecognized losses are included as a separate component of shareholders’ equity and are being amortized over the remaining term of the securities.

No allowance for credit losses on available-for-sale debt securities was needed at March 31, 2024 or December 31, 2023.

An allowance on held-to-maturity debt securities is maintained for certain municipal bonds to account for expected lifetime credit losses. Substantially all of the U.S. government-sponsored entities and agencies and agency mortgage-backed securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major credit rating agencies, and have a long history of no credit losses. Therefore, for those securities, we do not record expected credit losses. The allowance for credit losses on held-to-maturity debt securities was $0.2 million at March 31, 2024 and December 31, 2023. Accrued interest receivable on the securities portfolio is excluded from the estimate of credit losses and totaled $40.3 million at March 31, 2024 and $50.3 million at December 31, 2023.

At March 31, 2024, Old National’s securities portfolio consisted of 2,941 securities, 2,702 of which were in an unrealized loss position. The unrealized losses attributable to our U.S. Treasury, U.S. government-sponsored entities and agencies, agency mortgage-backed securities, states and political subdivisions, and other securities are the result of fluctuations in interest rates and market movements. Old National’s pooled trust preferred securities are evaluated using collateral-specific assumptions to estimate the expected future interest and principal cash flows. At March 31, 2024, we had no intent to sell any securities that were in an unrealized loss position nor is it expected that we would be required to sell the securities prior to their anticipated recovery.

Old National’s pooled trust preferred securities have experienced credit defaults. However, we believe that the value of the instruments lies in the full and timely interest payments that will be received through maturity, the steady amortization that will be experienced until maturity, and the full return of principal by the final maturity of the collateralized debt obligations. Old National did not recognize any losses on these securities for the three months ended March 31, 2024 or 2023.

Equity Securities

Equity securities consist of mutual funds for Community Reinvestment Act qualified investments and diversified investment securities held in a grantor trust for participants in the Company’s nonqualified deferred compensation plan. Old National’s equity securities with readily determinable fair values totaled $85.0 million at March 31, 2024 and $80.4 million at December 31, 2023. There were gains on equity securities of $0.3 million during the three months ended March 31, 2024, compared to losses of $0.8 million during the three months ended March 31, 2023.

Alternative Investments

Old National has alternative investments without readily determinable fair values that are included in other assets totaling $474.7 million at March 31, 2024, consisting of $270.6 million of illiquid investments in partnerships, limited liability companies, and other ownership interests that support affordable housing and $204.1 million of economic development and community revitalization initiatives in low-to-moderate income neighborhoods. These alternative investments totaled $449.3 million at December 31, 2023. There have been no impairments or adjustments on equity securities without readily determinable fair values, except for amortization of tax credit investments in the three months ended March 31, 2024 and 2023. See Note 9 to the consolidated financial statements for detail regarding these investments.

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Loans and Allowance for Credit Losses

3 Months Ended

Mar. 31, 2024

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 region 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 March 31, 2024, these loans totaled $3.0 billion, of which $1.3 billion had been sold to other financial institutions and $1.7 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, 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)
March 31, 2024
Commercial (1)	$	9,648,269	$	(232,045)	$	9,416,224
Commercial real estate	14,653,958		(172,659)		14,481,299
BBCC	N/A		404,704		404,704
Residential real estate	6,661,379		—		6,661,379
Consumer	2,659,713		(2,659,713)		N/A
Indirect	N/A		1,091,998		1,091,998
Direct	N/A		506,305		506,305
Home equity	N/A		1,061,410		1,061,410
Total loans (2)	$	33,623,319	$	—	$	33,623,319
Allowance for credit losses on loans	(319,713)		—		(319,713)
Net loans	$	33,303,606	$	—	$	33,303,606
December 31, 2023
Commercial (1)	$	9,512,230	$	(232,764)	$	9,279,466
Commercial real estate	14,140,629		(169,058)		13,971,571
BBCC	N/A		401,822		401,822
Residential real estate	6,699,443		—		6,699,443
Consumer	2,639,625		(2,639,625)		N/A
Indirect	N/A		1,050,982		1,050,982
Direct	N/A		523,172		523,172
Home equity	N/A		1,065,471		1,065,471
Total loans (2)	$	32,991,927	$	—	$	32,991,927
Allowance for credit losses on loans	(307,610)		—		(307,610)
Net loans	$	32,684,317	$	—	$	32,684,317

(1)Includes direct finance leases of $161.7 million at March 31, 2024 and $169.7 million at December 31, 2023.

(2)    Includes unearned income of $88.9 million at March 31, 2024 and $93.7 million at December 31, 2023.

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 viewed 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 242%, 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 March 31, 2024.

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 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 factors such as changes in 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, 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 unemployment, gross domestic product, housing product index, and the BBB ratio prove to be more severe and/or prolonged than our baseline forecast due to a variety of factors including monetary actions to control inflation, recent instability in the banking sector, global military conflicts, and global supply chain issues. 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		Charge-offs		Recoveries		Provision for Loan Losses		Balance at End of Period
Three Months Ended March 31, 2024
Commercial	$	118,333	$	(3,659)	$	334	$	8,429	$	123,437
Commercial real estate	155,099		(6,641)		1,035		11,147		160,640
BBCC	2,887		(76)		18		334		3,163
Residential real estate	20,837		—		19		1,043		21,899
Indirect	1,236		(1,138)		332		788		1,218
Direct	3,169		(2,428)		487		1,724		2,952
Home equity	6,049		(78)		45		388		6,404
Total	$	307,610	$	(14,020)	$	2,270	$	23,853	$	319,713
Three Months Ended March 31, 2023
Commercial	$	120,612	$	(12,423)	$	283	$	17,296	$	125,768
Commercial real estate	138,244		(1,189)		263		(1,970)		135,348
BBCC	2,431		(28)		73		(160)		2,316
Residential real estate	21,916		(23)		72		(1,758)		20,207
Indirect	1,532		(1,197)		412		687		1,434
Direct	12,116		(3,238)		581		(2,693)		6,766
Home equity	6,820		(82)		67		67		6,872
Total	$	303,671	$	(18,180)	$	1,751	$	11,469	$	298,711

Accrued interest receivable on loans is excluded from the estimate of credit losses and totaled $171.6 million at March 31, 2024, compared to $169.8 million at December 31, 2023.

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 March 31,
(dollars in thousands)	2024		2023
Allowance for credit losses on unfunded loan commitments:
Balance at beginning of period	$	31,226	$	32,188
Provision (release) for credit losses on unfunded loan    commitments	(4,962)		1,968
Balance at end of period	$	26,264	$	34,156

Credit Quality

Old National’s management monitors the credit quality of its loans on an ongoing basis with the AQR for commercial 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:

Criticized. Special mention loans that 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 the institution’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 the institution 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 criticized, 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 loan portfolio segment, class of loan, and origination year:

(dollars in thousands)	Origination Year														Revolving to Term
	2024		2023		2022		2021		2020		Prior		Revolving				Total
March 31, 2024
Commercial:
Pass	$	410,201	$	1,750,748	$	1,366,887	$	874,692	$	478,725	$	799,327	$	2,162,262	$	891,572	$	8,734,414
Criticized	1,087		23,697		66,438		16,667		36,943		50,076		123,117		15,698		333,723
Classified:
Substandard	6,680		8,148		37,790		32,816		33,303		27,990		60,662		67,681		275,070
Nonaccrual	—		8,206		—		—		—		1,623		603		2,285		12,717
Doubtful	—		12,237		35,110		6,343		4,523		2,087		—		—		60,300
Total	$	417,968	$	1,803,036	$	1,506,225	$	930,518	$	553,494	$	881,103	$	2,346,644	$	977,236	$	9,416,224
Commercial real estate:
Pass	$	461,150	$	2,274,374	$	3,680,370	$	2,438,872	$	1,479,830	$	2,057,232	$	98,657	$	988,203	$	13,478,688
Criticized	7,746		51,975		48,071		132,220		38,258		112,902		7,869		80,231		479,272
Classified:
Substandard	280		10,079		66,381		37,954		33,966		142,537		—		57,157		348,354
Nonaccrual	—		206		19,344		11,850		2,599		19,159		—		2,465		55,623
Doubtful	—		5,217		21,775		24,349		2,224		65,797		—		—		119,362
Total	$	469,176	$	2,341,851	$	3,835,941	$	2,645,245	$	1,556,877	$	2,397,627	$	106,526	$	1,128,056	$	14,481,299
BBCC:
Pass	$	20,205	$	82,522	$	63,561	$	41,025	$	35,964	$	41,883	$	65,020	$	31,595	$	381,775
Criticized	122		—		571		872		528		324		2,004		10,003		14,424
Classified:
Substandard	73		444		191		248		126		82		575		994		2,733
Nonaccrual	—		—		—		470		—		1,169		—		1,962		3,601
Doubtful	—		904		564		229		252		222		—		—		2,171
Total	$	20,400	$	83,870	$	64,887	$	42,844	$	36,870	$	43,680	$	67,599	$	44,554	$	404,704

(dollars in thousands)	Origination Year														Revolving to Term
	2023		2022		2021		2020		2019		Prior		Revolving				Total
December 31, 2023
Commercial:
Pass	$	1,826,289	$	1,573,669	$	985,964	$	520,883	$	450,911	$	495,979	$	2,051,985	$	651,953	$	8,557,633
Criticized	20,038		90,031		19,953		36,906		25,756		47,357		89,765		44,348		374,154
Classified:
Substandard	27,271		41,164		27,990		37,618		10,461		29,981		72,703		56,716		303,904
Nonaccrual	32		7,034		—		—		823		3,411		—		5,461		16,761
Doubtful	—		7,261		5,925		4,875		1,742		7,211		—		—		27,014
Total	$	1,873,630	$	1,719,159	$	1,039,832	$	600,282	$	489,693	$	583,939	$	2,214,453	$	758,478	$	9,279,466
Commercial real estate:
Pass	$	2,177,841	$	3,515,702	$	2,563,638	$	1,576,044	$	1,010,351	$	1,161,119	$	103,332	$	960,386	$	13,068,413
Criticized	69,648		69,946		68,708		27,059		52,107		95,896		3,893		64,730		451,987
Classified:
Substandard	26,638		56,423		21,401		28,983		61,186		49,558		—		48,760		292,949
Nonaccrual	—		21,919		10,706		1,975		1,634		8,632		—		1,400		46,266
Doubtful	5,360		429		30,897		2,306		37,777		35,187		—		—		111,956
Total	$	2,279,487	$	3,664,419	$	2,695,350	$	1,636,367	$	1,163,055	$	1,350,392	$	107,225	$	1,075,276	$	13,971,571
BBCC:
Pass	$	81,102	$	64,583	$	44,307	$	38,086	$	27,557	$	19,028	$	68,807	$	33,361	$	376,831
Criticized	—		—		857		700		1,001		349		2,144		12,728		17,779
Classified:
Substandard	436		193		252		—		—		604		15		1,006		2,506
Nonaccrual	—		—		482		—		4		1,105		—		1,402		2,993
Doubtful	302		727		254		286		60		84		—		—		1,713
Total	$	81,840	$	65,503	$	46,152	$	39,072	$	28,622	$	21,170	$	70,966	$	48,497	$	401,822

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 Year														Revolving to Term
(dollars in thousands)	2024		2023		2022		2021		2020		Prior		Revolving				Total
March 31, 2024
Residential real estate:
Risk Rating:
Performing	$	52,693	$	475,237	$	1,494,593	$	1,857,010	$	1,615,143	$	1,119,364	$	74	$	243	$	6,614,357
Nonperforming	—		1,366		6,461		6,151		3,771		29,273		—		—		47,022
Total	$	52,693	$	476,603	$	1,501,054	$	1,863,161	$	1,618,914	$	1,148,637	$	74	$	243	$	6,661,379
Indirect:
Risk Rating:
Performing	$	139,067	$	373,733	$	321,837	$	143,848	$	69,757	$	39,133	$	—	$	215	$	1,087,590
Nonperforming	—		695		1,668		1,110		450		485		—		—		4,408
Total	$	139,067	$	374,428	$	323,505	$	144,958	$	70,207	$	39,618	$	—	$	215	$	1,091,998
Direct:
Risk Rating:
Performing	$	19,941	$	92,696	$	123,339	$	82,175	$	29,248	$	73,369	$	79,443	$	611	$	500,822
Nonperforming	—		18		522		386		658		3,886		3		10		5,483
Total	$	19,941	$	92,714	$	123,861	$	82,561	$	29,906	$	77,255	$	79,446	$	621	$	506,305
Home equity:
Risk Rating:
Performing	$	—	$	2	$	396	$	299	$	—	$	4,911	$	1,012,484	$	25,360	$	1,043,452
Nonperforming	—		1		7		131		242		4,688		3,618		9,271		17,958
Total	$	—	$	3	$	403	$	430	$	242	$	9,599	$	1,016,102	$	34,631	$	1,061,410

	Origination Year														Revolving to Term
	2023		2022		2021		2020		2019		Prior		Revolving				Total
December 31, 2023
Residential real estate:
Risk Rating:
Performing	$	453,743	$	1,508,671	$	1,836,078	$	1,705,131	$	430,783	$	722,987	$	—	$	279	$	6,657,672
Nonperforming	116		4,563		4,004		3,375		4,078		25,635		—		—		41,771
Total	$	453,859	$	1,513,234	$	1,840,082	$	1,708,506	$	434,861	$	748,622	$	—	$	279	$	6,699,443
Indirect:
Risk Rating:
Performing	$	393,369	$	355,822	$	162,735	$	82,871	$	37,967	$	13,815	$	—	$	196	$	1,046,775
Nonperforming	372		1,472		1,207		547		318		291		—		—		4,207
Total	$	393,741	$	357,294	$	163,942	$	83,418	$	38,285	$	14,106	$	—	$	196	$	1,050,982
Direct:
Risk Rating:
Performing	$	109,372	$	90,310	$	92,491	$	48,387	$	29,659	$	67,129	$	75,080	$	4,852	$	517,280
Nonperforming	67		531		517		560		210		3,872		124		11		5,892
Total	$	109,439	$	90,841	$	93,008	$	48,947	$	29,869	$	71,001	$	75,204	$	4,863	$	523,172
Home equity:
Risk Rating:
Performing	$	290	$	164	$	160	$	140	$	679	$	4,483	$	1,019,389	$	23,918	$	1,049,223
Nonperforming	—		310		328		404		741		4,327		2,844		7,294		16,248
Total	$	290	$	474	$	488	$	544	$	1,420	$	8,810	$	1,022,233	$	31,212	$	1,065,471

The following table summarizes the gross charge-offs of loans by loan portfolio segment and origination year:

	Origination Year
(dollars in thousands)	2024		2023		2022		2021		2020		Prior		Revolving		Total
Three Months Ended March 31, 2024
Commercial	$	—	$	—	$	3,481	$	33	$	8	$	4	$	133	$	3,659
Commercial real estate	—		—		—		2,176		—		4,465		—		6,641
BBCC	—		—		76		—		—		—		—		76
Residential real estate	—		—		—		—		—		—		—		—
Indirect	—		370		472		225		33		38		—		1,138
Direct	—		116		576		529		113		223		871		2,428
Home equity	—		—		—		34		—		44		—		78
Total gross charge-offs	$	—	$	486	$	4,605	$	2,997	$	154	$	4,774	$	1,004	$	14,020
	Origination Year
	2023		2022		2021		2020		2019		Prior		Revolving		Total
Three Months Ended March 31, 2023
Commercial	$	—	$	—	$	5,230	$	—	$	6,789	$	239	$	165	$	12,423
Commercial real estate	—		54		735		400		—		—		—		1,189
BBCC	—		—		28		—		—		—		—		28
Residential real estate	—		—		—		—		—		23		—		23
Indirect	—		514		430		93		111		49		—		1,197
Direct	—		471		794		286		327		195		1,165		3,238
Home equity	—		—		—		—		—		82		—		82
Total gross charge-offs	$	—	$	1,039	$	7,217	$	779	$	7,227	$	588	$	1,330	$	18,180

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		Current		Total Loans
March 31, 2024
Commercial	$	10,099	$	1,620	$	10,023	$	21,742	$	9,394,482	$	9,416,224
Commercial real estate	8,838		27,844		32,539		69,221		14,412,078		14,481,299
BBCC	1,268		1,111		1,240		3,619		401,085		404,704
Residential	31,319		5,030		14,216		50,565		6,610,814		6,661,379
Indirect	5,488		1,351		1,205		8,044		1,083,954		1,091,998
Direct	4,751		1,115		3,454		9,320		496,985		506,305
Home equity	4,948		1,045		7,921		13,914		1,047,496		1,061,410
Total	$	66,711	$	39,116	$	70,598	$	176,425	$	33,446,894	$	33,623,319
December 31, 2023
Commercial	$	16,128	$	1,332	$	4,861	$	22,321	$	9,257,145	$	9,279,466
Commercial real estate	9,081		5,254		30,660		44,995		13,926,576		13,971,571
BBCC	1,368		134		977		2,479		399,343		401,822
Residential	12,358		367		15,249		27,974		6,671,469		6,699,443
Indirect	7,025		1,854		1,342		10,221		1,040,761		1,050,982
Direct	5,436		1,455		1,787		8,678		514,494		523,172
Home equity	7,791		2,347		6,659		16,797		1,048,674		1,065,471
Total	$	59,187	$	12,743	$	61,535	$	133,465	$	32,858,462	$	32,991,927

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:

	March 31, 2024						December 31, 2023
(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	$	73,017	$	16,707	$	1,167	$	43,775	$	13,143	$	242
Commercial real estate	174,985		56,216		742		158,222		24,507		585
BBCC	5,772		—		98		4,706		—		95
Residential	47,022		—		10		41,771		—		—
Indirect	4,408		—		108		4,207		—		8
Direct	5,483		—		42		5,892		—		31
Home equity	17,958		—		5		16,248		—		—
Total	$	328,645	$	72,923	$	2,172	$	274,821	$	37,650	$	961

Interest income recognized on nonaccrual loans was insignificant during the three months ended March 31, 2024 and 2023.

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 quarter-over-quarter 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		Auto		Other
March 31, 2024
Commercial	$	11,284	$	39,258	$	5,728	$	11,582	$	319
Commercial real estate	163,753		—		1,133		—		6,031
BBCC	3,793		1,701		—		278		—
Residential	47,022		—		—		—		—
Indirect	—		—		—		4,408		—
Direct	4,559		—		7		386		48
Home equity	17,958		—		—		—		—
Total loans	$	248,369	$	40,959	$	6,868	$	16,654	$	6,398
December 31, 2023
Commercial	$	14,303	$	24,729	$	2,577	$	280	$	328
Commercial real estate	146,425		—		1,167		—		6,107
BBCC	3,522		794		—		390		—
Residential	41,771		—		—		—		—
Indirect	—		—		—		4,207		—
Direct	4,727		1		3		366		29
Home equity	16,248		—		—		—		—
Total loans	$	226,996	$	25,524	$	3,747	$	5,243	$	6,464

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 of forgiveness 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 for borrowers experiencing financial difficulty, by class of loans and type of modification:

(dollars in thousands)	Term Extension		Total Class of Loans
Three Months Ended March 31, 2024
Commercial	$	29,426	0.3	%
Commercial real estate	120,891		0.8	%
Total	$	150,317	0.4	%
Three Months Ended March 31, 2023
Commercial	$	17,342	0.2	%
Commercial real estate	9,926		0.1	%
Total	$	27,268	0.1	%

Old National closely monitors the performance of financial difficulty modifications to understand the effectiveness of its efforts. The following table presents the performance of loans identified as financial difficulty modifications:

(dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		Past Due 90 Days or More		Total Past Due		Current		Total Loans
March 31, 2024
Commercial	$	—	$	—	$	—	$	—	$	29,426	$	29,426
Commercial real estate	4,059		31,222		—		35,281		85,610		120,891
Total	$	4,059	$	31,222	$	—	$	35,281	$	115,036	$	150,317
December 31, 2023
Commercial	$	—	$	—	$	—	$	—	$	21,631	$	21,631
Commercial real estate	5,287		—		—		5,287		116,242		121,529
Total	$	5,287	$	—	$	—	$	5,287	$	137,873	$	143,160

The following table summarizes the nature of the financial difficulty modifications by class of loans:

(dollars in thousands)	Weighted- Average Term Extension (in months)
Three Months Ended March 31, 2024
Commercial	9.1
Commercial real estate	8.1
Total	8.6
Three Months Ended March 31, 2023
Commercial	6.8
Commercial real estate	4.1
Total	5.6

There were no payment defaults on these loans subsequent to their modifications during the three months ended March 31, 2024 or 2023. Old National had not committed to lend any material additional funds to the borrowers whose loans were modified due to financial difficulties at March 31, 2024 or December 31, 2023.

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Leases

3 Months Ended

Mar. 31, 2024

Leases [Abstract]

Leases

LEASES

Old National has operating and finance leases for land, office space, banking centers, and equipment. These leases are generally for periods of 5 to 20 years with various renewal options. We include certain renewal options in the measurement of our right-of-use assets and lease liabilities if they are reasonably certain to be exercised. Variable lease payments that are dependent on an index or a rate are initially measured using the index or rate at the commencement date and are included in the measurement of the lease liability. Variable lease payments that are not dependent on an index or a rate are excluded from the measurement of the lease liability and are recognized in profit and loss when incurred. Variable lease payments are defined as payments made for the right to use an asset that vary because of changes in facts or circumstances occurring after the commencement date, other than the passage of time.

Old National has lease agreements with lease and non-lease components, which are generally accounted for separately. For real estate leases, non-lease components and other non-components, such as common area maintenance charges, real estate taxes, and insurance are not included in the measurement of the lease liability since they are generally able to be segregated. For certain equipment leases, Old National accounts for the lease and non-lease components as a single lease component using the practical expedient available for that class of assets. Old National does not have any material sub-lease agreements.

The components of lease expense were as follows:

	Affected Line Item in the Statement of Income	Three Months Ended March 31,
(dollars in thousands)		2024		2023
Operating lease cost	Occupancy/Equipment expense	$	7,826	$	8,638
Finance lease cost:
Amortization of right-of-use assets	Occupancy expense	751		691
Interest on lease liabilities	Interest expense	181		169
Sub-lease income	Occupancy expense	(125)		(60)
Total		$	8,633	$	9,438

Supplemental balance sheet information related to leases was as follows:

(dollars in thousands)	March 31, 2024			December 31, 2023
Operating Leases
Operating lease right-of-use assets	$	189,593		$	185,506
Operating lease liabilities	208,868			204,960
Finance Leases
Premises and equipment, net	18,877			19,820
Other borrowings	20,108			20,955
Weighted-Average Remaining Lease Term (in Years)
Operating leases	8.4			8.5
Finance leases	10.3			10.5
Weighted-Average Discount Rate
Operating leases	3.05		%	3.04		%
Finance leases	3.91		%	3.90		%

Supplemental cash flow information related to leases was as follows:

	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	8,005	$	7,932
Operating cash flows from finance leases	181		169
Financing cash flows from finance leases	655		628

The following table presents a maturity analysis of the Company’s lease liability by lease classification at March 31, 2024:

(dollars in thousands)	Operating Leases		Finance Leases
2024	$	23,964	$	2,520
2025	32,022		3,377
2026	31,257		2,151
2027	30,266		2,152
2028	26,608		2,050
Thereafter	94,333		12,451
Total undiscounted lease payments	238,450		24,701
Amounts representing interest	(29,582)		(4,593)
Lease liability	$	208,868	$	20,108

Leases

LEASES

Old National has operating and finance leases for land, office space, banking centers, and equipment. These leases are generally for periods of 5 to 20 years with various renewal options. We include certain renewal options in the measurement of our right-of-use assets and lease liabilities if they are reasonably certain to be exercised. Variable lease payments that are dependent on an index or a rate are initially measured using the index or rate at the commencement date and are included in the measurement of the lease liability. Variable lease payments that are not dependent on an index or a rate are excluded from the measurement of the lease liability and are recognized in profit and loss when incurred. Variable lease payments are defined as payments made for the right to use an asset that vary because of changes in facts or circumstances occurring after the commencement date, other than the passage of time.

Old National has lease agreements with lease and non-lease components, which are generally accounted for separately. For real estate leases, non-lease components and other non-components, such as common area maintenance charges, real estate taxes, and insurance are not included in the measurement of the lease liability since they are generally able to be segregated. For certain equipment leases, Old National accounts for the lease and non-lease components as a single lease component using the practical expedient available for that class of assets. Old National does not have any material sub-lease agreements.

The components of lease expense were as follows:

	Affected Line Item in the Statement of Income	Three Months Ended March 31,
(dollars in thousands)		2024		2023
Operating lease cost	Occupancy/Equipment expense	$	7,826	$	8,638
Finance lease cost:
Amortization of right-of-use assets	Occupancy expense	751		691
Interest on lease liabilities	Interest expense	181		169
Sub-lease income	Occupancy expense	(125)		(60)
Total		$	8,633	$	9,438

Supplemental balance sheet information related to leases was as follows:

(dollars in thousands)	March 31, 2024			December 31, 2023
Operating Leases
Operating lease right-of-use assets	$	189,593		$	185,506
Operating lease liabilities	208,868			204,960
Finance Leases
Premises and equipment, net	18,877			19,820
Other borrowings	20,108			20,955
Weighted-Average Remaining Lease Term (in Years)
Operating leases	8.4			8.5
Finance leases	10.3			10.5
Weighted-Average Discount Rate
Operating leases	3.05		%	3.04		%
Finance leases	3.91		%	3.90		%

Supplemental cash flow information related to leases was as follows:

	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	8,005	$	7,932
Operating cash flows from finance leases	181		169
Financing cash flows from finance leases	655		628

The following table presents a maturity analysis of the Company’s lease liability by lease classification at March 31, 2024:

(dollars in thousands)	Operating Leases		Finance Leases
2024	$	23,964	$	2,520
2025	32,022		3,377
2026	31,257		2,151
2027	30,266		2,152
2028	26,608		2,050
Thereafter	94,333		12,451
Total undiscounted lease payments	238,450		24,701
Amounts representing interest	(29,582)		(4,593)
Lease liability	$	208,868	$	20,108

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Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

GOODWILL AND OTHER INTANGIBLE ASSETS

The following table presents the changes in the carrying amount of goodwill:

	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Balance at beginning of period	$	1,998,716	$	1,998,716
Acquisitions and adjustments	—		—
Balance at end of period	$	1,998,716	$	1,998,716

Old National performed the required annual goodwill impairment test as of August 31, 2023 and there was no impairment. No events or circumstances since the August 31, 2023 annual impairment test were noted that would indicate it was more likely than not a goodwill impairment exists.

The gross carrying amounts and accumulated amortization of other intangible assets were as follows: 

(dollars in thousands)	Gross Carrying Amount		Accumulated Amortization and Impairment		Net Carrying Amount
March 31, 2024
Core deposit	$	143,511	$	(77,249)	$	66,262
Customer trust relationships	52,621		(22,088)		30,533
Total other intangible assets	$	196,132	$	(99,337)	$	96,795
December 31, 2023
Core deposit	$	143,511	$	(72,940)	$	70,571
Customer trust relationships	52,621		(20,942)		31,679
Total other intangible assets	$	196,132	$	(93,882)	$	102,250

Other intangible assets consist of core deposit intangibles and customer relationship intangibles and are being amortized primarily on an accelerated basis over their estimated useful lives, generally over a period of 5 to 15 years.

Old National reviews other intangible assets for possible impairment whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. No impairment charges were recorded during the three months ended March 31, 2024 or 2023. Total amortization expense associated with intangible assets was $5.5 million for the three months ended March 31, 2024, compared to $6.2 million for the three months ended March 31, 2023.

Estimated amortization expense for future years is as follows:

(dollars in thousands)
2024 remaining	$	15,784
2025	18,358
2026	15,555
2027	12,867
2028	10,356
Thereafter	23,875
Total	$	96,795

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Qualified Affordable Housing Projects and Other Tax Credit Investments

3 Months Ended

Mar. 31, 2024

Investments in Affordable Housing Projects [Abstract]

Qualified Affordable Housing Projects and Other Tax Credit Investments

QUALIFIED AFFORDABLE HOUSING PROJECTS AND OTHER TAX CREDIT INVESTMENTS

Old National is a limited partner in several tax-advantaged limited partnerships whose purpose is to invest in approved qualified affordable housing, renewable energy, or other renovation or community revitalization projects. These investments are included in other assets on the balance sheet, with any unfunded commitments included with other liabilities. As of March 31, 2024, Old National expects to recover its remaining investments through the use of the tax credits that are generated by the investments.

The following table summarizes Old National’s investments in qualified affordable housing projects and other tax credit investments:

(dollars in thousands)		March 31, 2024				December 31, 2023
Investment	Accounting Method	Investment		Unfunded Commitment (1)		Investment		Unfunded Commitment
LIHTC	Proportional amortization	$	119,914	$	67,310	$	114,991	$	75,981
FHTC	Proportional amortization (2)	32,757		27,148		34,220		27,421
NMTC	Consolidation	51,421		—		47,727		—
Renewable Energy	Equity	15		—		201		—
Total		$	204,107	$	94,458	$	197,139	$	103,402

(1)All commitments will be paid by Old National by December 31, 2027.

(2)Old National’s FHTC investments were previously accounted for under the Equity method of accounting prior to the adoption of ASU 2023-02 on January 1, 2024.

The following table summarizes the amortization expense and tax benefit recognized for Old National’s qualified affordable housing projects and other tax credit investments:

(dollars in thousands)	Amortization Expense (1)		Tax Expense (Benefit) Recognized (2)
Three Months Ended March 31, 2024
LIHTC	$	2,486	$	(3,331)
FHTC	534		(663)
NMTC	2,546		(3,175)
Renewable Energy	186		—
Total	$	5,752	$	(7,169)
Three Months Ended March 31, 2023
LIHTC	$	1,463	$	(1,908)
FHTC	424		(512)
NMTC	2,091		(2,611)
Renewable Energy	246		—
Total	$	4,224	$	(5,031)

(1)The amortization expense for the LIHTC and FHTC investments is included in our income tax expense. Prior to the adoption of ASU 2023-02, FHTC amortization expense was included in noninterest expense. NMTC amortization is recognized in noninterest expense in correlation to the recognition of tax credits on our tax return. Amortization expense for the Renewable Energy tax credits is included in noninterest expense.

(2)All of the tax benefits recognized are included in our income tax expense. The tax benefit recognized for the NMTC and Renewable Energy investments primarily reflects the tax credits generated from the investments and excludes the net tax expense (benefit) and deferred tax liability of the investments’ income (loss).

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Securities Sold Under Agreements to Repurchase

3 Months Ended

Mar. 31, 2024

Securities Sold under Agreements to Repurchase [Abstract]

Securities Sold Under Agreements to Repurchase

SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

Securities sold under agreements to repurchase are secured borrowings. Old National pledges investment securities to secure these borrowings. The following table presents securities sold under agreements to repurchase and related weighted-average interest rates:

	At or for the Three Months Ended March 31,
(dollars in thousands)	2024			2023
Outstanding at period end	$	274,493		$	393,018
Average amount outstanding during the period	296,236			412,819
Maximum amount outstanding at any month-end during the period	319,423			430,537
Weighted-average interest rate:
During the period	1.25		%	0.77		%
At period end	3.61		%	0.88		%

At December 31, 2023, securities sold under agreements to repurchase totaled $285.2 million with a weighted-average interest rate of 3.64%.

The following table presents the contractual maturity of our secured borrowings and class of collateral pledged:

	At March 31, 2024
	Remaining Contractual Maturity of the Agreements
(dollars in thousands)	Overnight and Continuous		Up to 30 Days		30-90 Days		Greater Than 90 days		Total
Repurchase Agreements:
U.S. Treasury and agency securities	$	274,493	$	—	$	—	$	—	$	274,493
Total	$	274,493	$	—	$	—	$	—	$	274,493

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Federal Home Loan Bank Advances

3 Months Ended

Mar. 31, 2024

Federal Home Loan Banks [Abstract]

Federal Home Loan Bank Advances

FEDERAL HOME LOAN BANK ADVANCES

The following table summarizes Old National Bank’s FHLB advances:

(dollars in thousands)	March 31, 2024		December 31, 2023
FHLB advances (fixed rates 2.19% to 5.53%    and variable rates 5.33% to 5.36%) maturing    June 2024 to March 2044	$	4,225,528	$	4,300,528
Fair value hedge basis adjustments and unamortized    prepayment fees	(32,489)		(19,847)
Total	$	4,193,039	$	4,280,681

FHLB advances had weighted-average rates of 3.58% at March 31, 2024 and 3.45% at December 31, 2023. FHLB advances are collateralized by designated assets that may include qualifying commercial real estate loans, residential and multifamily mortgages, home equity loans, and certain investment securities.

At March 31, 2024, total unamortized prepayment fees related to all FHLB advance debt modifications completed in prior years totaled $12.7 million, compared to $14.2 million at December 31, 2023.

Contractual maturities of FHLB advances at March 31, 2024 were as follows:

(dollars in thousands)
Due in 2024	$	100,243
Due in 2025	550,285
Due in 2026	100,000
Due in 2028	850,000
Thereafter	2,625,000
Fair value hedge basis adjustments and unamortized prepayment fees	(32,489)
Total	$	4,193,039

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Other Borrowings

3 Months Ended

Mar. 31, 2024

Other Liabilities Disclosure [Abstract]

Other Borrowings

OTHER BORROWINGS

The following table summarizes Old National’s other borrowings:

(dollars in thousands)	March 31, 2024		December 31, 2023
Old National Bancorp:
Senior unsecured notes (fixed rate 4.125%) maturing August 2024	$	175,000	$	175,000
Unamortized debt issuance costs related to senior unsecured notes	(52)		(91)
Subordinated debentures (fixed rate 5.875%) maturing September 2026	150,000		150,000
Junior subordinated debentures (rates of 6.95% to 9.15%) maturing    July 2031 to September 2037	136,643		136,643
Other basis adjustments	16,916		18,207
Old National Bank:
Finance lease liabilities	20,108		20,955
Subordinated debentures (3-month SOFR plus 4.618%; variable rate 9.94%)    maturing October 2025	12,000		12,000
Leveraged loans for NMTC (fixed rates of 1.00% to 1.43%)    maturing December 2046 to June 2060	168,228		154,284
Other (1)	134,370		97,872
Total other borrowings	$	813,213	$	764,870

(1)Includes overnight borrowings to collateralize certain derivative positions totaling $134.2 million at March 31, 2024 and $97.6 million at December 31, 2023.

Contractual maturities of other borrowings at March 31, 2024 were as follows:

(dollars in thousands)
Due in 2024	$	311,233
Due in 2025	14,747
Due in 2026	151,582
Due in 2027	1,641
Due in 2028	1,598
Thereafter	315,407
Unamortized debt issuance costs and other basis adjustments	17,005
Total	$	813,213

Junior Subordinated Debentures

Junior subordinated debentures related to trust preferred securities are classified in “other borrowings.” Junior subordinated debentures qualify as Tier 2 capital for regulatory purposes, subject to certain limitations.

Through various mergers and acquisitions, Old National assumed junior subordinated debenture obligations related to various trusts that issued trust preferred securities. Old National guarantees the payment of distributions on the trust preferred securities issued by the trusts. Proceeds from the issuance of each of these securities were used to purchase junior subordinated debentures with the same financial terms as the securities issued by the trusts.

Old National, at any time, may redeem the junior subordinated debentures at par and, thereby cause a redemption of the trust preferred securities in whole or in part.

The following table summarizes the terms of our outstanding junior subordinated debentures at March 31, 2024:

(dollars in thousands)					Rate at March 31, 2024
Name of Trust	Issuance Date	Issuance Amount		Rate		Maturity Date
Bridgeview Statutory Trust I	July 2001	$	15,464	3-month SOFR plus 3.58%	9.15%	July 31, 2031
Bridgeview Capital Trust II	December 2002	15,464		3-month SOFR plus 3.35%	8.93%	January 7, 2033
First Midwest Capital Trust I	November 2003	37,825		6.95% fixed	6.95%	December 1, 2033
St. Joseph Capital Trust II	March 2005	5,155		3-month SOFR plus 1.75%	7.34%	March 17, 2035
Northern States Statutory Trust I	September 2005	10,310		3-month SOFR plus 1.80%	7.39%	September 15, 2035
Anchor Capital Trust III	August 2005	5,000		3-month SOFR plus 1.55%	7.11%	September 30, 2035
Great Lakes Statutory Trust II	December 2005	6,186		3-month SOFR plus 1.40%	6.99%	December 15, 2035
Home Federal Statutory    Trust I	September 2006	15,464		3-month SOFR plus 1.65%	7.24%	September 15, 2036
Monroe Bancorp Capital    Trust I	July 2006	3,093		3-month SOFR plus 1.60%	7.18%	October 7, 2036
Tower Capital Trust 3	December 2006	9,279		3-month SOFR plus 1.69%	7.29%	March 1, 2037
Monroe Bancorp Statutory    Trust II	March 2007	5,155		3-month SOFR plus 1.60%	7.19%	June 15, 2037
Great Lakes Statutory Trust III	June 2007	8,248		3-month SOFR plus 1.70%	7.29%	September 15, 2037
Total		$	136,643

Leveraged Loans

The leveraged loans are directly related to the NMTC structure. As part of the transaction structure, Old National has the right to sell its interest in the entity that received the leveraged loans at an agreed upon price to the leveraged lender at the end of the NMTC seven-year compliance period. See Note 9 to the consolidated financial statements for additional information on the Company’s NMTC investments.

Finance Lease Liabilities

Old National has long-term finance lease liabilities for certain banking centers and equipment totaling $20.1 million at March 31, 2024. See Note 7 to the consolidated financial statements for a maturity analysis of the Company’s finance lease liabilities.

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Accumulated Other Comprehensive Income (Loss)

3 Months Ended

Mar. 31, 2024

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following table summarizes the changes within each classification of AOCI, net of tax:

(dollars in thousands)	Unrealized Gains and Losses on Available- for-Sale Debt Securities		Unrealized Gains and Losses on Held-to- Maturity Securities		Gains and Losses on Hedges		Defined Benefit Pension Plans		Total
Three Months Ended March 31, 2024
Balance at beginning of period	$	(652,518)	$	(95,472)	$	9,181	$	—	$	(738,809)
Other comprehensive income (loss) before    reclassifications	(33,463)		—		(14,205)		—		(47,668)
Amounts reclassified from AOCI to income (1)	12		3,221		3,616		—		6,849
Balance at end of period	$	(685,969)	$	(92,251)	$	(1,408)	$	—	$	(779,628)
Three Months Ended March 31, 2023
Balance at beginning of period	$	(642,346)	$	(112,664)	$	(31,549)	$	137	$	(786,422)
Other comprehensive income (loss) before    reclassifications	27,219		1,325		35,985		—		64,529
Amounts reclassified from AOCI to income (1)	3,867		4,373		5,436		(141)		13,535
Balance at end of period	$	(611,260)	$	(106,966)	$	9,872	$	(4)	$	(708,358)

(1)See table below for details about reclassifications to income.

The following table summarizes the amounts reclassified out of each component of AOCI for the three months ended March 31, 2024 and 2023:

	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Details about AOCI Components	Amount Reclassified from AOCI				Affected Line Item in the Statement of Income
Unrealized gains and losses on    available-for-sale securities	$	(16)	$	(5,216)	Debt securities gains (losses), net
	4		1,349		Income tax (expense) benefit
	$	(12)	$	(3,867)	Net income
Amortization of unrealized losses on    held-to-maturity securities transferred    from available-for-sale	$	(4,318)	$	(5,829)	Interest income (expense)
	1,097		1,456		Income tax (expense) benefit
	$	(3,221)	$	(4,373)	Net income
Gains and losses on hedges    Interest rate contracts	$	(4,877)	$	(7,292)	Interest income (expense)
	1,261		1,856		Income tax (expense) benefit
	$	(3,616)	$	(5,436)	Net income
Amortization of defined benefit    pension items
Actuarial gains (losses)	$	—	$	188	Salaries and employee benefits
	—		(47)		Income tax (expense) benefit
	$	—	$	141	Net income
Total reclassifications for the period	$	(6,849)	$	(13,535)	Net income

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Income Taxes

3 Months Ended

Mar. 31, 2024

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

The following is a summary of the major items comprising the differences in taxes from continuing operations computed at the federal statutory rate and as recorded in the consolidated statements of income:

	Three Months Ended March 31,
(dollars in thousands)	2024			2023
Provision at statutory rate of 21%	$	32,082		$	39,484
Tax-exempt income:
Tax-exempt interest	(4,958)			(4,486)
Section 291/265 interest disallowance	885			386
Company-owned life insurance income	(694)			(627)
Tax-exempt income	(4,767)			(4,727)
State income taxes	5,147			8,142
Interim period effective rate adjustment	944			(1,717)
Tax credit investments - federal	(3,055)			(2,526)
Officer compensation limitation	765			1,040
Non-deductible FDIC premiums	1,747			2,110
Other, net	(375)			(385)
Income tax expense	$	32,488		$	41,421
Effective tax rate	21.3		%	22.0		%

Net Deferred Tax Assets

Net deferred tax assets are included in other assets on the balance sheet. At March 31, 2024, net deferred tax assets totaled $418.3 million, compared to $423.3 million at December 31, 2023. No valuation allowance was required on the Company’s deferred tax assets at March 31, 2024 or December 31, 2023.

The Company’s retained earnings at March 31, 2024 included an appropriation for acquired thrifts’ tax bad debt allowances totaling $58.6 million for which no provision for federal or state income taxes has been made. If in the future, this portion of retained earnings were distributed as a result of the liquidation of the Company or its subsidiaries, federal and state income taxes would be imposed at the then applicable rates.

Old National has federal net operating loss carryforwards totaling $60.1 million at March 31, 2024 and $63.6 million at December 31, 2023. This federal net operating loss was acquired from the acquisition of Anchor BanCorp Wisconsin Inc. in 2016 and First Midwest Bancorp, Inc. in 2022. If not used, the federal net operating loss carryforwards will begin expiring in 2030 and later. Old National has recorded state net operating loss carryforwards totaling $114.2 million at March 31, 2024 and $116.9 million at December 31, 2023. If not used, the state net operating loss carryforwards will expire from 2027 to 2036.

The federal and recorded state net operating loss carryforwards are subject to an annual limitation under Internal Revenue Code section 382. Old National believes that all of the federal and recorded state net operating loss carryforwards will be used prior to expiration.

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Derivative Financial Instruments

3 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

DERIVATIVE FINANCIAL INSTRUMENTS

As part of our overall interest rate risk management, Old National uses derivative instruments, including interest rate swaps, collars, caps, and floors. The notional amount does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual agreements. Derivative instruments are recognized on the balance sheet at their fair value and are not reported on a net basis.

Credit risk arises from the possible inability of counterparties to meet the terms of their contracts. Old National’s exposure is limited to the termination value of the contracts rather than the notional, principal, or contract amounts. There are provisions in our agreements with the counterparties that allow for certain unsecured credit exposure up to an agreed threshold. Exposures in excess of the agreed thresholds are collateralized. In addition, we minimize credit risk through credit approvals, limits, and monitoring procedures.

Derivatives Designated as Hedges

Subsequent changes in fair value for a hedging instrument that has been designated and qualifies as part of a hedging relationship are accounted for in the following manner:

Cash flow hedges: changes in fair value are recognized as a component in other comprehensive income (loss).

Fair value hedges: changes in fair value are recognized concurrently in earnings.

As long as a hedging instrument is designated and the results of the effectiveness testing support that the instrument qualifies for hedge accounting treatment, 100% of the periodic changes in fair value of the hedging instrument are accounted for as outlined above. This is the case whether or not economic mismatches exist in the hedging relationship. As a result, there is no periodic measurement or recognition of ineffectiveness. Rather, the full impact of hedge gains and losses is recognized in the period in which the hedged transactions impact earnings.

The change in fair value of the hedging instrument that is included in the assessment of hedge effectiveness is presented in the same income statement line item that is used to present the earnings effect of the hedged item.

Cash Flow Hedges

Interest rate swaps of certain borrowings were designated as cash flow hedges totaling $150.0 million notional amount at both March 31, 2024 and December 31, 2023. Interest rate swaps, collars, and floors related to variable-rate commercial loan pools were designated as cash flow hedges totaling $1.8 billion notional amount at March 31, 2024 and $1.6 billion notional amount at December 31, 2023. The hedges were determined to be effective during all periods presented and we expect them to remain effective during the remaining terms.

Old National has designated its interest rate collars as cash flow hedges. The structure of these instruments is such that Old National pays the counterparty an incremental amount if the collar index exceeds the cap rate. Conversely, Old National receives an incremental amount if the index falls below the floor rate. No payments are required if the collar index falls between the cap and floor rates. 

Old National has designated its interest rate floor transactions as cash flow hedges. The structure of these instruments is such that Old National receives an incremental amount if the index falls below the floor strike rate. No payments are required if the index remains above the floor strike rate.

Fair Value Hedges

Interest rate swaps of certain borrowings were designated as fair value hedges totaling $900.0 million notional amount at both March 31, 2024 and December 31, 2023. Interest rate swaps of certain available-for-sale investment securities were designated as fair value hedges totaling $998.1 million notional amount at both March 31, 2024 and December 31, 2023. The hedges were determined to be effective during all periods presented and we expect them to remain effective during the remaining terms.

The following table summarizes Old National’s derivatives designated as hedges:

	March 31, 2024						December 31, 2023
			Fair Value						Fair Value
(dollars in thousands)	Notional		Assets (1)		Liabilities (2)		Notional		Assets (1)		Liabilities (2)
Cash flow hedges
Interest rate swaps, collars, and floors on loan    pools	$	1,800,000	$	2,670	$	15,063	$	1,600,000	$	10,472	$	6,014
Interest rate swaps on borrowings (3)	150,000		—		—		150,000		—		—
Fair value hedges
Interest rate swaps on investment securities (3)	998,107		—		—		998,107		—		—
Interest rate swaps on borrowings (3)	900,000		—		—		900,000		—		—
Total			$	2,670	$	15,063			$	10,472	$	6,014

(1)Derivative assets are included in other assets on the balance sheet.

(2)Derivative liabilities are included in other liabilities on the balance sheet.

(3)The fair values of certain counterparty interest rate swaps are zero due to the settlement of centrally cleared variation margin rules.

The effect of derivative instruments in fair value hedging relationships on the consolidated statements of income were as follows:

(dollars in thousands)						Gain (Loss) Recognized in Income on Related Hedged Items
Derivatives in Fair Value Hedging Relationships	Location of Gain or (Loss) Recognized in Income on Derivative	Gain (Loss) Recognized in Income on Derivative		Hedged Items in Fair Value Hedging Relationships	Location of Gain or (Loss) Recognized in in Income on Related Hedged Item
Three Months Ended March 31, 2024
Interest rate contracts	Interest income/(expense)	$	(13,970)	Fixed-rate debt	Interest income/(expense)	$	14,127
Interest rate contracts	Interest income/(expense)	25,848		Fixed-rate investment securities	Interest income/(expense)	(25,903)
Total		$	11,878			$	(11,776)
Three Months Ended March 31, 2023
Interest rate contracts	Interest income/(expense)	$	2,153	Fixed-rate debt	Interest income/(expense)	$	(2,218)
Interest rate contracts	Interest income/(expense)	(63,115)		Fixed-rate investment securities	Interest income/(expense)	63,251
Total		$	(60,962)			$	61,033

The effect of derivative instruments in cash flow hedging relationships on the consolidated statements of income were as follows:

		Three Months Ended March 31,				Three Months Ended March 31,
(dollars in thousands)		2024		2023		2024		2023
Derivatives in Cash Flow Hedging Relationships	Location of Gain or (Loss) Reclassified from AOCI into Income	Gain (Loss) Recognized in Other Comprehensive Income on Derivative				Gain (Loss) Reclassified from AOCI into Income
Interest rate contracts	Interest income/(expense)	$	(19,159)	$	6,603	$	(5,910)	$	(7,637)

Amounts reported in AOCI related to cash flow hedges will be reclassified to interest income or interest expense as interest payments are received or paid on Old National’s derivative instruments. During the next 12 months, we estimate that $23.3 million will be reclassified to interest income and $4.5 million will be reclassified to interest expense.

Derivatives Not Designated as Hedges

Commitments to fund certain mortgage loans (interest rate lock commitments) and forward commitments for the future delivery of mortgage loans to third party investors are considered derivatives. These derivative contracts do not qualify for hedge accounting. At March 31, 2024, the notional amounts of the interest rate lock commitments were $68.0 million and forward commitments were $77.6 million. At December 31, 2023, the notional amounts of the interest rate lock commitments were $25.2 million and forward commitments were $39.5 million. It is our practice to enter into forward commitments for the future delivery of residential mortgage loans to third party investors when interest rate lock commitments are entered into in order to economically hedge the effect of changes in interest rates resulting from our commitment to fund the loans.

Old National also enters into derivative instruments for the benefit of its clients. The notional amounts of these customer derivative instruments and the offsetting counterparty derivative instruments were $5.9 billion at March 31, 2024 and $6.0 billion at December 31, 2023. These derivative contracts do not qualify for hedge accounting. These instruments include interest rate swaps, caps, and collars. Commonly, Old National will economically hedge significant exposures related to these derivative contracts entered into for the benefit of clients by entering into offsetting contracts with approved, reputable, independent counterparties with substantially matching terms.

Old National enters into derivative financial instruments as part of its foreign currency risk management strategies. These derivative instruments consist of foreign currency forward contracts to accommodate the business

needs of its clients. Old National does not designate these foreign currency forward contracts for hedge accounting treatment.

The following table summarizes Old National’s derivatives not designated as hedges:

	March 31, 2024						December 31, 2023
			Fair Value						Fair Value
(dollars in thousands)	Notional		Assets (1)		Liabilities (2)		Notional		Assets (1)		Liabilities (2)
Interest rate lock commitments	$	67,995	$	317	$	—	$	25,151	$	291	$	—
Forward mortgage loan contracts	77,584		144		—		39,529		—		566
Customer interest rate swaps	5,886,639		11,328		270,910		5,954,216		33,182		228,750
Counterparty interest rate swaps (3)	5,886,639		152,855		11,380		5,954,216		121,969		33,346
Customer foreign currency contracts	10,317		57		43		12,455		320		59
Counterparty foreign currency contracts	10,484		108		7		12,308		68		181
Total			$	164,809	$	282,340			$	155,830	$	262,902

(1)Derivative assets are included in other assets on the balance sheet.

(2)Derivative liabilities are included in other liabilities on the balance sheet.

(3)The fair values of certain counterparty interest rate swaps are zero due to the settlement of centrally cleared variation margin rules.

The effect of derivatives not designated as hedging instruments on the consolidated statements of income were as follows:

		Three Months Ended March 31,
(dollars in thousands)		2024		2023
Interest rate contracts (1)	Other income/(expense)	$	568	$	(138)
Mortgage contracts	Mortgage banking revenue	737		107
Foreign currency contracts	Other income/(expense)	(34)		(1)
Total		$	1,271	$	(32)

(1)Includes the valuation differences between the customer and offsetting swaps.

Fair Value of Offsetting Derivatives

Certain derivative instruments are subject to master netting agreements with counterparties that provide rights of setoff. The Company records these transactions at their gross fair values and does not offset derivative assets and liabilities in the Consolidated Balance Sheet. The following table presents the fair value of the Company’s derivatives and offsetting positions:

	March 31, 2024				December 31, 2023
(dollars in thousands)	Assets		Liabilities		Assets		Liabilities
Gross amounts recognized	$	167,479	$	297,403	$	166,302	$	268,916
Less: amounts offset in the Consolidated Balance Sheet	—		—		—		—
Net amount presented in the Consolidated Balance Sheet	167,479		297,403		166,302		268,916
Gross amounts not offset in the Consolidated Balance Sheet
Offsetting derivative positions	(26,443)		(26,443)		(39,360)		(39,360)
Cash collateral pledged	—		(134,459)		—		(97,840)
Net credit exposure	$	141,036	$	136,501	$	126,942	$	131,716

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Commitments, Contingencies, and Financial Guarantees

3 Months Ended

Mar. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

Commitments, Contingencies, and Financial Guarantees

COMMITMENTS, CONTINGENCIES, AND FINANCIAL GUARANTEES

Litigation

At March 31, 2024, there were certain legal proceedings pending against the Company and its subsidiaries in the ordinary course of business. While the outcome of any legal proceeding is inherently uncertain, based on information currently available, the Company’s management does not expect that any potential liabilities arising from pending litigation will have a material adverse effect on the Company’s business, financial position, or results of operations.

Credit-Related Financial Instruments

Old National holds instruments, in the normal course of business with clients, that are considered financial guarantees and are recorded at fair value. Standby letters of credit guarantees are issued in connection with agreements made by clients to counterparties. Standby letters of credit are contingent upon failure of the client to perform the terms of the underlying contract. Credit risk associated with standby letters of credit is essentially the same as that associated with extending loans to clients and is subject to normal credit policies. The term of these standby letters of credit is typically one year or less. These commitments are not recorded in the consolidated financial statements.

The following table summarizes Old National Bank’s unfunded loan commitments and standby letters of credit:

(dollars in thousands)	March 31, 2024		December 31, 2023
Unfunded loan commitments	$	8,716,398	$	8,912,587
Standby letters of credit (1)	172,444		192,237

(1)Notional amount, which represents the maximum amount of future funding requirements. The carrying value was $1.4 million at March 31, 2024 and $1.3 million at December 31, 2023.

At March 31, 2024, approximately 4% of the unfunded loan commitments had fixed rates, with the remainder having floating rates ranging from 2.10% to 22.49%. The allowance for unfunded loan commitments totaled $26.3 million at March 31, 2024 and $31.2 million at December 31, 2023.

Old National is a party in risk participation transactions of interest rate swaps, which had total notional amounts of $589.2 million at March 31, 2024 and $557.8 million at December 31, 2023.

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Fair Value

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Fair Value

FAIR VALUE

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values:

•Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

•Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

•Level 3 – Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

Old National used the following methods and significant assumptions to estimate the fair value of each type of financial instrument:

Investment securities and equity securities: The fair values for investment securities and equity securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Discounted cash flows are calculated using swap and SOFR curves plus spreads that adjust for loss severities, volatility, credit risk, and optionality. During times when trading is more liquid, broker quotes are used (if available) to validate the model. Rating agency and industry research reports as well as defaults and deferrals on individual securities are reviewed and incorporated into the calculations.

Loans held-for-sale: The fair value of loans held-for-sale is determined using quoted prices for a similar asset, adjusted for specific attributes of that loan (Level 2).

Derivative financial instruments: The fair values of derivative financial instruments are based on market quotes developed using observable inputs as of the valuation date (Level 2).

Recurring Basis

Assets and liabilities measured at fair value on a recurring basis, including financial assets and liabilities for which we have elected the fair value option, are summarized below: 

			Fair Value Measurements at March 31, 2024 Using
(dollars in thousands)	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets
Equity securities	$	84,954	$	84,954	$	—	$	—
Investment securities available-for-sale:
U.S. Treasury	233,051		233,051		—		—
U.S. government-sponsored entities and agencies	1,183,019		—		1,183,019		—
Mortgage-backed securities - Agency	4,550,023		—		4,550,023		—
States and political subdivisions	515,104		—		515,104		—
Pooled trust preferred securities	11,274		—		11,274		—
Other securities	299,181		—		299,181		—
Loans held-for-sale	19,418		—		19,418		—
Derivative assets	167,479		—		167,479		—
Financial Liabilities
Derivative liabilities	297,403		—		297,403		—

			Fair Value Measurements at December 31, 2023 Using
(dollars in thousands)	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets
Equity securities	$	80,372	$	80,372	$	—	$	—
Investment securities available-for-sale:
U.S. Treasury	396,733		396,733		—		—
U.S. government-sponsored entities and agencies	1,231,264		—		1,231,264		—
Mortgage-backed securities - Agency	4,216,560		—		4,216,560		—
States and political subdivisions	535,260		—		535,260		—
Pooled trust preferred securities	11,337		—		11,337		—
Other securities	321,901		—		321,901		—
Loans held-for-sale	32,006		—		32,006		—
Derivative assets	166,302		—		166,302		—
Financial Liabilities
Derivative liabilities	268,916		—		268,916		—

Non-Recurring Basis

Assets measured at fair value at March 31, 2024 on a non-recurring basis are summarized below:

			Fair Value Measurements at March 31, 2024 Using
(dollars in thousands)	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Collateral Dependent Loans:
Commercial loans	$	26,057	$	—	$	—	$	26,057
Commercial real estate loans	83,492		—		—		83,492
Foreclosed Assets:
Commercial	1,669		—		—		1,669

Commercial and commercial real estate loans that are deemed collateral dependent are valued using the discounted cash flows. The liquidation amounts are based on the fair value of the underlying collateral using the most recently available appraisals with certain adjustments made based on the type of property, age of appraisal, current status of the property, and other related factors to estimate the current value of the collateral. These commercial and commercial real estate loans had a principal amount of $142.2 million, with a valuation allowance of $32.7 million at March 31, 2024. Old National recorded provision expense associated with these loans totaling $9.6 million for the three months ended March 31, 2024, compared to $11.9 million for the three months ended March 31, 2023.

Other real estate owned and other repossessed property is measured at fair value less costs to sell on a non-recurring basis. Old National did not have any other real estate owned or other repossessed property measured at fair value on a non-recurring basis at March 31, 2024. There were no write-downs on other real estate owned for the three months ended March 31, 2024, compared to $27 thousand for the three months ended March 31, 2023.

Assets measured at fair value at December 31, 2023 on a non-recurring basis are summarized below:

			Fair Value Measurements at December 31, 2023 Using
(dollars in thousands)	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Collateral Dependent Loans:
Commercial loans	$	11,017	$	—	$	—	$	11,017
Commercial real estate loans	95,457		—		—		95,457
Foreclosed Assets:
Commercial real estate	1,669		—		—		1,669

At December 31, 2023, commercial and commercial real estate loans that are deemed collateral dependent had a principal amount of $134.3 million, with a valuation allowance of $27.9 million.

The table below provides quantitative information about significant unobservable inputs used in fair value measurements within Level 3 of the fair value hierarchy:

(dollars in thousands)	Fair Value		Valuation Techniques	Unobservable Input	Range (Weighted Average) (1)
March 31, 2024
Collateral Dependent Loans
Commercial loans	$	26,057	Discounted	Discount for type of property,	2% - 38% (29%)
			cash flow	age of appraisal, and current status
Commercial real estate loans	83,492		Discounted	Discount for type of property,	1% - 34% (13%)
			cash flow	age of appraisal, and current status
Foreclosed Assets
Commercial real estate	1,669		Fair value of	Discount for type of property,	4% - 8% (4%)
			collateral	age of appraisal, and current status
December 31, 2023
Collateral Dependent Loans
Commercial loans	$	11,017	Discounted	Discount for type of property,	5% - 37% (27%)
			cash flow	age of appraisal, and current status
Commercial real estate loans	95,457		Discounted	Discount for type of property,	2% - 38% (16%)
			cash flow	age of appraisal, and current status
Foreclosed Assets
Commercial real estate	1,669		Fair value of	Discount for type of property,	4% - 8% (4%)
			collateral	age of appraisal, and current status

(1)Unobservable inputs were weighted by the relative fair value of the instruments.

Fair Value Option

Old National may elect to report most financial instruments and certain other items at fair value on an instrument-by-instrument basis with changes in fair value reported in net income. After the initial adoption, the election is made at the acquisition of an eligible financial asset, financial liability, or firm commitment or when certain specified reconsideration events occur. The fair value election may not be revoked once an election is made.

Loans Held-For-Sale

Old National has elected the fair value option for loans held-for-sale. For these loans, interest income is recorded in the consolidated statements of income based on the contractual amount of interest income earned on the financial assets (except any that are on nonaccrual status). None of these loans are 90 days or more past due, nor are any on nonaccrual status. Interest income for loans held-for-sale is included in the income statement totaling $0.3 million for the three months ended March 31, 2024, compared to $0.2 million for the three months ended March 31, 2023.

Newly originated conforming fixed-rate and adjustable-rate first mortgage loans are intended for sale and are hedged with derivative instruments. Old National has elected the fair value option to mitigate accounting mismatches in cases where hedge accounting is complex and to achieve operational simplification. The fair value option was not elected for loans held for investment.

The difference between the aggregate fair value and the aggregate remaining principal balance for loans for which the fair value option has been elected was as follows: 

(dollars in thousands)	Aggregate Fair Value		Difference		Contractual Principal
March 31, 2024
Loans held-for-sale	$	19,418	$	414	$	19,004
December 31, 2023
Loans held-for-sale	$	32,006	$	621	$	31,385

Accrued interest at period end is included in the fair value of the instruments.

The following table presents the amount of gains and losses from fair value changes included in income before income taxes for financial assets carried at fair value:

(dollars in thousands)	Other Gains and (Losses)		Interest Income		Interest (Expense)		Total Changes in Fair Values Included in Current Period Earnings
Three Months Ended March 31, 2024
Loans held-for-sale	$	(202)	$	—	$	(5)	$	(207)
Three Months Ended March 31, 2023
Loans held-for-sale	$	(53)	$	—	$	(3)	$	(56)

Financial Instruments Not Carried at Fair Value

The carrying amounts and estimated fair values of financial instruments not carried at fair value were as follows: 

			Fair Value Measurements at March 31, 2024 Using
(dollars in thousands)	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets
Cash, due from banks, money market,    and other interest-earning investments	$	939,499	$	939,499	$	—	$	—
Investment securities held-to-maturity:
U.S. government-sponsored entities and agencies	827,684		—		662,735		—
Mortgage-backed securities - Agency	1,016,858		—		857,657		—
State and political subdivisions	1,156,807		—		1,027,184		—
Loans, net:
Commercial	9,522,947		—		—		9,357,300
Commercial real estate	14,492,040		—		—		14,005,872
Residential real estate	6,639,480		—		—		5,682,754
Consumer credit	2,649,139		—		—		2,607,831
Accrued interest receivable	219,809		1,133		47,057		171,619
Financial Liabilities
Deposits:
Noninterest-bearing demand deposits	$	9,257,709	$	9,257,709	$	—	$	—
Checking, NOW, savings, and money market    interest-bearing deposits	22,490,875		22,490,875		—		—
Time deposits	5,950,834		—		5,913,854		—
Federal funds purchased and interbank borrowings	50,416		50,416		—		—
Securities sold under agreements to repurchase	274,493		274,493		—		—
FHLB advances	4,193,039		—		3,994,880		—
Other borrowings	813,213		—		798,748		—
Accrued interest payable	54,690		—		54,690		—
Standby letters of credit	1,379		—		—		1,379
Off-Balance Sheet Financial Instruments
Commitments to extend credit	$	—	$	—	$	—	$	3,824

			Fair Value Measurements at December 31, 2023 Using
(dollars in thousands)	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets
Cash, due from banks, money market,    and other interest-earning investments	$	1,175,058	$	1,175,058	$	—	$	—
Investment securities held-to-maturity:
U.S. government-sponsored entities and agencies	825,953		—		671,126		—
Mortgage-backed securities - Agency	1,029,131		—		881,994		—
State and political subdivisions	1,158,409		—		1,048,068		—
Loans, net:
Commercial	9,392,267		—		—		9,258,193
Commercial real estate	13,984,273		—		—		13,640,868
Residential real estate	6,678,606		—		—		5,579,999
Consumer credit	2,629,171		—		—		2,555,121
Accrued interest receivable	225,159		859		54,465		169,835
Financial Liabilities
Deposits:
Noninterest-bearing demand deposits	$	9,664,247	$	9,664,247	$	—	$	—
Checking, NOW, savings, and money market    interest-bearing deposits	21,991,789		21,991,789		—		—
Time deposits	5,579,144		—		5,552,538		—
Federal funds purchased and interbank borrowings	390		390		—		—
Securities sold under agreements to repurchase	285,206		285,206		—		—
FHLB advances	4,280,681		—		4,090,954		—
Other borrowings	764,870		—		755,592		—
Accrued interest payable	57,094		—		57,094		—
Standby letters of credit	1,318		—		—		1,318
Off-Balance Sheet Financial Instruments
Commitments to extend credit	$	—	$	—	$	—	$	3,839

The methods utilized to measure the fair value of financial instruments at March 31, 2024 and December 31, 2023 represent an approximation of exit price, however, an actual exit price may differ.

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Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net income	$ 120,284	$ 146,600

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Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

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Basis of Presentation (Policies)

3 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

Basis of Presentation

BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements include the accounts of Old National Bancorp and its wholly-owned subsidiaries (hereinafter collectively referred to as “Old National”) and have been prepared in conformity with accounting principles generally accepted in the United States of America and prevailing practices within the banking industry. Such principles require management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and the disclosures of contingent assets and liabilities at the date of the financial statements and amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In the opinion of management, the consolidated financial statements contain all the normal and recurring adjustments necessary for a fair statement of the financial position of Old National as of March 31, 2024 and December 31, 2023, and the results of its operations for the three months ended March 31, 2024 and 2023. Interim results do not necessarily represent annual results. Certain information and disclosures normally included in notes to consolidated annual financial statements prepared in accordance with GAAP have been condensed or omitted in this Quarterly Report on Form 10-Q pursuant to SEC rules and regulations. These financial statements should be read in conjunction with Old National’s Annual Report on Form 10-K for the year ended December 31, 2023.

All intercompany transactions and balances have been eliminated. Certain prior year amounts have been reclassified to conform to the current presentation. Such reclassifications had no effect on prior period net income or shareholders’ equity and were insignificant amounts.

Recent Accounting Pronouncements

RECENT ACCOUNTING PRONOUNCEMENTS

Accounting Guidance Adopted in 2024

FASB ASC 820 – In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, to clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. The adoption of this guidance on January 1, 2024 did not have a material impact on the consolidated financial statements.

FASB ASC 323 – In March 2023, the FASB issued ASU 2023-02, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method, which allows reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits. This ASU is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. The adoption of this guidance on a modified retrospective basis on January 1, 2024 did not have a material impact on the consolidated financial statements.

FASB ASC 848 – In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides temporary, optional guidance to ease the potential burden in accounting for, or recognizing the effects of, the transition away from LIBOR or other interbank offered rate on financial reporting. The guidance is applicable only to contracts or hedge accounting relationships that reference LIBOR or another reference rate expected to be discontinued.

In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which defers the sunset date of relief provisions within Topic 848 from December 31, 2022 to December 31, 2024. The objective of the guidance in Topic 848 is to provide relief during the transition period.

The amendments in this ASU are effective March 12, 2020 through December 31, 2024. As of March 31, 2024, substantially all of the Company’s LIBOR exposure was addressed and remaining LIBOR-based contracts are expected to transition to alternate reference rates at their next index reset dates. Old National believes the adoption of this guidance on activities subsequent to March 31, 2024 will not have a material impact on the consolidated financial statements.

Accounting Guidance Pending Adoption 

FASB ASC 280 – In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments are intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. The purpose of the amendments is to enable investors to better understand an entity’s overall performance and assess potential future cash flows. A public entity should apply the amendments retrospectively to all prior periods presented in the financial statements. Upon transition, the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. Old National is currently evaluating the impact of adopting the new guidance on the consolidated financial statements.

FASB ASC 740 – In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. Among other things, these amendments require that public business entities on an annual basis disclose additional information in specified categories with respect to the reconciliation of the effective tax rate to the statutory rate for federal, state, and foreign income taxes. It also requires greater detail about individual reconciling items in the rate reconciliation to the extent the impact of those items exceeds a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income (loss) by the applicable statutory income tax rate). In addition, the ASU requires information pertaining to taxes paid (net of refunds received) to be disaggregated for federal, state, and foreign taxes and further disaggregated for specific jurisdictions to the extent the related amounts are equal to or greater than 5 percent of total income taxes paid (net of refunds received). The amendments in this ASU are effective for annual periods beginning after December 15, 2024. Early adoption is permitted. Old National is currently evaluating the impact of adopting the new guidance on the consolidated financial statements.

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Net Income Per Common Share (Tables)

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

Summary of Table Reconciling Basic and Diluted Net Income Per Share

The following table presents the calculation of basic and diluted net income per common share:

	Three Months Ended March 31,
(dollars and shares in thousands, except per share data)	2024		2023
Net income	$	120,284	$	146,600
Preferred dividends	(4,034)		(4,034)
Net income applicable to common shares	$	116,250	$	142,566
Weighted average common shares outstanding:
Weighted average common shares outstanding (basic)	290,980		291,088
Effect of dilutive securities:
Restricted stock	1,227		1,666
Stock appreciation rights	—		2
Weighted average diluted shares outstanding	292,207		292,756
Basic Net Income Per Common Share	$	0.40	$	0.49
Diluted Net Income Per Common Share	$	0.40	$	0.49

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Investment Securities (Tables)

3 Months Ended

Mar. 31, 2024

Investments, Debt and Equity Securities [Abstract]

Schedule of Amortized Cost and Fair Value of Available-for-Sale and Held-to-Maturity Investment Securities Portfolio

The following table summarizes the amortized cost and fair value of the available-for-sale and held-to-maturity investment securities portfolios and the corresponding amounts of gross unrealized gains, unrealized losses, and basis adjustments in AOCI and gross unrecognized gains and losses.

(dollars in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses		Basis Adjustments (1)		Fair Value
March 31, 2024
Available-for-Sale
U.S. Treasury	$	291,538	$	19	$	(9,956)	$	(48,550)	$	233,051
U.S. government-sponsored entities and agencies	1,448,561		—		(184,941)		(80,601)		1,183,019
Mortgage-backed securities - Agency	5,223,119		1,996		(675,092)		—		4,550,023
States and political subdivisions	537,930		404		(24,180)		950		515,104
Pooled trust preferred securities	13,800		—		(2,526)		—		11,274
Other securities	319,134		391		(20,344)		—		299,181
Total available-for-sale securities	$	7,834,082	$	2,810	$	(917,039)	$	(128,201)	$	6,791,652
Held-to-Maturity
U.S. government-sponsored entities and agencies	$	827,684	$	—	$	(164,949)	$	—	$	662,735
Mortgage-backed securities - Agency	1,016,858		—		(159,201)		—		857,657
States and political subdivisions	1,156,957		864		(130,487)		—		1,027,334
Allowance for securities held-to-maturity	(150)		—		—		—		(150)
Total held-to-maturity securities	$	3,001,349	$	864	$	(454,637)	$	—	$	2,547,576
December 31, 2023
Available-for-Sale
U.S. Treasury	$	449,817	$	154	$	(11,941)	$	(41,297)	$	396,733
U.S. government-sponsored entities and agencies	1,487,879		33		(192,717)		(63,931)		1,231,264
Mortgage-backed securities - Agency	4,835,319		3,093		(621,852)		—		4,216,560
States and political subdivisions	554,509		878		(23,057)		2,930		535,260
Pooled trust preferred securities	13,797		—		(2,460)		—		11,337
Other securities	343,568		449		(22,116)		—		321,901
Total available-for-sale securities	$	7,684,889	$	4,607	$	(874,143)	$	(102,298)	$	6,713,055
Held-to-Maturity
U.S. government-sponsored entities and agencies	$	825,953	$	—	$	(154,827)	$	—	$	671,126
Mortgage-backed securities - Agency	1,029,131		—		(147,137)		—		881,994
States and political subdivisions	1,158,559		1,800		(112,141)		—		1,048,218
Allowance for securities held-to-maturity	(150)		—		—		—		(150)
Total held-to-maturity securities	$	3,013,493	$	1,800	$	(414,105)	$	—	$	2,601,188

(1)    Basis adjustments represent the amount of fair value hedging adjustments included in the carrying amounts of fixed-rate investment securities assets designated in fair value hedging arrangements. See Note 15 to the consolidated financial statements for additional information regarding these derivative financial instruments.

Schedule of Proceeds from Sales or Calls and Realized Gain and Losses of Available-for-Sale Investment Securities and Other Securities

Proceeds from sales or calls of available-for-sale investment securities and the resulting realized gains and realized losses were as follows:

	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Proceeds	$	61,250	$	57,955
Realized gains	3		909
Realized losses	(19)		(6,125)

Schedule of Expected Maturities of Investment Securities Portfolio

Weighted average yield is based on amortized cost.

	March 31, 2024
(dollars in thousands)	Amortized Cost		Fair Value		Weighted Average Yield
Maturity
Available-for-Sale
Within one year	$	177,458	$	174,950	3.39	%
One to five years	1,991,571		1,848,581		3.44
Five to ten years	4,193,417		3,608,726		2.57
Beyond ten years	1,471,636		1,159,395		2.58
Total	$	7,834,082	$	6,791,652	2.81	%
Held-to-Maturity
Within one year	$	157	$	147	2.23	%
One to five years	160,838		132,056		2.63
Five to ten years	1,161,402		1,006,755		2.62
Beyond ten years	1,678,952		1,408,618		2.73
Total	$	3,001,349	$	2,547,576	2.68	%

Schedule of Available-for-Sale and Held-to-Maturity Investment Securities with Unrealized Losses by Aggregated Major Security Type and Length of Time in Continuous Unrealized Loss Position

The following table summarizes the available-for-sale investment securities with unrealized losses for which an allowance for credit losses has not been recorded by aggregated major security type and length of time in a continuous unrealized loss position:

	Less than 12 months				12 months or longer				Total
(dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
March 31, 2024
Available-for-Sale
U.S. Treasury	$	13,882	$	(77)	$	183,031	$	(9,879)	$	196,913	$	(9,956)
U.S. government-sponsored entities    and agencies	3,983		(74)		1,179,036		(184,867)		1,183,019		(184,941)
Mortgage-backed securities - Agency	498,441		(4,781)		3,710,045		(670,311)		4,208,486		(675,092)
States and political subdivisions	132,681		(691)		282,382		(23,489)		415,063		(24,180)
Pooled trust preferred securities	—		—		11,274		(2,526)		11,274		(2,526)
Other securities	36,511		(133)		215,927		(20,211)		252,438		(20,344)
Total available-for-sale	$	685,498	$	(5,756)	$	5,581,695	$	(911,283)	$	6,267,193	$	(917,039)
December 31, 2023
Available-for-Sale
U.S. Treasury	$	8,937	$	(42)	$	191,027	$	(11,899)	$	199,964	$	(11,941)
U.S. government-sponsored entities    and agencies	—		—		1,189,314		(192,717)		1,189,314		(192,717)
Mortgage-backed securities - Agency	90,145		(710)		3,835,552		(621,142)		3,925,697		(621,852)
States and political subdivisions	86,865		(495)		259,767		(22,562)		346,632		(23,057)
Pooled trust preferred securities	—		—		11,337		(2,460)		11,337		(2,460)
Other securities	39,032		(229)		255,888		(21,887)		294,920		(22,116)
Total available-for-sale	$	224,979	$	(1,476)	$	5,742,885	$	(872,667)	$	5,967,864	$	(874,143)

Schedule of Held-to-Maturity Investment Securities with Unrecognized Losses

The following table summarizes the held-to-maturity investment securities with unrecognized losses aggregated by major security type and length of time in a continuous loss position:

	Less than 12 months				12 months or longer				Total
(dollars in thousands)	Fair Value		Unrecognized Losses		Fair Value		Unrecognized Losses		Fair Value		Unrecognized Losses
March 31, 2024
Held-to-Maturity
U.S. government-sponsored entities    and agencies	$	—	$	—	$	662,735	$	(164,949)	$	662,735	$	(164,949)
Mortgage-backed securities - Agency	—		—		857,657		(159,201)		857,657		(159,201)
States and political subdivisions	19,953		(100)		957,362		(130,387)		977,315		(130,487)
Total held-to-maturity	$	19,953	$	(100)	$	2,477,754	$	(454,537)	$	2,497,707	$	(454,637)
December 31, 2023
Held-to-Maturity
U.S. government-sponsored entities    and agencies	$	—	$	—	$	671,126	$	(154,827)	$	671,126	$	(154,827)
Mortgage-backed securities - Agency	—		—		881,994		(147,137)		881,994		(147,137)
States and political subdivisions	—		—		977,154		(112,141)		977,154		(112,141)
Total held-to-maturity	$	—	$	—	$	2,530,274	$	(414,105)	$	2,530,274	$	(414,105)

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Loans and Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2024

Receivables [Abstract]

Schedule of Composition of Loans and Impact of Adoption

The portfolio segment reclassifications follow:

	Balance Sheet Line Item		Portfolio Segment Reclassifications		Portfolio Segment After Reclassifications
(dollars in thousands)
March 31, 2024
Commercial (1)	$	9,648,269	$	(232,045)	$	9,416,224
Commercial real estate	14,653,958		(172,659)		14,481,299
BBCC	N/A		404,704		404,704
Residential real estate	6,661,379		—		6,661,379
Consumer	2,659,713		(2,659,713)		N/A
Indirect	N/A		1,091,998		1,091,998
Direct	N/A		506,305		506,305
Home equity	N/A		1,061,410		1,061,410
Total loans (2)	$	33,623,319	$	—	$	33,623,319
Allowance for credit losses on loans	(319,713)		—		(319,713)
Net loans	$	33,303,606	$	—	$	33,303,606
December 31, 2023
Commercial (1)	$	9,512,230	$	(232,764)	$	9,279,466
Commercial real estate	14,140,629		(169,058)		13,971,571
BBCC	N/A		401,822		401,822
Residential real estate	6,699,443		—		6,699,443
Consumer	2,639,625		(2,639,625)		N/A
Indirect	N/A		1,050,982		1,050,982
Direct	N/A		523,172		523,172
Home equity	N/A		1,065,471		1,065,471
Total loans (2)	$	32,991,927	$	—	$	32,991,927
Allowance for credit losses on loans	(307,610)		—		(307,610)
Net loans	$	32,684,317	$	—	$	32,684,317

(1)Includes direct finance leases of $161.7 million at March 31, 2024 and $169.7 million at December 31, 2023.

(2)    Includes unearned income of $88.9 million at March 31, 2024 and $93.7 million at December 31, 2023.

Schedule of Activity in Allowance for Loan Losses

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		Charge-offs		Recoveries		Provision for Loan Losses		Balance at End of Period
Three Months Ended March 31, 2024
Commercial	$	118,333	$	(3,659)	$	334	$	8,429	$	123,437
Commercial real estate	155,099		(6,641)		1,035		11,147		160,640
BBCC	2,887		(76)		18		334		3,163
Residential real estate	20,837		—		19		1,043		21,899
Indirect	1,236		(1,138)		332		788		1,218
Direct	3,169		(2,428)		487		1,724		2,952
Home equity	6,049		(78)		45		388		6,404
Total	$	307,610	$	(14,020)	$	2,270	$	23,853	$	319,713
Three Months Ended March 31, 2023
Commercial	$	120,612	$	(12,423)	$	283	$	17,296	$	125,768
Commercial real estate	138,244		(1,189)		263		(1,970)		135,348
BBCC	2,431		(28)		73		(160)		2,316
Residential real estate	21,916		(23)		72		(1,758)		20,207
Indirect	1,532		(1,197)		412		687		1,434
Direct	12,116		(3,238)		581		(2,693)		6,766
Home equity	6,820		(82)		67		67		6,872
Total	$	303,671	$	(18,180)	$	1,751	$	11,469	$	298,711

Old National’s activity in the allowance for credit losses on unfunded loan commitments was as follows:

	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Allowance for credit losses on unfunded loan commitments:
Balance at beginning of period	$	31,226	$	32,188
Provision (release) for credit losses on unfunded loan    commitments	(4,962)		1,968
Balance at end of period	$	26,264	$	34,156

Schedule of Risk Category of Loans and Amortized Cost

The following table summarizes the amortized cost of term loans by risk category of commercial, commercial real estate, and BBCC loans by loan portfolio segment, class of loan, and origination year:

(dollars in thousands)	Origination Year														Revolving to Term
	2024		2023		2022		2021		2020		Prior		Revolving				Total
March 31, 2024
Commercial:
Pass	$	410,201	$	1,750,748	$	1,366,887	$	874,692	$	478,725	$	799,327	$	2,162,262	$	891,572	$	8,734,414
Criticized	1,087		23,697		66,438		16,667		36,943		50,076		123,117		15,698		333,723
Classified:
Substandard	6,680		8,148		37,790		32,816		33,303		27,990		60,662		67,681		275,070
Nonaccrual	—		8,206		—		—		—		1,623		603		2,285		12,717
Doubtful	—		12,237		35,110		6,343		4,523		2,087		—		—		60,300
Total	$	417,968	$	1,803,036	$	1,506,225	$	930,518	$	553,494	$	881,103	$	2,346,644	$	977,236	$	9,416,224
Commercial real estate:
Pass	$	461,150	$	2,274,374	$	3,680,370	$	2,438,872	$	1,479,830	$	2,057,232	$	98,657	$	988,203	$	13,478,688
Criticized	7,746		51,975		48,071		132,220		38,258		112,902		7,869		80,231		479,272
Classified:
Substandard	280		10,079		66,381		37,954		33,966		142,537		—		57,157		348,354
Nonaccrual	—		206		19,344		11,850		2,599		19,159		—		2,465		55,623
Doubtful	—		5,217		21,775		24,349		2,224		65,797		—		—		119,362
Total	$	469,176	$	2,341,851	$	3,835,941	$	2,645,245	$	1,556,877	$	2,397,627	$	106,526	$	1,128,056	$	14,481,299
BBCC:
Pass	$	20,205	$	82,522	$	63,561	$	41,025	$	35,964	$	41,883	$	65,020	$	31,595	$	381,775
Criticized	122		—		571		872		528		324		2,004		10,003		14,424
Classified:
Substandard	73		444		191		248		126		82		575		994		2,733
Nonaccrual	—		—		—		470		—		1,169		—		1,962		3,601
Doubtful	—		904		564		229		252		222		—		—		2,171
Total	$	20,400	$	83,870	$	64,887	$	42,844	$	36,870	$	43,680	$	67,599	$	44,554	$	404,704

(dollars in thousands)	Origination Year														Revolving to Term
	2023		2022		2021		2020		2019		Prior		Revolving				Total
December 31, 2023
Commercial:
Pass	$	1,826,289	$	1,573,669	$	985,964	$	520,883	$	450,911	$	495,979	$	2,051,985	$	651,953	$	8,557,633
Criticized	20,038		90,031		19,953		36,906		25,756		47,357		89,765		44,348		374,154
Classified:
Substandard	27,271		41,164		27,990		37,618		10,461		29,981		72,703		56,716		303,904
Nonaccrual	32		7,034		—		—		823		3,411		—		5,461		16,761
Doubtful	—		7,261		5,925		4,875		1,742		7,211		—		—		27,014
Total	$	1,873,630	$	1,719,159	$	1,039,832	$	600,282	$	489,693	$	583,939	$	2,214,453	$	758,478	$	9,279,466
Commercial real estate:
Pass	$	2,177,841	$	3,515,702	$	2,563,638	$	1,576,044	$	1,010,351	$	1,161,119	$	103,332	$	960,386	$	13,068,413
Criticized	69,648		69,946		68,708		27,059		52,107		95,896		3,893		64,730		451,987
Classified:
Substandard	26,638		56,423		21,401		28,983		61,186		49,558		—		48,760		292,949
Nonaccrual	—		21,919		10,706		1,975		1,634		8,632		—		1,400		46,266
Doubtful	5,360		429		30,897		2,306		37,777		35,187		—		—		111,956
Total	$	2,279,487	$	3,664,419	$	2,695,350	$	1,636,367	$	1,163,055	$	1,350,392	$	107,225	$	1,075,276	$	13,971,571
BBCC:
Pass	$	81,102	$	64,583	$	44,307	$	38,086	$	27,557	$	19,028	$	68,807	$	33,361	$	376,831
Criticized	—		—		857		700		1,001		349		2,144		12,728		17,779
Classified:
Substandard	436		193		252		—		—		604		15		1,006		2,506
Nonaccrual	—		—		482		—		4		1,105		—		1,402		2,993
Doubtful	302		727		254		286		60		84		—		—		1,713
Total	$	81,840	$	65,503	$	46,152	$	39,072	$	28,622	$	21,170	$	70,966	$	48,497	$	401,822

The following table presents the amortized cost of term residential real estate and consumer loans based on payment activity and origination year:

	Origination Year														Revolving to Term
(dollars in thousands)	2024		2023		2022		2021		2020		Prior		Revolving				Total
March 31, 2024
Residential real estate:
Risk Rating:
Performing	$	52,693	$	475,237	$	1,494,593	$	1,857,010	$	1,615,143	$	1,119,364	$	74	$	243	$	6,614,357
Nonperforming	—		1,366		6,461		6,151		3,771		29,273		—		—		47,022
Total	$	52,693	$	476,603	$	1,501,054	$	1,863,161	$	1,618,914	$	1,148,637	$	74	$	243	$	6,661,379
Indirect:
Risk Rating:
Performing	$	139,067	$	373,733	$	321,837	$	143,848	$	69,757	$	39,133	$	—	$	215	$	1,087,590
Nonperforming	—		695		1,668		1,110		450		485		—		—		4,408
Total	$	139,067	$	374,428	$	323,505	$	144,958	$	70,207	$	39,618	$	—	$	215	$	1,091,998
Direct:
Risk Rating:
Performing	$	19,941	$	92,696	$	123,339	$	82,175	$	29,248	$	73,369	$	79,443	$	611	$	500,822
Nonperforming	—		18		522		386		658		3,886		3		10		5,483
Total	$	19,941	$	92,714	$	123,861	$	82,561	$	29,906	$	77,255	$	79,446	$	621	$	506,305
Home equity:
Risk Rating:
Performing	$	—	$	2	$	396	$	299	$	—	$	4,911	$	1,012,484	$	25,360	$	1,043,452
Nonperforming	—		1		7		131		242		4,688		3,618		9,271		17,958
Total	$	—	$	3	$	403	$	430	$	242	$	9,599	$	1,016,102	$	34,631	$	1,061,410

	Origination Year														Revolving to Term
	2023		2022		2021		2020		2019		Prior		Revolving				Total
December 31, 2023
Residential real estate:
Risk Rating:
Performing	$	453,743	$	1,508,671	$	1,836,078	$	1,705,131	$	430,783	$	722,987	$	—	$	279	$	6,657,672
Nonperforming	116		4,563		4,004		3,375		4,078		25,635		—		—		41,771
Total	$	453,859	$	1,513,234	$	1,840,082	$	1,708,506	$	434,861	$	748,622	$	—	$	279	$	6,699,443
Indirect:
Risk Rating:
Performing	$	393,369	$	355,822	$	162,735	$	82,871	$	37,967	$	13,815	$	—	$	196	$	1,046,775
Nonperforming	372		1,472		1,207		547		318		291		—		—		4,207
Total	$	393,741	$	357,294	$	163,942	$	83,418	$	38,285	$	14,106	$	—	$	196	$	1,050,982
Direct:
Risk Rating:
Performing	$	109,372	$	90,310	$	92,491	$	48,387	$	29,659	$	67,129	$	75,080	$	4,852	$	517,280
Nonperforming	67		531		517		560		210		3,872		124		11		5,892
Total	$	109,439	$	90,841	$	93,008	$	48,947	$	29,869	$	71,001	$	75,204	$	4,863	$	523,172
Home equity:
Risk Rating:
Performing	$	290	$	164	$	160	$	140	$	679	$	4,483	$	1,019,389	$	23,918	$	1,049,223
Nonperforming	—		310		328		404		741		4,327		2,844		7,294		16,248
Total	$	290	$	474	$	488	$	544	$	1,420	$	8,810	$	1,022,233	$	31,212	$	1,065,471

The following table summarizes the gross charge-offs of loans by loan portfolio segment and origination year:

	Origination Year
(dollars in thousands)	2024		2023		2022		2021		2020		Prior		Revolving		Total
Three Months Ended March 31, 2024
Commercial	$	—	$	—	$	3,481	$	33	$	8	$	4	$	133	$	3,659
Commercial real estate	—		—		—		2,176		—		4,465		—		6,641
BBCC	—		—		76		—		—		—		—		76
Residential real estate	—		—		—		—		—		—		—		—
Indirect	—		370		472		225		33		38		—		1,138
Direct	—		116		576		529		113		223		871		2,428
Home equity	—		—		—		34		—		44		—		78
Total gross charge-offs	$	—	$	486	$	4,605	$	2,997	$	154	$	4,774	$	1,004	$	14,020
	Origination Year
	2023		2022		2021		2020		2019		Prior		Revolving		Total
Three Months Ended March 31, 2023
Commercial	$	—	$	—	$	5,230	$	—	$	6,789	$	239	$	165	$	12,423
Commercial real estate	—		54		735		400		—		—		—		1,189
BBCC	—		—		28		—		—		—		—		28
Residential real estate	—		—		—		—		—		23		—		23
Indirect	—		514		430		93		111		49		—		1,197
Direct	—		471		794		286		327		195		1,165		3,238
Home equity	—		—		—		—		—		82		—		82
Total gross charge-offs	$	—	$	1,039	$	7,217	$	779	$	7,227	$	588	$	1,330	$	18,180

Schedule of Past Due Financing Receivables

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		Current		Total Loans
March 31, 2024
Commercial	$	10,099	$	1,620	$	10,023	$	21,742	$	9,394,482	$	9,416,224
Commercial real estate	8,838		27,844		32,539		69,221		14,412,078		14,481,299
BBCC	1,268		1,111		1,240		3,619		401,085		404,704
Residential	31,319		5,030		14,216		50,565		6,610,814		6,661,379
Indirect	5,488		1,351		1,205		8,044		1,083,954		1,091,998
Direct	4,751		1,115		3,454		9,320		496,985		506,305
Home equity	4,948		1,045		7,921		13,914		1,047,496		1,061,410
Total	$	66,711	$	39,116	$	70,598	$	176,425	$	33,446,894	$	33,623,319
December 31, 2023
Commercial	$	16,128	$	1,332	$	4,861	$	22,321	$	9,257,145	$	9,279,466
Commercial real estate	9,081		5,254		30,660		44,995		13,926,576		13,971,571
BBCC	1,368		134		977		2,479		399,343		401,822
Residential	12,358		367		15,249		27,974		6,671,469		6,699,443
Indirect	7,025		1,854		1,342		10,221		1,040,761		1,050,982
Direct	5,436		1,455		1,787		8,678		514,494		523,172
Home equity	7,791		2,347		6,659		16,797		1,048,674		1,065,471
Total	$	59,187	$	12,743	$	61,535	$	133,465	$	32,858,462	$	32,991,927

Schedule of Nonaccrual and Past Due Loans

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:

	March 31, 2024						December 31, 2023
(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	$	73,017	$	16,707	$	1,167	$	43,775	$	13,143	$	242
Commercial real estate	174,985		56,216		742		158,222		24,507		585
BBCC	5,772		—		98		4,706		—		95
Residential	47,022		—		10		41,771		—		—
Indirect	4,408		—		108		4,207		—		8
Direct	5,483		—		42		5,892		—		31
Home equity	17,958		—		5		16,248		—		—
Total	$	328,645	$	72,923	$	2,172	$	274,821	$	37,650	$	961

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		Auto		Other
March 31, 2024
Commercial	$	11,284	$	39,258	$	5,728	$	11,582	$	319
Commercial real estate	163,753		—		1,133		—		6,031
BBCC	3,793		1,701		—		278		—
Residential	47,022		—		—		—		—
Indirect	—		—		—		4,408		—
Direct	4,559		—		7		386		48
Home equity	17,958		—		—		—		—
Total loans	$	248,369	$	40,959	$	6,868	$	16,654	$	6,398
December 31, 2023
Commercial	$	14,303	$	24,729	$	2,577	$	280	$	328
Commercial real estate	146,425		—		1,167		—		6,107
BBCC	3,522		794		—		390		—
Residential	41,771		—		—		—		—
Indirect	—		—		—		4,207		—
Direct	4,727		1		3		366		29
Home equity	16,248		—		—		—		—
Total loans	$	226,996	$	25,524	$	3,747	$	5,243	$	6,464

Schedule of Activity in Trouble Debt Restructurings

The following table presents the amortized cost basis of financial difficulty modifications that were modified for borrowers experiencing financial difficulty, by class of loans and type of modification:

(dollars in thousands)	Term Extension		Total Class of Loans
Three Months Ended March 31, 2024
Commercial	$	29,426	0.3	%
Commercial real estate	120,891		0.8	%
Total	$	150,317	0.4	%
Three Months Ended March 31, 2023
Commercial	$	17,342	0.2	%
Commercial real estate	9,926		0.1	%
Total	$	27,268	0.1	%

Old National closely monitors the performance of financial difficulty modifications to understand the effectiveness of its efforts. The following table presents the performance of loans identified as financial difficulty modifications:

(dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		Past Due 90 Days or More		Total Past Due		Current		Total Loans
March 31, 2024
Commercial	$	—	$	—	$	—	$	—	$	29,426	$	29,426
Commercial real estate	4,059		31,222		—		35,281		85,610		120,891
Total	$	4,059	$	31,222	$	—	$	35,281	$	115,036	$	150,317
December 31, 2023
Commercial	$	—	$	—	$	—	$	—	$	21,631	$	21,631
Commercial real estate	5,287		—		—		5,287		116,242		121,529
Total	$	5,287	$	—	$	—	$	5,287	$	137,873	$	143,160

The following table summarizes the nature of the financial difficulty modifications by class of loans:

(dollars in thousands)	Weighted- Average Term Extension (in months)
Three Months Ended March 31, 2024
Commercial	9.1
Commercial real estate	8.1
Total	8.6
Three Months Ended March 31, 2023
Commercial	6.8
Commercial real estate	4.1
Total	5.6

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Leases (Tables)

3 Months Ended

Mar. 31, 2024

Leases [Abstract]

Schedule of Components of Lease Expense

The components of lease expense were as follows:

	Affected Line Item in the Statement of Income	Three Months Ended March 31,
(dollars in thousands)		2024		2023
Operating lease cost	Occupancy/Equipment expense	$	7,826	$	8,638
Finance lease cost:
Amortization of right-of-use assets	Occupancy expense	751		691
Interest on lease liabilities	Interest expense	181		169
Sub-lease income	Occupancy expense	(125)		(60)
Total		$	8,633	$	9,438

Schedule of Supplemental Balance Sheet Information Related to Leases

Supplemental balance sheet information related to leases was as follows:

(dollars in thousands)	March 31, 2024			December 31, 2023
Operating Leases
Operating lease right-of-use assets	$	189,593		$	185,506
Operating lease liabilities	208,868			204,960
Finance Leases
Premises and equipment, net	18,877			19,820
Other borrowings	20,108			20,955
Weighted-Average Remaining Lease Term (in Years)
Operating leases	8.4			8.5
Finance leases	10.3			10.5
Weighted-Average Discount Rate
Operating leases	3.05		%	3.04		%
Finance leases	3.91		%	3.90		%

Schedule of Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to leases was as follows:

	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	8,005	$	7,932
Operating cash flows from finance leases	181		169
Financing cash flows from finance leases	655		628

Schedule of Maturity Analysis of Lease Liability by Lease Classification

The following table presents a maturity analysis of the Company’s lease liability by lease classification at March 31, 2024:

(dollars in thousands)	Operating Leases		Finance Leases
2024	$	23,964	$	2,520
2025	32,022		3,377
2026	31,257		2,151
2027	30,266		2,152
2028	26,608		2,050
Thereafter	94,333		12,451
Total undiscounted lease payments	238,450		24,701
Amounts representing interest	(29,582)		(4,593)
Lease liability	$	208,868	$	20,108

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Goodwill and Other Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Changes in Carrying Amount of Goodwill

The following table presents the changes in the carrying amount of goodwill:

	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Balance at beginning of period	$	1,998,716	$	1,998,716
Acquisitions and adjustments	—		—
Balance at end of period	$	1,998,716	$	1,998,716

Schedule of Gross Carrying Amounts and Accumulated Amortization of Other Intangible Assets

The gross carrying amounts and accumulated amortization of other intangible assets were as follows: 

(dollars in thousands)	Gross Carrying Amount		Accumulated Amortization and Impairment		Net Carrying Amount
March 31, 2024
Core deposit	$	143,511	$	(77,249)	$	66,262
Customer trust relationships	52,621		(22,088)		30,533
Total other intangible assets	$	196,132	$	(99,337)	$	96,795
December 31, 2023
Core deposit	$	143,511	$	(72,940)	$	70,571
Customer trust relationships	52,621		(20,942)		31,679
Total other intangible assets	$	196,132	$	(93,882)	$	102,250

Schedule of Estimated Amortization Expense for Future Years

Estimated amortization expense for future years is as follows:

(dollars in thousands)
2024 remaining	$	15,784
2025	18,358
2026	15,555
2027	12,867
2028	10,356
Thereafter	23,875
Total	$	96,795

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Qualified Affordable Housing Projects and Other Tax Credit Investments (Tables)

3 Months Ended

Mar. 31, 2024

Investments in Affordable Housing Projects [Abstract]

Schedule of Qualified Affordable Housing Projects and Other Tax Credit Investments

The following table summarizes Old National’s investments in qualified affordable housing projects and other tax credit investments:

(dollars in thousands)		March 31, 2024				December 31, 2023
Investment	Accounting Method	Investment		Unfunded Commitment (1)		Investment		Unfunded Commitment
LIHTC	Proportional amortization	$	119,914	$	67,310	$	114,991	$	75,981
FHTC	Proportional amortization (2)	32,757		27,148		34,220		27,421
NMTC	Consolidation	51,421		—		47,727		—
Renewable Energy	Equity	15		—		201		—
Total		$	204,107	$	94,458	$	197,139	$	103,402

(1)All commitments will be paid by Old National by December 31, 2027.

(2)Old National’s FHTC investments were previously accounted for under the Equity method of accounting prior to the adoption of ASU 2023-02 on January 1, 2024.

The following table summarizes the amortization expense and tax benefit recognized for Old National’s qualified affordable housing projects and other tax credit investments:

(dollars in thousands)	Amortization Expense (1)		Tax Expense (Benefit) Recognized (2)
Three Months Ended March 31, 2024
LIHTC	$	2,486	$	(3,331)
FHTC	534		(663)
NMTC	2,546		(3,175)
Renewable Energy	186		—
Total	$	5,752	$	(7,169)
Three Months Ended March 31, 2023
LIHTC	$	1,463	$	(1,908)
FHTC	424		(512)
NMTC	2,091		(2,611)
Renewable Energy	246		—
Total	$	4,224	$	(5,031)

(1)The amortization expense for the LIHTC and FHTC investments is included in our income tax expense. Prior to the adoption of ASU 2023-02, FHTC amortization expense was included in noninterest expense. NMTC amortization is recognized in noninterest expense in correlation to the recognition of tax credits on our tax return. Amortization expense for the Renewable Energy tax credits is included in noninterest expense.

(2)All of the tax benefits recognized are included in our income tax expense. The tax benefit recognized for the NMTC and Renewable Energy investments primarily reflects the tax credits generated from the investments and excludes the net tax expense (benefit) and deferred tax liability of the investments’ income (loss).

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Securities Sold Under Agreements to Repurchase (Tables)

3 Months Ended

Mar. 31, 2024

Securities Sold under Agreements to Repurchase [Abstract]

Schedule of Securities Sold Under Agreements to Repurchase and Weighted-Average Interest Rates

The following table presents securities sold under agreements to repurchase and related weighted-average interest rates:

	At or for the Three Months Ended March 31,
(dollars in thousands)	2024			2023
Outstanding at period end	$	274,493		$	393,018
Average amount outstanding during the period	296,236			412,819
Maximum amount outstanding at any month-end during the period	319,423			430,537
Weighted-average interest rate:
During the period	1.25		%	0.77		%
At period end	3.61		%	0.88		%

Schedule of Remaining Contractual Maturity of Secured Borrowings and Class of Collateral Pledged Under Repurchase Agreements

The following table presents the contractual maturity of our secured borrowings and class of collateral pledged:

	At March 31, 2024
	Remaining Contractual Maturity of the Agreements
(dollars in thousands)	Overnight and Continuous		Up to 30 Days		30-90 Days		Greater Than 90 days		Total
Repurchase Agreements:
U.S. Treasury and agency securities	$	274,493	$	—	$	—	$	—	$	274,493
Total	$	274,493	$	—	$	—	$	—	$	274,493

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Federal Home Loan Bank Advances (Tables)

3 Months Ended

Mar. 31, 2024

Federal Home Loan Banks [Abstract]

Summary of FHLB Advances

The following table summarizes Old National Bank’s FHLB advances:

(dollars in thousands)	March 31, 2024		December 31, 2023
FHLB advances (fixed rates 2.19% to 5.53%    and variable rates 5.33% to 5.36%) maturing    June 2024 to March 2044	$	4,225,528	$	4,300,528
Fair value hedge basis adjustments and unamortized    prepayment fees	(32,489)		(19,847)
Total	$	4,193,039	$	4,280,681

Summary of Contractual Maturities of FHLB Advances

Contractual maturities of FHLB advances at March 31, 2024 were as follows:

(dollars in thousands)
Due in 2024	$	100,243
Due in 2025	550,285
Due in 2026	100,000
Due in 2028	850,000
Thereafter	2,625,000
Fair value hedge basis adjustments and unamortized prepayment fees	(32,489)
Total	$	4,193,039

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Other Borrowings (Tables)

3 Months Ended

Mar. 31, 2024

Other Liabilities Disclosure [Abstract]

Summary of Other Borrowings

The following table summarizes Old National’s other borrowings:

(dollars in thousands)	March 31, 2024		December 31, 2023
Old National Bancorp:
Senior unsecured notes (fixed rate 4.125%) maturing August 2024	$	175,000	$	175,000
Unamortized debt issuance costs related to senior unsecured notes	(52)		(91)
Subordinated debentures (fixed rate 5.875%) maturing September 2026	150,000		150,000
Junior subordinated debentures (rates of 6.95% to 9.15%) maturing    July 2031 to September 2037	136,643		136,643
Other basis adjustments	16,916		18,207
Old National Bank:
Finance lease liabilities	20,108		20,955
Subordinated debentures (3-month SOFR plus 4.618%; variable rate 9.94%)    maturing October 2025	12,000		12,000
Leveraged loans for NMTC (fixed rates of 1.00% to 1.43%)    maturing December 2046 to June 2060	168,228		154,284
Other (1)	134,370		97,872
Total other borrowings	$	813,213	$	764,870

(1)Includes overnight borrowings to collateralize certain derivative positions totaling $134.2 million at March 31, 2024 and $97.6 million at December 31, 2023.

The following table summarizes the terms of our outstanding junior subordinated debentures at March 31, 2024:

(dollars in thousands)					Rate at March 31, 2024
Name of Trust	Issuance Date	Issuance Amount		Rate		Maturity Date
Bridgeview Statutory Trust I	July 2001	$	15,464	3-month SOFR plus 3.58%	9.15%	July 31, 2031
Bridgeview Capital Trust II	December 2002	15,464		3-month SOFR plus 3.35%	8.93%	January 7, 2033
First Midwest Capital Trust I	November 2003	37,825		6.95% fixed	6.95%	December 1, 2033
St. Joseph Capital Trust II	March 2005	5,155		3-month SOFR plus 1.75%	7.34%	March 17, 2035
Northern States Statutory Trust I	September 2005	10,310		3-month SOFR plus 1.80%	7.39%	September 15, 2035
Anchor Capital Trust III	August 2005	5,000		3-month SOFR plus 1.55%	7.11%	September 30, 2035
Great Lakes Statutory Trust II	December 2005	6,186		3-month SOFR plus 1.40%	6.99%	December 15, 2035
Home Federal Statutory    Trust I	September 2006	15,464		3-month SOFR plus 1.65%	7.24%	September 15, 2036
Monroe Bancorp Capital    Trust I	July 2006	3,093		3-month SOFR plus 1.60%	7.18%	October 7, 2036
Tower Capital Trust 3	December 2006	9,279		3-month SOFR plus 1.69%	7.29%	March 1, 2037
Monroe Bancorp Statutory    Trust II	March 2007	5,155		3-month SOFR plus 1.60%	7.19%	June 15, 2037
Great Lakes Statutory Trust III	June 2007	8,248		3-month SOFR plus 1.70%	7.29%	September 15, 2037
Total		$	136,643

The following table summarizes Old National Bank’s unfunded loan commitments and standby letters of credit:

(dollars in thousands)	March 31, 2024		December 31, 2023
Unfunded loan commitments	$	8,716,398	$	8,912,587
Standby letters of credit (1)	172,444		192,237

(1)Notional amount, which represents the maximum amount of future funding requirements. The carrying value was $1.4 million at March 31, 2024 and $1.3 million at December 31, 2023.

Summary of Contractual Maturities of Other Borrowings

Contractual maturities of other borrowings at March 31, 2024 were as follows:

(dollars in thousands)
Due in 2024	$	311,233
Due in 2025	14,747
Due in 2026	151,582
Due in 2027	1,641
Due in 2028	1,598
Thereafter	315,407
Unamortized debt issuance costs and other basis adjustments	17,005
Total	$	813,213

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Accumulated Other Comprehensive Income (Loss) (Tables)

3 Months Ended

Mar. 31, 2024

Equity [Abstract]

Schedule of AOCI

The following table summarizes the changes within each classification of AOCI, net of tax:

(dollars in thousands)	Unrealized Gains and Losses on Available- for-Sale Debt Securities		Unrealized Gains and Losses on Held-to- Maturity Securities		Gains and Losses on Hedges		Defined Benefit Pension Plans		Total
Three Months Ended March 31, 2024
Balance at beginning of period	$	(652,518)	$	(95,472)	$	9,181	$	—	$	(738,809)
Other comprehensive income (loss) before    reclassifications	(33,463)		—		(14,205)		—		(47,668)
Amounts reclassified from AOCI to income (1)	12		3,221		3,616		—		6,849
Balance at end of period	$	(685,969)	$	(92,251)	$	(1,408)	$	—	$	(779,628)
Three Months Ended March 31, 2023
Balance at beginning of period	$	(642,346)	$	(112,664)	$	(31,549)	$	137	$	(786,422)
Other comprehensive income (loss) before    reclassifications	27,219		1,325		35,985		—		64,529
Amounts reclassified from AOCI to income (1)	3,867		4,373		5,436		(141)		13,535
Balance at end of period	$	(611,260)	$	(106,966)	$	9,872	$	(4)	$	(708,358)

(1)See table below for details about reclassifications to income.

Schedule of Reclassifications out of AOCI

The following table summarizes the amounts reclassified out of each component of AOCI for the three months ended March 31, 2024 and 2023:

	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Details about AOCI Components	Amount Reclassified from AOCI				Affected Line Item in the Statement of Income
Unrealized gains and losses on    available-for-sale securities	$	(16)	$	(5,216)	Debt securities gains (losses), net
	4		1,349		Income tax (expense) benefit
	$	(12)	$	(3,867)	Net income
Amortization of unrealized losses on    held-to-maturity securities transferred    from available-for-sale	$	(4,318)	$	(5,829)	Interest income (expense)
	1,097		1,456		Income tax (expense) benefit
	$	(3,221)	$	(4,373)	Net income
Gains and losses on hedges    Interest rate contracts	$	(4,877)	$	(7,292)	Interest income (expense)
	1,261		1,856		Income tax (expense) benefit
	$	(3,616)	$	(5,436)	Net income
Amortization of defined benefit    pension items
Actuarial gains (losses)	$	—	$	188	Salaries and employee benefits
	—		(47)		Income tax (expense) benefit
	$	—	$	141	Net income
Total reclassifications for the period	$	(6,849)	$	(13,535)	Net income

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Income Taxes (Tables)

3 Months Ended

Mar. 31, 2024

Income Tax Disclosure [Abstract]

Summary of Differences in Taxes from Continuing Operations Computed at Statutory Rate

The following is a summary of the major items comprising the differences in taxes from continuing operations computed at the federal statutory rate and as recorded in the consolidated statements of income:

	Three Months Ended March 31,
(dollars in thousands)	2024			2023
Provision at statutory rate of 21%	$	32,082		$	39,484
Tax-exempt income:
Tax-exempt interest	(4,958)			(4,486)
Section 291/265 interest disallowance	885			386
Company-owned life insurance income	(694)			(627)
Tax-exempt income	(4,767)			(4,727)
State income taxes	5,147			8,142
Interim period effective rate adjustment	944			(1,717)
Tax credit investments - federal	(3,055)			(2,526)
Officer compensation limitation	765			1,040
Non-deductible FDIC premiums	1,747			2,110
Other, net	(375)			(385)
Income tax expense	$	32,488		$	41,421
Effective tax rate	21.3		%	22.0		%

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Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Interest Rate Derivatives

The following table summarizes Old National’s derivatives designated as hedges:

	March 31, 2024						December 31, 2023
			Fair Value						Fair Value
(dollars in thousands)	Notional		Assets (1)		Liabilities (2)		Notional		Assets (1)		Liabilities (2)
Cash flow hedges
Interest rate swaps, collars, and floors on loan    pools	$	1,800,000	$	2,670	$	15,063	$	1,600,000	$	10,472	$	6,014
Interest rate swaps on borrowings (3)	150,000		—		—		150,000		—		—
Fair value hedges
Interest rate swaps on investment securities (3)	998,107		—		—		998,107		—		—
Interest rate swaps on borrowings (3)	900,000		—		—		900,000		—		—
Total			$	2,670	$	15,063			$	10,472	$	6,014

(1)Derivative assets are included in other assets on the balance sheet.

(2)Derivative liabilities are included in other liabilities on the balance sheet.

(3)The fair values of certain counterparty interest rate swaps are zero due to the settlement of centrally cleared variation margin rules.

Schedule of Derivative Instruments Effect on Consolidated Statement of Income

The effect of derivative instruments in fair value hedging relationships on the consolidated statements of income were as follows:

(dollars in thousands)						Gain (Loss) Recognized in Income on Related Hedged Items
Derivatives in Fair Value Hedging Relationships	Location of Gain or (Loss) Recognized in Income on Derivative	Gain (Loss) Recognized in Income on Derivative		Hedged Items in Fair Value Hedging Relationships	Location of Gain or (Loss) Recognized in in Income on Related Hedged Item
Three Months Ended March 31, 2024
Interest rate contracts	Interest income/(expense)	$	(13,970)	Fixed-rate debt	Interest income/(expense)	$	14,127
Interest rate contracts	Interest income/(expense)	25,848		Fixed-rate investment securities	Interest income/(expense)	(25,903)
Total		$	11,878			$	(11,776)
Three Months Ended March 31, 2023
Interest rate contracts	Interest income/(expense)	$	2,153	Fixed-rate debt	Interest income/(expense)	$	(2,218)
Interest rate contracts	Interest income/(expense)	(63,115)		Fixed-rate investment securities	Interest income/(expense)	63,251
Total		$	(60,962)			$	61,033

The effect of derivative instruments in cash flow hedging relationships on the consolidated statements of income were as follows:

		Three Months Ended March 31,				Three Months Ended March 31,
(dollars in thousands)		2024		2023		2024		2023
Derivatives in Cash Flow Hedging Relationships	Location of Gain or (Loss) Reclassified from AOCI into Income	Gain (Loss) Recognized in Other Comprehensive Income on Derivative				Gain (Loss) Reclassified from AOCI into Income
Interest rate contracts	Interest income/(expense)	$	(19,159)	$	6,603	$	(5,910)	$	(7,637)

The effect of derivatives not designated as hedging instruments on the consolidated statements of income were as follows:

		Three Months Ended March 31,
(dollars in thousands)		2024		2023
Interest rate contracts (1)	Other income/(expense)	$	568	$	(138)
Mortgage contracts	Mortgage banking revenue	737		107
Foreign currency contracts	Other income/(expense)	(34)		(1)
Total		$	1,271	$	(32)

(1)Includes the valuation differences between the customer and offsetting swaps.

Summary of Derivatives Not Designated as Hedging Instruments

hedges:

	March 31, 2024						December 31, 2023
			Fair Value						Fair Value
(dollars in thousands)	Notional		Assets (1)		Liabilities (2)		Notional		Assets (1)		Liabilities (2)
Interest rate lock commitments	$	67,995	$	317	$	—	$	25,151	$	291	$	—
Forward mortgage loan contracts	77,584		144		—		39,529		—		566
Customer interest rate swaps	5,886,639		11,328		270,910		5,954,216		33,182		228,750
Counterparty interest rate swaps (3)	5,886,639		152,855		11,380		5,954,216		121,969		33,346
Customer foreign currency contracts	10,317		57		43		12,455		320		59
Counterparty foreign currency contracts	10,484		108		7		12,308		68		181
Total			$	164,809	$	282,340			$	155,830	$	262,902

(1)Derivative assets are included in other assets on the balance sheet.

(2)Derivative liabilities are included in other liabilities on the balance sheet.

(3)The fair values of certain counterparty interest rate swaps are zero due to the settlement of centrally cleared variation margin rules.

Schedule of Offsetting Assets

The following table presents the fair value of the Company’s derivatives and offsetting positions:

	March 31, 2024				December 31, 2023
(dollars in thousands)	Assets		Liabilities		Assets		Liabilities
Gross amounts recognized	$	167,479	$	297,403	$	166,302	$	268,916
Less: amounts offset in the Consolidated Balance Sheet	—		—		—		—
Net amount presented in the Consolidated Balance Sheet	167,479		297,403		166,302		268,916
Gross amounts not offset in the Consolidated Balance Sheet
Offsetting derivative positions	(26,443)		(26,443)		(39,360)		(39,360)
Cash collateral pledged	—		(134,459)		—		(97,840)
Net credit exposure	$	141,036	$	136,501	$	126,942	$	131,716

Schedule of Offsetting Liabilities

The following table presents the fair value of the Company’s derivatives and offsetting positions:

	March 31, 2024				December 31, 2023
(dollars in thousands)	Assets		Liabilities		Assets		Liabilities
Gross amounts recognized	$	167,479	$	297,403	$	166,302	$	268,916
Less: amounts offset in the Consolidated Balance Sheet	—		—		—		—
Net amount presented in the Consolidated Balance Sheet	167,479		297,403		166,302		268,916
Gross amounts not offset in the Consolidated Balance Sheet
Offsetting derivative positions	(26,443)		(26,443)		(39,360)		(39,360)
Cash collateral pledged	—		(134,459)		—		(97,840)
Net credit exposure	$	141,036	$	136,501	$	126,942	$	131,716

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Commitments, Contingencies, and Financial Guarantees (Tables)

3 Months Ended

Mar. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

Summary of Loan Commitments

The following table summarizes Old National’s other borrowings:

(dollars in thousands)	March 31, 2024		December 31, 2023
Old National Bancorp:
Senior unsecured notes (fixed rate 4.125%) maturing August 2024	$	175,000	$	175,000
Unamortized debt issuance costs related to senior unsecured notes	(52)		(91)
Subordinated debentures (fixed rate 5.875%) maturing September 2026	150,000		150,000
Junior subordinated debentures (rates of 6.95% to 9.15%) maturing    July 2031 to September 2037	136,643		136,643
Other basis adjustments	16,916		18,207
Old National Bank:
Finance lease liabilities	20,108		20,955
Subordinated debentures (3-month SOFR plus 4.618%; variable rate 9.94%)    maturing October 2025	12,000		12,000
Leveraged loans for NMTC (fixed rates of 1.00% to 1.43%)    maturing December 2046 to June 2060	168,228		154,284
Other (1)	134,370		97,872
Total other borrowings	$	813,213	$	764,870

(1)Includes overnight borrowings to collateralize certain derivative positions totaling $134.2 million at March 31, 2024 and $97.6 million at December 31, 2023.

The following table summarizes the terms of our outstanding junior subordinated debentures at March 31, 2024:

(dollars in thousands)					Rate at March 31, 2024
Name of Trust	Issuance Date	Issuance Amount		Rate		Maturity Date
Bridgeview Statutory Trust I	July 2001	$	15,464	3-month SOFR plus 3.58%	9.15%	July 31, 2031
Bridgeview Capital Trust II	December 2002	15,464		3-month SOFR plus 3.35%	8.93%	January 7, 2033
First Midwest Capital Trust I	November 2003	37,825		6.95% fixed	6.95%	December 1, 2033
St. Joseph Capital Trust II	March 2005	5,155		3-month SOFR plus 1.75%	7.34%	March 17, 2035
Northern States Statutory Trust I	September 2005	10,310		3-month SOFR plus 1.80%	7.39%	September 15, 2035
Anchor Capital Trust III	August 2005	5,000		3-month SOFR plus 1.55%	7.11%	September 30, 2035
Great Lakes Statutory Trust II	December 2005	6,186		3-month SOFR plus 1.40%	6.99%	December 15, 2035
Home Federal Statutory    Trust I	September 2006	15,464		3-month SOFR plus 1.65%	7.24%	September 15, 2036
Monroe Bancorp Capital    Trust I	July 2006	3,093		3-month SOFR plus 1.60%	7.18%	October 7, 2036
Tower Capital Trust 3	December 2006	9,279		3-month SOFR plus 1.69%	7.29%	March 1, 2037
Monroe Bancorp Statutory    Trust II	March 2007	5,155		3-month SOFR plus 1.60%	7.19%	June 15, 2037
Great Lakes Statutory Trust III	June 2007	8,248		3-month SOFR plus 1.70%	7.29%	September 15, 2037
Total		$	136,643

The following table summarizes Old National Bank’s unfunded loan commitments and standby letters of credit:

(dollars in thousands)	March 31, 2024		December 31, 2023
Unfunded loan commitments	$	8,716,398	$	8,912,587
Standby letters of credit (1)	172,444		192,237

(1)Notional amount, which represents the maximum amount of future funding requirements. The carrying value was $1.4 million at March 31, 2024 and $1.3 million at December 31, 2023.

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Fair Value (Tables)

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis, including financial assets and liabilities for which we have elected the fair value option, are summarized below: 

			Fair Value Measurements at March 31, 2024 Using
(dollars in thousands)	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets
Equity securities	$	84,954	$	84,954	$	—	$	—
Investment securities available-for-sale:
U.S. Treasury	233,051		233,051		—		—
U.S. government-sponsored entities and agencies	1,183,019		—		1,183,019		—
Mortgage-backed securities - Agency	4,550,023		—		4,550,023		—
States and political subdivisions	515,104		—		515,104		—
Pooled trust preferred securities	11,274		—		11,274		—
Other securities	299,181		—		299,181		—
Loans held-for-sale	19,418		—		19,418		—
Derivative assets	167,479		—		167,479		—
Financial Liabilities
Derivative liabilities	297,403		—		297,403		—

			Fair Value Measurements at December 31, 2023 Using
(dollars in thousands)	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets
Equity securities	$	80,372	$	80,372	$	—	$	—
Investment securities available-for-sale:
U.S. Treasury	396,733		396,733		—		—
U.S. government-sponsored entities and agencies	1,231,264		—		1,231,264		—
Mortgage-backed securities - Agency	4,216,560		—		4,216,560		—
States and political subdivisions	535,260		—		535,260		—
Pooled trust preferred securities	11,337		—		11,337		—
Other securities	321,901		—		321,901		—
Loans held-for-sale	32,006		—		32,006		—
Derivative assets	166,302		—		166,302		—
Financial Liabilities
Derivative liabilities	268,916		—		268,916		—

Schedule of Assets Measured at Fair Value on a Non-Recurring Basis

Assets measured at fair value at March 31, 2024 on a non-recurring basis are summarized below:

			Fair Value Measurements at March 31, 2024 Using
(dollars in thousands)	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Collateral Dependent Loans:
Commercial loans	$	26,057	$	—	$	—	$	26,057
Commercial real estate loans	83,492		—		—		83,492
Foreclosed Assets:
Commercial	1,669		—		—		1,669

Assets measured at fair value at December 31, 2023 on a non-recurring basis are summarized below:

			Fair Value Measurements at December 31, 2023 Using
(dollars in thousands)	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Collateral Dependent Loans:
Commercial loans	$	11,017	$	—	$	—	$	11,017
Commercial real estate loans	95,457		—		—		95,457
Foreclosed Assets:
Commercial real estate	1,669		—		—		1,669

Schedule of Quantitative Information about Significant Unobservable Inputs Used in Fair Value Measurements

The table below provides quantitative information about significant unobservable inputs used in fair value measurements within Level 3 of the fair value hierarchy:

(dollars in thousands)	Fair Value		Valuation Techniques	Unobservable Input	Range (Weighted Average) (1)
March 31, 2024
Collateral Dependent Loans
Commercial loans	$	26,057	Discounted	Discount for type of property,	2% - 38% (29%)
			cash flow	age of appraisal, and current status
Commercial real estate loans	83,492		Discounted	Discount for type of property,	1% - 34% (13%)
			cash flow	age of appraisal, and current status
Foreclosed Assets
Commercial real estate	1,669		Fair value of	Discount for type of property,	4% - 8% (4%)
			collateral	age of appraisal, and current status
December 31, 2023
Collateral Dependent Loans
Commercial loans	$	11,017	Discounted	Discount for type of property,	5% - 37% (27%)
			cash flow	age of appraisal, and current status
Commercial real estate loans	95,457		Discounted	Discount for type of property,	2% - 38% (16%)
			cash flow	age of appraisal, and current status
Foreclosed Assets
Commercial real estate	1,669		Fair value of	Discount for type of property,	4% - 8% (4%)
			collateral	age of appraisal, and current status

(1)Unobservable inputs were weighted by the relative fair value of the instruments.

Schedule of Difference Between the Aggregate Fair Value and the Aggregate Remaining Principal Balance

follows: 

(dollars in thousands)	Aggregate Fair Value		Difference		Contractual Principal
March 31, 2024
Loans held-for-sale	$	19,418	$	414	$	19,004
December 31, 2023
Loans held-for-sale	$	32,006	$	621	$	31,385

The following table presents the amount of gains and losses from fair value changes included in income before income taxes for financial assets carried at fair value:

(dollars in thousands)	Other Gains and (Losses)		Interest Income		Interest (Expense)		Total Changes in Fair Values Included in Current Period Earnings
Three Months Ended March 31, 2024
Loans held-for-sale	$	(202)	$	—	$	(5)	$	(207)
Three Months Ended March 31, 2023
Loans held-for-sale	$	(53)	$	—	$	(3)	$	(56)

Carrying Amounts and Estimated Fair Values of Financial Instruments, Not Carried at Fair Value

The carrying amounts and estimated fair values of financial instruments not carried at fair value were as follows: 

			Fair Value Measurements at March 31, 2024 Using
(dollars in thousands)	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets
Cash, due from banks, money market,    and other interest-earning investments	$	939,499	$	939,499	$	—	$	—
Investment securities held-to-maturity:
U.S. government-sponsored entities and agencies	827,684		—		662,735		—
Mortgage-backed securities - Agency	1,016,858		—		857,657		—
State and political subdivisions	1,156,807		—		1,027,184		—
Loans, net:
Commercial	9,522,947		—		—		9,357,300
Commercial real estate	14,492,040		—		—		14,005,872
Residential real estate	6,639,480		—		—		5,682,754
Consumer credit	2,649,139		—		—		2,607,831
Accrued interest receivable	219,809		1,133		47,057		171,619
Financial Liabilities
Deposits:
Noninterest-bearing demand deposits	$	9,257,709	$	9,257,709	$	—	$	—
Checking, NOW, savings, and money market    interest-bearing deposits	22,490,875		22,490,875		—		—
Time deposits	5,950,834		—		5,913,854		—
Federal funds purchased and interbank borrowings	50,416		50,416		—		—
Securities sold under agreements to repurchase	274,493		274,493		—		—
FHLB advances	4,193,039		—		3,994,880		—
Other borrowings	813,213		—		798,748		—
Accrued interest payable	54,690		—		54,690		—
Standby letters of credit	1,379		—		—		1,379
Off-Balance Sheet Financial Instruments
Commitments to extend credit	$	—	$	—	$	—	$	3,824

			Fair Value Measurements at December 31, 2023 Using
(dollars in thousands)	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets
Cash, due from banks, money market,    and other interest-earning investments	$	1,175,058	$	1,175,058	$	—	$	—
Investment securities held-to-maturity:
U.S. government-sponsored entities and agencies	825,953		—		671,126		—
Mortgage-backed securities - Agency	1,029,131		—		881,994		—
State and political subdivisions	1,158,409		—		1,048,068		—
Loans, net:
Commercial	9,392,267		—		—		9,258,193
Commercial real estate	13,984,273		—		—		13,640,868
Residential real estate	6,678,606		—		—		5,579,999
Consumer credit	2,629,171		—		—		2,555,121
Accrued interest receivable	225,159		859		54,465		169,835
Financial Liabilities
Deposits:
Noninterest-bearing demand deposits	$	9,664,247	$	9,664,247	$	—	$	—
Checking, NOW, savings, and money market    interest-bearing deposits	21,991,789		21,991,789		—		—
Time deposits	5,579,144		—		5,552,538		—
Federal funds purchased and interbank borrowings	390		390		—		—
Securities sold under agreements to repurchase	285,206		285,206		—		—
FHLB advances	4,280,681		—		4,090,954		—
Other borrowings	764,870		—		755,592		—
Accrued interest payable	57,094		—		57,094		—
Standby letters of credit	1,318		—		—		1,318
Off-Balance Sheet Financial Instruments
Commitments to extend credit	$	—	$	—	$	—	$	3,839

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Acquisition and Divestiture Activity (Details) $ / shares in Units, $ in Thousands	Apr. 01, 2024 USD ($) $ / shares	Mar. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)
Business Acquisition [Line Items]
Assets		$ 49,534,918	$ 49,089,836
Total loans		33,623,319	32,991,927
Deposits		$ 37,699,418	$ 37,235,180
CapStar Financial Holdings, Inc. | Subsequent Event
Business Acquisition [Line Items]
Shares exchange ratio	1.155
Value of issuance common stock shares	$ 418,000
Share price (in dollars per share) | $ / shares	$ 17.41
CapStar Financial Holdings, Inc. | CapStar Financial Holdings, Inc. | Subsequent Event
Business Acquisition [Line Items]
Assets	$ 3,000,000
Total loans	2,300,000
Deposits	$ 2,600,000

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Net Income Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Earnings Per Share [Abstract]
Net income	$ 120,284	$ 146,600
Preferred dividends	(4,034)	(4,034)
Net income applicable to common shareholders	$ 116,250	$ 142,566
Weighted average common shares outstanding:
Weighted average common shares outstanding (basic) (in shares)	290,980	291,088
Effect of dilutive securities:
Restricted stock (in shares)	1,227	1,666
Stock appreciation rights (in shares)	0	2
Weighted average diluted shares outstanding (in shares)	292,207	292,756
Basic Net Income Per Common Share (in dollars per share)	$ 0.40	$ 0.49
Diluted Net Income Per Common Share (in dollars per share)	$ 0.40	$ 0.49

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Investment Securities - Amortized Cost and Fair Value of Available-for-Sale Investment Securities Portfolio (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Available-for-Sale
Total	$ 7,834,082	$ 7,684,889
Unrealized Gains	2,810	4,607
Unrealized Losses	(917,039)	(874,143)
Basis adjustments	(128,201)	(102,298)
Fair Value	6,791,652	6,713,055
Held-to-Maturity
Allowance for securities held-to-maturity	(150)	(150)
Total held-to-maturity securities	3,001,349	3,013,493
Unrealized Gains	864	1,800
Unrealized Losses	(454,637)	(414,105)
Basis adjustments	0	0
Fair Value	2,547,576	2,601,188
U.S. Treasury
Available-for-Sale
Total	291,538	449,817
Unrealized Gains	19	154
Unrealized Losses	(9,956)	(11,941)
Basis adjustments	(48,550)	(41,297)
Fair Value	233,051	396,733
U.S. government-sponsored entities and agencies
Available-for-Sale
Total	1,448,561	1,487,879
Unrealized Gains	0	33
Unrealized Losses	(184,941)	(192,717)
Basis adjustments	(80,601)	(63,931)
Fair Value	1,183,019	1,231,264
Held-to-Maturity
Amortized Cost	827,684	825,953
Unrealized Gains	0	0
Unrealized Losses	(164,949)	(154,827)
Basis adjustments	0	0
Fair Value	662,735	671,126
Mortgage-backed securities
Available-for-Sale
Total	5,223,119	4,835,319
Unrealized Gains	1,996	3,093
Unrealized Losses	(675,092)	(621,852)
Basis adjustments	0	0
Fair Value	4,550,023	4,216,560
Held-to-Maturity
Amortized Cost	1,016,858	1,029,131
Unrealized Gains	0	0
Unrealized Losses	(159,201)	(147,137)
Basis adjustments	0	0
Fair Value	857,657	881,994
States and political subdivisions
Available-for-Sale
Total	537,930	554,509
Unrealized Gains	404	878
Unrealized Losses	(24,180)	(23,057)
Basis adjustments	950	2,930
Fair Value	515,104	535,260
Held-to-Maturity
Amortized Cost	1,156,957	1,158,559
Unrealized Gains	864	1,800
Unrealized Losses	(130,487)	(112,141)
Basis adjustments	0	0
Fair Value	1,027,334	1,048,218
Pooled trust preferred securities
Available-for-Sale
Total	13,800	13,797
Unrealized Gains	0	0
Unrealized Losses	(2,526)	(2,460)
Basis adjustments	0	0
Fair Value	11,274	11,337
Other securities
Available-for-Sale
Total	319,134	343,568
Unrealized Gains	391	449
Unrealized Losses	(20,344)	(22,116)
Basis adjustments	0	0
Fair Value	$ 299,181	$ 321,901

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Investment Securities - Schedule of Proceeds from Sales or Calls and Realized Gain and Losses of Available-for-sale Investment Securities and Other Securities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Proceeds from Sale, Maturity and Collection of Investments [Abstract]
Proceeds	$ 61,250	$ 57,955
Realized gains	3	909
Realized losses	$ (19)	$ (6,125)

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Investment Securities - Expected Maturities of Investment Securities Portfolio (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Available-for-sale, Amortized Cost
Within one year	$ 177,458
One to five years	1,991,571
Five to ten years	4,193,417
Beyond ten years	1,471,636
Total	7,834,082	$ 7,684,889
Available-for-sale, Fair Value
Within one year	174,950
One to five years	1,848,581
Five to ten years	3,608,726
Beyond ten years	1,159,395
Total	$ 6,791,652	6,713,055
Available-for-sale, Weighted Average Yield
Within one year	3.39%
One to five years	3.44%
Five to ten years	2.57%
Beyond ten years	2.58%
Total	2.81%
Held-to-Maturity, Amortized Cost
Within one year	$ 157
One to five years	160,838
Five to ten years	1,161,402
Beyond ten years	1,678,952
Total held-to-maturity securities	3,001,349	3,013,493
Held-to-Maturity, Fair Value
Within one year	147
One to five years	132,056
Five to ten years	1,006,755
Beyond ten years	1,408,618
Total	$ 2,547,576	$ 2,601,188
Held-to-Maturity, Weighted Average Yield
Within one year	2.23%
One to five years	2.63%
Five to ten years	2.62%
Beyond ten years	2.73%
Total	2.68%

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Investment Securities - Available-for-Sale and Held-to-Maturity Investment Securities with Unrealized Losses by Aggregated Major Security Type and Length of Time in Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Available-for-Sale, Less than 12 months, Fair Value	$ 685,498	$ 224,979
Available-for-Sale, Less than 12 months, Unrealized Losses	(5,756)	(1,476)
Available-for-Sale, 12 months or longer, Fair Value	5,581,695	5,742,885
Available-for-Sale, 12 months or longer, Unrealized Losses	(911,283)	(872,667)
Available-for-Sale, Fair Value	6,267,193	5,967,864
Available-for-Sale, Unrealized Losses	(917,039)	(874,143)
U.S. Treasury
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Available-for-Sale, Less than 12 months, Fair Value	13,882	8,937
Available-for-Sale, Less than 12 months, Unrealized Losses	(77)	(42)
Available-for-Sale, 12 months or longer, Fair Value	183,031	191,027
Available-for-Sale, 12 months or longer, Unrealized Losses	(9,879)	(11,899)
Available-for-Sale, Fair Value	196,913	199,964
Available-for-Sale, Unrealized Losses	(9,956)	(11,941)
U.S. government-sponsored entities and agencies
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Available-for-Sale, Less than 12 months, Fair Value	3,983	0
Available-for-Sale, Less than 12 months, Unrealized Losses	(74)	0
Available-for-Sale, 12 months or longer, Fair Value	1,179,036	1,189,314
Available-for-Sale, 12 months or longer, Unrealized Losses	(184,867)	(192,717)
Available-for-Sale, Fair Value	1,183,019	1,189,314
Available-for-Sale, Unrealized Losses	(184,941)	(192,717)
Mortgage-backed securities
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Available-for-Sale, Less than 12 months, Fair Value	498,441	90,145
Available-for-Sale, Less than 12 months, Unrealized Losses	(4,781)	(710)
Available-for-Sale, 12 months or longer, Fair Value	3,710,045	3,835,552
Available-for-Sale, 12 months or longer, Unrealized Losses	(670,311)	(621,142)
Available-for-Sale, Fair Value	4,208,486	3,925,697
Available-for-Sale, Unrealized Losses	(675,092)	(621,852)
States and political subdivisions
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Available-for-Sale, Less than 12 months, Fair Value	132,681	86,865
Available-for-Sale, Less than 12 months, Unrealized Losses	(691)	(495)
Available-for-Sale, 12 months or longer, Fair Value	282,382	259,767
Available-for-Sale, 12 months or longer, Unrealized Losses	(23,489)	(22,562)
Available-for-Sale, Fair Value	415,063	346,632
Available-for-Sale, Unrealized Losses	(24,180)	(23,057)
Pooled trust preferred securities
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Available-for-Sale, Less than 12 months, Fair Value	0	0
Available-for-Sale, Less than 12 months, Unrealized Losses	0	0
Available-for-Sale, 12 months or longer, Fair Value	11,274	11,337
Available-for-Sale, 12 months or longer, Unrealized Losses	(2,526)	(2,460)
Available-for-Sale, Fair Value	11,274	11,337
Available-for-Sale, Unrealized Losses	(2,526)	(2,460)
Other securities
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Available-for-Sale, Less than 12 months, Fair Value	36,511	39,032
Available-for-Sale, Less than 12 months, Unrealized Losses	(133)	(229)
Available-for-Sale, 12 months or longer, Fair Value	215,927	255,888
Available-for-Sale, 12 months or longer, Unrealized Losses	(20,211)	(21,887)
Available-for-Sale, Fair Value	252,438	294,920
Available-for-Sale, Unrealized Losses	$ (20,344)	$ (22,116)

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Investment Securities - Held-to-Maturity with Unrecognized Losses (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Fair Value
Less than 12 months	$ 19,953	$ 0
12 months or longer	2,477,754	2,530,274
Total	2,497,707	2,530,274
Unrecognized Losses
Less than 12 months	(100)	0
12 months or longer	(454,537)	(414,105)
Total	(454,637)	(414,105)
U.S. government-sponsored entities and agencies
Fair Value
Less than 12 months	0	0
12 months or longer	662,735	671,126
Total	662,735	671,126
Unrecognized Losses
Less than 12 months	0	0
12 months or longer	(164,949)	(154,827)
Total	(164,949)	(154,827)
Mortgage-backed securities
Fair Value
Less than 12 months	0	0
12 months or longer	857,657	881,994
Total	857,657	881,994
Unrecognized Losses
Less than 12 months	0	0
12 months or longer	(159,201)	(147,137)
Total	(159,201)	(147,137)
States and political subdivisions
Fair Value
Less than 12 months	19,953	0
12 months or longer	957,362	977,154
Total	977,315	977,154
Unrecognized Losses
Less than 12 months	(100)	0
12 months or longer	(130,387)	(112,141)
Total	$ (130,487)	$ (112,141)

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Investment Securities - Additional Information (Details)	3 Months Ended
	Mar. 31, 2024 USD ($) security	Mar. 31, 2023 USD ($)	Dec. 31, 2023 USD ($)
Summary of Investment Holdings [Line Items]
Transferred from available-for-sale to held-for-maturity	$ 123,300,000		$ 127,600,000
Allowance for credit losses for available-for-sale debt securities	$ 0		$ 0
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration]	Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest		Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest
Allowance for securities held-to-maturity	$ (150,000)		$ (150,000)
Accrued interest receivable	$ 40,300,000		50,300,000
Number of securities in security portfolio | security	2,941
Number of securities in unrealized loss position | security	2,702
Equity securities, at fair value	$ 84,954,000		80,372,000
Losses on equity securities	300,000	$ (800,000)
Impairments on equity securities without readily determinable fair value	0	0
Downward adjustments on equity securities without readily determinable fair value	0	$ 0
Other Assets
Summary of Investment Holdings [Line Items]
Equity securities without readily determinable fair value	474,700,000		$ 449,300,000
Other Assets | Partnership Interest
Summary of Investment Holdings [Line Items]
Equity securities without readily determinable fair value	270,600,000
Other Assets | Initiatives in Low-to-Moderate Income Neighborhoods
Summary of Investment Holdings [Line Items]
Equity securities without readily determinable fair value	$ 204,100,000

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Loans and Allowance for Credit Losses - Additional Information (Details)	3 Months Ended
	Mar. 31, 2024 USD ($) segment portfolio	Dec. 31, 2023 USD ($)
Financing Receivable, Allowance for Credit Losses [Line Items]
Loan participations	$ 3,000,000,000
Loan participations sold	1,300,000,000
Loan participations retained	$ 1,700,000,000
Number of loan portfolios | portfolio	4
Number of loan segments | segment	7
Accrued interest receivable on loans	$ 171,600,000	$ 169,800,000
Loan placed on nonaccrual when past due, number of days	90 days
Unfunded commitments on TDRs	$ 0	$ 0
Commercial real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Percentage of risk-based capital	242.00%
Regulatory guideline limit	300.00%

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Loans and Allowance for Credit Losses - Schedule of Composition of Loans and Impact of Adoption (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023	Dec. 31, 2022
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	$ 33,623,319		$ 32,991,927
Allowance for credit losses on loans	(319,713)	$ (298,711)	(307,610)	$ (303,671)
Net loans	33,303,606		32,684,317
Taxable	487,361	410,375
Portfolio Segment Reclassifications
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	0		0
Net loans	0		0
Portfolio Segment After Reclassifications
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	33,623,319		32,991,927
Allowance for credit losses on loans	(319,713)		(307,610)
Net loans	33,303,606		32,684,317
Taxable	88,900		93,700
Commercial
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	9,648,269		9,512,230
Allowance for credit losses on loans	(123,437)	(125,768)	(118,333)	(120,612)
Commercial | Portfolio Segment Reclassifications
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	(232,045)		(232,764)
Commercial | Portfolio Segment After Reclassifications
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	9,416,224		9,279,466
Commercial real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	14,653,958		14,140,629
Allowance for credit losses on loans	(160,640)	(135,348)	(155,099)	(138,244)
Commercial real estate | Portfolio Segment Reclassifications
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	(172,659)		(169,058)
Commercial real estate | Portfolio Segment After Reclassifications
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	14,481,299		13,971,571
BBCC
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for credit losses on loans	(3,163)	(2,316)	(2,887)	(2,431)
BBCC | Portfolio Segment Reclassifications
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	404,704		401,822
BBCC | Portfolio Segment After Reclassifications
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	404,704		401,822
Residential real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	6,661,379		6,699,443
Allowance for credit losses on loans	(21,899)	(20,207)	(20,837)	(21,916)
Residential real estate | Portfolio Segment Reclassifications
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	0		0
Residential real estate | Portfolio Segment After Reclassifications
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	6,661,379		6,699,443
Consumer
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	2,659,713		2,639,625
Consumer | Portfolio Segment Reclassifications
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	(2,659,713)		(2,639,625)
Indirect
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	1,091,998		1,050,982
Allowance for credit losses on loans	(1,218)	(1,434)	(1,236)	(1,532)
Indirect | Portfolio Segment Reclassifications
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	1,091,998		1,050,982
Indirect | Portfolio Segment After Reclassifications
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	1,091,998		1,050,982
Direct
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	506,305		523,172
Allowance for credit losses on loans	(2,952)	(6,766)	(3,169)	(12,116)
Direct | Portfolio Segment Reclassifications
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	506,305		523,172
Direct | Portfolio Segment After Reclassifications
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	506,305		523,172
Home equity
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	1,061,410		1,065,471
Allowance for credit losses on loans	(6,404)	$ (6,872)	(6,049)	$ (6,820)
Home equity | Portfolio Segment Reclassifications
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	1,061,410		1,065,471
Home equity | Portfolio Segment After Reclassifications
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	1,061,410		1,065,471
Direct Finance Leases
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	$ 161,700		$ 169,700

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Loans and Allowance for Credit Losses - Schedule of Activity in Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at Beginning of Period	$ 307,610	$ 303,671
Charge-offs	(14,020)	(18,180)
Recoveries	2,270	1,751
Provision for Loan Losses	23,853	11,469
Balance at End of Period	319,713	298,711
Commercial
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at Beginning of Period	118,333	120,612
Charge-offs	(3,659)	(12,423)
Recoveries	334	283
Provision for Loan Losses	8,429	17,296
Balance at End of Period	123,437	125,768
Commercial real estate
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at Beginning of Period	155,099	138,244
Charge-offs	(6,641)	(1,189)
Recoveries	1,035	263
Provision for Loan Losses	11,147	(1,970)
Balance at End of Period	160,640	135,348
BBCC
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at Beginning of Period	2,887	2,431
Charge-offs	(76)	(28)
Recoveries	18	73
Provision for Loan Losses	334	(160)
Balance at End of Period	3,163	2,316
Residential real estate
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at Beginning of Period	20,837	21,916
Charge-offs	0	(23)
Recoveries	19	72
Provision for Loan Losses	1,043	(1,758)
Balance at End of Period	21,899	20,207
Indirect
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at Beginning of Period	1,236	1,532
Charge-offs	(1,138)	(1,197)
Recoveries	332	412
Provision for Loan Losses	788	687
Balance at End of Period	1,218	1,434
Direct
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at Beginning of Period	3,169	12,116
Charge-offs	(2,428)	(3,238)
Recoveries	487	581
Provision for Loan Losses	1,724	(2,693)
Balance at End of Period	2,952	6,766
Home equity
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at Beginning of Period	6,049	6,820
Charge-offs	(78)	(82)
Recoveries	45	67
Provision for Loan Losses	388	67
Balance at End of Period	$ 6,404	$ 6,872

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Loans and Allowance for Credit Losses - Schedule of Allowance for Credit Losses on Unfunded Loan Commitments (Details) - Unfunded Loan Commitment - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Off-Balance Sheet, Credit Loss, Liability [Roll Forward]
Balance at beginning of period	$ 31,226	$ 32,188
Provision (release) for credit losses on unfunded loan commitments	(4,962)	1,968
Balance at end of period	$ 26,264	$ 34,156

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Loans and Allowance for Credit Losses - Schedule of Risk Rating and Payment Performance (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	$ 33,623,319		$ 32,991,927
2024	0	$ 0
2023	486	1,039
2022	4,605	7,217
2021	2,997	779
2020	154	7,227
Prior	4,774	588
Revolving	1,004	1,330
Total	14,020	18,180
Portfolio Segment After Reclassifications
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	33,623,319		32,991,927
Commercial
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	9,648,269		9,512,230
Total	3,659	12,423
Commercial | Portfolio Segment After Reclassifications
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	417,968		1,873,630
Originated one year before current year	1,803,036		1,719,159
Originated two years before current year	1,506,225		1,039,832
Originated three years before current year	930,518		600,282
Originated four years before current year	553,494		489,693
Originated more than five years before current fiscal year	881,103		583,939
Revolving	2,346,644		2,214,453
Revolving to Term	977,236		758,478
Total loans	9,416,224		9,279,466
2024	0	0
2023	0	0
2022	3,481	5,230
2021	33	0
2020	8	6,789
Prior	4	239
Revolving	133	165
Total	3,659	12,423
Commercial real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	14,653,958		14,140,629
Total	6,641	1,189
Commercial real estate | Portfolio Segment After Reclassifications
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	469,176		2,279,487
Originated one year before current year	2,341,851		3,664,419
Originated two years before current year	3,835,941		2,695,350
Originated three years before current year	2,645,245		1,636,367
Originated four years before current year	1,556,877		1,163,055
Originated more than five years before current fiscal year	2,397,627		1,350,392
Revolving	106,526		107,225
Revolving to Term	1,128,056		1,075,276
Total loans	14,481,299		13,971,571
2024	0	0
2023	0	54
2022	0	735
2021	2,176	400
2020	0	0
Prior	4,465	0
Revolving	0	0
Total	6,641	1,189
BBCC
Financing Receivable, Credit Quality Indicator [Line Items]
Total	76	28
BBCC | Portfolio Segment After Reclassifications
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	20,400		81,840
Originated one year before current year	83,870		65,503
Originated two years before current year	64,887		46,152
Originated three years before current year	42,844		39,072
Originated four years before current year	36,870		28,622
Originated more than five years before current fiscal year	43,680		21,170
Revolving	67,599		70,966
Revolving to Term	44,554		48,497
Total loans	404,704		401,822
2024	0	0
2023	0	0
2022	76	28
2021	0	0
2020	0	0
Prior	0	0
Revolving	0	0
Total	76	28
Residential real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	52,693		453,859
Originated one year before current year	476,603		1,513,234
Originated two years before current year	1,501,054		1,840,082
Originated three years before current year	1,863,161		1,708,506
Originated four years before current year	1,618,914		434,861
Originated more than five years before current fiscal year	1,148,637		748,622
Revolving	74		0
Revolving to Term	243		279
Total loans	6,661,379		6,699,443
2024	0	0
2023	0	0
2022	0	0
2021	0	0
2020	0	0
Prior	0	23
Revolving	0	0
Total	0	23
Residential real estate | Portfolio Segment After Reclassifications
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	6,661,379		6,699,443
Residential real estate | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	52,693		453,743
Originated one year before current year	475,237		1,508,671
Originated two years before current year	1,494,593		1,836,078
Originated three years before current year	1,857,010		1,705,131
Originated four years before current year	1,615,143		430,783
Originated more than five years before current fiscal year	1,119,364		722,987
Revolving	74		0
Revolving to Term	243		279
Total loans	6,614,357		6,657,672
Residential real estate | Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	0		116
Originated one year before current year	1,366		4,563
Originated two years before current year	6,461		4,004
Originated three years before current year	6,151		3,375
Originated four years before current year	3,771		4,078
Originated more than five years before current fiscal year	29,273		25,635
Revolving	0		0
Revolving to Term	0		0
Total loans	47,022		41,771
Indirect
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	139,067		393,741
Originated one year before current year	374,428		357,294
Originated two years before current year	323,505		163,942
Originated three years before current year	144,958		83,418
Originated four years before current year	70,207		38,285
Originated more than five years before current fiscal year	39,618		14,106
Revolving	0		0
Revolving to Term	215		196
Total loans	1,091,998		1,050,982
2024	0	0
2023	370	514
2022	472	430
2021	225	93
2020	33	111
Prior	38	49
Revolving	0	0
Total	1,138	1,197
Indirect | Portfolio Segment After Reclassifications
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	1,091,998		1,050,982
Indirect | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	139,067		393,369
Originated one year before current year	373,733		355,822
Originated two years before current year	321,837		162,735
Originated three years before current year	143,848		82,871
Originated four years before current year	69,757		37,967
Originated more than five years before current fiscal year	39,133		13,815
Revolving	0		0
Revolving to Term	215		196
Total loans	1,087,590		1,046,775
Indirect | Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	0		372
Originated one year before current year	695		1,472
Originated two years before current year	1,668		1,207
Originated three years before current year	1,110		547
Originated four years before current year	450		318
Originated more than five years before current fiscal year	485		291
Revolving	0		0
Revolving to Term	0		0
Total loans	4,408		4,207
Direct
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	19,941		109,439
Originated one year before current year	92,714		90,841
Originated two years before current year	123,861		93,008
Originated three years before current year	82,561		48,947
Originated four years before current year	29,906		29,869
Originated more than five years before current fiscal year	77,255		71,001
Revolving	79,446		75,204
Revolving to Term	621		4,863
Total loans	506,305		523,172
2024	0	0
2023	116	471
2022	576	794
2021	529	286
2020	113	327
Prior	223	195
Revolving	871	1,165
Total	2,428	3,238
Direct | Portfolio Segment After Reclassifications
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	506,305		523,172
Direct | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	19,941		109,372
Originated one year before current year	92,696		90,310
Originated two years before current year	123,339		92,491
Originated three years before current year	82,175		48,387
Originated four years before current year	29,248		29,659
Originated more than five years before current fiscal year	73,369		67,129
Revolving	79,443		75,080
Revolving to Term	611		4,852
Total loans	500,822		517,280
Direct | Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	0		67
Originated one year before current year	18		531
Originated two years before current year	522		517
Originated three years before current year	386		560
Originated four years before current year	658		210
Originated more than five years before current fiscal year	3,886		3,872
Revolving	3		124
Revolving to Term	10		11
Total loans	5,483		5,892
Home equity
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	0		290
Originated one year before current year	3		474
Originated two years before current year	403		488
Originated three years before current year	430		544
Originated four years before current year	242		1,420
Originated more than five years before current fiscal year	9,599		8,810
Revolving	1,016,102		1,022,233
Revolving to Term	34,631		31,212
Total loans	1,061,410		1,065,471
2024	0	0
2023	0	0
2022	0	0
2021	34	0
2020	0	0
Prior	44	82
Revolving	0	0
Total	78	$ 82
Home equity | Portfolio Segment After Reclassifications
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	1,061,410		1,065,471
Home equity | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	0		290
Originated one year before current year	2		164
Originated two years before current year	396		160
Originated three years before current year	299		140
Originated four years before current year	0		679
Originated more than five years before current fiscal year	4,911		4,483
Revolving	1,012,484		1,019,389
Revolving to Term	25,360		23,918
Total loans	1,043,452		1,049,223
Home equity | Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	0		0
Originated one year before current year	1		310
Originated two years before current year	7		328
Originated three years before current year	131		404
Originated four years before current year	242		741
Originated more than five years before current fiscal year	4,688		4,327
Revolving	3,618		2,844
Revolving to Term	9,271		7,294
Total loans	17,958		16,248
Pass | Commercial | Portfolio Segment After Reclassifications
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	410,201		1,826,289
Originated one year before current year	1,750,748		1,573,669
Originated two years before current year	1,366,887		985,964
Originated three years before current year	874,692		520,883
Originated four years before current year	478,725		450,911
Originated more than five years before current fiscal year	799,327		495,979
Revolving	2,162,262		2,051,985
Revolving to Term	891,572		651,953
Total loans	8,734,414		8,557,633
Pass | Commercial real estate | Portfolio Segment After Reclassifications
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	461,150		2,177,841
Originated one year before current year	2,274,374		3,515,702
Originated two years before current year	3,680,370		2,563,638
Originated three years before current year	2,438,872		1,576,044
Originated four years before current year	1,479,830		1,010,351
Originated more than five years before current fiscal year	2,057,232		1,161,119
Revolving	98,657		103,332
Revolving to Term	988,203		960,386
Total loans	13,478,688		13,068,413
Pass | BBCC | Portfolio Segment After Reclassifications
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	20,205		81,102
Originated one year before current year	82,522		64,583
Originated two years before current year	63,561		44,307
Originated three years before current year	41,025		38,086
Originated four years before current year	35,964		27,557
Originated more than five years before current fiscal year	41,883		19,028
Revolving	65,020		68,807
Revolving to Term	31,595		33,361
Total loans	381,775		376,831
Criticized | Commercial | Portfolio Segment After Reclassifications
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	1,087		20,038
Originated one year before current year	23,697		90,031
Originated two years before current year	66,438		19,953
Originated three years before current year	16,667		36,906
Originated four years before current year	36,943		25,756
Originated more than five years before current fiscal year	50,076		47,357
Revolving	123,117		89,765
Revolving to Term	15,698		44,348
Total loans	333,723		374,154
Criticized | Commercial real estate | Portfolio Segment After Reclassifications
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	7,746		69,648
Originated one year before current year	51,975		69,946
Originated two years before current year	48,071		68,708
Originated three years before current year	132,220		27,059
Originated four years before current year	38,258		52,107
Originated more than five years before current fiscal year	112,902		95,896
Revolving	7,869		3,893
Revolving to Term	80,231		64,730
Total loans	479,272		451,987
Criticized | BBCC | Portfolio Segment After Reclassifications
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	122		0
Originated one year before current year	0		0
Originated two years before current year	571		857
Originated three years before current year	872		700
Originated four years before current year	528		1,001
Originated more than five years before current fiscal year	324		349
Revolving	2,004		2,144
Revolving to Term	10,003		12,728
Total loans	14,424		17,779
Substandard | Commercial | Portfolio Segment After Reclassifications
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	6,680		27,271
Originated one year before current year	8,148		41,164
Originated two years before current year	37,790		27,990
Originated three years before current year	32,816		37,618
Originated four years before current year	33,303		10,461
Originated more than five years before current fiscal year	27,990		29,981
Revolving	60,662		72,703
Revolving to Term	67,681		56,716
Total loans	275,070		303,904
Substandard | Commercial real estate | Portfolio Segment After Reclassifications
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	280		26,638
Originated one year before current year	10,079		56,423
Originated two years before current year	66,381		21,401
Originated three years before current year	37,954		28,983
Originated four years before current year	33,966		61,186
Originated more than five years before current fiscal year	142,537		49,558
Revolving	0		0
Revolving to Term	57,157		48,760
Total loans	348,354		292,949
Substandard | BBCC | Portfolio Segment After Reclassifications
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	73		436
Originated one year before current year	444		193
Originated two years before current year	191		252
Originated three years before current year	248		0
Originated four years before current year	126		0
Originated more than five years before current fiscal year	82		604
Revolving	575		15
Revolving to Term	994		1,006
Total loans	2,733		2,506
Nonaccrual | Commercial | Portfolio Segment After Reclassifications
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	0		32
Originated one year before current year	8,206		7,034
Originated two years before current year	0		0
Originated three years before current year	0		0
Originated four years before current year	0		823
Originated more than five years before current fiscal year	1,623		3,411
Revolving	603		0
Revolving to Term	2,285		5,461
Total loans	12,717		16,761
Nonaccrual | Commercial real estate | Portfolio Segment After Reclassifications
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	0		0
Originated one year before current year	206		21,919
Originated two years before current year	19,344		10,706
Originated three years before current year	11,850		1,975
Originated four years before current year	2,599		1,634
Originated more than five years before current fiscal year	19,159		8,632
Revolving	0		0
Revolving to Term	2,465		1,400
Total loans	55,623		46,266
Nonaccrual | BBCC | Portfolio Segment After Reclassifications
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	0		0
Originated one year before current year	0		0
Originated two years before current year	0		482
Originated three years before current year	470		0
Originated four years before current year	0		4
Originated more than five years before current fiscal year	1,169		1,105
Revolving	0		0
Revolving to Term	1,962		1,402
Total loans	3,601		2,993
Doubtful | Commercial | Portfolio Segment After Reclassifications
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	0		0
Originated one year before current year	12,237		7,261
Originated two years before current year	35,110		5,925
Originated three years before current year	6,343		4,875
Originated four years before current year	4,523		1,742
Originated more than five years before current fiscal year	2,087		7,211
Revolving	0		0
Revolving to Term	0		0
Total loans	60,300		27,014
Doubtful | Commercial real estate | Portfolio Segment After Reclassifications
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	0		5,360
Originated one year before current year	5,217		429
Originated two years before current year	21,775		30,897
Originated three years before current year	24,349		2,306
Originated four years before current year	2,224		37,777
Originated more than five years before current fiscal year	65,797		35,187
Revolving	0		0
Revolving to Term	0		0
Total loans	119,362		111,956
Doubtful | BBCC | Portfolio Segment After Reclassifications
Financing Receivable, Credit Quality Indicator [Line Items]
Originated in current fiscal year	0		302
Originated one year before current year	904		727
Originated two years before current year	564		254
Originated three years before current year	229		286
Originated four years before current year	252		60
Originated more than five years before current fiscal year	222		84
Revolving	0		0
Revolving to Term	0		0
Total loans	$ 2,171		$ 1,713

XML

Loans and Allowance for Credit Losses - Schedule of Past Due Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	$ 33,623,319	$ 32,991,927
Portfolio Segment After Reclassifications
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	33,623,319	32,991,927
Commercial
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	9,648,269	9,512,230
Commercial | Portfolio Segment After Reclassifications
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	9,416,224	9,279,466
Commercial real estate
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	14,653,958	14,140,629
Commercial real estate | Portfolio Segment After Reclassifications
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	14,481,299	13,971,571
BBCC | Portfolio Segment After Reclassifications
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	404,704	401,822
Residential real estate
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	6,661,379	6,699,443
Residential real estate | Portfolio Segment After Reclassifications
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	6,661,379	6,699,443
Indirect
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	1,091,998	1,050,982
Indirect | Portfolio Segment After Reclassifications
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	1,091,998	1,050,982
Direct
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	506,305	523,172
Direct | Portfolio Segment After Reclassifications
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	506,305	523,172
Home equity
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	1,061,410	1,065,471
Home equity | Portfolio Segment After Reclassifications
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	1,061,410	1,065,471
Total Past Due | Portfolio Segment After Reclassifications
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	176,425	133,465
Total Past Due | Commercial | Portfolio Segment After Reclassifications
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	21,742	22,321
Total Past Due | Commercial real estate | Portfolio Segment After Reclassifications
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	69,221	44,995
Total Past Due | BBCC | Portfolio Segment After Reclassifications
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	3,619	2,479
Total Past Due | Residential real estate | Portfolio Segment After Reclassifications
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	50,565	27,974
Total Past Due | Indirect | Portfolio Segment After Reclassifications
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	8,044	10,221
Total Past Due | Direct | Portfolio Segment After Reclassifications
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	9,320	8,678
Total Past Due | Home equity | Portfolio Segment After Reclassifications
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	13,914	16,797
30-59 Days Past Due | Portfolio Segment After Reclassifications
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	66,711	59,187
30-59 Days Past Due | Commercial | Portfolio Segment After Reclassifications
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	10,099	16,128
30-59 Days Past Due | Commercial real estate | Portfolio Segment After Reclassifications
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	8,838	9,081
30-59 Days Past Due | BBCC | Portfolio Segment After Reclassifications
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	1,268	1,368
30-59 Days Past Due | Residential real estate | Portfolio Segment After Reclassifications
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	31,319	12,358
30-59 Days Past Due | Indirect | Portfolio Segment After Reclassifications
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	5,488	7,025
30-59 Days Past Due | Direct | Portfolio Segment After Reclassifications
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	4,751	5,436
30-59 Days Past Due | Home equity | Portfolio Segment After Reclassifications
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	4,948	7,791
60-89 Days Past Due | Portfolio Segment After Reclassifications
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	39,116	12,743
60-89 Days Past Due | Commercial | Portfolio Segment After Reclassifications
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	1,620	1,332
60-89 Days Past Due | Commercial real estate | Portfolio Segment After Reclassifications
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	27,844	5,254
60-89 Days Past Due | BBCC | Portfolio Segment After Reclassifications
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	1,111	134
60-89 Days Past Due | Residential real estate | Portfolio Segment After Reclassifications
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	5,030	367
60-89 Days Past Due | Indirect | Portfolio Segment After Reclassifications
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	1,351	1,854
60-89 Days Past Due | Direct | Portfolio Segment After Reclassifications
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	1,115	1,455
60-89 Days Past Due | Home equity | Portfolio Segment After Reclassifications
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	1,045	2,347
Past Due 90 Days or More | Portfolio Segment After Reclassifications
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	70,598	61,535
Past Due 90 Days or More | Commercial | Portfolio Segment After Reclassifications
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	10,023	4,861
Past Due 90 Days or More | Commercial real estate | Portfolio Segment After Reclassifications
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	32,539	30,660
Past Due 90 Days or More | BBCC | Portfolio Segment After Reclassifications
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	1,240	977
Past Due 90 Days or More | Residential real estate | Portfolio Segment After Reclassifications
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	14,216	15,249
Past Due 90 Days or More | Indirect | Portfolio Segment After Reclassifications
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	1,205	1,342
Past Due 90 Days or More | Direct | Portfolio Segment After Reclassifications
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	3,454	1,787
Past Due 90 Days or More | Home equity | Portfolio Segment After Reclassifications
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	7,921	6,659
Current | Portfolio Segment After Reclassifications
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	33,446,894	32,858,462
Current | Commercial | Portfolio Segment After Reclassifications
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	9,394,482	9,257,145
Current | Commercial real estate | Portfolio Segment After Reclassifications
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	14,412,078	13,926,576
Current | BBCC | Portfolio Segment After Reclassifications
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	401,085	399,343
Current | Residential real estate | Portfolio Segment After Reclassifications
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	6,610,814	6,671,469
Current | Indirect | Portfolio Segment After Reclassifications
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	1,083,954	1,040,761
Current | Direct | Portfolio Segment After Reclassifications
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	496,985	514,494
Current | Home equity | Portfolio Segment After Reclassifications
Financing Receivable, Past Due [Line Items]
Total loans, net of unearned income	$ 1,047,496	$ 1,048,674

XML

Loans and Allowance for Credit Losses - Schedule of Nonaccrual Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual Amortized Cost	$ 328,645	$ 274,821
Nonaccrual With No Related Allowance	72,923	37,650
Past Due 90 Days or More and Accruing	2,172	961
Commercial
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual Amortized Cost	73,017	43,775
Nonaccrual With No Related Allowance	16,707	13,143
Past Due 90 Days or More and Accruing	1,167	242
Commercial real estate
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual Amortized Cost	174,985	158,222
Nonaccrual With No Related Allowance	56,216	24,507
Past Due 90 Days or More and Accruing	742	585
BBCC
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual Amortized Cost	5,772	4,706
Nonaccrual With No Related Allowance	0	0
Past Due 90 Days or More and Accruing	98	95
Residential real estate
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual Amortized Cost	47,022	41,771
Nonaccrual With No Related Allowance	0	0
Past Due 90 Days or More and Accruing	10	0
Indirect
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual Amortized Cost	4,408	4,207
Nonaccrual With No Related Allowance	0	0
Past Due 90 Days or More and Accruing	108	8
Direct
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual Amortized Cost	5,483	5,892
Nonaccrual With No Related Allowance	0	0
Past Due 90 Days or More and Accruing	42	31
Home equity
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual Amortized Cost	17,958	16,248
Nonaccrual With No Related Allowance	0	0
Past Due 90 Days or More and Accruing	$ 5	$ 0

XML

Loans and Allowance for Credit Losses - Schedule of Types of Collateral (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	$ 33,623,319	$ 32,991,927
Real Estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	248,369	226,996
Blanket Lien
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	40,959	25,524
Investment Securities/Cash
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	6,868	3,747
Auto
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	16,654	5,243
Other
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	6,398	6,464
Commercial
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	9,648,269	9,512,230
Commercial | Real Estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	11,284	14,303
Commercial | Blanket Lien
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	39,258	24,729
Commercial | Investment Securities/Cash
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	5,728	2,577
Commercial | Auto
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	11,582	280
Commercial | Other
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	319	328
Commercial real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	14,653,958	14,140,629
Commercial real estate | Real Estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	163,753	146,425
Commercial real estate | Blanket Lien
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	0	0
Commercial real estate | Investment Securities/Cash
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	1,133	1,167
Commercial real estate | Auto
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	0	0
Commercial real estate | Other
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	6,031	6,107
BBCC | Real Estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	3,793	3,522
BBCC | Blanket Lien
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	1,701	794
BBCC | Investment Securities/Cash
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	0	0
BBCC | Auto
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	278	390
BBCC | Other
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	0	0
Residential real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	6,661,379	6,699,443
Residential real estate | Real Estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	47,022	41,771
Residential real estate | Blanket Lien
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	0	0
Residential real estate | Investment Securities/Cash
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	0	0
Residential real estate | Auto
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	0	0
Residential real estate | Other
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	0	0
Indirect
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	1,091,998	1,050,982
Indirect | Real Estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	0	0
Indirect | Blanket Lien
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	0	0
Indirect | Investment Securities/Cash
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	0	0
Indirect | Auto
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	4,408	4,207
Indirect | Other
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	0	0
Direct
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	506,305	523,172
Direct | Real Estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	4,559	4,727
Direct | Blanket Lien
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	0	1
Direct | Investment Securities/Cash
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	7	3
Direct | Auto
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	386	366
Direct | Other
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	48	29
Home equity
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	1,061,410	1,065,471
Home equity | Real Estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	17,958	16,248
Home equity | Blanket Lien
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	0	0
Home equity | Investment Securities/Cash
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	0	0
Home equity | Auto
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	0	0
Home equity | Other
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, net of unearned income	$ 0	$ 0

XML

Loans and Allowance for Credit Losses - Schedule of Amortized Cost Basis of Loans with Modifications (Details) - Extended Maturity - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Financing Receivable, Allowance for Credit Losses [Line Items]
Term Extension	$ 150,317	$ 27,268
Total Class of Loans	0.40%	0.10%
Commercial
Financing Receivable, Allowance for Credit Losses [Line Items]
Term Extension	$ 29,426	$ 17,342
Total Class of Loans	0.30%	0.20%
Commercial real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Term Extension	$ 120,891	$ 9,926
Total Class of Loans	0.80%	0.10%

XML

Loans and Allowance for Credit Losses - Schedule of Monitors the Performance of Loan Modifications to Borrowers Experiencing Financial Difficulty to Understand the Effectiveness of its Modification Efforts (Details) - Extended Maturity - Portfolio Segment After Reclassifications - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	$ 150,317	$ 143,160
30-59 Days Past Due
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	4,059	5,287
60-89 Days Past Due
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	31,222	0
Past Due 90 Days or More
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	0	0
Total Past Due
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	35,281	5,287
Current
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	115,036	137,873
Commercial
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	29,426	21,631
Commercial | 30-59 Days Past Due
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	0	0
Commercial | 60-89 Days Past Due
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	0	0
Commercial | Past Due 90 Days or More
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	0	0
Commercial | Total Past Due
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	0	0
Commercial | Current
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	29,426	21,631
Commercial real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	120,891	121,529
Commercial real estate | 30-59 Days Past Due
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	4,059	5,287
Commercial real estate | 60-89 Days Past Due
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	31,222	0
Commercial real estate | Past Due 90 Days or More
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	0	0
Commercial real estate | Total Past Due
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	35,281	5,287
Commercial real estate | Current
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	$ 85,610	$ 116,242

XML

Loans and Allowance for Credit Losses - Schedule of the nature of the Loan Modifications to Borrowers Experiencing Financial Difficulty (Details) - Extended Maturity	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Financing Receivable, Allowance for Credit Losses [Line Items]
Weighted- Average Term Extension (in months)	8 months 12 days	6 months
Commercial
Financing Receivable, Allowance for Credit Losses [Line Items]
Weighted- Average Term Extension (in months)	9 months 18 days	7 months 6 days
Commercial real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Weighted- Average Term Extension (in months)	8 months 12 days	3 months 18 days

XML

Leases - Additional Information (Details)	Mar. 31, 2024
Minimum
Lessee, Lease, Description [Line Items]
Operating lease term	5 years
Finance lease term	5 years
Maximum
Lessee, Lease, Description [Line Items]
Operating lease term	20 years
Finance lease term	20 years

XML

Leases - Schedule of Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Finance lease cost:
Total	$ 8,633	$ 9,438
Occupancy/Equipment expense
Lessee, Lease, Description [Line Items]
Operating lease cost	7,826	8,638
Occupancy expense
Finance lease cost:
Amortization of right-of-use assets	751	691
Sub-lease income	(125)	(60)
Interest expense
Finance lease cost:
Interest on lease liabilities	$ 181	$ 169

XML

Leases - Schedule of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Operating Leases
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Accrued interest receivable and other assets	Accrued interest receivable and other assets
Operating lease right-of-use assets	$ 189,593	$ 185,506
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Accrued expenses and other liabilities	Accrued expenses and other liabilities
Operating lease liabilities	$ 208,868	$ 204,960
Finance Leases
Premises and equipment, net	18,877	19,820
Other borrowings	$ 20,108	$ 20,955
Finance lease, right-of-use asset, statement of financial position [extensible enumeration]	Premises and equipment, net	Premises and equipment, net
Finance lease, liability, statement of financial position [extensible enumeration]	Other borrowings	Other borrowings
Weighted-Average Remaining Lease Term (in Years)
Operating leases	8 years 4 months 24 days	8 years 6 months
Finance leases	10 years 3 months 18 days	10 years 6 months
Weighted-Average Discount Rate
Operating leases	3.05%	3.04%
Finance leases	3.91%	3.90%

XML

Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 8,005	$ 7,932
Operating cash flows from finance leases	181	169
Financing cash flows from finance leases	$ 655	$ 628

XML

Leases - Schedule of Maturity Analysis of Lease Liability by Lease Classification (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Operating Leases
2024	$ 23,964
2025	32,022
2026	31,257
2027	30,266
2028	26,608
Thereafter	94,333
Total undiscounted lease payments	238,450
Amounts representing interest	(29,582)
Lease liability	208,868	$ 204,960
Finance Leases
2024	2,520
2025	3,377
2026	2,151
2027	2,152
2028	2,050
Thereafter	12,451
Total undiscounted lease payments	24,701
Amounts representing interest	(4,593)
Lease liability	$ 20,108	$ 20,955

XML

Goodwill and Other Intangible Assets - Schedule of Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Goodwill [Roll Forward]
Balance at beginning of period	$ 1,998,716	$ 1,998,716
Acquisitions and adjustments	0	0
Balance at end of period	$ 1,998,716	$ 1,998,716

XML

Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($)		3 Months Ended
	Aug. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Goodwill [Line Items]
Goodwill impairment	$ 0
Impairment charges		$ 0	$ 0
Amortization of other intangible assets		$ 5,455,000	$ 6,186,000
Minimum | Core Deposits and Other Intangible Assets
Goodwill [Line Items]
Estimated useful lives		5 years
Maximum | Core Deposits and Other Intangible Assets
Goodwill [Line Items]
Estimated useful lives		15 years

XML

Goodwill and Other Intangible Assets - Schedule of Gross Carrying Amounts and Accumulated Amortization of Other Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 196,132	$ 196,132
Accumulated Amortization and Impairment	(99,337)	(93,882)
Net Carrying Amount	96,795	102,250
Core deposit
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	143,511	143,511
Accumulated Amortization and Impairment	(77,249)	(72,940)
Net Carrying Amount	66,262	70,571
Customer trust relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	52,621	52,621
Accumulated Amortization and Impairment	(22,088)	(20,942)
Net Carrying Amount	$ 30,533	$ 31,679

XML

Goodwill and Other Intangible Assets - Schedule of Estimated Amortization Expense for Future Years (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract]
2024 remaining	$ 15,784
2025	18,358
2026	15,555
2027	12,867
2028	10,356
Thereafter	23,875
Net Carrying Amount	$ 96,795	$ 102,250

XML

Qualified Affordable Housing Projects and Other Tax Credit Investments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Summary of Investment Holdings [Line Items]
Investment	$ 204,107		$ 197,139
Unfunded Commitment	94,458		103,402
Amortization Expense	5,752	$ 4,224
Tax Expense (Benefit) Recognized	(7,169)	(5,031)
LIHTC
Summary of Investment Holdings [Line Items]
Investment, Proportional amortization	119,914		114,991
Unfunded commitment, Proportional amortization	67,310		75,981
Amortization Expense	2,486	1,463
Tax Expense (Benefit) Recognized	(3,331)	(1,908)
FHTC
Summary of Investment Holdings [Line Items]
Investment, Equity	32,757		34,220
Unfunded commitment, Equity	27,148		27,421
Amortization Expense	534	424
Tax Expense (Benefit) Recognized	(663)	(512)
NMTC
Summary of Investment Holdings [Line Items]
Investment, Equity	51,421		47,727
Unfunded commitment, Equity	0		0
Amortization Expense	2,546	2,091
Tax Expense (Benefit) Recognized	(3,175)	(2,611)
Renewable Energy
Summary of Investment Holdings [Line Items]
Investment, Equity	15		201
Unfunded commitment, Equity	0		$ 0
Amortization Expense	186	246
Tax Expense (Benefit) Recognized	$ 0	$ 0

XML

Securities Sold Under Agreements to Repurchase - Schedule of Securities Sold under Agreements to Repurchase and Related Weighted-Average Interest Rates (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Securities Sold under Agreements to Repurchase [Abstract]
Outstanding at period end	$ 274,493	$ 393,018	$ 285,206
Average amount outstanding during the period	296,236	412,819
Maximum amount outstanding at any month-end during the period	$ 319,423	$ 430,537
Weighted-average interest rate during year	1.25%	0.77%
Weighted-average interest rate at end of year	3.61%	0.88%	3.64%

XML

Securities Sold Under Agreements to Repurchase - Additional Information (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023
Securities Sold under Agreements to Repurchase [Abstract]
Securities sold under agreements to repurchase	$ 274,493	$ 285,206	$ 393,018
Weighted-average interest rate at end of year	3.61%	3.64%	0.88%

XML

Securities Sold Under Agreements to Repurchase - Schedule of Remaining Contractual Maturity of Secured Borrowings and Class of Collateral Pledged Under Repurchase Agreements (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023
Assets Sold under Agreements to Repurchase [Line Items]
Secured borrowings and class of collateral pledged under repurchase agreements	$ 274,493	$ 285,206	$ 393,018
U.S. Treasury and agency securities
Assets Sold under Agreements to Repurchase [Line Items]
Secured borrowings and class of collateral pledged under repurchase agreements	274,493
Overnight and Continuous
Assets Sold under Agreements to Repurchase [Line Items]
Secured borrowings and class of collateral pledged under repurchase agreements	274,493
Overnight and Continuous | U.S. Treasury and agency securities
Assets Sold under Agreements to Repurchase [Line Items]
Secured borrowings and class of collateral pledged under repurchase agreements	274,493
Up to 30 Days
Assets Sold under Agreements to Repurchase [Line Items]
Secured borrowings and class of collateral pledged under repurchase agreements	0
Up to 30 Days | U.S. Treasury and agency securities
Assets Sold under Agreements to Repurchase [Line Items]
Secured borrowings and class of collateral pledged under repurchase agreements	0
30-90 Days
Assets Sold under Agreements to Repurchase [Line Items]
Secured borrowings and class of collateral pledged under repurchase agreements	0
30-90 Days | U.S. Treasury and agency securities
Assets Sold under Agreements to Repurchase [Line Items]
Secured borrowings and class of collateral pledged under repurchase agreements	0
Greater Than 90 days
Assets Sold under Agreements to Repurchase [Line Items]
Secured borrowings and class of collateral pledged under repurchase agreements	0
Greater Than 90 days | U.S. Treasury and agency securities
Assets Sold under Agreements to Repurchase [Line Items]
Secured borrowings and class of collateral pledged under repurchase agreements	$ 0

XML

Federal Home Loan Bank Advances - Summary of FHLB Advances (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Federal Home Loan Bank, Advances [Line Items]
FHLB advances (fixed rates 2.19% to 5.53%    and variable rates 5.33% to 5.36%) maturing   June 2024 to March 2044	$ 4,225,528	$ 4,300,528
Fair value hedge basis adjustments and unamortized prepayment fees	(32,489)	(19,847)
Federal Home Loan Bank advances	$ 4,193,039	$ 4,280,681
Minimum | FHLB Advances
Federal Home Loan Bank, Advances [Line Items]
Fixed rates	2.19%
Variable rates	5.33%
Maximum | FHLB Advances
Federal Home Loan Bank, Advances [Line Items]
Fixed rates	5.53%
Variable rates	5.36%

XML

Federal Home Loan Bank Advances - Additional Information (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Federal Home Loan Banks [Abstract]
Weighted-average rates of FHLB advances	3.58%	3.45%
Modifications, unamortized prepayment fees	$ 12.7	$ 14.2

XML

Federal Home Loan Bank Advances - Summary of Contractual Maturities of FHLB Advances (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Federal Home Loan Banks [Abstract]
Due in 2024	$ 100,243
Due in 2025	550,285
Due in 2026	100,000
Due in 2028	850,000
Thereafter	2,625,000
Fair value hedge basis adjustments and unamortized prepayment fees	(32,489)	$ (19,847)
Federal Home Loan Bank advances	$ 4,193,039	$ 4,280,681

XML

Other Borrowings - Summary of Other Borrowings (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Lease liability	$ 20,108	$ 20,955
Other borrowings	813,213	764,870
Old National Bank
Debt Instrument [Line Items]
Other basis adjustments	134,370	97,872
Lease liability	20,108	20,955
Derivative collateralize position amount	134,200	97,600
Old National Bancorp
Debt Instrument [Line Items]
Other basis adjustments	$ 16,916	18,207
Senior Unsecured Notes | Old National Bancorp
Debt Instrument [Line Items]
Fixed rates	4.125%
Senior unsecured notes (fixed rate 4.125%) maturing August 2024	$ 175,000	175,000
Unamortized debt issuance costs related to senior unsecured notes	$ (52)	(91)
Subordinated Debt | Old National Bank
Debt Instrument [Line Items]
Variable rates	9.94%
Subordinated debentures	$ 12,000	12,000
Subordinated Debt | Old National Bank | Secured Overnight Financing Rate
Debt Instrument [Line Items]
Variable rate	4.618%
Subordinated Debt | Old National Bancorp
Debt Instrument [Line Items]
Fixed rates	5.875%
Subordinated debentures	$ 150,000	150,000
Junior Subordinated Debentures | Old National Bancorp
Debt Instrument [Line Items]
Junior subordinated debentures (rates of 6.95% to 9.15%) maturing July 2031 to September 2037	136,643	136,643
Leveraged Loans for NMTC | Old National Bank
Debt Instrument [Line Items]
Leveraged loans for NMTC (fixed rates of 1.00% to 1.43%) maturing December 2046 to June 2060	$ 168,228	$ 154,284
Minimum | Junior Subordinated Debentures | Old National Bancorp
Debt Instrument [Line Items]
Variable rates	6.95%
Minimum | Leveraged Loans for NMTC | Old National Bank
Debt Instrument [Line Items]
Fixed rates	1.00%
Maximum | Junior Subordinated Debentures | Old National Bancorp
Debt Instrument [Line Items]
Variable rates	9.15%
Maximum | Leveraged Loans for NMTC | Old National Bank
Debt Instrument [Line Items]
Fixed rates	1.43%

XML

Other Borrowings - Contractual Maturities of Other Borrowings (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Other Liabilities Disclosure [Abstract]
Due in 2024	$ 311,233
Due in 2025	14,747
Due in 2026	151,582
Due in 2027	1,641
Due in 2028	1,598
Thereafter	315,407
Unamortized debt issuance costs and other basis adjustments	17,005
Total	$ 813,213	$ 764,870

XML

Other Borrowings - Summary of Terms of Outstanding Junior Subordinated Debentures (Details) - Trust Preferred Securities - Junior Subordinated Debentures	3 Months Ended
	Mar. 31, 2024 USD ($)
Debt Instrument [Line Items]
Issuance Amount	$ 136,643,000
Bridgeview Statutory Trust I
Debt Instrument [Line Items]
Issuance Amount	$ 15,464,000
Rate	9.15%
Bridgeview Statutory Trust I | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Variable rate	3.58%
Bridgeview Capital Trust II
Debt Instrument [Line Items]
Issuance Amount	$ 15,464,000
Rate	8.93%
Bridgeview Capital Trust II | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Variable rate	3.35%
First Midwest Capital Trust I
Debt Instrument [Line Items]
Issuance Amount	$ 37,825,000
Rate	6.95%
Fixed rates	6.95%
St. Joseph Capital Trust II
Debt Instrument [Line Items]
Issuance Amount	$ 5,155,000
Rate	7.34%
St. Joseph Capital Trust II | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Variable rate	1.75%
Northern States Statutory Trust I
Debt Instrument [Line Items]
Issuance Amount	$ 10,310,000
Rate	7.39%
Northern States Statutory Trust I | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Variable rate	1.80%
Anchor Capital Trust III
Debt Instrument [Line Items]
Issuance Amount	$ 5,000,000
Rate	7.11%
Anchor Capital Trust III | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Variable rate	1.55%
Great Lakes Statutory Trust II
Debt Instrument [Line Items]
Issuance Amount	$ 6,186,000
Rate	6.99%
Great Lakes Statutory Trust II | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Variable rate	1.40%
Home Federal Statutory    Trust I
Debt Instrument [Line Items]
Issuance Amount	$ 15,464,000
Rate	7.24%
Home Federal Statutory    Trust I | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Variable rate	1.65%
Monroe Bancorp Capital    Trust I
Debt Instrument [Line Items]
Issuance Amount	$ 3,093,000
Rate	7.18%
Monroe Bancorp Capital    Trust I | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Variable rate	1.60%
Tower Capital Trust 3
Debt Instrument [Line Items]
Issuance Amount	$ 9,279,000
Rate	7.29%
Tower Capital Trust 3 | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Variable rate	1.69%
Monroe Bancorp Statutory    Trust II
Debt Instrument [Line Items]
Issuance Amount	$ 5,155,000
Rate	7.19%
Monroe Bancorp Statutory    Trust II | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Variable rate	1.60%
Great Lakes Statutory Trust III
Debt Instrument [Line Items]
Issuance Amount	$ 8,248,000
Rate	7.29%
Great Lakes Statutory Trust III | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Variable rate	1.70%

XML

Other Borrowings - Additional Information (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Other borrowings	$ 20,108	$ 20,955
Old National Bank
Debt Instrument [Line Items]
Other borrowings	$ 20,108	$ 20,955

XML

Accumulated Other Comprehensive Income (Loss) - Schedule of AOCI (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 5,562,900	$ 5,128,595
Other comprehensive income (loss) before    reclassifications	(47,668)	64,529
Amounts reclassified from AOCI to income	6,849	13,535
Ending balance	5,595,408	5,277,426
Accumulated Other Comprehensive Income (Loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(738,809)	(786,422)
Ending balance	(779,628)	(708,358)
Unrealized Gains and Losses on Available- for-Sale Debt Securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(652,518)	(642,346)
Other comprehensive income (loss) before    reclassifications	(33,463)	27,219
Amounts reclassified from AOCI to income	12	3,867
Ending balance	(685,969)	(611,260)
Unrealized Gains and Losses on Held-to- Maturity Securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(95,472)	(112,664)
Other comprehensive income (loss) before    reclassifications	0	1,325
Amounts reclassified from AOCI to income	3,221	4,373
Ending balance	(92,251)	(106,966)
Gains and Losses on Hedges
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	9,181	(31,549)
Other comprehensive income (loss) before    reclassifications	(14,205)	35,985
Amounts reclassified from AOCI to income	3,616	5,436
Ending balance	(1,408)	9,872
Defined Benefit Pension Plans
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	0	137
Other comprehensive income (loss) before    reclassifications	0	0
Amounts reclassified from AOCI to income	0	(141)
Ending balance	$ 0	$ (4)

XML

Accumulated Other Comprehensive Income (Loss) - Reclassifications out of AOCI (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Debt securities gains (losses), net	$ 16	$ 5,216
Income tax (expense) benefit	(32,488)	(41,421)
Interest income (expense)	(356,458)	(381,488)
Salaries and employee benefits	149,803	137,364
Net income	(120,284)	(146,600)
Amount Reclassified from AOCI
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net income	(6,849)	(13,535)
Amount Reclassified from AOCI | Unrealized gains and losses on    available-for-sale securities
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Debt securities gains (losses), net	(16)	(5,216)
Income tax (expense) benefit	4	1,349
Net income	(12)	(3,867)
Amount Reclassified from AOCI | Amortization of unrealized losses on    held-to-maturity securities transferred    from available-for-sale
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income tax (expense) benefit	1,097	1,456
Interest income (expense)	(4,318)	(5,829)
Net income	(3,221)	(4,373)
Amount Reclassified from AOCI | Gains and losses on hedges    Interest rate contracts | Interest rate contracts
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income tax (expense) benefit	1,261	1,856
Interest income (expense)	(4,877)	(7,292)
Net income	(3,616)	(5,436)
Amount Reclassified from AOCI | Actuarial gains (losses)
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income tax (expense) benefit	0	(47)
Salaries and employee benefits	0	188
Net income	$ 0	$ 141

XML

Income Taxes - Summary of Differences in Taxes from Continuing Operations Computed at Statutory Rate (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Provision at statutory rate	$ 32,082	$ 39,484
Tax-exempt income:
Tax-exempt interest	(4,958)	(4,486)
Section 291/265 interest disallowance	885	386
Company-owned life insurance income	(694)	(627)
Tax-exempt income	(4,767)	(4,727)
State income taxes	5,147	8,142
Interim period effective rate adjustment	944	(1,717)
Tax credit investments - federal	(3,055)	(2,526)
Officer compensation limitation	765	1,040
Non-deductible FDIC premiums	1,747	2,110
Other, net	(375)	(385)
Income tax expense	$ 32,488	$ 41,421
Effective tax rate	21.30%	22.00%

XML

Income Taxes - Additional Information (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Income Taxes [Line Items]
Net deferred tax assets	$ 418,300,000	$ 423,300,000
Valuation allowance recorded	0	0
Bad debt reserves, created for tax purposes	58,600,000
Federal
Income Taxes [Line Items]
Operating loss carryforwards	60,100,000	63,600,000
State
Income Taxes [Line Items]
Operating loss carryforwards	$ 114,200,000	$ 116,900,000

XML

Derivative Financial Instruments - Additional Information (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Derivative [Line Items]
Percentage of periodic changes in fair value qualifies for hedge accounting treatment (in percent)	100.00%
Interest Income
Derivative [Line Items]
Hedge gain to be reclassified during next twelve months, net	$ 23,300
Interest Expense
Derivative [Line Items]
Hedge gain to be reclassified during next twelve months, net	4,500
Interest rate swaps on borrowings | Cash flow hedges | Designated as Hedging Instrument
Derivative [Line Items]
Notional amount	150,000	$ 150,000
Interest rate swaps on borrowings | Fair value hedges | Designated as Hedging Instrument
Derivative [Line Items]
Notional amount	900,000	900,000
Interest rate swaps, collars, and floors on loan pools | Cash flow hedges | Designated as Hedging Instrument
Derivative [Line Items]
Notional amount	1,800,000	1,600,000
Interest rate swaps on investment securities | Fair value hedges | Designated as Hedging Instrument
Derivative [Line Items]
Notional amount	998,107	998,107
Interest rate lock commitments | Not Designated as Hedging Instrument
Derivative [Line Items]
Notional amount	67,995	25,151
Forward mortgage loan contracts | Not Designated as Hedging Instrument
Derivative [Line Items]
Notional amount	77,584	39,529
Counterparty interest rate swaps | Not Designated as Hedging Instrument
Derivative [Line Items]
Notional amount	5,886,639	5,954,216
Customer interest rate swaps | Not Designated as Hedging Instrument
Derivative [Line Items]
Notional amount	$ 5,886,639	$ 5,954,216

XML

Derivative Financial Instruments - Summary of Fair Value of Derivative Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Designated as Hedging Instrument
Derivative [Line Items]
Assets	$ 2,670	$ 10,472
Liabilities	15,063	6,014
Designated as Hedging Instrument | Cash flow hedges | Interest rate swaps, collars, and floors on loan pools
Derivative [Line Items]
Notional	1,800,000	1,600,000
Assets	2,670	10,472
Liabilities	15,063	6,014
Designated as Hedging Instrument | Cash flow hedges | Interest rate swaps on borrowings
Derivative [Line Items]
Notional	150,000	150,000
Assets	0	0
Liabilities	0	0
Designated as Hedging Instrument | Fair value hedges | Interest rate swaps on borrowings
Derivative [Line Items]
Notional	900,000	900,000
Assets	0	0
Liabilities	0	0
Designated as Hedging Instrument | Fair value hedges | Interest rate swaps on investment securities
Derivative [Line Items]
Notional	998,107	998,107
Assets	0	0
Liabilities	0	0
Not Designated as Hedging Instrument
Derivative [Line Items]
Assets	164,809	155,830
Liabilities	282,340	262,902
Not Designated as Hedging Instrument | Interest rate lock commitments
Derivative [Line Items]
Notional	67,995	25,151
Assets	317	291
Liabilities	0	0
Not Designated as Hedging Instrument | Forward mortgage loan contracts
Derivative [Line Items]
Notional	77,584	39,529
Assets	144	0
Liabilities	0	566
Not Designated as Hedging Instrument | Customer interest rate swaps
Derivative [Line Items]
Notional	5,886,639	5,954,216
Assets	11,328	33,182
Liabilities	270,910	228,750
Not Designated as Hedging Instrument | Counterparty interest rate swaps
Derivative [Line Items]
Notional	5,886,639	5,954,216
Assets	152,855	121,969
Liabilities	11,380	33,346
Not Designated as Hedging Instrument | Customer foreign currency contracts
Derivative [Line Items]
Notional	10,317	12,455
Assets	57	320
Liabilities	43	59
Not Designated as Hedging Instrument | Counterparty foreign currency contracts
Derivative [Line Items]
Notional	10,484	12,308
Assets	108	68
Liabilities	$ 7	$ 181

XML

Derivative Financial Instruments - Schedule of Effect of Derivative Instruments on the Consolidated Statements of Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in Other Comprehensive Income on Derivative	$ (19,159)	$ 47,849
Gain (Loss) Reclassified from AOCI into Income	(4,877)	(7,292)
Not Designated as Hedging Instrument
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in Income on Derivative	1,271	(32)
Fair value hedges
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in Income on Derivative	11,878	(60,962)
Gain (Loss) Recognized in Income on Related Hedged Items	(11,776)	61,033
Interest rate swaps on borrowings | Fair value hedges
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in Income on Derivative	(13,970)	2,153
Gain (Loss) Recognized in Income on Related Hedged Items	14,127	(2,218)
Interest rate swaps on investment securities | Fair value hedges
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in Income on Derivative	25,848	(63,115)
Gain (Loss) Recognized in Income on Related Hedged Items	(25,903)	63,251
Interest rate contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in Other Comprehensive Income on Derivative	(19,159)	6,603
Gain (Loss) Reclassified from AOCI into Income	(5,910)	(7,637)
Interest rate contracts | Not Designated as Hedging Instrument
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in Income on Derivative	568	(138)
Mortgage contracts | Not Designated as Hedging Instrument
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in Income on Derivative	737	107
Foreign currency contracts | Not Designated as Hedging Instrument
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in Income on Derivative	$ (34)	$ (1)

XML

Derivative Financial Instruments - Schedule of Offsetting Assets and Liability (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Assets
Derivative assets	$ 167,479	$ 166,302
Less: amounts offset in the Consolidated Balance Sheet	0	0
Net amount presented in the Consolidated Balance Sheet	167,479	166,302
Offsetting derivative positions	(26,443)	(39,360)
Cash collateral pledged	0	0
Net credit exposure	141,036	126,942
Derivative Liability [Abstract]
Derivative liabilities	297,403	268,916
Less: amounts offset in the Consolidated Balance Sheet	0	0
Net amount presented in the Consolidated Balance Sheet	297,403	268,916
Offsetting derivative positions	(26,443)	(39,360)
Cash collateral pledged	(134,459)	(97,840)
Net credit exposure	$ 136,501	$ 131,716

XML

Commitments, Contingencies, and Financial Guarantees - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Loss Contingencies [Line Items]
Term of standby letters of credit, years	1 year
Percent of unfunded loan commitments with fixed rates	4.00%
Loan commitments floating rate, minimum	2.10%
Loan commitments floating rate, maximum	22.49%
Allowance for unfunded loan commitments	$ 26.3	$ 31.2
Interest Rate Swap
Loss Contingencies [Line Items]
Notional amount	$ 589.2	$ 557.8

XML

Commitments, Contingencies, and Financial Guarantees - Loan Commitments and Standby Letters of Credit (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Unfunded loan commitments	$ 8,716,398	$ 8,912,587
Standby letters of credit	172,444	192,237
Carrying value of letters of credit	$ 1,400	$ 1,300

XML

Fair Value - Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Equity securities	$ 84,954	$ 80,372
Derivative assets	167,479	166,302
Derivative liabilities	297,403	268,916
Carrying Value | Fair Value on Recurring Basis
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Equity securities	84,954	80,372
Loans held-for-sale	19,418	32,006
Derivative assets	167,479	166,302
Derivative liabilities	297,403	268,916
Carrying Value | Fair Value on Recurring Basis | U.S. Treasury
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Investment securities available-for-sale:	233,051	396,733
Carrying Value | Fair Value on Recurring Basis | U.S. government-sponsored entities and agencies
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Investment securities available-for-sale:	1,183,019	1,231,264
Carrying Value | Fair Value on Recurring Basis | Mortgage-backed securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Investment securities available-for-sale:	4,550,023	4,216,560
Carrying Value | Fair Value on Recurring Basis | States and political subdivisions
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Investment securities available-for-sale:	515,104	535,260
Carrying Value | Fair Value on Recurring Basis | Pooled trust preferred securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Investment securities available-for-sale:	11,274	11,337
Carrying Value | Fair Value on Recurring Basis | Other securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Investment securities available-for-sale:	299,181	321,901
Carrying Value | Fair Value on Recurring Basis | Significant Other Observable Inputs (Level 2)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Equity securities		0
Loans held-for-sale		32,006
Derivative assets		166,302
Derivative liabilities		268,916
Carrying Value | Fair Value on Recurring Basis | Significant Other Observable Inputs (Level 2) | U.S. Treasury
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Investment securities available-for-sale:		0
Carrying Value | Fair Value on Recurring Basis | Significant Other Observable Inputs (Level 2) | U.S. government-sponsored entities and agencies
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Investment securities available-for-sale:		1,231,264
Carrying Value | Fair Value on Recurring Basis | Significant Other Observable Inputs (Level 2) | Mortgage-backed securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Investment securities available-for-sale:		4,216,560
Carrying Value | Fair Value on Recurring Basis | Significant Other Observable Inputs (Level 2) | States and political subdivisions
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Investment securities available-for-sale:		535,260
Carrying Value | Fair Value on Recurring Basis | Significant Other Observable Inputs (Level 2) | Pooled trust preferred securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Investment securities available-for-sale:		11,337
Carrying Value | Fair Value on Recurring Basis | Significant Other Observable Inputs (Level 2) | Other securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Investment securities available-for-sale:		321,901
Estimate of Fair Value Measurement | Fair Value on Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Equity securities	84,954	80,372
Loans held-for-sale	0	0
Derivative assets	0	0
Derivative liabilities	0	0
Estimate of Fair Value Measurement | Fair Value on Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Investment securities available-for-sale:	233,051	396,733
Estimate of Fair Value Measurement | Fair Value on Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. government-sponsored entities and agencies
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Investment securities available-for-sale:	0	0
Estimate of Fair Value Measurement | Fair Value on Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage-backed securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Investment securities available-for-sale:	0	0
Estimate of Fair Value Measurement | Fair Value on Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | States and political subdivisions
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Investment securities available-for-sale:	0	0
Estimate of Fair Value Measurement | Fair Value on Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Pooled trust preferred securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Investment securities available-for-sale:	0	0
Estimate of Fair Value Measurement | Fair Value on Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Investment securities available-for-sale:	0	0
Estimate of Fair Value Measurement | Fair Value on Recurring Basis | Significant Other Observable Inputs (Level 2)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Equity securities	0
Loans held-for-sale	19,418
Derivative assets	167,479
Derivative liabilities	297,403
Estimate of Fair Value Measurement | Fair Value on Recurring Basis | Significant Other Observable Inputs (Level 2) | U.S. Treasury
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Investment securities available-for-sale:	0
Estimate of Fair Value Measurement | Fair Value on Recurring Basis | Significant Other Observable Inputs (Level 2) | U.S. government-sponsored entities and agencies
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Investment securities available-for-sale:	1,183,019
Estimate of Fair Value Measurement | Fair Value on Recurring Basis | Significant Other Observable Inputs (Level 2) | Mortgage-backed securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Investment securities available-for-sale:	4,550,023
Estimate of Fair Value Measurement | Fair Value on Recurring Basis | Significant Other Observable Inputs (Level 2) | States and political subdivisions
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Investment securities available-for-sale:	515,104
Estimate of Fair Value Measurement | Fair Value on Recurring Basis | Significant Other Observable Inputs (Level 2) | Pooled trust preferred securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Investment securities available-for-sale:	11,274
Estimate of Fair Value Measurement | Fair Value on Recurring Basis | Significant Other Observable Inputs (Level 2) | Other securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Investment securities available-for-sale:	299,181
Estimate of Fair Value Measurement | Fair Value on Recurring Basis | Significant Unobservable Inputs (Level 3)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Equity securities	0	0
Loans held-for-sale	0	0
Derivative assets	0	0
Derivative liabilities	0	0
Estimate of Fair Value Measurement | Fair Value on Recurring Basis | Significant Unobservable Inputs (Level 3) | U.S. Treasury
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Investment securities available-for-sale:	0	0
Estimate of Fair Value Measurement | Fair Value on Recurring Basis | Significant Unobservable Inputs (Level 3) | U.S. government-sponsored entities and agencies
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Investment securities available-for-sale:	0	0
Estimate of Fair Value Measurement | Fair Value on Recurring Basis | Significant Unobservable Inputs (Level 3) | Mortgage-backed securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Investment securities available-for-sale:	0	0
Estimate of Fair Value Measurement | Fair Value on Recurring Basis | Significant Unobservable Inputs (Level 3) | States and political subdivisions
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Investment securities available-for-sale:	0	0
Estimate of Fair Value Measurement | Fair Value on Recurring Basis | Significant Unobservable Inputs (Level 3) | Pooled trust preferred securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Investment securities available-for-sale:	0	0
Estimate of Fair Value Measurement | Fair Value on Recurring Basis | Significant Unobservable Inputs (Level 3) | Other securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Investment securities available-for-sale:	$ 0	$ 0

XML

Fair Value - Assets Measured at Fair Value on a Non-Recurring Basis (Details) - Fair Value on Non-recurring Basis - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Carrying Value | Commercial Real Estate Foreclosed Assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 1,669	$ 1,669
Carrying Value | Commercial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	26,057	11,017
Carrying Value | Commercial real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	83,492	95,457
Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial Real Estate Foreclosed Assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	0	0
Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | Commercial Real Estate Foreclosed Assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	0	0
Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | Commercial Real Estate Foreclosed Assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	1,669	1,669
Estimate of Fair Value Measurement | Commercial | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	0	0
Estimate of Fair Value Measurement | Commercial | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	0	0
Estimate of Fair Value Measurement | Commercial | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	26,057	11,017
Estimate of Fair Value Measurement | Commercial real estate | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	0	0
Estimate of Fair Value Measurement | Commercial real estate | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	0	0
Estimate of Fair Value Measurement | Commercial real estate | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 83,492	$ 95,457

XML

Fair Value - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Provision for Loan Losses	$ 18,891,000	$ 13,437,000
Other real estate owned property write-downs	$ 0	27,000
Past due period of mortgage loans held for sale, days	90 days
Interest income for residential loans held for sale	$ 300,000	200,000
Impaired Commercial and Commercial Real Estate Loans
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Principal amount of impaired commercial and commercial real estate loans	142,200,000		$ 134,300,000
Valuation allowance	32,700,000		$ 27,900,000
Provision for Loan Losses	$ 9,600,000
Provision for credit losses		$ 11,900,000

XML

Fair Value - Quantitative Information about Significant Unobservable Inputs Used in Fair Value Measurements (Details) - Significant Unobservable Inputs (Level 3) $ in Thousands	Mar. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)
Collateral Dependent Loans | Commercial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 26,057	$ 11,017
Collateral Dependent Loans | Commercial real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 83,492	$ 95,457
Collateral Dependent Loans | Minimum | Discount for type of property, age of appraisal, and current status | Commercial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unobservable Input	0.02	0.05
Collateral Dependent Loans | Minimum | Discount for type of property, age of appraisal, and current status | Commercial real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unobservable Input	0.01	0.02
Collateral Dependent Loans | Maximum | Discount for type of property, age of appraisal, and current status | Commercial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unobservable Input	0.38	0.37
Collateral Dependent Loans | Maximum | Discount for type of property, age of appraisal, and current status | Commercial real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unobservable Input	0.34	0.38
Collateral Dependent Loans | Weighted Average | Discount for type of property, age of appraisal, and current status | Commercial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unobservable Input	0.29	0.27
Collateral Dependent Loans | Weighted Average | Discount for type of property, age of appraisal, and current status | Commercial real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unobservable Input	0.13	0.16
Foreclosed Assets | Commercial real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 1,669	$ 1,669
Foreclosed Assets | Discount for type of property, age of appraisal, and current status | Commercial real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unobservable Input		0.04
Foreclosed Assets | Minimum | Discount for type of property, age of appraisal, and current status | Commercial real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unobservable Input	0.04	0.04
Foreclosed Assets | Maximum | Discount for type of property, age of appraisal, and current status | Commercial real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unobservable Input	0.08	0.08
Foreclosed Assets | Weighted Average | Discount for type of property, age of appraisal, and current status | Commercial real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unobservable Input	0.04

XML

Fair Value - Schedule of Difference between the Aggregate Fair Value and the Aggregate Remaining Principal Balance (Details) - Loans held-for-sale - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Fair Value, Option, Quantitative Disclosures [Line Items]
Aggregate Fair Value	$ 19,418	$ 32,006
Difference	414	621
Contractual Principal	$ 19,004	$ 31,385

XML

Fair Value - Changes in Fair Value for Items Measured at Fair Value Pursuant to Election of the Fair Value (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Schedule of Trading Securities and Other Trading Assets [Line Items]
Interest Income	$ 356,458	$ 381,488
Interest (Expense)	(239,523)	(114,161)
Loans held-for-sale
Schedule of Trading Securities and Other Trading Assets [Line Items]
Other Gains and (Losses)	(202)	(53)
Interest Income	0	0
Interest (Expense)	(5)	(3)
Total Changes in Fair Values Included in Current Period Earnings	$ (207)	$ (56)

XML

Fair Value - Carrying Amounts and Estimated Fair Values of Financial Instruments, Not Carried at Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash, due from banks, money market,    and other interest-earning investments	$ 939,499	$ 1,175,058
Loans, net	33,303,606	32,684,317
Noninterest-bearing demand deposits	9,257,709	9,664,247
Time deposits	5,950,834	5,579,144
Federal funds purchased and interbank borrowings	50,416	390
Securities sold under agreements to repurchase	274,493	285,206	$ 393,018
Federal Home Loan Bank advances	4,193,039	4,280,681
Other borrowings	813,213	764,870
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. government-sponsored entities and agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities held to maturity		0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities held to maturity		0
Quoted Prices in Active Markets for Identical Assets (Level 1) | States and political subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities held to maturity		0
Significant Other Observable Inputs (Level 2) | U.S. government-sponsored entities and agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities held to maturity		671,126
Significant Other Observable Inputs (Level 2) | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities held to maturity		881,994
Significant Other Observable Inputs (Level 2) | States and political subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities held to maturity		1,048,068
Significant Unobservable Inputs (Level 3) | U.S. government-sponsored entities and agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities held to maturity		0
Significant Unobservable Inputs (Level 3) | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities held to maturity		0
Significant Unobservable Inputs (Level 3) | States and political subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities held to maturity		0
Carrying Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash, due from banks, money market,    and other interest-earning investments	939,499	1,175,058
Accrued interest receivable	219,809	225,159
Noninterest-bearing demand deposits	9,257,709	9,664,247
Checking, NOW, savings, and money market    interest-bearing deposits	22,490,875	21,991,789
Time deposits	5,950,834	5,579,144
Federal funds purchased and interbank borrowings	50,416	390
Securities sold under agreements to repurchase	274,493	285,206
Federal Home Loan Bank advances	4,193,039	4,280,681
Other borrowings	813,213	764,870
Accrued interest payable	54,690	57,094
Standby letters of credit	1,379	1,318
Commitments to extend credit	0	0
Carrying Value | U.S. government-sponsored entities and agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities held to maturity	827,684	825,953
Carrying Value | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities held to maturity	1,016,858	1,029,131
Carrying Value | States and political subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities held to maturity	1,156,807	1,158,409
Carrying Value | Commercial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, net	9,522,947	9,392,267
Carrying Value | Commercial real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, net	14,492,040	13,984,273
Carrying Value | Residential real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, net	6,639,480	6,678,606
Carrying Value | Consumer credit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, net	2,649,139	2,629,171
Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash, due from banks, money market,    and other interest-earning investments	939,499	1,175,058
Accrued interest receivable	1,133	859
Noninterest-bearing demand deposits	9,257,709	9,664,247
Checking, NOW, savings, and money market    interest-bearing deposits	22,490,875	21,991,789
Time deposits	0	0
Federal funds purchased and interbank borrowings	50,416	390
Securities sold under agreements to repurchase	274,493	285,206
Federal Home Loan Bank advances	0	0
Other borrowings	0	0
Accrued interest payable	0	0
Standby letters of credit	0	0
Commitments to extend credit	0	0
Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. government-sponsored entities and agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities held to maturity	0
Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities held to maturity	0
Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | States and political subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities held to maturity	0
Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, net	0	0
Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, net	0	0
Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, net	0	0
Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | Consumer credit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, net	0	0
Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash, due from banks, money market,    and other interest-earning investments	0	0
Accrued interest receivable	47,057	54,465
Noninterest-bearing demand deposits	0	0
Checking, NOW, savings, and money market    interest-bearing deposits	0	0
Time deposits	5,913,854	5,552,538
Federal funds purchased and interbank borrowings	0	0
Securities sold under agreements to repurchase	0	0
Federal Home Loan Bank advances	3,994,880	4,090,954
Other borrowings	798,748	755,592
Accrued interest payable	54,690	57,094
Standby letters of credit	0	0
Commitments to extend credit	0	0
Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | U.S. government-sponsored entities and agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities held to maturity	662,735
Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities held to maturity	857,657
Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | States and political subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities held to maturity	1,027,184
Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | Commercial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, net	0	0
Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | Commercial real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, net	0	0
Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | Residential real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, net	0	0
Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | Consumer credit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, net	0	0
Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash, due from banks, money market,    and other interest-earning investments	0	0
Accrued interest receivable	171,619	169,835
Noninterest-bearing demand deposits	0	0
Checking, NOW, savings, and money market    interest-bearing deposits	0	0
Time deposits	0	0
Federal funds purchased and interbank borrowings	0	0
Securities sold under agreements to repurchase	0	0
Federal Home Loan Bank advances	0	0
Other borrowings	0	0
Accrued interest payable	0	0
Standby letters of credit	1,379	1,318
Commitments to extend credit	3,824	3,839
Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | U.S. government-sponsored entities and agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities held to maturity	0
Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities held to maturity	0
Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | States and political subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities held to maturity	0
Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | Commercial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, net	9,357,300	9,258,193
Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | Commercial real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, net	14,005,872	13,640,868
Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | Residential real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, net	5,682,754	5,579,999
Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | Consumer credit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans, net	$ 2,607,831	$ 2,555,121