Commitments, Contingencies, and Financial Guarantees

9 Months Ended

Sep. 30, 2025

Commitments and Contingencies Disclosure [Abstract]

Commitments, Contingencies, and Financial Guarantees

COMMITMENTS, CONTINGENCIES, AND FINANCIAL GUARANTEES

Litigation

At September 30, 2025, 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)	September 30, 2025		December 31, 2024
Unfunded loan commitments (1)	$	11,741,820	$	8,533,433
Standby letters of credit (2)	266,892		194,323

(1)Excludes cancellable loan commitments of $2.9 billion at September 30, 2025 and $2.5 billion at December 31, 2024.

(2)Notional amount, which represents the maximum amount of future funding requirements. The carrying value was $1.6 million at September 30, 2025 and $1.7 million at December 31, 2024.

At September 30, 2025, approximately 3% of the unfunded loan commitments had fixed rates, with the remainder having floating rates ranging from 0.01% to 21.24%. The allowance for unfunded loan commitments totaled $32.3 million at September 30, 2025 and $21.7 million at December 31, 2024.

Old National is a party in risk participation transactions of interest rate swaps, which had total notional amounts of $1.2 billion at September 30, 2025 and $730.5 million at December 31, 2024.