Old National Bancorp Files 2023 Annual Report on Form 10-K

TL;DR

<b>Old National Bancorp has submitted its 2023 annual report (10-K), detailing financial performance and corporate information for the fiscal year ending December 31, 2023.</b>

AI Summary

OLD NATIONAL BANCORP /IN/ (ONBPP) filed a Annual Report (10-K) with the SEC on February 22, 2024. Old National Bancorp filed its 2023 Form 10-K on February 22, 2024, reporting on its fiscal year ended December 31, 2023. The filing covers financial data for the fiscal years 2023, 2022, and 2021. Key financial statement items include Common Stock, Preferred Stock, Additional Paid-In Capital, Retained Earnings, and Accumulated Other Comprehensive Income. The company's business address is One Main St, Evansville, IN 47708, with a phone number of 812-464-1434. The SIC code for Old National Bancorp is 6021, indicating it operates as a National Commercial Bank.

Why It Matters

For investors and stakeholders tracking OLD NATIONAL BANCORP /IN/, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Old National Bancorp's financial health and operational status for the past fiscal year, crucial for investors and stakeholders to assess performance and future outlook. The detailed financial data, including segment performance and equity components, allows for a thorough analysis of the bank's profitability, asset management, and capital structure.

Risk Assessment

Risk Level: medium — OLD NATIONAL BANCORP /IN/ shows moderate risk based on this filing. The filing is a standard 10-K, which is a routine disclosure for public companies. However, the financial industry is subject to regulatory scrutiny and economic fluctuations, which inherently carry medium risk.

Analyst Insight

Investors should review the detailed financial statements and risk factors within the 10-K to understand Old National Bancorp's performance and potential challenges in the current economic environment.

Key Numbers

• 2023-12-31 — Fiscal Year End (Period of report)
• 2024-02-22 — Filing Date (Date the 10-K was filed)
• 6021 — SIC Code (Standard Industrial Classification for National Commercial Banks)
• IN — State of Incorporation (State where the company is incorporated)

Key Players & Entities

• OLD NATIONAL BANCORP /IN/ (company) — Filer name
• 2024-02-22 (date) — Filing date
• 2023-12-31 (date) — Period of report
• ONE MAIN ST (address) — Business street address
• EVANSVILLE (city) — Business city
• IN (state) — Business state
• 47708 (zip_code) — Business zip code
• 8124641434 (phone_number) — Business phone

FAQ

Industry Context

Old National Bancorp operates within the National Commercial Banks industry, a sector characterized by lending, deposit-taking, and providing financial services.

Regulatory Implications

As a national commercial bank, Old National Bancorp is subject to regulations from federal and state authorities, including oversight from the SEC and banking regulators.

What Investors Should Do

1. Review the detailed financial statements for revenue, net income, and balance sheet items.
2. Analyze the segment reporting to understand performance across different loan portfolios (Commercial, CRE, Residential, Consumer).
3. Examine any disclosed risk factors and management's discussion and analysis for insights into potential challenges and strategies.

Key Dates

• 2024-02-22: 10-K Filing — Submission of the annual report for the fiscal year 2023.
• 2023-12-31: Fiscal Year End — End date of the reporting period covered by the 10-K.

Year-Over-Year Comparison

This filing represents the annual report for the fiscal year ended December 31, 2023, providing updated financial and operational information compared to previous filings.

Key Financial Figures

• $13.94 — ed on the closing price on that date of $13.94). In calculating the market value of se
• $49.1 billion — asset size with consolidated assets of $49.1 billion at December 31, 2023, and ranks among t
• $3.3 billion — ber 30, 2023, CapStar had approximately $3.3 billion of total assets, $2.3 billion of total
• $2.3 billion — oximately $3.3 billion of total assets, $2.3 billion of total loans, and $2.8 billion of dep
• $2.8 billion — ssets, $2.3 billion of total loans, and $2.8 billion of deposits. Under the terms of the mer
• $344.4 m — aluing the transaction at approximately $344.4 million, or $16.64 per share, based on Ol
• $16.64 — ion at approximately $344.4 million, or $16.64 per share, based on Old National's 30-d
• $382 million — were transferred totaled approximately $382 million and the transaction resulted in a $90.7
• $90.7 million — llion and the transaction resulted in a $90.7 million pre-tax gain in 2022. During the fourt
• $26.8 million — actions resulted in pre-tax charges of $26.8 million in 2022 and $1.6 million in 2023 record
• $1.6 million — ax charges of $26.8 million in 2022 and $1.6 million in 2023 recorded in noninterest expense

Filing Documents

• onb-20231231.htm (10-K) — 5478KB
• onbexhibit2110-k2023.htm (EX-21) — 5KB
• onbexhibit23110-k2023.htm (EX-23.1) — 6KB
• onbexhibit23210-k2023.htm (EX-23.2) — 7KB
• onbexhibit31110-k2023.htm (EX-31.1) — 11KB
• onbexhibit31210-k2023.htm (EX-31.2) — 11KB
• onbexhibit32110-k2023.htm (EX-32.1) — 6KB
• onbexhibit32210-k2023.htm (EX-32.2) — 6KB
• onbex97oldnationalclawback.htm (EX-97) — 26KB
• onb-20231231_g1.jpg (GRAPHIC) — 118KB
• onb-20231231_g2.jpg (GRAPHIC) — 3KB
• 0000707179-24-000006.txt (&nbsp;) — 26881KB
• onb-20231231.xsd (EX-101.SCH) — 128KB
• onb-20231231_cal.xml (EX-101.CAL) — 234KB
• onb-20231231_def.xml (EX-101.DEF) — 747KB
• onb-20231231_lab.xml (EX-101.LAB) — 1596KB
• onb-20231231_pre.xml (EX-101.PRE) — 1170KB
• onb-20231231_htm.xml (XML) — 5976KB

Risk Factors

Item 1A. Risk Factors 17

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 31

Cybersecurity

Item 1C. Cybersecurity 31

Properties

Item 2. Properties 33

Legal Proceedings

Item 3. Legal Proceedings 33

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 33 PART II

Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 34

[Reserved]

Item 6. [Reserved] 35

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 36

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 68

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 69

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 131

Controls and Procedures

Item 9A. Controls and Procedures 131

Other Information

Item 9B. Other Information 133

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 133 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 134

Executive Compensation

Item 11. Executive Compensation 135

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 135

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 135

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services 135 PART IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 136

Form 10-K Summary

Item 16. Form 10-K Summary 140

SIGNATURES

SIGNATURES 141 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 bank subsidiary. The acronyms and abbreviations identified below are used throughout this report, including the Notes to Consolidated Financial Statements. You may find it helpful to refer to this page as you read this report. ACH: Automated Clearing House 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 CFPB: Consumer Financial Protection Bureau 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 FHLBI: Federal Home Loan Bank of Indianapolis FHTC: Federal Historic Tax Credit FICO: Fair Isaac Corporation First Midwest: First Midwest Bancorp, Inc. 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 TDR: troubled debt restructuring 3 OLD NATIONAL BANCORP 2023 ANNUAL REPORT ON FO

FORWARD-LOOKING STATEMENTS

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 or with our approval that are not statements of historical fact and constitute forwardlooking 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 the words "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "outlook," "plan," "potential," "predict," "should," 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; ou

BUSINESS

ITEM 1. BUSINESS COMPANY PROFILE Old National Bancorp, the financial holding company of Old National Bank, our wholly-owned banking subsidiary ("Old National Bank"), is incorporated in the state of Indiana, is the sixth largest Midwestern-headquartered bank by asset size with consolidated assets of $49.1 billion at December 31, 2023, and ranks among the top 30 banking companies headquartered in the United States. The Company's corporate headquarters and principal executive office are 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 and elsewhere, including commercial and consumer loan and depository services, private banking, capital markets, brokerage, wealth management, trust, investment advisory, and other traditional banking services. THE BANK Old National Bank traces its roots to 1834 and at December 31, 2023, operated 258 banking centers located primarily throughout the Midwestern United States, including Illinois, Indiana, Iowa, Kentucky, Michigan, Minnesota, and Wisconsin. Each of the banking centers of Old National Bank provides a group of similar community banking services, including such products and services as commercial, real estate, and consumer loans; deposits; and private banking, capital markets, brokerage, wealth management, trust, and investment advisory services. The individual banking centers located throughout our Midwest footprint have similar operating and economic characteristics. We earn interest income on loans as well as fee income from the origination of loans. Lending activities include loans to individuals, which primarily consist of home equity lines of credit, residential real estate loans, and consumer loans, and loans to commercial clients, which include commercial loans, commercial real estate loans, agricultural loan

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