Company: ONBPP
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0000707179-25-000009
Chunk: 48

Company: OLD NATIONAL BANCORP /IN/
Filing Date: 2025-04-30
Form: 10-Q
Item: Item 1
Chunk 48
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Tax-exempt income:Tax-exempt interest(4,252)(4,958)Section 291/265 interest disallowance669 885 Company-owned life insurance income(1,135)(694)Tax-exempt income(4,718)(4,767)State income taxes6,901 5,147 Interim period effective rate adjustment(147)944 Tax credit investments - federal(4,102)(3,055)Officer compensation limitation372 765 Non-deductible FDIC premiums2,037 1,747 Other, net(1,567)(375)Income tax expense$36,904 $32,488 Effective tax rate20.3 %21.3 %Net Deferred Tax AssetsNet deferred tax assets are included in other assets on the balance sheet. At March 31, 2025, net deferred tax assets totaled $394.5 million, compared to $456.4 million at December 31, 2024. No valuation allowance was required on the Company’s deferred tax assets at March 31, 2025 or December 31, 2024.The Company’s retained earnings at March 31, 2025 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 $64.1 million at March 31, 2025 and $60.2 million at December 31, 2024. This federal net operating loss was acquired from the acquisition of Anchor BanCorp Wisconsin Inc. in 2016, First Midwest Bancorp, Inc. in 2022, and CapStar Financial Holdings, Inc. in 2024. If not used, the federal net operating loss carryforwards will begin expiring in 2032 and later. Old National has recorded state net operating loss carryforwards totaling $103.3 million at March 31, 2025 and $106.0 million at December 31, 2024. If not used, the state net operating loss carryforwards will expire from 2028 to 2036.The federal and recorded state net operating loss carryforwards are subject to an annual limitation under