Company: ONBPP
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0000707179-25-000009
Chunk: 173

Company: OLD NATIONAL BANCORP /IN/
Filing Date: 2025-04-30
Form: 10-Q
Item: Item 8
Chunk 173
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31,%(dollars in thousands)20252024ChangeSalaries and employee benefits$148,305 $149,803 (1.0)%Occupancy 29,053 27,019 7.5 Equipment 8,901 8,671 2.7 Marketing 11,940 10,634 12.3 Technology22,020 20,023 10.0 Communication 4,134 4,000 3.4 Professional fees7,919 6,406 23.6 FDIC assessment9,700 11,313 (14.3)Amortization of intangibles6,830 5,455 25.2 Amortization of tax credit investments3,424 2,749 24.6 Other expense16,245 16,244 — Total noninterest expense$268,471 $262,317 2.3 %

Noninterest expense for the three months ended March 31, 2025 included $5.9 million of merger-related expenses. For the three months ended March 31, 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, $3.0 million for the FDIC special assessment, and $2.9 million of merger-related expenses. Excluding these expenses, noninterest expense increased to $262.6 million for the three months ended March 31, 2025, compared to $243.1 million for the three months ended March 31, 2024. This increase was driven by the additional operating costs associated with the acquisition of CapStar, as well as higher salary and employee benefits reflective of 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 20.3% for the three months ended March 31, 2025 compared to 21.3% for the three months ended March