Company: ONBPP
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0000707179-25-000064
Chunk: 203

Company: OLD NATIONAL BANCORP /IN/
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 8
Chunk 203
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, 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 

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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.

The following tables present 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 EndedSeptember 30, 2025Three Months EndedSeptember 30, 2024Earning AssetsAverage BalanceIncome (1)/ExpenseYield/RateAverage BalanceIncome (1)/ExpenseYield/RateMoney market and other interest-earning   investments$1,159,564 $12,207 4.18 %$904,176 $11,696 5.15 %Investment securities:Treasury and government sponsored agencies2,391,564 20,721 3.47 %2,255,629 21,851 3.87 %Mortgage-backed securities9,854,107 105,596 4.29 %5,977,058 48,425 3.24 %States and political subdivisions1,577,384 13,109 3.32 %1,668,454 14,042 3.37 %Other securities874,728 16,265 7.44 %785,107 12,547 6.39 %Total investment securities14,697,783 155,691 4.24 %10,686,248 96,865 3.63 %Loans: (2)Commercial14,722,785 249,569