Company: ONBPP
Filing Date: 2025-01-14
Form Type: S-4
Source: 0001104659-25-003488
Chunk: 137

Company: OLD NATIONAL BANCORP /IN/
Filing Date: 2025-01-14
Form: S-4
Chunk 137
---
 will be short-term capital gain. In the case of a U.S. holder that holds Bremer common stock with differing tax bases and/or holding periods, the preceding rules must be applied separately to each block of shares of Bremer common stock (i.e., Bremmer common stock of the same class acquired on the same day at the same price per share). Generally, long-term capital gain of individuals and other non-corporate U.S. holders currently is eligible for preferential U.S. federal income tax rates. In certain circumstances, if a U.S. holder actually or constructively owns Old National common stock other than Old National common stock received pursuant to the transaction, the recognized gain could be treated as having the effect of the distribution of a dividend under the tests set forth in Section 302 of the Code, in which case such gain would be treated as dividend income to the extent of such U.S. holder’s ratable share of Bremer’s undistributed earnings and profits. To the extent, if any, that the recognized gain is treated as dividend income, noncorporate U.S. holders generally would be taxed on such amounts at the preferential rates applicable to long-term capital gain. Because the possibility of dividend treatment depends upon the particular circumstances of a U.S. holder, including the application of certain constructive ownership rules, U.S. holders should consult their tax advisors regarding the potential application of the foregoing rules to their particular circumstances.

Tax Consequences if the Mergers, Taken Together, Fail to Qualify as a “Reorganization”

If the mergers, taken together, fail to qualify as a “reorganization” within the meaning of Section 368(a) of the Code, a U.S. holder generally would recognize gain or loss in an amount equal to the difference between (i) the sum of the fair value of the shares of Old National common stock received as of the effective time of the first step merger, the amount of any cash received, and any cash in lieu of fractional shares of Old National common stock received by such U.S. holder in the mergers and (ii) such U.S. holder’s tax basis in the U.S. holder’s Bremer common stock surrendered in the mergers.

Gain or loss would be calculated separately for each block of Bremer common stock exchanged by such U.S. holder (a block of stock is stock of the same class acquired on the same day at the same price per share). Any gain or loss recognized generally would be long-term capital gain or loss if the