Company: ONBPP
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0000707179-25-000064
Chunk: 172

Company: OLD NATIONAL BANCORP /IN/
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 8
Chunk 172
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)(4,871)(16,169)(14,856)Section 291/265 interest disallowance1,733 927 3,766 2,768 Company-owned life insurance income(1,594)(1,089)(4,126)(2,961)Tax-exempt income(6,179)(5,033)(16,529)(15,049)State income taxes11,144 7,485 23,139 18,965 Interim period effective rate adjustment1,556 1,096 1,250 1,969 Tax credit investments - federal(8,904)(3,619)(18,162)(9,780)Officer compensation limitation904 765 2,712 3,021 Non-deductible FDIC premiums2,960 2,462 7,813 6,241 Other, net(296)(743)(2,662)(159)Income tax expense$50,031 $41,280 $117,233 $109,018 Effective tax rate21.5 %22.3 %20.6 %22.1 %Net Deferred Tax AssetsNet deferred tax assets are included in other assets on the balance sheet. At September 30, 2025, net deferred tax assets totaled $482.6 million, compared to $456.4 million at December 31, 2024. No valuation allowance was required on the Company’s deferred tax assets at September 30, 2025 or December 31, 2024.The Company’s retained earnings at September 30, 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 $84.1 million at September 30, 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, CapStar in 2024, and Bremer in 2025. If not used, the federal net operating loss carryforwards will