Company: ONBPP
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0000707179-25-000064
Chunk: 57

Company: OLD NATIONAL BANCORP /IN/
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 1
Chunk 57
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 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 begin expiring in 2032 and later. Old National has recorded state net operating loss carryforwards totaling $120.3 million at September 30, 2025 and $106.0 million at December 31, 2024. If not used, the state net operating loss carryforwards will expire from 2028 to 2044.The federal and recorded state net operating loss carryforwards are subject to an annual limitation under Internal Revenue Code section 382. Old National believes that all of the federal and recorded state net operating loss carryforwards will be used prior to expiration.On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law, which contains numerous tax provisions. The Company does