Company: ONBPP
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0000707179-25-000018
Chunk: 205

Company: OLD NATIONAL BANCORP /IN/
Filing Date: 2025-07-30
Form: 10-Q
Item: Item 8
Chunk 205
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, 2024, respectively; using the federal statutory rate in effect of 21%.

The increase in net interest income for the three and six months ended June 30, 2025 compared to the same periods in 2024 was driven by the acquisition of Bremer as well as strong loan growth, and lower costs of average interest-bearing liabilities, partially offset by higher balances of average interest-bearing liabilities.

The increase in net interest margin on a fully taxable equivalent basis for the three and six months ended June 30, 2025 compared to the same periods in 2024 was primarily due to Bremer, loan growth, and lower costs of average interest-bearing liabilities, partially offset by higher balances of average interest-bearing liabilities. The yield on interest earning assets decreased 2 basis points and the cost of interest-bearing liabilities decreased 32 basis points in the three months ended June 30, 2025 compared to the same quarter a year ago. The yield on interest earning assets decreased 8 basis points and the cost of interest-bearing liabilities decreased 27 basis points in the six months ended June 30, 2025 compared to the six months ended June 30, 2024.

Average earning assets increased $11.7 billion, and $7.8 billion for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024 primarily due to Bremer loans and securities acquired as well as strong loan growth.

Average loans, including loans held-for-sale, increased $8.0 billion and $5.6 billion for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024 primarily due to Bremer loans acquired as well as strong commercial and commercial real estate loan growth. Bremer loans totaled $11.2 billion at the close of the acquisition.

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Average noninterest-bearing deposits increased $2.0 billion while average interest-bearing deposits increased $7.7 billion for the three months ended June 30, 2025 when compared to the same period in 2024 reflecting Bremer deposits assumed and organic growth. Average noninterest-bearing deposits increased $931.2 million while average interest-bearing deposits increased $5.7 billion for the six months ended June 30, 2025 when compared to the same period in 2024 reflecting Bremer deposits assumed and organic growth. Bremer deposits assumed totaled $12.9 billion at the close of the acquisition. 

Provision for