Company: ONBPP
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0000707179-25-000005
Chunk: 201

Company: OLD NATIONAL BANCORP /IN/
Filing Date: 2025-02-19
Form: 10-K
Item: Item 8
Chunk 201
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row balances maintained in connection with serviced loans totaled $29.8 million at December 31, 2024 and $27.0 million at December 31, 2023.The following table summarizes the carrying values and activity related to loan servicing rights and the related valuation allowance:Years Ended December 31,(dollars in thousands)202420232022Balance at beginning of period$35,789 $37,267 $30,085 Additions (1)10,829 3,657 13,080 Amortization(5,646)(5,135)(5,898)Balance before valuation allowance at end of period40,972 35,789 37,267 Valuation allowance:Balance at beginning of period— — (46)(Additions)/recoveries(36)— 46 Balance at end of period(36)— — Loan servicing rights, net$40,936 $35,789 $37,267 (1)Additions in 2024 included loan servicing rights of $2.7 million acquired in the CapStar transaction on April 1, 2024. Additions in 2022 included loan servicing rights of $7.7 million acquired in the First Midwest merger on February 15, 2022.At December 31, 2024, the fair value of servicing rights was $55.7 million, which was determined using a discount rate of 10% and a conditional prepayment rate of 8%. At December 31, 2023, the fair value of servicing rights was $47.1 million, which was determined using a discount rate of 9% and a conditional prepayment rate of 10%.

NOTE 9 – QUALIFIED AFFORDABLE HOUSING PROJECTS AND OTHER TAX CREDIT INVESTMENTS

Old National is a limited partner in several tax-advantaged limited partnerships whose purpose is to invest in approved qualified affordable housing, renewable energy, or other renovation or community revitalization projects. These investments are included in other assets on the balance sheet, with any unfunded commitments included with other liabilities. As of December 31, 2024, Old National expects to recover its remaining investments through the use of the tax credits that are generated by the investments.The following table summarizes Old National’s investments in qualified affordable housing projects and other tax credit investments:(dollars in thousands)December 31, 2024December 31, 2023Investment