Company: ONBPP
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0000707179-25-000018
Chunk: 99

Company: OLD NATIONAL BANCORP /IN/
Filing Date: 2025-07-30
Form: 10-Q
Item: Item 1
Chunk 99
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.2 million and $19.4 million of merger-related expenses for the three months ended June 30, 2025 and 2024, respectively. Excluding these expenses, noninterest expense increased to $343.6 million for the three months ended June 30, 2025, compared to $263.6 million for the three months ended June 30, 2024. This increase was driven primarily by operating costs and additional amortization of intangibles related to the acquisition of Bremer, as well as higher salary and employee benefits reflective of merit and performance-driven incentive accruals.

Noninterest expense included $47.1 million and $22.3 million of merger-related expenses for the six months ended June 30, 2025 and 2024, respectively. In addition, the six months ended June 30, 2024, included a $13.3 million non-cash, pre-tax expense associated with the distribution of excess pension assets with the resolution of the legacy First Midwest plan and $3.0 million for the FDIC special assessment. Excluding these expenses, noninterest expense increased to $606.2 million for the six months ended June 30, 2025, compared to $506.7 million for the six months ended June 30, 2024. This increase was driven by operating costs and additional amortization of intangibles related to the acquisitions of Bremer and CapStar, as well as higher salary and employee benefits reflective of merit and performance-driven incentive accruals.

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Amortization of tax credit investments increased $3.1 million and $3.7 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024. The recognition of tax credit amortization expense is contingent upon the successful completion of the rehabilitation of a historic building or completion of a solar project within the reporting period. Many factors including weather, labor availability, building regulations, inspections, and other unexpected construction delays related to a rehabilitation project can cause a project to exceed its estimated completion date. See Note 9 to the consolidated financial statements for additional information on our tax credit investments.

Provision for Income Taxes

We record a provision for income taxes currently payable and for income taxes payable or benefits to be received in the future, which arise due to timing differences in the recognition of certain items for financial statement and income tax purposes. The major difference between the effective tax rate applied to our financial statement