Company: ONBPP
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0000707179-25-000009
Chunk: 170

Company: OLD NATIONAL BANCORP /IN/
Filing Date: 2025-04-30
Form: 10-Q
Item: Item 8
Chunk 170
---
,233 33,883 (30,650)Net interest income$30,292 $19,045 $11,247 

(1)The variance not solely due to rate or volume is allocated equally between the rate and volume variances.

(2)Interest income on investment securities includes taxable equivalent adjustments of $2.7 million during the three months ended March 31, 2025 and $2.8 million during the three months ended March 31, 2024; using the federal statutory rate in effect of 21%.

(3)Interest income on loans includes taxable equivalent adjustments of $2.7 million during the three months ended March 31, 2025 and $3.5 million during the three months ended March 31, 2024; using the federal statutory rate in effect of 21%.

The increase in net interest income for the three months ended March 31, 2025 compared to the same period in 2024 was primarily due to loans and securities acquired in the CapStar transaction as well as strong loan growth, lower costs of average interest-bearing liabilities, and higher accretion income, partially offset by higher balances of average interest-bearing liabilities and lower rates on loans. Accretion income associated with acquired loans and borrowings totaled $12.3 million for the three months ended March 31, 2025, compared to $5.1 million for the same period in 2024.

Net interest margin on a fully taxable equivalent basis was stable at 3.27% for the three months ended March 31, 2025 compared to the same period in 2024 primarily due to higher balances of average interest-bearing liabilities and lower yields on loans, offset by loan growth as well as lower costs of average interest-bearing liabilities. The yield on interest earning assets decreased 16 basis points and the cost of interest-bearing liabilities decreased 22 basis points in the three months ended March 31, 2025 compared to the same quarter a year ago. Accretion income represented 10 basis points of the net interest margin in the three months ended March 31, 2025, compared to 5 basis points in the three months ended March 31, 2024.

Average earning assets were $48.1 billion and $44.2 billion for the three months ended March 31, 2025 and 2024, respectively, an increase of $3.9 billion, or 9%, primarily due to loans and securities acquired