Company: ONBPP
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0000707179-25-000009
Chunk: 106

Company: OLD NATIONAL BANCORP /IN/
Filing Date: 2025-04-30
Form: 10-Q
Item: Item 8
Chunk 106
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 15, 2025, and interim periods within those annual reporting periods. Old National is currently evaluating the impact of adopting this guidance on the consolidated financial statements.

NOTE 3 – ACQUISITION AND DIVESTITURE ACTIVITY

AcquisitionCapStar Financial Holdings, Inc.On April 1, 2024, Old National completed its acquisition of CapStar Financial Holdings, Inc. (“CapStar”) and its wholly owned subsidiary, CapStar Bank, in an all-stock transaction. This partnership strengthens Old National’s Nashville, Tennessee presence and adds several new high-growth markets.The assets acquired and liabilities assumed, both intangible and tangible, were recorded at their estimated fair values as of the merger date and have been accounted for under the acquisition method of accounting. As of March 31, 2025, Old National finalized its valuation of all assets acquired and liabilities assumed. The following table presents a summary of the valuation of the assets acquired and liabilities assumed and the fair value of consideration as of the merger date:(dollars and shares in thousands)April 1,2024AssetsCash and cash equivalents$177,791 Investment securities342,490 FHLB/Federal Reserve Bank stock14,426 Loans held-for-sale21,159 Loans, net of allowance for credit losses2,120,627 Premises and equipment22,481 Goodwill176,535 Other intangible assets46,125 Company-owned life insurance91,475 Other assets95,922 Total assets$3,109,031 LiabilitiesDeposits$2,560,124 Federal Home Loan Bank advances75,000 Other borrowings30,000 Accrued expenses and other liabilities26,309 Total liabilities$2,691,433 Fair value of considerationCommon stock (24,014 shares issued at $17.41 per share)$417,598 Total consideration$417,598 Goodwill related to this merger will not be deductible for tax purposes.Other intangible assets acquired included core deposit intangibles. The estimated fair value of the core deposit intangible was $46.1 million and is being amortized over an estimated useful life of 10 years.The fair value of purchased credit deteriorated (“PCD”) assets was $610.7 million on the date of merger. The gross contractual amounts receivable relating to the PCD assets was $679.3 million. Old National estimates, on the date of the merger, that $26.