Company: ONBPP
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0000707179-25-000064
Chunk: 214

Company: OLD NATIONAL BANCORP /IN/
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 8
Chunk 214
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 special assessment, and $2.6 million of separation expense. Excluding these expenses, noninterest expense increased to $982.6 million for the nine months ended September 30, 2025, compared to $769.4 million for the nine months ended September 30, 2024. This increase was driven by operating costs and additional amortization of intangibles related to the acquisitions of 

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Bremer and CapStar, as well as higher salary and employee benefits reflective of merit and performance-driven incentive accruals.

Amortization of tax credit investments increased $3.8 million and $7.5 million for the three and nine months ended September 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 income and the federal statutory tax rate is caused by a tax benefit from our tax credit investments and interest on tax-exempt securities and loans. The effective tax rate was 21.5% and 20.6% for the three and nine months ended September 30, 2025, respectively, compared to 22.3% and 22.1% for the three and nine months ended September 30, 2024, respectively, reflecting an increase in tax credits. See Note 14 to the consolidated financial statements for additional information. In accordance with ASC 740-270, Accounting for Interim Reporting, the provision for income taxes was recorded at September 30, 2025 based on the current estimate of the effective annual rate.

FINANCIAL CONDITION

Overview

At September 30, 2025, our assets were $71.2 billion, a $17.7 billion increase compared to assets of $53.6 billion at December 31, 2024. The increase was driven