OLD NATIONAL BANCORP IN
For the period ended Jun 30, 2024. Filed Jul 31, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Jul 31, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
Goodwill and Other Intangible Assets
NOTE 8 –GOODWILL AND OTHER INTANGIBLE ASSETS
The following table presents the changes in the carrying amount of goodwill:
| Three Months EndedJune 30, | Six Months EndedJune 30, | |||
|---|---|---|---|---|
| (dollars in thousands) | 2024 | 2023 | 2024 | 2023 |
| Balance at beginning of period | $1,998,716 | $1,998,716 | $1,998,716 | $1,998,716 |
| Acquisitions and adjustments | 171,993 | — | 171,993 | — |
| Balance at end of period | $2,170,709 | $1,998,716 | $2,170,709 | $1,998,716 |
During the three months ended June 30, 2024, Old National recorded $172.0 million of goodwill associated with the acquisition of CapStar. See Note 2 to the consolidated financial statements for additional detail regarding this transaction.
Old National performed the required annual goodwill impairment test as of August 31, 2023 and there wasno impairment. No events or circumstances since the August 31, 2023 annual impairment test were noted that would indicate it was more likely than not a goodwill impairment exists.
The gross carrying amounts and accumulated amortization of other intangible assets were as follows:
| (dollars in thousands) | GrossCarryingAmount | AccumulatedAmortizationand Impairment | NetCarryingAmount |
|---|---|---|---|
| Core deposit | $189,636 | $(83,537) | $106,099 |
| Customer trust relationships | 52,621 | (23,225) | 29,396 |
| Total other intangible assets | $242,257 | $(106,762) | $135,495 |
| Core deposit | $143,511 | $(72,940) | $70,571 |
| Customer trust relationships | 52,621 | (20,942) | 31,679 |
| Total other intangible assets | $196,132 | $(93,882) | $102,250 |
Other intangible assets consist of core deposit intangibles and customer relationship intangibles and are being amortized primarily on an accelerated basis over their estimated useful lives, generally over a period of 5 to 15 years. During the three months ended June 30, 2024, Old National recorded $46.1 million of core deposit intangibles associated with the acquisition of CapStar. See Note 2 to the consolidated financial statements for additional detail regarding this transaction.
Old National reviews other intangible assets for possible impairment whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. No impairment charges were recorded during the six months ended June 30, 2024 or 2023. Total amortization expense associated with intangible assets was $7.4 million and $12.9 million for the three and six months ended June 30, 2024, respectively, compared to $6.1 million and $12.2 million for the three and six months ended June 30, 2023, respectively.
Estimated amortization expense for future years is as follows:
| (dollars in thousands) | |
|---|---|
| 2024 remaining | $14,648 |
| 2025 | 26,116 |
| 2026 | 22,474 |
| 2027 | 18,947 |
| 2028 | 15,598 |
| Thereafter | 37,712 |
| Total | $135,495 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.