Other Borrowings

3 Months Ended

Mar. 31, 2022

Other Liabilities Disclosure [Abstract]

OTHER BORROWINGS

The following table summarizes Old National’s other borrowings:


(dollars in thousands)	March 31, 2022		December 31, 2021
Old National Bancorp:
Senior unsecured notes (fixed rate 4.125%) maturing August 2024	$	175,000	$	175,000
Unamortized debt issuance costs related to senior unsecured notes	(364)		(403)
Subordinated debentures (fixed rate 5.875%) maturing September 2026	150,000		—
Junior subordinated debentures (variable rates of 1.84% to 6.95%) maturing July 2031 to September 2037	136,643		42,000
Other basis adjustments	27,231		(3,044)
Old National Bank:
Finance lease liabilities	16,621		17,233
Subordinated debentures (variable rate 4.66%) maturing October 2025	12,000		12,000
Leveraged loans for NMTC (fixed rates of 1.00% to 1.43%) maturing December 2046 to December 2052	77,550		51,045
Other	2,526		2,839
Total other borrowings	$	597,207	$	296,670

Contractual maturities of other borrowings at March 31, 2022 were as follows:


(dollars in thousands)
Due in 2022	$	1,880
Due in 2023	2,582
Due in 2024	177,649
Due in 2025	14,686
Due in 2026	151,495
Thereafter	219,522
Unamortized debt issuance costs and other basis adjustments	29,393
Total	$	597,207

Senior Notes

In August 2014, Old National issued $175.0 million of senior unsecured notes with a 4.125% interest rate. These notes pay interest on February 15 and August 15 and mature on August 15, 2024.

Junior Subordinated Debentures

Junior subordinated debentures related to trust preferred securities are classified in “other borrowings.” Junior subordinated debentures qualify as Tier 2 capital for regulatory purposes, subject to certain limitations.

Through various acquisitions, Old National assumed junior subordinated debenture obligations related to various trusts that issued trust preferred securities. Old National guarantees the payment of distributions on the trust preferred securities issued by the trusts. Proceeds from the issuance of each of these securities were used to purchase junior subordinated debentures with the same financial terms as the securities issued by the trusts.

Old National, at any time, may redeem the junior subordinated debentures at par and, thereby cause a redemption of the trust preferred securities in whole or in part.

The following table summarizes the terms of our outstanding junior subordinated debentures at March 31, 2022:

(dollars in thousands)

Rate at

March 31,
2022

Name of Trust

Issuance Date

Issuance
Amount

Rate

Maturity Date

St. Joseph Capital Trust II

March 2005

5,155

3-month LIBOR plus 1.75%

2.66%

March 17, 2035

Anchor Capital Trust III

August 2005

5,000

3-month LIBOR plus 1.55%

2.56%

September 30, 2035

Home Federal Statutory
Trust I

September 2006

15,464

3-month LIBOR plus 1.65%

2.48%

September 15, 2036

Monroe Bancorp Capital
Trust I

July 2006

3,093

3-month LIBOR plus 1.60%

1.84%

October 7, 2036

Tower Capital Trust 3

December 2006

9,279

3-month LIBOR plus 1.69%

2.21%

March 1, 2037

Monroe Bancorp Statutory
Trust II

March 2007

5,155

3-month LIBOR plus 1.60%

2.43%

June 15, 2037

First Midwest Capital Trust I

November 2003

37,825

6.95% fixed

6.95%

December 1, 2033

Great Lakes Statutory Trust II

December 2005

6,186

3-month LIBOR plus 1.40%

2.23%

December 15, 2035

Great Lakes Statutory Trust III

June 2007

8,248

3-month LIBOR plus 1.70%

2.53%

September 15, 2037

Northern States Statutory Trust I

September 2005

10,310

3-month LIBOR plus 1.80%

2.63%

September 15, 2035

Bridgeview Statutory Trust I

July 2001

15,464

3-month LIBOR plus 3.58%

3.88%

July 31, 2031

Bridgeview Capital Trust II

December 2002

15,464

3-month LIBOR plus 3.35%

3.58%

January 7, 2033

Total

136,643

Subordinated Debentures

On November 1, 2017, Old National assumed $12.0 million of subordinated fixed-to-floating notes related to the acquisition of Anchor (MN). The subordinated debentures had a 5.75% fixed rate of interest through October 29, 2020. From October 30, 2020 to the October 30, 2025 maturity date, the debentures have a floating rate of interest equal to the three-month LIBOR rate plus 4.356%.

On February 15, 2022, Old National assumed $150.0 million of subordinated fixed rate notes related to the acquisition of First Midwest. The subordinated debentures have a 5.875% fixed rate of interest through the September 29, 2026 maturity date.

Leveraged Loans

The leveraged loans are directly related to the New Markets Tax Credit structure. As part of the transaction structure, Old National has the right to sell its interest in the entity that received the leveraged loans at an agreed upon price to the leveraged lender at the end of the New Markets Tax Credit seven year compliance period. See Note 11 to the consolidated financial statements for additional information on the Company’s New Markets Tax Credit investments.

Finance Lease Liabilities

Old National has long-term finance lease liabilities for certain banking centers and equipment totaling $16.6 million at March 31, 2022. See Note 8 to the consolidated financial statements for a maturity analysis of the Company’s finance lease liabilities.