Qualified Affordable Housing Projects and Other Tax Credit Investments (Tables)

3 Months Ended

Mar. 31, 2022

Investments in Affordable Housing Projects [Abstract]

Schedule of Qualified Affordable Housing Projects and Other Tax Credit Investments

The following table summarizes Old National’s investments in qualified affordable housing projects and other tax credit investments:

(dollars in thousands)		March 31, 2022				December 31, 2021
Investment	Accounting Method	Investment		Unfunded Commitment (1)		Investment		Unfunded Commitment
LIHTC	Proportional amortization	$	67,703	$	39,830	$	68,989	$	41,355
FHTC	Equity	21,036		13,796		21,241		15,252
NMTC	Equity	29,455		—		18,727		—
Renewable Energy	Equity	1,776		—		1,985		—
Total		$	119,970	$	53,626	$	110,942	$	56,607

(1)All commitments will be paid by Old National by December 31, 2027.

The following table summarizes the amortization expense and tax benefit recognized for Old National’s qualified affordable housing projects and other tax credit investments:

(dollars in thousands)	Amortization Expense (1)		Tax Expense (Benefit) Recognized (2)
Three Months Ended March 31, 2022
LIHTC	$	1,253	$	(1,650)
FHTC	205		(251)
NMTC	1,101		(1,375)
Renewable Energy	210		—
Total	$	2,769	$	(3,276)
Three Months Ended March 31, 2021
LIHTC	$	862	$	(1,136)
FHTC	130		(682)
NMTC	375		(463)
Renewable Energy	697		(562)
Total	$	2,064	$	(2,843)

(1)The amortization expense for the LIHTC investments is included in our income tax expense. The amortization expense for the FHTC, NMTC, and Renewable Energy tax credits is included in noninterest expense.

(2)All of the tax benefits recognized are included in our income tax expense.  The tax benefit recognized for the FHTC, NMTC, and Renewable Energy investments primarily reflects the tax credits generated from the investments and excludes the net tax expense (benefit) and deferred tax liability of the investments’ income (loss).