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Qualified Affordable Housing Projects and Other Tax Credit Investments
 3 Months Ended
Mar. 31, 2023
Investments in Affordable Housing Projects [Abstract]  
Qualified Affordable Housing Projects and Other Tax Credit Investments QUALIFIED AFFORDABLE HOUSING PROJECTS AND OTHER TAX CREDIT INVESTMENTS
Old National is a limited partner in several tax-advantaged limited partnerships whose purpose is to invest in approved qualified affordable housing, renewable energy, or other renovation or community revitalization projects.  These investments are included in other assets on the balance sheet, with any unfunded commitments included with other liabilities. As of March 31, 2023, Old National expects to recover its remaining investments through the use of the tax credits that are generated by the investments.
The following table summarizes Old National’s investments in qualified affordable housing projects and other tax credit investments:
(dollars in thousands) March 31, 2023December 31, 2022
InvestmentAccounting MethodInvestment
Unfunded
Commitment (1)
InvestmentUnfunded
Commitment
LIHTCProportional amortization$82,950 $46,743 $84,428 $55,754 
FHTCEquity18,892 9,019 19,316 9,588 
NMTCConsolidation49,820 — 51,912 — 
Renewable EnergyEquity854 — 1,099 — 
Total $152,516 $55,762 $156,755 $65,342 
(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, 2023  
LIHTC$1,463 $(1,908)
FHTC424 (512)
NMTC2,091 (2,611)
Renewable Energy246 — 
Total$4,224 $(5,031)
Three Months Ended March 31, 2022
LIHTC$1,253 $(1,650)
FHTC205 (251)
NMTC1,101 (1,375)
Renewable Energy210 — 
Total$2,769 $(3,276)
(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).