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

6 Months Ended

Jun. 30, 2023

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)		June 30, 2023				December 31, 2022
Investment	Accounting Method	Investment		Unfunded Commitment (1)		Investment		Unfunded Commitment
LIHTC	Proportional amortization	$	90,164	$	53,327	$	84,428	$	55,754
FHTC	Equity	19,797		10,016		19,316		9,588
NMTC	Consolidation	47,728		—		51,912		—
Renewable Energy	Equity	608		—		1,099		—
Total		$	158,297	$	63,343	$	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 June 30, 2023
LIHTC	$	1,463	$	(1,908)
FHTC	424		(512)
NMTC	2,092		(2,611)
Renewable Energy	246		—
Total	$	4,225	$	(5,031)
Three Months Ended June 30, 2022
LIHTC	$	1,240	$	(1,650)
FHTC	215		(263)
NMTC	1,100		(1,375)
Renewable Energy	210		—
Total	$	2,765	$	(3,288)
Six Months Ended June 30, 2023
LIHTC	$	2,927	$	(3,817)
FHTC	848		(1,024)
NMTC	4,183		(5,222)
Renewable Energy	492		—
Total	$	8,450	$	(10,063)
Six Months Ended June 30, 2022
LIHTC	$	2,493	$	(3,300)
FHTC	420		(514)
NMTC	2,201		(2,750)
Renewable Energy	420		—
Total	$	5,534	$	(6,564)

(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).