Company: ONBPP
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0000707179-25-000009
Chunk: 42

Company: OLD NATIONAL BANCORP /IN/
Filing Date: 2025-04-30
Form: 10-Q
Item: Item 1
Chunk 42
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, with any unfunded commitments included with other liabilities. As of March 31, 2025, 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, 2025December 31, 2024InvestmentAccounting MethodInvestmentUnfundedCommitment (1)InvestmentUnfundedCommitmentLow Income Housing Tax Credit (“LIHTC”)Proportional amortization$196,049 $109,475 $199,350 $115,345 Federal Historic Tax Credit (“FHTC”)Proportional amortization28,074 22,344 30,835 24,869 New Markets Tax Credit (“NMTC”)Consolidation57,037 — 60,462 — Renewable EnergyEquity4 — 4 — Total $281,164 $131,819 $290,651 $140,214 (1)All commitments will be paid by Old National by December 31, 2035. 

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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)AmortizationExpense (1)Tax Expense(Benefit)Recognized (2)Three Months Ended March 31, 2025LIHTC$3,205 $(4,299)FHTC555 (695)NMTC3,424 (4,260)Total$7,184 $(9,254)Three Months Ended March 31, 2024LIHTC$2,486 $(3,331)FHTC534 (663)NMTC2,546 (3,175)Renewable Energy186 — Total$5,752 $(7,169)(1)The amortization expense for the LIHTC and FHTC investments is included in our income tax expense. NMTC amortization is recognized in noninterest expense in correlation to the recognition of tax credits on our tax return. Amortization expense for the 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 NMTC investments primarily reflects