Other Borrowings

12 Months Ended

Dec. 31, 2022

OTHER BORROWINGS

The following table summarizes Old National’s other borrowings:


	December 31,
(dollars in thousands)	2022		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	(247)		(403)
Subordinated debentures (fixed rate 5.875%) maturing September 2026	150,000		—
Junior subordinated debentures (variable rates of 5.68% to 7.99%) maturing July 2031 to September 2037	136,643		42,000
Other basis adjustments	23,363		(3,044)
Old National Bank:
Finance lease liabilities	13,469		17,233
Subordinated debentures (variable rate 8.77%) maturing October 2025	12,000		12,000
Leveraged loans for NMTC (fixed rates of 1.00% to 1.43%) maturing December 2046 to June 2060	143,187		51,045
Other (1)	89,588		2,839
Total other borrowings	$	743,003	$	296,670

(1)Includes overnight borrowings to collateralize certain derivative positions totaling $88.0 million at December 31, 2022.

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


(dollars in thousands)
Due in 2023	$	90,276
Due in 2024	177,335
Due in 2025	14,389
Due in 2026	151,188
Due in 2027	1,209
Thereafter	283,934
Unamortized debt issuance costs and other basis adjustments	24,672
Total	$	743,003

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. The notes 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 mergers and 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 as of December 31, 2022:


(dollars in thousands) Name of Trust	Issuance Date	Issuance Amount		Rate	Rate at December 31, 2022		Maturity Date
Bridgeview Statutory Trust I	July 2001	$	15,464	3-month LIBOR plus 3.58%	7.99	%	July 31, 2031
Bridgeview Capital Trust II	December 2002	15,464		3-month LIBOR plus 3.35%	7.43	%	January 7, 2033
First Midwest Capital Trust I	November 2003	37,825		6.95% fixed	6.95	%	December 1, 2033
St. Joseph Capital Trust II	March 2005	5,155		3-month LIBOR plus 1.75%	6.49	%	March 17, 2035
Northern States Statutory Trust I	September 2005	10,310		3-month LIBOR plus 1.80%	6.57	%	September 15, 2035
Anchor Capital Trust III	August 2005	5,000		3-month LIBOR plus 1.55%	6.30	%	September 30, 2035
Great Lakes Statutory Trust II	December 2005	6,186		3-month LIBOR plus 1.40%	6.17	%	December 15, 2035
Home Federal Statutory Trust I	September 2006	15,464		3-month LIBOR plus 1.65%	6.42	%	September 15, 2036
Monroe Bancorp Capital Trust I	July 2006	3,093		3-month LIBOR plus 1.60%	5.68	%	October 7, 2036
Tower Capital Trust 3	December 2006	9,279		3-month LIBOR plus 1.69%	6.45	%	March 1, 2037
Monroe Bancorp Statutory Trust II	March 2007	5,155		3-month LIBOR plus 1.60%	6.37	%	June 15, 2037
Great Lakes Statutory Trust III	June 2007	8,248		3-month LIBOR plus 1.70%	6.47	%	September 15, 2037
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 Bancorp, Inc. (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 First Midwest merger. 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 NMTC 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 NMTC seven-year compliance period. See Note 9 to the consolidated financial statements for additional information on the Company’s NMTC investments.

Finance Lease Liabilities

Old National has long-term finance lease liabilities for certain banking centers and equipment totaling $13.5 million at December 31, 2022. See Note 6 to the consolidated financial statements for a maturity analysis of the Company’s finance lease liabilities.