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Qualified Affordable Housing Projects and Other Tax Credit Investments
 9 Months Ended
Sep. 30, 2024
Securities Sold under Agreements to Repurchase [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 September 30, 2024, 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) September 30, 2024December 31, 2023
InvestmentAccounting MethodInvestment
Unfunded
Commitment (1)
InvestmentUnfunded
Commitment
LIHTCProportional amortization$202,128 $122,826 $114,991 $75,981 
FHTC
Proportional amortization (2)
31,459 25,535 34,220 27,421 
NMTCConsolidation54,063 — 47,727 — 
Renewable EnergyEquity4 — 201 — 
Total $287,654 $148,361 $197,139 $103,402 
(1)All commitments will be paid by Old National by December 31, 2035.
(2)Old National’s FHTC investments were previously accounted for under the Equity method of accounting prior to the adoption of ASU 2023-02 on January 1, 2024.
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 September 30, 2024  
LIHTC$2,777 $(3,739)
FHTC738 (690)
NMTC3,076 (3,825)
Renewable Energy— — 
Total$6,591 $(8,254)
Three Months Ended September 30, 2023
LIHTC$3,208 $(3,582)
FHTC330 (399)
NMTC2,092 (2,611)
Renewable Energy222 — 
Total$5,852 $(6,592)
Nine Months Ended September 30, 2024
LIHTC$8,042 $(10,813)
FHTC2,000 (2,043)
NMTC8,168 (10,175)
Renewable Energy197 — 
Total$18,407 $(23,031)
Nine Months Ended September 30, 2023
LIHTC$6,135 $(7,398)
FHTC1,178 (1,423)
NMTC6,275 (7,833)
Renewable Energy714 — 
Total$14,302 $(16,654)
(1)The amortization expense for the LIHTC and FHTC investments is included in our income tax expense. Prior to the adoption of ASU 2023-02 on January 1, 2024, FHTC amortization expense was included in noninterest 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 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).