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Qualified Affordable Housing Projects and Other Tax Credit Investments
 9 Months Ended
Sep. 30, 2025
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, 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) September 30, 2025December 31, 2024
InvestmentAccounting MethodInvestment
Unfunded
Commitment (1)
InvestmentUnfunded
Commitment
Low Income Housing Tax Credit (“LIHTC”)Proportional amortization$249,522 $128,465 $199,350 $115,345 
Federal Historic Tax Credit (“FHTC”)Proportional amortization26,043 19,043 30,835 24,869 
New Markets Tax Credit (“NMTC”)Consolidation112,773 — 60,462 — 
Renewable EnergyEquity4 — 4 — 
Total $388,342 $147,508 $290,651 $140,214 
(1)All commitments will be paid by Old National by December 31, 2040.
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, 2025  
LIHTC$3,699 $(4,731)
FHTC2,432 (2,760)
NMTC7,057 (8,471)
Total$13,188 $(15,962)
Three Months Ended September 30, 2024
LIHTC$2,777 $(3,739)
FHTC738 (690)
NMTC3,076 (3,825)
Total$6,591 $(8,254)
Nine Months Ended September 30, 2025
LIHTC$10,108 $(13,547)
FHTC3,602 (4,178)
NMTC16,296 (19,780)
Total$30,006 $(37,505)
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)
(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 the tax credits generated from the investments and excludes the net tax expense (benefit) and deferred tax liability of the investments’ income (loss).