OLD NATIONAL BANCORP IN
For the period ended Sep 30, 2024. Filed Oct 30, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Oct 30, 2024
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Other Borrowings
NOTE 12 –OTHER BORROWINGS
The following table summarizes Old National’s other borrowings:
| (dollars in thousands) | September 30,2024 | December 31, 2023 |
|---|---|---|
| Old National Bancorp: | ||
| Subordinated debentures (fixed rate 5.88%) maturing September 2026 | $150,000 | $150,000 |
| Subordinated debentures (fixed rate 5.25%) maturing June 2030 | 30,000 | — |
| Junior subordinated debentures (rates of 6.42% to 9.09%) maturing July 2031 to September 2037 | 136,643 | 136,643 |
| Senior unsecured notes (fixed rate 4.13%) matured August 2024 | — | 175,000 |
| Unamortized debt issuance costs related to senior unsecured notes | — | (91) |
| Other basis adjustments | 14,338 | 18,207 |
| Old National Bank: | ||
| Finance lease liabilities | 33,598 | 20,955 |
| Subordinated debentures (3-month SOFR plus 4.618%; variable rate 9.87%) 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 | 186,020 | 154,284 |
| Other (1) | 35,455 | 97,872 |
| Total other borrowings | $598,054 | $764,870 |
(1)Includes overnight borrowings to collateralize certain derivative positions totaling $35.4 million at September 30, 2024 and $97.6 million at December 31, 2023.
Contractual maturities of other borrowings at September 30, 2024 were as follows:
| (dollars in thousands) | |
|---|---|
| Due in 2024 | $37,482 |
| Due in 2025 | 20,165 |
| Due in 2026 | 155,677 |
| Due in 2027 | 4,207 |
| Due in 2028 | 2,730 |
| Thereafter | 363,359 |
| Unamortized debt issuance costs and other basis adjustments | 14,434 |
| Total | $598,054 |
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 at September 30, 2024:
| (dollars in thousands) · Rate atSeptember 30,2024 | |||||
|---|---|---|---|---|---|
| Name of Trust · Issuance Date · IssuanceAmount · Rate · Maturity Date | |||||
| Bridgeview Statutory Trust I | July 2001 | $15,464 | 3-month SOFR plus 3.58% | 9.09% | July 31, 2031 |
| Bridgeview Capital Trust II | December 2002 | 15,464 | 3-month SOFR plus 3.35% | 8.91% | 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 SOFR plus 1.75% | 6.95% | March 17, 2035 |
| Northern States Statutory Trust I | September 2005 | 10,310 | 3-month SOFR plus 1.80% | 7.01% | September 15, 2035 |
| Anchor Capital Trust III | August 2005 | 5,000 | 3-month SOFR plus 1.55% | 6.42% | September 30, 2035 |
| Great Lakes Statutory Trust II | December 2005 | 6,186 | 3-month SOFR plus 1.40% | 6.61% | December 15, 2035 |
| Home Federal Statutory Trust I | September 2006 | 15,464 | 3-month SOFR plus 1.65% | 6.86% | September 15, 2036 |
| Monroe Bancorp Capital Trust I | July 2006 | 3,093 | 3-month SOFR plus 1.60% | 7.16% | October 7, 2036 |
| Tower Capital Trust 3 | December 2006 | 9,279 | 3-month SOFR plus 1.69% | 6.97% | March 1, 2037 |
| Monroe Bancorp Statutory Trust II | March 2007 | 5,155 | 3-month SOFR plus 1.60% | 6.81% | June 15, 2037 |
| Great Lakes Statutory Trust III | June 2007 | 8,248 | 3-month SOFR plus 1.70% | 6.91% | September 15, 2037 |
| Total | $136,643 | ||||
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 $33.6 million at September 30, 2024. See Note 7 to the consolidated financial statements for a maturity analysis of the Company’s finance lease liabilities.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.