OLD NATIONAL BANCORP /IN/
For the period ended Mar 31, 2025. Filed Apr 30, 2025.
View on SEC.govAbout this filing
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.
Mar 31, 2025 · Filed Apr 30, 2025
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
Qualified Affordable Housing Projects and Other Tax Credit Investments
NOTE 9 –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 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, 2025 · December 31, 2024 | |||||
|---|---|---|---|---|---|
| Investment | Accounting Method | Investment | UnfundedCommitment (1) | Investment | UnfundedCommitment |
| Low Income Housing Tax Credit (“LIHTC”) | Proportional amortization | $196,049 | $109,475 | $199,350 | $115,345 |
| Federal Historic Tax Credit (“FHTC”) | Proportional amortization | 28,074 | 22,344 | 30,835 | 24,869 |
| New Markets Tax Credit (“NMTC”) | Consolidation | 57,037 | — | 60,462 | — |
| Renewable Energy | Equity | 4 | — | 4 | — |
| Total | $281,164 | $131,819 | $290,651 | $140,214 | |
(1)All commitments will be paid by Old National by December 31, 2035.
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) |
|---|---|---|
| LIHTC | $3,205 | $(4,299) |
| FHTC | 555 | (695) |
| NMTC | 3,424 | (4,260) |
| Total | $7,184 | $(9,254) |
| LIHTC | $2,486 | $(3,331) |
| FHTC | 534 | (663) |
| NMTC | 2,546 | (3,175) |
| Renewable Energy | 186 | — |
| Total | $5,752 | $(7,169) |
(1)The amortization expense for the LIHTC and FHTC investments is included in ourincome 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 ourincome 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).
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.