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Qualified Affordable Housing Projects and Other Tax Credit Investments (Tables)
 9 Months Ended
Sep. 30, 2018
Accounting Policies [Abstract]  
Schedule of Qualified Affordable Housing Projects and Other Tax Credit Investments

The following table summarizes Old National’s investments in qualified affordable housing projects and other tax credit investments at September 30, 2018 and December 31, 2017:

 

(dollars in thousands)

 

 

 

September 30, 2018

 

 

December 31, 2017

 

 

 

 

 

 

 

 

 

Unfunded

 

 

 

 

 

 

Unfunded

 

Investment

 

Accounting Method

 

Investment

 

 

Commitment (1)

 

 

Investment

 

 

Commitment

 

LIHTC

 

Proportional amortization

 

$

28,991

 

 

$

5,134

 

 

$

31,183

 

 

$

15,553

 

FHTC

 

Equity

 

 

2,039

 

 

 

7,760

 

 

 

10,645

 

 

 

12,040

 

CReED

 

Equity

 

 

17

 

 

 

538

 

 

 

704

 

 

 

1,502

 

Renewable Energy

 

Equity

 

 

19,252

 

 

 

27,608

 

 

 

22,364

 

 

 

19,771

 

Total

 

 

 

$

50,299

 

 

$

41,040

 

 

$

64,896

 

 

$

48,866

 

 

 

(1)

All commitments will be paid by Old National by 2027.

The following table summarizes the amortization expense and tax benefit recognized for Old National’s qualified affordable housing projects and other tax credit investments for the three and nine months ended September 30, 2018 and 2017:

 

 

 

 

 

 

 

Tax Expense

 

 

 

Amortization

 

 

(Benefit)

 

(dollars in thousands)

 

Expense (1)

 

 

Recognized (2)

 

Three Months Ended September 30, 2018

 

 

 

 

 

 

 

 

LIHTC

 

$

640

 

 

$

(832

)

FHTC

 

 

3,282

 

 

 

(1,258

)

CReED (3)

 

 

687

 

 

 

-

 

Renewable Energy

 

 

5,265

 

 

 

(3,109

)

Total

 

$

9,874

 

 

$

(5,199

)

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2017

 

 

 

 

 

 

 

 

LIHTC

 

$

940

 

 

$

(1,297

)

FHTC

 

 

-

 

 

 

(1,520

)

CReED (3)

 

 

-

 

 

 

(303

)

Total

 

$

940

 

 

$

(3,120

)

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2018

 

 

 

 

 

 

 

 

LIHTC

 

$

1,923

 

 

$

(2,494

)

FHTC

 

 

8,727

 

 

 

(5,154

)

CReED (3)

 

 

687

 

 

 

-

 

Renewable Energy

 

 

12,393

 

 

 

(9,406

)

Total

 

$

23,730

 

 

$

(17,054

)

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2017

 

 

 

 

 

 

 

 

LIHTC

 

$

2,822

 

 

$

(3,892

)

FHTC

 

 

-

 

 

 

(4,559

)

CReED (3)

 

 

-

 

 

 

(909

)

Total

 

$

2,822

 

 

$

(9,360

)

 

 

(1)

The amortization expense for the LIHTC investments is included in our income tax expense. The amortization expense for the FHTC, CReED, and 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 FHTC, CReED, and Renewable Energy investments primarily reflects the tax credits generated from the investments, and excludes the net tax expense (benefit) of the investments’ income (loss).

 

(3)

The CReED tax credit investment qualifies for an Indiana state tax credit.