AFFORDABLE HOUSING PARTNERSHIPS AND OTHER TAX CREDIT INVESTMENTS	9 Months Ended
Sep. 30, 2014
AFFORDABLE HOUSING PARTNERSHIPS AND OTHER TAX CREDIT INVESTMENTS
AFFORDABLE HOUSING PARTNERSHIPS AND OTHER TAX CREDIT INVESTMENTS	NOTE 10 —AFFORDABLE HOUSING PARTNERSHIPS AND OTHER TAX CREDIT INVESTMENTS The Company invests in certain limited partnerships that are formed to develop and operate apartment complexes designed as high-quality affordable housing for lower income tenants throughout the United States. The Company’s ownership amount in each limited partnership varies. Each of the partnerships must meet the regulatory requirements for affordable housing for a minimum 15-year compliance period to fully utilize the tax credits. The Company also invests in certain limited partnerships that qualify for Community Reinvestment Act (“CRA”) credits or qualify for other types of tax credits including renewable energy projects and rehabilitation projects of historic buildings. The CRA encourages banks to meet the credit needs of their communities for housing and other purposes, particularly in neighborhoods with low or moderate incomes. Investments in these other tax credits help promote the development of renewable energy sources and rehabilitation of historic buildings and economic revitalization of the surrounding areas. The Company is not the primary beneficiary and, therefore, not required to consolidate these investments. Depending on the ownership percentage and the influence the Company has on the limited partnership, the Company uses either the equity method or cost method of accounting. If the partnerships cease to qualify during the compliance period, the credits may be denied for any period in which the projects are not in compliance and a portion of the credits previously taken may be subject to recapture with interest. Investments in affordable housing partnerships were $179.6 million and $164.8 million as of September 30, 2014 and December 31, 2013, respectively. CRA and other tax credit investments were $100.9 million and $70.2 million as of September 30, 2014 and December 31, 2013, respectively, and were included in other assets in the consolidated balance sheets. The Company has unfunded commitments related to the affordable housing and other tax credit investments that are payable on demand. Total unfunded commitments for these investments were $112.7 million and $73.1 million at September 30, 2014 and December 31, 2013, respectively, and are recorded in accrued expenses and other liabilities in the consolidated balance sheets. The Company has entered into more tax credit investments for the three and nine months ended September 30, 2014, as compared to the same periods in 2013. As a result, amortization of investments in affordable housing partnerships and other tax credit investments has increased by $32.2 million to $36.9 million for the three months ended September 30, 2014, as compared to the same period in 2013. Amortization of investments in affordable housing partnerships and other tax credit investments has also increased $41.8 million to $55.8 million for the nine months ended September 30, 2014, as compared to the same period in 2013. In addition, the Company realized an income tax benefit of $13.6 million, representing 18.2% of income before income taxes due to the purchase of tax credit investments during the three months ended September 30, 2014 that reduced the effective tax rate for the year. In comparison, income tax expense for the three months ended September 30, 2013 was $35.8 million, representing an effective tax rate of 32.8%. Income tax expense for the nine months ended September 30, 2014 was $52.9 million, representing an effective tax rate of 17.5%, as compared to $108.0 million income tax expense and an effective tax rate of 33.0% for the same period in 2013.

NOTE 10 —AFFORDABLE HOUSING PARTNERSHIPS AND OTHER TAX CREDIT INVESTMENTS

The Company invests in certain limited partnerships that are formed to develop and operate apartment complexes designed as high-quality affordable housing for lower income tenants throughout the United States. The Company’s ownership amount in each limited partnership varies. Each of the partnerships must meet the regulatory requirements for affordable housing for a minimum 15-year compliance period to fully utilize the tax credits. The Company also invests in certain limited partnerships that qualify for Community Reinvestment Act (“CRA”) credits or qualify for other types of tax credits including renewable energy projects and rehabilitation projects of historic buildings. The CRA encourages banks to meet the credit needs of their communities for housing and other purposes, particularly in neighborhoods with low or moderate incomes. Investments in these other tax credits help promote the development of renewable energy sources and rehabilitation of historic buildings and economic revitalization of the surrounding areas.

The Company is not the primary beneficiary and, therefore, not required to consolidate these investments. Depending on the ownership percentage and the influence the Company has on the limited partnership, the Company uses either the equity method or cost method of accounting. If the partnerships cease to qualify during the compliance period, the credits may be denied for any period in which the projects are not in compliance and a portion of the credits previously taken may be subject to recapture with interest. Investments in affordable housing partnerships were $179.6 million and $164.8 million as of September 30, 2014 and December 31, 2013, respectively. CRA and other tax credit investments were $100.9 million and $70.2 million as of September 30, 2014 and December 31, 2013, respectively, and were included in other assets in the consolidated balance sheets.

The Company has unfunded commitments related to the affordable housing and other tax credit investments that are payable on demand. Total unfunded commitments for these investments were $112.7 million and $73.1 million at September 30, 2014 and December 31, 2013, respectively, and are recorded in accrued expenses and other liabilities in the consolidated balance sheets.

The Company has entered into more tax credit investments for the three and nine months ended September 30, 2014, as compared to the same periods in 2013. As a result, amortization of investments in affordable housing partnerships and other tax credit investments has increased by $32.2 million to $36.9 million for the three months ended September 30, 2014, as compared to the same period in 2013. Amortization of investments in affordable housing partnerships and other tax credit investments has also increased $41.8 million to $55.8 million for the nine months ended September 30, 2014, as compared to the same period in 2013. In addition, the Company realized an income tax benefit of $13.6 million, representing 18.2% of income before income taxes due to the purchase of tax credit investments during the three months ended September 30, 2014 that reduced the effective tax rate for the year. In comparison, income tax expense for the three months ended September 30, 2013 was $35.8 million, representing an effective tax rate of 32.8%. Income tax expense for the nine months ended September 30, 2014 was $52.9 million, representing an effective tax rate of 17.5%, as compared to $108.0 million income tax expense and an effective tax rate of 33.0% for the same period in 2013.