NOTE 12 – QUALIFIED AFFORDABLE HOUSING PROJECTS AND OTHER TAX CREDIT INVESTMENTS

The Company is a limited partner in several tax-advantaged limited partnerships whose purpose is to invest in approved qualified affordable housing 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. Certain of these assets qualify for the proportional amortization method and are amortized over the period that the Company expects to receive the tax credits, with the expense included within income tax expense on the consolidated statements of income. The other investments are accounted for under the equity method, with the expense included within pre-tax income on the consolidated statements of income. All of the Company’s tax credit investments are evaluated for impairment at the end of each reporting period. As of December 31, 2016, the Company 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 Low Income Housing Tax Credits (“LIHTC”), Federal Historic Tax Credits (“FHTC”), Federal New Market Tax Credits (“NMTC”), and Indiana Community Revitalization Enhancement District Tax Credits (“CReED”) at December 31, 2016:


(dollars in thousands)							Years Ended December 31,				Years Ended December 31,
			At December 31, 2016				2016		2015		2016			2015
Investment	Accounting Method		Investment		Unfunded Commitment (1)		Amortization Expense				Tax Benefit Recognized
LIHTC and other qualifying investments		Proportional amortization	$	29,110	$	16,210	$	804	$	804	$	(1,125	)	$	(1,125	)
FHTC		Equity		4,434		3,104		—		—		—			—
CReED		Equity		1,504		1,502		—		—		—			—
NMTC		Equity		—		—		—		143		—			(233	)

Total			$	35,048	$	20,816	$	804	$	947	$	(1,125	)	$	(1,358	)

(1)	All commitments will be paid by the Company by 2027.

At December 31, 2015, the Company’s qualified affordable housing projects and other tax credit investments totaled $9.8 million, with no unfunded commitments.