Qualified Affordable Housing Projects and Other Tax Credit Investments (Tables)

3 Months Ended

Mar. 31, 2019

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 March 31, 2019 and December 31, 2018:

(dollars in thousands)		March 31, 2019				December 31, 2018
				Unfunded				Unfunded
Investment	Accounting Method	Investment		Commitment (1)		Investment		Commitment
LIHTC	Proportional amortization	$	27,554	$	1,365	$	28,396	$	2,238
FHTC	Equity		16,815		17,027		16,815		17,945
CReED	Equity		13		—		17		538
Renewable Energy	Equity		8,907		9,536		9,176		17,827
Total		$	53,289	$	27,928	$	54,404	$	38,548

(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 months ended March 31, 2019 and 2018:

			Tax Expense
	Amortization		(Benefit)
(dollars in thousands)	Expense (1)		Recognized (2)
Three Months Ended March 31, 2019
LIHTC	$	792	$	(1,042	)
FHTC		—		—
Renewable Energy		260		(244	)
Total	$	1,052	$	(1,286	)

Three Months Ended March 31, 2018
LIHTC	$	639	$	(831	)
FHTC		—		(1,948	)
Renewable Energy		716		(3,415	)
Total	$	1,355	$	(6,194	)

(1)

The amortization expense for the LIHTC investments is included in our income tax expense. The amortization expense for the FHTC 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 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).