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Qualified Affordable Housing Projects and Other Tax Credit Investments (Tables)
 6 Months Ended
Jun. 30, 2019
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 June 30, 2019 and December 31, 2018:

 

(dollars in thousands)

 

 

 

June 30, 2019

 

 

December 31, 2018

 

 

 

 

 

 

 

 

 

Unfunded

 

 

 

 

 

 

Unfunded

 

Investment

 

Accounting Method

 

Investment

 

 

Commitment (1)

 

 

Investment

 

 

Commitment

 

LIHTC

 

Proportional amortization

 

$

31,421

 

 

$

5,149

 

 

$

28,396

 

 

$

2,238

 

FHTC

 

Equity

 

 

22,375

 

 

 

20,777

 

 

 

16,815

 

 

 

17,945

 

CReED

 

Equity

 

 

13

 

 

 

—

 

 

 

17

 

 

 

538

 

Renewable Energy

 

Equity

 

 

8,339

 

 

 

5,725

 

 

 

9,176

 

 

 

17,827

 

Total

 

 

 

$

62,148

 

 

$

31,651

 

 

$

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 and six months ended June 30, 2019 and 2018:

 

 

 

 

 

 

 

Tax Expense

 

 

 

Amortization

 

 

(Benefit)

 

(dollars in thousands)

 

Expense (1)

 

 

Recognized (2)

 

Three Months Ended June 30, 2019

 

 

 

 

 

 

 

 

LIHTC

 

$

791

 

 

$

(1,042

)

Renewable Energy

 

 

568

 

 

 

(533

)

Total

 

$

1,359

 

 

$

(1,575

)

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2018

 

 

 

 

 

 

 

 

LIHTC

 

$

643

 

 

$

(831

)

FHTC

 

 

5,444

 

 

 

(1,948

)

Renewable Energy

 

 

6,414

 

 

 

(2,882

)

Total

 

$

12,501

 

 

$

(5,661

)

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2019

 

 

 

 

 

 

 

 

LIHTC

 

$

1,584

 

 

$

(2,085

)

Renewable Energy

 

 

828

 

 

 

(777

)

Total

 

$

2,412

 

 

$

(2,862

)

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2018

 

 

 

 

 

 

 

 

LIHTC

 

$

1,281

 

 

$

(1,662

)

FHTC

 

 

5,444

 

 

 

(3,896

)

Renewable Energy

 

 

7,130

 

 

 

(6,296

)

Total

 

$

13,855

 

 

$

(11,854

)

 

 

(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).