Qualified Affordable Housing

12 Months Ended

Dec. 31, 2018

Investments in Affordable Housing Projects [Abstract]

QUALIFIED AFFORDABLE HOUSING

QUALIFIED AFFORDABLE HOUSING

We invest in affordable housing projects primarily to satisfy our Community Reinvestment Act requirements. As a limited partner in these operating partnerships, we receive tax credits and tax deductions for losses incurred by the underlying properties. We use the cost method to account for these partnerships. Our total investment in qualified affordable housing projects, included in other assets in the Consolidated Balance Sheet, was $6.3 million at December 31, 2018 and $9.0 million at December 31, 2017. Amortization expense, included in other noninterest expense in the Consolidated Statements of Net Income, was $2.7 million, $3.0 million and $3.3 million for December 31, 2018, 2017 and 2016. The tax credits of $3.1 million, $3.4 million and $3.7 million for December 31, 2018, 2017 and 2016, are recognized as a reduction to our federal tax provision. We evaluated our investments in affordable housing projects for impairment at December 31, 2018; the results indicated that the tax benefits associated with each investment exceeded the carrying values.