XML 28 R16.htm IDEA: XBRL DOCUMENT v3.19.1

Tax Credit Investments

3 Months Ended

Mar. 31, 2019

Income Tax Disclosure [Abstract]

Tax Credit Investments

Tax Credit Investments

The Corporation's tax credit investments ("TCIs") are primarily related to investments promoting qualified affordable housing projects and investments in community development entities. The majority of these tax-advantaged investments support the Corporation's corporate mission and vision, as well as regulatory compliance with the Community Reinvestment Act. The Corporation's investments in these projects generate a return primarily through the realization of federal income tax credits and deductions for operating losses over a specified time period.

The TCIs are included in other assets, with any unfunded equity commitments carried in other liabilities on the consolidated balance sheets. Certain TCIs qualify for the proportional amortization method and are amortized over the period the Corporation expects to receive the tax credits, with the expense included within income taxes on the consolidated statements of income. Other TCIs are accounted for under the equity method of accounting, with amortization included within non-interest expense on the consolidated statements of income. This amortization includes equity in partnership losses and the systematic write-down of investments over the period in which income tax credits are earned. All of the TCIs are evaluated for impairment at the end of each reporting period. As illustrated below, realizable tax credits are included within income taxes and offset the amortization expense recorded.

The following table presents the balances of the Corporation's TCIs and related unfunded commitments:

			March 31,				December 31,
			2019				2018
Included in other assets:			(in thousands)
Affordable housing tax credit investment, net			$	169,096			$	170,401
Other tax credit investments, net			73,859				72,584
	Total community development investments, net		$	242,955			$	242,985
Included in other liabilities:
Unfunded affordable housing tax credit commitments			$	21,635			$	23,196
Other tax credit investment liabilities			61,506				59,823
	Total unfunded tax credit investment commitments and liabilities		$	83,141			$	83,019

The following table presents other information relating to the Corporation's TCIs:

		Three Months Ended
		March 31
		2019				2018
Components of income taxes:		(in thousands)
Affordable housing tax credits and other tax benefits		$	(7,575	)		$	(7,544	)
Other tax credit investment credits and tax benefits		(1,136		)		(1,596		)
Amortization of affordable housing investments, net of tax benefit		5,495				5,598
Deferred tax expense		238				335
	Total reduction in income tax expense	$	(2,978	)		$	(3,207	)
Amortization of tax credit investments:
Affordable housing tax credits investment		$	822			$	839
Other tax credit investment amortization		669				798
	Total amortization of tax credit investments	$	1,491			$	1,637

X

- References

No definition available.

+ Details

Name:	us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI http://asc.fasb.org/topic&trid=2144680

+ Details

Name:	us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration