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Tax Credit Investments
 9 Months Ended
Sep. 30, 2021
Income Tax Disclosure [Abstract]  
Tax Credit Investments Tax Credit Investments
TCIs are primarily for investments promoting qualified affordable housing projects and investments in community development entities. 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 recorded 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.

The following table presents the balances of the Corporation's TCIs and related unfunded commitments:
September 30,December 31,
20212020
Included in other assets:(in thousands)
Affordable housing tax credit investment, net$167,434 $152,203 
Other tax credit investments, net47,645 59,224 
Total TCIs, net$215,079 $211,427 
Included in other liabilities:
Unfunded affordable housing tax credit commitments$54,420 $31,562 
Other tax credit liabilities38,845 49,491 
Total unfunded tax credit commitments and liabilities$93,265 $81,053 

The following table presents other information relating to the Corporation's TCIs:
Three months ended September 30Nine months ended September 30
2021202020212020
Components of income taxes:(in thousands)
Affordable housing tax credits and other tax benefits$(6,515)$(7,290)$(19,546)$(21,678)
Other tax credit investment credits and tax benefits(723)(1,240)(2,168)(3,122)
Amortization of affordable housing investments, net of tax benefit4,344 5,024 13,033 15,071 
Deferred tax expense159 275 479 691 
Total net reduction in income tax expense$(2,735)$(3,231)$(8,202)$(9,038)
Amortization of TCIs:
Affordable housing tax credits investment$1,002 $1,021 $3,006 $3,065 
Other tax credit investment amortization544 673 1,634 1,529 
Total amortization of TCIs$1,546 $1,694 $4,640 $4,594