Huntington National Bank 2015 Annual Report Download - page 191

183
(dollar amounts in thousands)
December 31,
2015
December 31,
2014
Affordable housing tax credit investments $ 674,157 $ 576,381
Less: amortization (248,657) (208,098)
Net affordable housing tax credit investments $ 425,500 $ 368,283
Unfunded commitments $ 196,001 $ 154,861
The following table presents other information relating to Huntington’s affordable housing tax credit investments for the years
ended December 31, 2015, 2014, and 2013:
Year Ended December 31,
(dollar amounts in thousands) 2015 2014 2013
Tax credits and other tax benefits recognized $ 59,614 $ 51,317 $ 55,819
Proportional amortization method
Tax credit amortization expense included in provision for income taxes
42,951 39,021 32,789
Equity method
Tax credit investment losses included in noninterest income 355 434 1,176
There were no sales of LIHTC investments in 2015 or 2014. During the year ended December 31, 2013, Huntington sold LIHTC
investments resulting in gains of $9 million. The gains were recorded in noninterest income in the Consolidated Statements of Income.
Huntington recognized immaterial impairment losses for the years ended December 31, 2015, 2014 and 2013. The impairment
losses recognized related to the fair value of the tax credit investments that were less than carrying value.
OTHER INVESTMENTS
Other investments determined to be VIE’s include investments in New Market Tax Credit Investments, Historic Tax Credit
Investments, Small Business Investment Companies, Rural Business Investment Companies, certain equity method investments and
other miscellaneous investments.
20. COMMITMENTS AND CONTINGENT LIABILITIES
Commitments to extend credit
In the ordinary course of business, Huntington makes various commitments to extend credit that are not reflected in the
Consolidated Financial Statements. The contract amounts of these financial agreements at December 31, 2015, and December 31,
2014 were as follows:
At December 31,
(dollar amounts in thousands) 2015 2014
Contract amount represents credit risk
Commitments to extend credit:
Commercial $ 11,448,927 $ 11,181,522
Consumer 8,574,093 7,579,632
Commercial real estate 813,271 908,112
Standby letters of credit 511,706 497,457
Commitments to extend credit generally have fixed expiration dates, are variable-rate, and contain clauses that permit
Huntington to terminate or otherwise renegotiate the contracts in the event of a significant deterioration in the customer’s credit
quality. These arrangements normally require the payment of a fee by the customer, the pricing of which is based on prevailing market
conditions, credit quality, probability of funding, and other relevant factors. Since many of these commitments are expected to expire
without being drawn upon, the contract amounts are not necessarily indicative of future cash requirements. The interest rate risk
arising from these financial instruments is insignificant as a result of their predominantly short-term, variable-rate nature.
Standby letters-of-credit are conditional commitments issued to guarantee the performance of a customer to a third-party. These
guarantees are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing,