Qualified Affordable Housing Project Investments

The Company's investment in Qualified Affordable Housing Projects that generate Low Income Housing Tax Credits at December 31, 2015 was $8.0 million with a recorded liability of $2.4 million in funding obligations. The Company has invested in two separate LIHTC projects which provide the Company with CRA credit. Additionally, the investment in LIHTC projects provides the Company with tax credits and with operating loss tax benefits over an approximately 15 year period. Non of the original investment will be repaid. The investment in LIHTC projects is being accounted for using the cost method, under which the Company amortizes as non-interest expense the initial cost of the investment equally over the expected time period in which tax credits and other tax benefits will be received and recognizes the tax credits and operating loss tax benefits in the income statement as a component of income tax expense (benefit).

The following table presents the Company's original investment in the LIHTC projects, the current recorded investment balance, and the unfunded liability balance of each investment at December 31, 2015 and 2014. In addition, the table reflects the tax credits and tax benefits recorded by the Company during 2015 and 2014; the amortization of the investment and the net impact to the Company's income tax provision for 2015 and 2014.



Qualified Affordable Housing Projects at December 31, 2015	Original Investment Value		Current Recorded Investment		Unfunded Liability Obligation		Tax Credits and Tax Deductions (1)		Amortization of Investments (2)		Net Income Tax Benefit

WNC Institutional Tax Credit Fund X, CA Series 11 L.P.	$	5,000	$	3,750	$	316	$	917	$	500	$	(643	)
WNC Institutional Tax Credit Fund X, CA Series 12, L.P.	5,000		4,250		2,111		819		500		(531		)
Total - Investments in Qualified Affordable Housing Projects	$	10,000	$	8,000	$	2,427	$	1,736	$	1,000	$	(1,174	)

Qualified Affordable Housing Projects at December 31, 2014	Original Investment Value		Current Recorded Investment		Unfunded Liability Obligation		Tax Credits and Tax Deductions (1)		Amortization of Investments (2)		Net Income Tax Benefit
WNC Institutional Tax Credit Fund X, CA Series 11 L.P.	$	5,000	$	4,250	$	774	$	887	$	500	$	(626	)
WNC Institutional Tax Credit Fund X, CA Series 12, L.P.	5,000		4,750		3,266		388		250		(268		)
Total - Investments in Qualified Affordable Housing Projects	$	10,000	$	9,000	$	4,040	$	1,275	$	750	$	(894	)
(1) The amounts reflected in this column represent both the tax credits, as well as the tax benefits generated by the Qualified Affordable Housing Projects operating loss for the year, which are included in the calculation of income tax expense. (2) This amount represents the amortization of the investment cost of the LIHTC, included in non-interest expense.