Note 6:

Low Income Housing Tax Credits

The Company had investments in three separate housing equity funds at June 30, 2017. The general purpose of these funds is to encourage and assist participants in investing in low-income residential rental properties located in the Commonwealth of Virginia, develop and implement strategies to maintain projects as low-income housing, deliver federal low income housing tax credits to investors, allocate tax losses and other possible tax benefits to investors, and to preserve and protect project assets. The investments in these funds were recorded as other assets on the consolidated balance sheets and were $1.5 million as of June 30, 2017. These investments and related tax benefits have expected terms through 2029. Tax credits and other tax benefits recognized related to these investments during the three and six months ended June 30, 2017 was $19 thousand and $45 thousand, respectively. Total projected tax credits to be received for 2017 are $89 thousand, which are based on the most recent quarterly estimates received from the funds. Additional capital calls expected for the funds totaled $1.5 million at June 30, 2017 and are included in other liabilities on the consolidated balance sheets.