Note 22 - Qualified Affordable Housing Project Investment

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Investment [Text Block]

(

22

)       

QUALIFIED AFFORDABLE HOUSING PROJECT INVESTMENT

On

January 19, 2018,

the Bank entered into an agreement to invest in qualified affordable housing projects through a limited liability company. At

December 31, 2018,

the balance of the Bank’s investment was

$3.6

million and is reflected in other assets on the consolidated balance sheet. The unfunded commitment related to the qualified affordable housing project investment was

$2.9

million at

December 31, 2018

and is reflected in other liabilities on the consolidated balance sheet. The Bank expects to fulfill the commitment as capital calls are made through

2029.

The investment is accounted for using the proportional amortization method. During

2018,

the Bank recognized amortization expense of

$329,000,

which was included in income tax expense on the consolidated statement of income. Additionally, during

2018,

the Bank recognized tax credits and other tax benefits from its qualified affordable housing project investment of

$393,000.