Affordable Housing Tax Credit Limited Partnership

LCNB is a limited partner in a limited partnership that sponsors affordable housing projects utilizing the Low Income Housing Tax Credit (LIHTC) pursuant to Section 42 of the Internal Revenue Code. The purpose of this investment is to achieve a satisfactory return on capital, to facilitate the sale of additional affordable housing product offerings, and to assist in achieving goals associated with the Community Reinvestment Act. The primary activities of the limited partnership include the identification, development, and operation of multi-family housing that is leased to qualifying residential tenants.

The following table presents the balances of LCNB's affordable housing tax credit investment and related unfunded commitment at June 30, 2016 and December 31, 2015 (in thousands):



	June 30, 2016		December 31, 2015
Affordable housing tax credit investment	$	1,000	1,000
Less amortization	53		12
Net affordable housing tax credit investment	$	947	988

Unfunded commitment	$	865	907

LCNB expects to fund the unfunded commitment over 9.5 years.

The following table presents other information relating to LCNB's affordable housing tax credit investment for the periods indicated (in thousands):

Six Months ended June 30,

Tax credits and other tax benefits recognized

Tax credit amortization expense included in provision for income taxes