Affordable Housing Tax Credit Limited Partnership

LCNB is a limited partner in limited partnerships that sponsor affordable housing projects utilizing the Low Income Housing Tax Credit (LIHTC) pursuant to Section 42 of the Internal Revenue Code. The purpose of the investments 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 partnerships 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 investments, included in other assets in the consolidated condensed balance sheets, and related unfunded commitments, included in accrued interest and other liabilities in the consolidated condensed balance sheets, at June 30, 2017 and December 31, 2016 (in thousands):



	June 30, 2017		December 31, 2016
Affordable housing tax credit investment	$	3,000	$	2,000
Less amortization	175		93
Net affordable housing tax credit investment	$	2,825	$	1,907

Unfunded commitment	$	2,452	$	1,617

LCNB expects to fund the unfunded commitment over 10.0 years.

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



	Six Months Ended June 30,
	2017		2016
Tax credits and other tax benefits recognized	$	79	$	55
Tax credit amortization expense included in provision for income taxes	82		41