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 and related unfunded commitments at September 30, 2018 and December 31, 2017 (in thousands):



	September 30, 2018		December 31, 2017
Affordable housing tax credit investment	$	5,000	$	3,000
Less amortization	400		231
Net affordable housing tax credit investment	$	4,600	$	2,769

Unfunded commitment	$	3,522	$	2,257

The net affordable housing tax credit investment is included in other assets and the unfunded commitment is included in accrued interest and other liabilities in the consolidated condensed balance sheets.

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 nine months ended September 30, 2018 and 2017 (in thousands):



	2018		2017
Tax credits and other tax benefits recognized	$	168	$	119
Tax credit amortization expense included in provision for income taxes	169		126