Affordable Housing Tax Credit Limited Partnership

9 Months Ended

Sep. 30, 2020

Equity Method Investments and Joint Ventures [Abstract]

Affordable Housing Tax Credit Limited Partnership

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, 2020 and December 31, 2019 (in thousands):

	September 30, 2020		December 31, 2019
Affordable housing tax credit investment	$	10,000	7,000
Less amortization	1,203		810
Net affordable housing tax credit investment	$	8,797	6,190
Unfunded commitment	$	6,864	4,596

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 10.25 years.

The following table presents other information relating to LCNB's affordable housing tax credit investments for the three and nine months ended September 30, 2020 and 2019 (in thousands):

	Three Months Ended September 30,			Nine Months Ended September 30,
	2020		2019	2020	2019
Tax credits and other tax benefits recognized	$	264	94	802	262
Tax credit amortization expense included in provision for income taxes	130		33	393	124