QUALIFIED AFFORDABLE HOUSING PROJECT INVESTMENTS

9 Months Ended

Sep. 30, 2019

Federal Home Loan Banks [Abstract]

QUALIFIED AFFORDABLE HOUSING PROJECT INVESTMENTS

16. QUALIFIED AFFORDABLE HOUSING PROJECT INVESTMENTS

The Company invests in qualified affordable housing projects.  At September 30, 2019 and December 31, 2018, the balance of the investment for qualified affordable housing projects was $10.9 million and $8.4 million, respectively.  These balances are reflected in other assets on the consolidated balance sheet.  Total unfunded commitments related to the investments in qualified affordable housing projects totaled $8.5 million and $6.5 million at September 30, 2019 and December 31, 2018, respectively.  The Company expects to fulfill these commitments over the next eight to ten years.

During the three months ended September 30, 2019 and 2018, the Company recognized amortization expense of $180,000 and $124,000, respectively, which was included within income tax expense on the consolidated statements of income. During the nine months ended September 30, 2019 and 2018, the Company recognized amortization expense of $525,000 and $367,000, respectively.  

Additionally, during the three months ended September 30, 2019 and 2018, the Company recognized tax credits and other benefits from its investment in affordable housing tax credits of $207,000 and $141,000, respectively.  During the nine months ended September 30, 2019 and 2018, the Company recognized tax credits and other benefits from its investment in affordable housing tax credits of $601,000 and $418,000, respectively.  During the three and nine months ended September 30, 2019 and 2018, the Company incurred no impairment losses.