Commitments and Contingencies

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

(a) Commitments to Extend Credit

In the ordinary course of business, the Company may enter into various types of transactions that include commitments to extend credit that are not included in the Consolidated Financial Statements. The Company applies the same credit standards to these commitments as it uses in all its lending activities and has included these commitments in its lending risk evaluations. The majority of the commitments presented below are variable rate. The Company’s exposure to credit and market risk under commitments to extend credit is represented by the amount of these commitments.

The following table presents outstanding commitments to extend credit, including letters of credit, at the dates indicated:



	December 31, 2019		December 31, 2018
	(In thousands)
Commercial business:
Commercial and industrial	$	600,324	$	568,215
Owner-occupied commercial real estate	17,193		13,065
Non-owner occupied commercial real estate	35,573		13,621
Total commercial business	653,090		594,901
One-to-four family residential	—		—
Real estate construction and land development:
One-to-four family residential	75,066		59,772
Five or more family residential and commercial properties	230,343		95,535
Total real estate construction and land development	305,409		155,307
Consumer	253,860		239,822
Total outstanding commitments	$	1,212,359	$	990,030

(b) Variable Interests - Low Income Housing Tax Credit Investments

The carrying value of investments in unconsolidated LIHTCs were $92.7 million and $50.9 million as of December 31, 2019 and 2018, respectively. During the years ended December 31, 2019, 2018, and 2017 the Company recognized tax benefits of $5.7 million, $2.4 million and $2.9 million, respectively, and proportional amortization of $5.0 million, $3.1 million and $2.2 million, respectively.

Total unfunded contingent commitments related to the Company’s LIHTC investments totaled $50.7 million and $31.5 million at December 31, 2019 and 2018, respectively. The Company expects to fund LIHTC commitments of $7.0 million during the year ended December 31, 2020 and $36.4 million during the year ended December 31, 2021, with the remaining commitments of $7.3 million paid by December 31, 2034. There were no impairment losses on the Company’s LIHTC investments during the years ended December 31, 2019, 2018 or 2017.

The equity method balance of the NMTC investment was $25.4 million and $25.7 million at December 31, 2019 and December 31, 2018, respectively. The Company recognized related investment income of $701,000, $708,000 and $735,000 during the years ended December 31, 2019, 2018 and 2017, respectively. Gross tax credits related to the Company's certified development entities totaling $9.8 million are available through December 31, 2020. There were no impairment losses on the Company’s NMTC investments during the years ended December 31, 2019, 2018, or 2017.