Other Assets

12 Months Ended

Dec. 31, 2019

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

BOLI

BOLI is recorded at the cash surrender value of the policies, less any applicable cash surrender charges, and is recorded in other assets. As of December 31, 2019 and 2018, BankRI owned seven policies with a net cash surrender value of $41.0 million and $39.9 million, respectively. As of December 31, 2019 and 2018, Brookline Bank, as successor-in-interest to First Ipswich owned two policies with a net cash surrender value of $0.8 million, respectively.

The Company recorded a total of $1.0 million, $1.0 million, and $1.0 million of tax exempt income from these nine policies in 2019, 2018, and 2017, respectively. They are included in the Company’s other non-interest income in the consolidated statements of income.

Affordable Housing Investments

The Company began investing in affordable housing projects that benefit low- and moderate-income individuals in 2009. As of December 31, 2019, the Company had investments in 17 of these projects. The project sponsor or general partner controls the project's management. In each case, the Company is a limited partner with less than 50% of the outstanding equity interest in any single project.

On January 1, 2015, the Company adopted ASU 2014-01, Accounting for Investments in Qualified Affordable Housing Projects, which required retrospective application and had an impact on net income for 2014 of $0.5 million and a cumulative

effect on retained earnings of $1.1 million at January 1, 2015. Prior to the adoption of ASU 2014-01, the Company’s investments in qualified affordable housing projects were accounted for using the equity method. Under the equity method, operating losses or gains from these investments were included as a component of non-interest income in the Company's consolidated statements of income. ASU 2014-01 calls for the use of the proportional amortization method calculation and the operating losses or gains for these investments are included as a component of the provision for income taxes in the Company’s consolidated statements of income. Under the proportional amortization method, the initial costs of the investment in qualified affordable housing projects is amortized based on the tax credits and other benefits received.

Further information regarding the Company's investments in affordable housing projects follows:



	At December 31,
	2019		2018
	(In Thousands)
Investments in affordable housing projects included in other assets	$	29,939	$	10,895
Unfunded commitments related to affordable housing projects included in other liabilities	20,286		1,115
Investment in affordable housing tax credits	2,042		1,885
Investment in affordable housing tax benefits	540		585



	For the year ended December 31,
	2019		2018		2017
	(In Thousands)
Investment amortization included in provision for income taxes	$	2,097	$	1,916	$	1,844
Amount recognized as income tax benefit	540		585		623