Note 10 - Affordable Housing Tax Credit Limited Partnerships

12 Months Ended

Dec. 31, 2024

Notes to Financial Statements

Affordable Housing Program [Text Block]

NOTE 10 - AFFORDABLE HOUSING TAX CREDIT LIMITED PARTNERSHIPS

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 investment and related unfunded commitment at December 31 (in thousands):

	2024		2023
Affordable housing tax credit investment	$	18,950		16,950
Less amortization		6,044		4,626
Net affordable housing tax credit investment	$	12,906		12,324
Unfunded commitment	$	4,426		4,527

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 Balance Sheets.

LCNB expects to fund the unfunded commitment over twelve years.

The following table presents other information relating to LCNB's affordable housing tax credit investment for the years indicated (in thousands):

	Year ended December 31,
	2024		2023		2022
Tax credits and other tax benefits recognized	$	1,737		1,658		1,394
Tax credit amortization expense included in provision for income taxes		1,419		1,358		1,142