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Investment in Affordable Housing Projects
6 Months Ended
Jun. 30, 2019
Federal Home Loan Banks [Abstract]  
Investment in Affordable Housing Projects

Note 11.  Investment in Affordable Housing Projects

 

The Company invests in certain qualified affordable housing projects located in the Commonwealth of Virginia.   The general purpose of these investments is to develop and preserve affordable housing for low income families through residential rental property projects. The Company exerts no control over the operating or financial policies of the partnerships. Return on these investments is through receipt of tax credits and other tax benefits which are subject to recapture by taxing authorities based on compliance features at the project level. The investments are due to expire by 2035. The Company accounts for the affordable housing investments using the equity method and has recorded $4.4 million and $4.5 million in other assets at June 30, 2019 and December 31, 2018, respectively, and $1.0 million and $1.2 million in other liabilities related to unfunded capital calls through 2021 at June 30, 2019 and December 31, 2018, respectively. The related federal tax credits, included in income tax expense in the consolidated statements of operations, for the six months ended June 30, 2019 and 2018 were $276,000 and $252,000, respectively.  There were $60,000 and $63,000 in flow-through losses recorded in noninterest income during the three months ended June 30, 2019 and 2018, respectively, and $143,000 for the six months ended June 30, 2019 and 2018.