Investment in Affordable Housing Projects

12 Months Ended

Dec. 31, 2019

Federal Home Loan Banks [Abstract]

Investment in Affordable Housing Projects

Note 24. Investment in Affordable Housing Projects

The Company has investments in certain affordable housing projects located in the Commonwealth of Virginia through several limited liability partnerships of the Bank. These partnerships exist 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 $4.2 million and $4.5 million in other assets at December 31, 2019 and 2018, respectively. The Company has also recorded $749,000 and $1.2 million in other liabilities at December 31, 2019 and 2018, respectively, related to unfunded capital commitments through 2023. The related federal tax credits for the years ended December 31, 2019, 2018 and 2017 were $552,000, $504,000 and $422,000, respectively, and were included in income tax expense in the consolidated statements of operations. There were $236,000, $266,000 and $209,000 in flow-through losses recognized during the year ended December 31, 2019, 2018 and 2017, respectively, that were included in noninterest income.