Low Income Housing Partnerships

12 Months Ended

Sep. 30, 2020

Investments in Affordable Housing Projects [Abstract]

Low Income Housing Partnerships

LOW INCOME HOUSING PARTNERSHIPS

The Bank's investment in low income housing partnerships, which is included in other assets in the consolidated balance sheets, was $89.7 million and $82.6 million at September 30, 2020 and 2019, respectively.  The Bank's obligations related to unfunded commitments, which are included in accounts payable and accrued expenses in the consolidated balance sheets, were $44.5 million and $40.0 million at September 30, 2020 and 2019, respectively. The majority of the commitments at September 30, 2020 are projected to be funded through the end of calendar year 2022.

For fiscal year 2020, the net income tax benefit associated with these investments, which consists of proportional amortization expense and affordable housing tax credits and other related tax benefits, was reported in income tax expense in the consolidated statements of income. The amount of proportional amortization expense recognized during fiscal years 2020, 2019 and 2018 was $7.9 million, $6.8 million and $7.0 million, respectively, and the amount of affordable housing tax credits and other related tax benefits was $9.8 million, $8.6 million and $7.5 million, respectively, resulting in a net income tax benefit of $1.9 million, $1.8 million and $500 thousand, respectively. There were no impairment losses during fiscal years 2020, 2019, or 2018 resulting from the forfeiture or ineligibility of tax credits or other circumstances.