Note 4. Low-Income Housing Tax Credits

The Company was invested in four separate housing equity funds at both March 31, 2018 and December 31, 2017. The general purpose of these funds is to encourage and assist participants in investing in low-income residential rental properties located in the Commonwealth of Virginia; develop and implement strategies to maintain projects as low-income housing; deliver Federal Low Income Housing Credits to investors; allocate tax losses and other possible tax benefits to investors; and preserve and protect project assets.

The investments in these funds were recorded as other assets on the consolidated balance sheets and were $3.6 million and $3.5 million at March 31, 2018 and December 31, 2017, respectively. The expected terms of these investments and the related tax benefits run through 2033. Total projected tax credits to be received for 2018 are $442 thousand, which is based on the most recent quarterly estimates received from the funds. Additional capital calls expected for the funds totaled $1.1 million at both March 31, 2018 and December 31, 2017 and are recorded in accrued expenses and other liabilities on the corresponding consolidated balance sheet. There were no impairments losses related to these investments at March 31, 2018 and 2017.

	Three Months Ended March 31,				Affected Line Item on
	2018		2017		Consolidated Statement of Income
	(in thousands)
Tax credits and other tax benefits
Amortization of operating losses	$	80	$	80	ATM and other losses

Tax benefit of operating losses*	$	17	$	27	Income tax expense

Tax credits		124		95	Income tax expense

Total tax benefits	$	141	$	122

* Computed using a 21% tax rate for the first three months of 2018 and a 34% tax rate for the first three months of 2017