Note 5. Low-Income Housing Tax Credits

The Company was invested in 4 separate housing equity funds at both June 30, 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 $3.4 million and $3.5 million at June 30, 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 $495 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 June 30, 2018 and $1.1 million at December 31, 2017, respectively, and are recorded in accrued expenses and other liabilities on the corresponding consolidated balance sheet.

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017		Affected Line Item on Consolidated Statements of Income
	(in thousands)
Tax credits and other tax benefits
Amortization of operating losses	$	80	$	98	$	160	$	178	Other operating expenses
Tax benefit of operating losses*		17		33		34		61	Income tax expense

Tax credits		123		138		247		233	Income tax expense

Total tax benefits	$	140	$	171	$	281	$	294

* Computed using a 21% tax rate for 2018 and a 34% tax rate for 2017