Low-Income Housing Tax Credits

9 Months Ended

Sep. 30, 2021

Low-Income Housing Tax Credits [Abstract]

Low-Income Housing Tax Credits

Note 5. Low-Income Housing Tax Credits

The Company was invested in four separate housing equity funds at both September 30, 2021 and December 31, 2020. 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 $2.1 million and $2.3 million at September 30, 2021 and December 31, 2020, respectively. The expected terms of these investments and the related tax benefits run through 2033. Total projected tax credits to be received for 2021 are $361 thousand, which is based on the most recent quarterly estimates received from the funds. There were no additional capital calls expected for the funds at September 30, 2021.  Additional capital calls expected for the funds totaled $18 thousand at December 31, 2020 and are recorded in accrued expenses and other liabilities on the corresponding consolidated balance sheet.

The table below summarizes the tax credits and other tax benefits recognized by the Company related to these investments during the periods indicated:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Tax credits and other benefits
Amortization of operating losses	$	51	$	45	$	151	$	136
Tax benefit of operating losses*		11		10		32		29
Tax credits		89		105		272		314
Total tax benefits	$	100	$	115	$	304	$	343

* Computed using a 21% tax rate.