Low-Income Housing Tax Credits

9 Months Ended

Sep. 30, 2023

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, 2023 and December 31, 2022. 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 $1.2 million and $1.4 million at September 30, 2023 and December 31, 2022, respectively. The expected terms of these investments and the related tax benefits run through 2033. There were no additional capital calls expected for the funds at September 30, 2023.

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				Nine Months Ended
	September 30,				September 30,				Affected Line Item on
(dollars in thousands)	2023		2022		2023		2022		Consolidated Income Statement
Tax credits and other benefits
Amortization of operating losses	$	91	$	51	$	275	$	153	ATM and other losses
Tax benefit of operating losses*		19		11		58		32	Income tax expense
Tax credits		77		89		232		267	Income tax expense
Total tax benefits	$	96	$	100	$	290	$	299

* Computed using a 21% tax rate.