Low-Income Housing Tax Credits

12 Months Ended

Dec. 31, 2023

Low-Income Housing Tax Credits [Abstract]

Low-Income Housing Tax Credits

Note 6. Low-Income Housing Tax Credits

The Company was invested in four separate housing equity funds at both December 31, 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 $1.1 million and $1.4 million at December 31, 2023 and December 31, 2022, respectively. The expected terms of these investments and the related tax benefits run through 2033. There were no additional committed capital calls as of December 31, 2023 or 2022. During the years ended December 31, 2023 and 2022, the Company recognized amortization expense of $367 thousand and $425 thousand, respectively, which was included within noninterest expense on the Consolidated Statements of Income.

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

	Years Ended
	December 31,
(dollars in thousands)	2023		2022
Tax credits and other benefits
Amortization of operating losses	$	367	$	425
Tax benefit of operating losses*		77		89
Tax credits		309		349
Total tax benefits	$	386	$	438