Investments in Qualified Affordable Housing Projects

6 Months Ended

Jun. 30, 2017

Investment In Qualified Affordable Housing Projects.

Investment in Qualified Affordable Housing Projects

Note 20 – Investments in Qualified Affordable Housing Projects

The Company has investments in qualified affordable housing projects (“QAHPs”) that provide low income housing tax credits and operating loss benefits over an extended period.  The tax credits and the operating loss tax benefits that are generated by each of the properties are expected to exceed the total value of the investment made by the Company. For the six months ended June 30, 2017, tax credits and other tax benefits of $1.5 million and amortization of $1.2 million were recorded.  For the six months ended June 30, 2016, the Company recorded tax credits and other tax benefits of $1.2 million and amortization of $729,000. At June 30, 2017 and 2016, the Company’s carrying value of QAHPs was $25.6 million and $27.6 million, respectively, with an original investment of $33.8 million.  The Company has $8.7 million and $15.5 million in remaining funding obligations related to these QAHPs recorded in liabilities at June 30, 2017 and 2016, respectively.  None of the original investment will be repaid. The investment in QAHPs is being accounted for using the equity method.