LOW INCOME HOUSING PROJECT INVESTMENTS

The Company has invested in Low Income Housing Projects that generate Low Income Housing Tax Credits (“LIHTC”) and which provide the Company with tax credits and operating loss tax benefits over a period of approximately 15 years. None of the original investment is expected to be repaid. The investment in LIHTC projects is being accounted for using the proportional amortization method, under which the Company amortizes the initial cost of the investment in proportion to the amount of the tax credits and other tax benefits received and recognizes the net investment benefit in the income statement as a component of income tax expense (benefit). The retroactive application of the adoption of this accounting treatment was assessed and deemed to have an immaterial impact on the prior year, therefore prior year numbers have not been restated.

The following table presents certain information related to the Company's investments in low income housing projects as of December 31:



	2014		2013
	(Dollars in thousands)
Original investment value	$	40,541	$	1,701
Current recorded investment	38,943		1,193
Unfunded liability obligation	28,004		51
Tax credits and benefits earned during the year	1,683		236
Amortization of investments during the year	1,089		187
Net income tax benefit recognized during the year	594		49