Tax Credit Investments

9 Months Ended

Sep. 30, 2022

Tax Credit Investments.

Tax Credit Investments

NOTE 15 Tax Credit Investments

The Company invests in qualified affordable housing projects for the purpose of community reinvestment and obtaining tax credits. The Company’s tax credit investments are limited to existing lending relationships with well-known developers and projects within the Company’s market area.

The following table presents a summary of the Company’s investments in qualified affordable housing project tax credits as of September 30, 2022 and December 31, 2021:

		September 30, 2022				December 31, 2021
(dollars in thousands)		Investment		Unfunded Commitment		Investment		Unfunded Commitment
Investment	Accounting Method
Low income housing tax credit	Proportional amortization	$	17,906	$	15,559	$	7,906	$	6,999
Total		$	17,906	$	15,559	$	7,906	$	6,999

The following table presents a summary of the amortization expense and tax benefit recognized for the Company’s qualified affordable housing projects for the three and nine months ended three and nine months ended September 30, 2022 and 2021:

	Three months ended September 30,
	2022				2021
	Amortization		Tax Benefit		Amortization		Tax Benefit
(dollars in thousands)	Expense (1)		Recognized (2)		Expense (1)		Recognized (2)
Low income housing tax credit	$	109	$	(146)	$	—	$	—
Total	$	109	$	(146)	$	—	$	—

(1) The amortization expense for low income housing tax credit investments were included in income tax expense.

(2) All of the tax benefits recognized were included in income tax expense.

	Nine months ended September 30,
	2022				2021
	Amortization		Tax Benefit		Amortization		Tax Benefit
(dollars in thousands)	Expense (1)		Recognized (2)		Expense (1)		Recognized (2)
Low income housing tax credit	$	220	$	(303)	$	—	$	—
Total	$	220	$	(303)	$	—	$	—

(1) The amortization expense for low income housing tax credits were included in income tax expense.

(2) All of the tax benefits recognized were included in income tax expense.