INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES

12 Months Ended

Dec. 31, 2019

Investments in and Advances to Affiliates, Schedule of Investments [Abstract]

INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES

7. INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES

Investments in unconsolidated subsidiaries as of December 31, 2019 and 2018 consisted of the following components:



	December 31,
	2019		2018
	(Dollars in thousands)
Investments in low income housing tax credit partnerships	$	15,322	$	11,603
Investments in common securities of statutory trusts	1,547		2,169
Investments in affiliates	192		182
Other	54		54
Total	$	17,115	$	14,008

The Company invests in low income housing tax credit ("LIHTC") partnerships. As of December 31, 2019 and 2018, the Company had $11.5 million and $8.3 million, respectively, in unfunded commitments related to the LIHTC partnerships, which is recorded in other liabilities in the Company's consolidated balance sheets. The expected payments for the unfunded commitments as of December 31, 2019 are as follows (dollars in thousands):



Year Ending December 31:
2020	$	6,873
2021	1,494
2022	3,010
2023	10
2024	26
Thereafter	49
Total commitments	$	11,462

Prior to 2018, the Company's investments in LIHTC partnerships were accounted for using the cost method. In 2018, the Company voluntarily changed its accounting policy for LIHTC partnerships from the cost method to the proportional amortization method using the practical expedient available under ASC 323, "Investments - Equity Method and Joint Ventures", which permits an investor to amortize the initial cost of the investment in proportion to only the tax credits allocated to the investor. The Company believes the proportional amortization method is preferable because it better reflects the economics of an investment that is made for the primary purpose of receiving tax credits and other tax benefits. In addition to a change in the timing of the recognition of amortization expense on LIHTC investments, amortization expense on LIHTC investments is now reflected in the income tax expense line, which provides users a better understanding of the nature of the returns of such investments, instead of in other operating expenses on the consolidated statements of income.

The following table presents amortization expense and tax credits recognized associated with our investments in LIHTC partnerships for the periods presented:



	Year Ended December 31,
	2019		2018		2017
	(Dollars in thousands)
Proportional amortization method:
Amortization expense recognized in income tax expense	$	681	$	1,005	$	744
Federal and state tax credits recognized in income tax expense	803		759		919