INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES

9 Months Ended

Sep. 30, 2020

Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract]

INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES

6. INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES

The components of the Company's investments in unconsolidated subsidiaries were as follows:


(dollars in thousands)	September 30, 2020		December 31, 2019
Investments in low income housing tax credit partnerships	$	28,437	$	15,322
Investments in common securities of statutory trusts	1,547		1,547
Investments in affiliates	201		192
Other	54		54
Total	$	30,239	$	17,115

The Company invests in low-income housing tax credit ("LIHTC") partnerships. As of September 30, 2020 and December 31, 2019, the Company had $22.7 million and $11.5 million, respectively, in unfunded commitments related to the LIHTC partnerships. The expected payments for the unfunded commitments as of September 30, 2020 for the remainder of fiscal year 2020, the next five succeeding fiscal years and all years thereafter are as follows:


(dollars in thousands)
Year Ending December 31,
2020 (remainder)	$	12,853
2021	1,494
2022	8,253
2023	10
2024	26
2025	6
Thereafter	43
Total unfunded commitments	$	22,685

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 and tax credits recognized associated with our investments in LIHTC partnerships for the three and nine months ended September 30, 2020 and September 30, 2019:


(dollars in thousands)	Three Months Ended September 30, 2020		Three Months Ended September 30, 2019		Nine Months Ended September 30, 2020		Nine Months Ended September 30, 2019
Proportional amortization method:
Amortization expense recognized in income tax expense	$	348	$	259	$	1,044	$	776
Tax credits recognized in income tax expense	399		307		1,199		922