INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES

3 Months Ended

Mar. 31, 2022

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

INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES

6. INVESTMENTS IN UNCONSOLIDATED ENTITIES

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


(dollars in thousands)	March 31, 2022		December 31, 2021
Investments in low income housing tax credit partnerships, net of amortization	$	25,309	$	25,916
Investments in common securities of statutory trusts	1,547		1,547
Investments in affiliates	187		162
Other	4,049		2,054
Total	$	31,092	$	29,679

The Company invests in low-income housing tax credit ("LIHTC") and other partnerships. The Company had commitments to fund LIHTC partnerships totaling $30.3 million and $30.3 million as of March 31, 2022 and December 31, 2021, respectively. Unfunded commitments related to LIHTC partnerships of $14.3 million and $14.3 million as of March 31, 2022 and December 31, 2021, respectively, are recorded in other liabilities in the Company's consolidated balance sheets. The investments are accounted for under the proportional amortization method and are included in investments in unconsolidated entities in the Company's consolidated balance sheets.

During the first quarter of 2022, the Company invested $2.0 million in Swell Financial, Inc. ("Swell"), which included $1.5 million in other intangible assets and services provided in exchange for Swell common stock and $0.5 million in cash in exchange for Swell preferred stock. Swell intends to launch an integrated checking and line-of-credit account in the summer of 2022, with Central Pacific Bank serving as the bank sponsor. The Company does not have the ability to exercise significant influence over Swell and the investment does not have a readily determinable fair value. As a result, the Company determined that the cost method of accounting for the investment was appropriate. The investment is included in investments in unconsolidated entities.

During the second quarter of 2021, the Company committed $2.0 million to the JAM FINTOP Banktech Fund, L.P., an investment fund designed to help develop and accelerate technology adoption at community banks across the United States. The Company had $1.7 million and $1.7 million in unfunded commitments related to the investment as of March 31, 2022 and December 31, 2021, respectively, which are recorded in other liabilities. The investment is accounted for under the cost method and is included in investment in unconsolidated entities.

The expected payments for the unfunded commitments as of March 31, 2022 for the remainder of fiscal year 2022, the next five succeeding fiscal years and all years thereafter are as follows:


(dollars in thousands)
Year Ending December 31,	LIHTC partnerships		Other partnerships		Total
2022 (remainder)	$	6,071	$	1,653	$	7,724
2023	8,128		—		8,128
2024	26		—		26
2025	6		—		6
2026	6		—		6
2027	6		—		6
Thereafter	32		—		32
Total unfunded commitments	$	14,275	$	1,653	$	15,928

The following table presents amortization and tax credits recognized associated with our investments in LIHTC partnerships for the three months ended March 31, 2022 and March 31, 2021:


(dollars in thousands)	Three Months Ended March 31, 2022		Three Months Ended March 31, 2021
Proportional amortization method:
Amortization expense recognized in income tax expense	$	607	$	407
Tax credits recognized in income tax expense	709		474