INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES

12 Months Ended

Dec. 31, 2022

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

INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES

6. INVESTMENTS IN UNCONSOLIDATED ENTITIES

Investments in unconsolidated entities as of December 31, 2022 and 2021 consisted of the following components:


	December 31,
(Dollars in thousands)	2022		2021
Investments in low income housing tax credit partnerships	$	40,939	$	25,916
Investments in common securities of statutory trusts	1,547		1,547
Investments in affiliates	110		162
Other	4,045		2,054
Total	$	46,641	$	29,679

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 non-voting common stock and $0.5 million in cash in exchange for Swell preferred stock. During the fourth quarter of 2022, Swell launched a consumer banking application that combines checking, credit and more into one integrated account, 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 in the Company's consolidated balance sheets.

In 2021, the Company committed $2.0 million in 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 does not have the ability to exercise significant influence over the JAM FINTOP Banktech Fund, L.P. 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 investment in unconsolidated entities in the Company's consolidated balance sheets. As of December 31, 2022, the Company had an unfunded commitment of $1.3 million related to the investment, which is expected to be paid in 2023. The unfunded commitment is included in other liabilities in the Company's consolidated balance sheets.

The Company invests in low income housing tax credit ("LIHTC") partnerships. As of December 31, 2022 and 2021, the Company had $23.6 million and $14.3 million, respectively, in unfunded commitments related to the LIHTC partnerships, which is included in other liabilities in the Company's consolidated balance sheets.

The expected payments for the unfunded commitments related to the Company's investments in unconsolidated entities as of December 31, 2022 are as follows:


(Dollars in thousands)	LIHTC		Other
Year Ending December 31:	Partnerships		Partnerships		Total
2023	$	9,693	$	1,303	$	10,996
2024	9,280		—		9,280
2025	4,248		—		4,248
2026	26		—		26
2027	26		—		26
Thereafter	333		—		333
Total commitments	$	23,606	$	1,303	$	24,909

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,
(Dollars in thousands)	2022		2021		2020
Proportional amortization method:
Amortization expense recognized in income tax expense	$	2,566	$	2,174	$	1,391
Federal and state tax credits recognized in income tax expense	2,938		2,373		1,599