Other Assets

The Corporation is a limited partner in several limited partnership investments. The Corporation is not the general partner, does not have controlling ownership, and is not the primary variable interest holder in any of these limited partnerships. The Corporation’s share of the partnerships’ income or loss included in the Consolidated Statements of Income for the years ended December 31, 2015, 2014 and 2013 was income of $481,000 and $774,000, and a loss of $437,000, respectively. The Corporation had an equity investment in Aldine Capital Fund, LP, a mezzanine fund, of $1.0 million and $1.1 million recorded as of December 31, 2015 and 2014, respectively. The Corporation had a remaining commitment to provide funds of $960,000 at December 31, 2015. The Corporation’s equity investment in Aldine Capital Fund II, LP, also a mezzanine fund, totaled $2.2 million and $2.1 million as of December 31, 2015 and 2014, respectively. The Corporation had a remaining commitment to provide funds of $2.8 million at December 31, 2015.

The Corporation invested in a community development entity (“CDE”) through Rimrock Road Investment Fund LLC (“Rimrock”), a wholly-owned subsidiary of FBB, to develop and operate a real estate project located in a low-income community. At December 31, 2015 and 2014, Rimrock had one CDE investment, with a net carrying value of $7.5 million. Rimrock did not have any outstanding CDE investments in 2013. Due to the Corporation’s inability to exercise any significant influence over the investment in the qualified CDE, it is accounted for using the cost method. The investment provides federal new market tax credits over a seven-year credit allowance period. In each of the first three years, credits totaling five percent of the original investment are allowed on the credit allowance dates and for the final four years, credits totaling six percent of the original investment are allowed on the credit allowance dates. Rimrock must be invested in the qualified CDE on each of the credit allowance dates during the seven-year period to utilize the tax credits. If the CDE ceases to qualify during the seven-year period, the credits may be denied for any credit allowance date and a portion of the credits previously taken may be subject to recapture with interest. The investment in the CDE cannot be redeemed before the end of the seven-year period.

The remaining federal new market tax credit to be utilized over a maximum of seven years was $2.2 million as of December 31, 2015. The Corporation’s usage of the federal new market tax credit was approximately $375,000 during both 2015 and 2014. No federal new market tax credits were used in 2013.

In 2015, the Corporation also invested in a development entity through BOC Investment, LLC (“BOC”), a wholly-owned subsidiary of FBB, to acquire, rehabilitate and operate a historic building in Madison, Wisconsin. At December 31, 2015, the net carrying value of the investment was $578,000. The aggregate capital contributions to the project will be an amount not exceeding $3.5 million. The investment provides federal historic tax credits upon the completion of the restoration project. No federal historic tax credits were used in 2015.

The Corporation is the sole owner of $315,000 of common securities issued by FBFS Statutory Trust II, a Delaware business trust (“Trust II”). The purpose of Trust II was to complete the sale of $10.0 million of 10.50% fixed rate trust preferred securities. Trust II, a wholly owned subsidiary of the Corporation, was not consolidated into the financial statements of the Corporation. The investment in Trust II of $315,000 as of December 31, 2015 and 2014 is included in accrued interest receivable and other assets.

A summary of accrued interest receivable and other assets is as follows:



	As of December 31,
	2015		2014
	(In Thousands)
Accrued interest receivable	$	4,412	$	3,932
Deferred tax assets, net	2,633		3,603
Investment in limited partnerships	3,215		3,193
Investment in community development entity	7,500		7,500
Investment in historic development entity	578		—
Investment in Trust II	315		315
Fair value of interest rate swaps	552		575
Prepaid expenses	2,175		2,217
Other	3,502		4,882
Total accrued interest receivable and other assets	$	24,882	$	26,217