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 beneficiary in any of these limited partnerships and thus, the limited partnerships have not been consolidated. These investments are accounted for using the equity method of accounting and are evaluated for impairment at the end of each reporting period. For historic rehabilitation tax credits, the Corporation begins to evaluate its investments for impairment at the time the credit is earned, which is typically in the year the project is placed in service, through the end of its compliance period. New market tax credits are also evaluated for impairment beginning at the time the tax credits are earned on the project through the seven year compliance period.

Historic Rehabilitation Tax Credits

In 2015, the Corporation 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, 2016 and 2015, the net carrying value of the investment was $174,000 and $578,000, respectively. The Corporation contributed an additional $2.8 million to the project in 2016. During 2016, the Corporation recognized $3.8 million in historic tax credits related to this investment and $3.3 million in impairment of the underlying investment.

In 2016, the Corporation also invested in a development entity through Mitchell Street Apartments Investment, LLC (“Mitchell Street”), a wholly-owned subsidiary of FBB, to rehabilitate a historic building in Milwaukee, Wisconsin. At December 31, 2016, the net carrying value of the investment was $563,000. The aggregate capital contributions to the project will depend upon the final amount of the certified project costs, but are expected to approximate $5.5 million. The Corporation is also anticipating the sale of a portion of the state credits associated with the investment to a third party. No historic tax credits were received during the year ended December 31, 2016. The credits are expected to be taken in the fourth quarter of 2017 when the project is placed in service and are subject to a five year recapture period.

New Market Tax Credits

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, 2016 and 2015, Rimrock had one CDE investment with a net carrying value of $7.1 million and $7.5 million respectively. The investment provides federal new market tax credits over a seven year credit allowance period through 2020. The remaining federal new market tax credit to be utilized over a maximum of seven years was $1.8 million as of December 31, 2016. The Corporation’s usage of the federal new market tax credit was approximately $375,000 during the years ended December 31, 2016 and 2015.

Other Investments

The Corporation had an equity investment in Aldine Capital Fund, LP, a mezzanine fund, of $883,000 and $1.0 million as of December 31, 2016 and 2015, respectively. The Corporation’s equity investment in Aldine Capital Fund II, LP, also a mezzanine fund, totaled $3.1 million and $2.2 million as of December 31, 2016 and 2015, respectively. The Corporation’s share of these partnerships’ income included in the Consolidated Statements of Income for the years ended December 31, 2016 and 2015 was $790,000 and $481,000, respectively.

The Corporation is the sole owner of $315,000 of common securities issued by FBFS Statutory Trust II (“Trust II”), a Delaware business trust. The purpose of Trust II was to complete the sale of $10.0 million of 10.50% fixed rate 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, 2016 and 2015 is included in accrued interest receivable and other assets.

A summary of accrued interest receivable and other assets as of December 31, 2016 and 2015 was as follows:



	December 31, 2016		December 31, 2015
	(In Thousands)
Accrued interest receivable	$	4,677	$	4,412
Net deferred tax asset	4,052		2,633
Investment in limited partnerships	3,963		3,215
Investment in a CDE	7,106		7,500
Investment in historic development entities	737		578
Investment in Trust II	315		315
Fair value of interest rate swaps	352		552
Prepaid expenses	3,074		3,330
Other assets	4,331		1,536
Total accrued interest receivable and other assets	$	28,607	$	24,071