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Other Assets (Notes) | 3 Months Ended
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Mar. 31, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] |
Other Assets | Note 6 — 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 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 five-year 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, a wholly-owned subsidiary of FBB, to acquire, rehabilitate and operate a historic building in Madison, Wisconsin. At March 31, 2017 and December 31, 2016 the net carrying value of the investment was $174,000. 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, a wholly-owned subsidiary of FBB, to rehabilitate a historic building in Milwaukee, Wisconsin. At March 31, 2017 and 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 at March 31, 2017. 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, a wholly-owned subsidiary of FBB, to develop and operate a real estate project located in a low-income community. At March 31, 2017 and December 31, 2016, Rimrock had one CDE investment with a net carrying value of $7.0 million and $7.1 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 $1.7 million as of March 31, 2017. The Corporation’s usage of the federal new market tax credit was approximately $113,000 during the three months ended March 31, 2017 and 2016. Other Investments The Corporation had an equity investment in Aldine Capital Fund, LP, a mezzanine fund, of $940,000 and $883,000 recorded as of March 31, 2017 and December 31, 2016, respectively. The Corporation’s equity investment in Aldine Capital Fund II, LP, also a mezzanine fund, totaled $3.0 million and $3.1 million as of March 31, 2017 and December 31, 2016, respectively. The Corporation’s share of these partnerships’ income included in the unaudited Consolidated Statements of Income for the three months ended March 31, 2017 and 2016 was $112,000 and $274,000, respectively. The Corporation is the sole owner of $315,000 of common securities issued by 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 March 31, 2017 and December 31, 2016 is included in accrued interest receivable and other assets. A summary of accrued interest receivable and other assets is as follows:
|  | March 31, 2017 |  | December 31, 2016
|  | (In Thousands)
Accrued interest receivable |  | $ | 4,426 |  |  | $ | 4,677 |
Net deferred tax asset |  | 4,145 |  |  | 4,052 |
Investment in historic development entities |  | 737 |  |  | 737 |
Investment in a CDE |  | 6,974 |  |  | 7,106 |
Investment in limited partnerships |  | 3,983 |  |  | 3,963 |
Investment in Trust II |  | 315 |  |  | 315 |
Fair value of interest rate swaps |  | 405 |  |  | 352 |
Prepaid expenses |  | 3,312 |  |  | 3,074 |
Other assets |  | 4,281 |  |  | 4,331 |
Total accrued interest receivable and other assets |  | $ | 28,578 |  |  | $ | 28,607 |

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