Other Assets

12 Months Ended

Dec. 31, 2020

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

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.

Historic Rehabilitation Tax Credits

The Corporation invests in development entities through BOC, Mitchell Street, and FBB Tax Credit, wholly-owned subsidiaries of FBB, to rehabilitate historic buildings. At December 31, 2020 and 2019, the net carrying value of the investments were $2.4 million and $2.2 million, respectively. During 2020, the Corporation contributed $4.4 million to these partnerships, recognized $2.8 million in federal historic tax credits, and $1.9 million in impairment related to these investments. During 2019, the Corporation contributed $9.4 million to these partnerships and recognized $5.2 million in federal historic tax credits, and $3.6 million in impairment related to these investments. The state historic tax credits received during the year ended December 31, 2020 and 2019 were $2.7 million and $4.7 million, respectively, were sold to a third party resulting in a gain on sale of $275,000 and $413,000, respectively.

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 December 31, 2020 and 2019, Rimrock Road had one CDE investment with a net carrying value of $5.3 million and $5.6 million respectively. The investment provides federal new market tax credits over the seven year compliance period through 2020. The Corporation’s use of the federal new market tax credit during the years ended December 31, 2020 and 2019 was $450,000.

Other Investments

The Corporation has an equity investment in Aldine Capital Fund, LP, a mezzanine fund, of $60,000 and $54,000 recorded as of December 31, 2020 and 2019, respectively. The Corporation’s equity investment in Aldine Capital Fund II, LP, also a mezzanine fund, totaled $3.5 million and $3.1 million as of December 31, 2020 and 2019, respectively. The Corporation’s equity investment in Aldine Capital Fund III, LP, also a mezzanine fund, totaled $2.8 million and $1.3 million as of December 31, 2020 and 2019, respectively. The Corporation’s share of these partnerships’ income included in other non-interest income in the Consolidated Statements of Income for the years ended December 31, 2020 and 2019 was $520,000 and $1.4 million, respectively. The Corporation’s share of these partnerships’ losses included in other non-interest expense in the Consolidated Statements of Income for the year ended December 31, 2020 and 2019 was $99,000 and $121,000, respectively.

The Corporation entered into a new equity investment in Dane Workforce Housing Fund LLC, a Wisconsin limited liability company, focused on community development by providing affordable workforce housing units in Dane County, Wisconsin, for $275,000 as of December 31, 2020. The Corporation’s share of the investment fund’s income will be included in other non-interest income in the Consolidated Statements of Income. No income was recognized for the year ended December 31, 2020.

The Corporation is the sole owner of $315,000 of common securities issued by Trust II. 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, is not consolidated into the financial statements of the Corporation. The investment in Trust II of $315,000 as of December 31, 2020 and 2019 is included in accrued interest receivable and other assets.

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


	December 31, 2020		December 31, 2019
	(In Thousands)
Accrued interest receivable	$	8,564	$	5,760
Net deferred tax asset	7,217		5,353
Investment in historic development entities	2,356		2,216
Investment in a community development entity	5,306		5,571
Investment in limited partnerships	6,673		4,476
Investment in Trust II	315		315
Prepaid expenses	2,165		2,285
Other assets	6,882		4,184
Total accrued interest receivable and other assets	$	39,478	$	30,160