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Note 4 - Qualified Affordable Housing Project Investment
3 Months Ended
Mar. 31, 2018
Notes to Financial Statements  
Affordable Housing Program [Text Block]
4.
       Qualified Affordable Housing Project Investment
 
On
January 19, 2018,
the Bank entered into an agreement to invest in qualified affordable housing projects through a limited liability company. At
March 31, 2018,
the balance of the Bank’s investment was
$3.9
million and is reflected in other assets on the consolidated balance sheet. The unfunded commitment related to the qualified affordable housing project investment was
$3.5
million at
March 31, 2018
and is reflected in other liabilities on the consolidated balance sheet. The Bank expects to fulfill the commitment as capital calls are made through
2029.
 
The investment is accounted for using the proportional amortization method. During the
three
months ended
March 31, 2018,
the Bank recognized amortization expense of
$82,000,
which was included in income tax expense on the consolidated statement of income. Additionally, during the
three
months ended
March 31, 2018,
the Bank recognized tax credits and other tax benefits from its qualified affordable housing project investment of
$98,000.