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Note 4 - Qualified Affordable Housing Project Investment
 3 Months Ended
Mar. 31, 2020
Notes to Financial Statements  
Investment [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, 2020
and
December 31, 2019,
the balance of the Bank’s investment was
$3.1
million and
$3.2
million, respectively, and is reflected in other assets on the consolidated balance sheets. The unfunded commitment related to the qualified affordable housing project investment at
March 31, 2020
and
December 31, 2019
was
$1.1
million and
$1.9
million, respectively, and is reflected in other liabilities on the consolidated balance sheets. 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
month periods ended
March 31, 2020
and
2019,
the Bank recognized amortization expense of
$96,000
and
$82,000,
respectively, which was included in income tax expense on the consolidated statements of income. Additionally, during the
three
month periods ended
March 31, 2020
and
2019,
the Bank recognized tax credits and other tax benefits from its qualified affordable housing project investment of
$111,000
and
$125,000,
respectively.