7.	INVESTMENTS IN LIMITED PARTNERSHIPS

The Bank holds investments in affordable housing projects for which it provides funding as a limited partner and has received tax credits related to its investments in the projects based on its partnership share. Historically, the Company’s investments have included both direct investments and investments in funds that invest solely in affordable housing projects. The assets and liabilities of these partnerships consist primarily of apartment complexes and related mortgages. The Company has determined that these structures require evaluation as a variable interest entity (“VIE”) under ASC Topic 810,Consolidation. The Company consolidates one of the funds in which it has a 99.9% limited partnership interest. Assets recorded by the Company as a result of the consolidation totaled approximately $53,000 as of both June 30, 2014 and December 31, 2013, respectively. The remaining limited partnership investments are unconsolidated and are accounted for under the cost method as allowed under ASC Topic 325, Accounting for Tax Benefits Resulting from Investments in Affordable Housing Projects. The Company amortizes the excess of carrying value of the investment over its estimated residual value during the period in which tax credits are allocated to the investors. As of December 31, 2013, approximately $0.8 million was included in other assets representing the carrying amount of one remaining partnership accounted for as a cost method investment. During the second quarter of 2014, this partnership was dissolved, and the Company received approximately $1.0 million representing its residual interest upon dissolution of the partnership. Accordingly, as of June 30, 2014, the carrying amount of the partnership was reduced to zero and the difference between the residual interest received and carrying amount was recorded as other non-interest income.

The Bank had no remaining cash commitments to these partnerships as of June 30, 2014.