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LOW INCOME HOUSING TAX CREDIT AND COMMUNITY REINVESTMENT ACT INVESTMENTS
 3 Months Ended
Mar. 31, 2026
Investments, Debt and Equity Securities [Abstract]  
LOW INCOME HOUSING TAX CREDIT AND COMMUNITY REINVESTMENT ACT INVESTMENTS LOW INCOME HOUSING TAX CREDIT AND COMMUNITY REINVESTMENT ACT INVESTMENTS
The Company has LIHTC investments that are designed to promote qualified affordable housing programs and generate a return primarily through the realization of federal tax credits. The Company accounts for these investments by amortizing the cost of tax credit investments over the life of the investment using the proportional amortization method. Under the proportional amortization method, the amortization is recorded as a component of income tax expense. At March 31, 2026 and December 31, 2025, the balance of LIHTC investments, which is included in interest receivable and other assets on the consolidated balance sheets, was $41.2 million and $43.3 million, respectively. Remaining unfunded commitments related to the investments in qualified affordable housing projects totaled $6.2 million and $7.9 million as of March 31, 2026 and December 31, 2025. The Company expects to fulfill these commitments through 2039.
The following table presents other information related to the Company’s LIHTC investments for the periods indicated:
Quarter Ended March 31,
(in thousands)20262025
Tax credits and other tax benefits recognized$2,047 $828 
LIHTC amortization expense2,146 825 
The Company also has a portfolio of CRA investments. The majority of the CRA investments represent investments in small to mid-sized businesses throughout California. At March 31, 2026 and December 31, 2025, the balance of CRA investments, which is included in interest receivable and other assets on the consolidated balance sheets, was $78.9 million and $79.1 million, respectively. The Company recognized dividend income on CRA investments of $2.4 million and $362 thousand for the quarter ended March 31, 2026 and 2025, respectively, which is included within other interest income in the consolidated income statements.