XML 26 R16.htm IDEA: XBRL DOCUMENT v3.25.3
INCOME TAXES AND DEFERRED TAXES
 9 Months Ended
Sep. 30, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES AND DEFERRED TAXES
As of September 30, 2025, the Company had a net deferred tax asset of $130.4 million. In addition, the Company has estimated $2.0 million of unrecognized tax benefits related to uncertain tax positions.

The Company recorded income tax expense of $33.7 million and $28.9 million for the nine months ended September 30, 2025 and 2024, respectively, representing effective tax rates of 18.9% and 19.1%, respectively. The effective tax rates differed from the statutory rate principally due to the effects of tax-exempt income, certain tax credits, and tax benefits related to restricted stock vesting.
Tax credit investments: The Company invests in low income housing tax credit funds that are designed to 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 a proportional amortization method and this tax credit investment amortization expense is a component of the provision for income taxes. The current balance of these tax credit investments is included in other assets, while the unfunded commitments are included in accrued expenses and other liabilities on the Consolidated Statements of Financial Condition.
The following table presents the balances of the Company’s tax credit investments and related unfunded commitments at September 30, 2025 and December 31, 2024 (in thousands):
September 30, 2025December 31, 2024
Tax Credit Investments:
Total commitments$193,160 $153,618 
Unfunded commitments112,518 94,416 

The following table presents other information related to the Company’s tax credit investments for the three and nine months ended September 30, 2025 and 2024 (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Tax credits and other tax benefits recognized$4,380 $2,760 $13,139 $9,086 
Tax credit amortization expense included in provision for income taxes3,438 2,559 10,458 7,577