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Investments in Tax Credit Structures | 12 Months Ended
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Dec. 31, 2024
Equity Method Investments and Joint Ventures [Abstract] |
Investments in Tax Credit Structures | INVESTMENTS IN TAX CREDIT STRUCTURES The Company invests in the equity of certain limited partnerships or limited liability companies that typically are associated with affordable housing partnerships and renewable solar energy projects that generate LIHTC and other income tax benefits for the Company. The Company typically accounts for tax equity investments using the proportional amortization method (“PAM”), if certain criteria are met. The election to account for tax equity investments using the proportional amortization method is done on a tax-credit-program by tax-credit-program basis. Under the proportional amortization method, the Company amortizes the initial cost of the investment, which is inclusive of any commitments to make future equity contributions, in proportion to the income tax credits and other income tax benefits that are allocated to the Company over the period of the investment. The net benefits of these investments, which are comprised of income tax credits and operating loss income tax benefits, net of investment amortization, are recognized in the Consolidated Statements of Income as a component of income tax provision. The Company records its investments in qualifying affordable housing partnerships, net, using the equity investment method. Following the adoption of ASU 2023-02 in 2024, the Company elects to account for its tax credit investments using PAM on a program-by-program basis if certain conditions are met. For the Company’s accounting policies on PAM, see Note 1 “Summary of Significant Accounting Policies”. In 2024, the Company’s investment in a solar tax credit was accounted under PAM and was recorded under other assets and its commitment to fund investments in tax credit structures in other liabilities in the Consolidated Statements of Financial Condition. The following table presents the investments and unfunded commitment of the Company’s investments in tax credit structures at December 31, 2024 and 2023:
|  | December 31, 2024 |  | December 31, 2023
|  | Assets |  | Unfunded Commitments |  | Assets |  | Unfunded Commitments
|  |  |  | (Dollars in thousands) |  |
PAM: |  |  |  |  |  |  |  |
Investments in solar tax credit |  | $ | 3,425 |  |  | $ | 2,758 |  |  | $ | — |  |  | $ | — |
Equity method: |  |  |  |  |  |  |  |
Investments in affordable housing partnerships |  | 32,354 |  |  | 11,283 |  |  | 54,474 |  |  | 21,017 |
Total |  | $ | 35,779 |  |  | $ | 14,041 |  |  | $ | 54,474 |  |  | $ | 21,017 |
The following table presents additional information related to tax credit and benefits and amortization recorded for the years ended December 31, 2024, 2023, and 2022.
|  | Year Ended December 31,
|  | 2024 |  | 2023 |  | 2022
|  | (Dollars in thousands)
Tax credits and benefits: |  |  |  |  |  |
PAM |  |  |  |  |  |
Investments in solar tax credit |  | $ | 18,211 |  |  | $ | — |  |  | $ | — |
Equity method |  |  |  |  |  |
Investments in affordable housing partnerships |  | 11,067 |  |  | 11,271 |  |  | 11,197 |
Total |  | $ | 29,278 |  |  | $ | 11,271 |  |  | $ | 11,197 |
Amortization: |  |  |  |  |  |
PAM |  |  |  |  |  |
Investments in solar tax credit |  | $ | 16,575 |  |  | $ | — |  |  | $ | — |
Equity method |  |  |  |  |  |
Investments in affordable housing partnerships |  | 9,051 |  |  | 8,195 |  |  | 8,742 |
Total |  | $ | 25,626 |  |  | $ | 8,195 |  |  | $ | 8,742 |

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Topic 740 -SubTopic 323 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478156/740-323-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 323 -Publisher FASB -URI https://asc.fasb.org/323/tableOfContent + Details
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