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Income Taxes
 3 Months Ended
Mar. 31, 2024
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block] Income Taxes
The following table presents the reconciliation of income taxes computed at the Federal statutory income tax rate of 21% to the actual effective rate for the periods indicated:
 Three Months Ended
 March 31,
2024		March 31,
2023
 (Dollars in thousands)
Income tax expense at Federal statutory rate$1,442 $5,181 
State tax, net of Federal tax benefit61 220 
Tax-exempt instruments(233)(386)
LIHTC tax credit(1,009)(750)
Effects of BOLI(181)(136)
Restricted stock unit excess liability
250 53 
Other, net790 31 
Income tax expense$1,120 $4,213 
LIHTC Tax Credit Investments
The CRA encourages banks to meet the credit needs of their communities, particularly low- and moderate-income individuals and neighborhoods. The Company invests in certain affordable housing projects in the form of ownership interests in limited partnerships or limited liability companies that qualify for CRA consideration and tax credits. These entities are formed to develop and operate apartment complexes designed as high-quality affordable housing for lower income tenants throughout the U.S. To fully utilize the available tax credits, each of these entities must meet the regulatory affordable housing requirements for a 15-year minimum compliance period. For the Company’s accounting policies on tax credit investments, see Note 1 - Description of Business, Basis of Presentation, Significant Accounting Policies and Recently Issued Accounting Pronouncements included in Item 8. Financial Statements And Supplementary Data in our 2023 Annual Form 10-K.
Tax credit investments are reported in "Prepaid expenses and other assets" and the unfunded contingent commitments related to these investments as "Accrued expenses and other liabilities" on the Company’s Condensed Consolidated Statements of Financial Condition. The Company accounts for LIHTC using the proportional amortization method. Under the proportional amortization method, such investment is amortized in proportion to the allocation of tax benefits received in each period, and the investment amortization and the tax benefits are presented on a net basis within “Income tax expense” on our Condensed Consolidated Statements of Income and as a component within "Other" cash flows from operating activities on the Condensed Consolidated Statements of Cash Flows.
The carrying values of LIHTC investments were $202.2 million and $207.3 million as of March 31, 2024 and December 31, 2023, respectively. The proportional amortization for LIHTC during the three months ended March 31, 2024 and 2023 was $5.1 million and $4.1 million, respectively.
Total unfunded contingent commitments related to the Company’s LIHTC investments totaled $98.4 million and $107.9 million at March 31, 2024 and December 31, 2023, respectively. At March 31, 2024, the Company expects to fund LIHTC commitments totaling $19.3 million during the year ending December 31, 2024 and $63.0 million during the year ending December 31, 2025, with the remaining commitments of $16.0 million to be funded by 2041. There were no impairment losses on the Company’s LIHTC investments during the three months ended March 31, 2024 and 2023.
There were no significant modifications or events that resulted in a change in the nature or change in the underlying project for tax credit investments at March 31, 2024 or December 31, 2023.