INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES

12 Months Ended

Dec. 31, 2023

Investments in and Advances to Affiliates, Schedule of Investments [Abstract]

INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES

6. INVESTMENTS IN UNCONSOLIDATED ENTITIES

Investments in unconsolidated entities consisted of the following components as of December 31, 2023 and 2022:


	December 31,
(Dollars in thousands)	2023		2022
Investments in low income housing tax credit partnerships	$	37,838	$	40,939
Investments in common securities of statutory trusts	1,547		1,547
Investments in affiliates	111		110
Other	2,050		4,045
Total	$	41,546	$	46,641

The Company invests in low income housing tax credit ("LIHTC") partnerships. As of December 31, 2023 and 2022, the Company had $22.0 million and $23.6 million, respectively, in unfunded commitments related to the LIHTC partnerships, which is included in other liabilities in the Company's consolidated balance sheets.

The expected payments for the unfunded commitments related to the Company's investments in unconsolidated entities as of December 31, 2023 are as follows:


(Dollars in thousands)	LIHTC		Other
Year Ending December 31:	Partnerships		Partnerships		Total
2024	$	17,418	$	983	$	18,401
2025	4,248		—		4,248
2026	26		—		26
2027	26		—		26
2028	20		—		20
Thereafter	303		—		303
Total commitments	$	22,041	$	983	$	23,024

The following table presents amortization expense and tax credits recognized associated with our investments in LIHTC partnerships for the periods presented:


	Year Ended December 31,
(Dollars in thousands)	2023		2022		2021
Proportional amortization method:
Amortization expense recognized in income tax expense	$	3,101	$	2,566	$	2,174
Federal and state tax credits recognized in income tax expense	3,400		2,938		2,373

In 2021, the Company committed $2.0 million in the JAM FINTOP Banktech Fund, L.P. The Company does not have the ability to exercise significant influence over the JAM FINTOP Banktech Fund, L.P. and the investment does not have a readily determinable fair value. As a result, the Company determined that the cost method of accounting for the investment was appropriate. The investment is included in investment in unconsolidated entities in the Company's consolidated balance sheets. As of December 31, 2023, the Company had an unfunded commitment of $1.0 million related to the investment, which is expected to be paid in 2024. The unfunded commitment is included in other liabilities in the Company's consolidated balance sheets.

During the first quarter of 2022, the Company invested $2.0 million in Swell Financial, Inc. ("Swell"). The Company did not have the ability to exercise significant influence over Swell and the investment did not have a readily determinable fair value. As a result, the Company determined that the cost method of accounting for the investment was appropriate. The investment was included in investments in unconsolidated entities in the Company's consolidated balance sheet at December 31, 2022.

During the third quarter of 2023, the Company entered into a transaction with Swell whereby Swell repurchased the Company’s entire preferred and common stock equity investment in exchange for $0.5 million in cash and certain intangible assets. The intangible assets totaling $1.5 million are included in other assets in the Company's consolidated balance sheet at December 31, 2023.