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Note 19 - Tax Credit Investments
3 Months Ended
Mar. 31, 2025
Notes to Financial Statements  
Affordable Housing Program [Text Block]

Tax Credit Investments:

 

The Company invests in qualified affordable housing projects, as well as solar investment tax credits.

 

At March 31, 2025 and December 31, 2024, the balance of the investment for qualified affordable housing projects was $21.5 million and $22.0 million, respectively. Total unfunded commitments related to the investments in qualified affordable housing projects totaled $12.4 million and $13.9 million at March 31, 2025 and December 31, 2024. The Company expects to complete the fulfillment of these commitments during the year ending 2038.

 

In the first quarters ended March 31, 2025 and March 31, 2024, the Company recognized amortization expense of $473 thousand and $406 thousand, respectively, from its investment in qualified affordable housing projects.  This amortization expense was included within income tax expense on the consolidated statements of income.

 

Additionally, during the first quarters ended March 31, 2025 and March 31, 2024, the Company recognized tax credits and other benefits from its investment in affordable housing tax credits of $564 thousand and $501 thousand, respectively. The qualified affordable housing investment credits are included in the net changes in other assets and liabilities in the cash flows from operating activities in the consolidated statements of cash flows. During the first quarters ended March 31, 2025 and March 31, 2024, the Company did not incur impairment losses related to its investment in affordable housing tax credits.

 

In the first quarter of 2025, the Company began investing in solar investment tax credits and at March 31, 2025 the balance of the investment was $10.0 million. Total unfunded commitments related to the investments in solar investment tax credits totaled $9.3 million at  March 31, 2025. The Company expects this investment to be fully funded during 2025.  There were no investments in solar tax credits at December 31, 2024.

 

The Company has not recognized any amortization expense or tax credits from its investment in solar investment tax credits in the first quarter ended  March 31, 2025.