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Tax Credit Investments

12 Months Ended

Dec. 31, 2024

Tax Credit Investments

Tax Credit Investments

Note 16: Tax Credit Investments

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The Company invests in qualified affordable housing projects and federal historic projects for the purpose of community reinvestment and obtaining tax credits. The Company’s tax credit investments are limited to existing lending relationships with well-known developers and projects within the Company’s market area.

The following table presents a summary of the Company’s investments in qualified affordable housing projects and other tax credit investments at December 31, 2024 and 2023:

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​

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(dollars in thousands)

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​

​

December 31, 2024

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December 31, 2023

Investment

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Accounting Method

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Investment

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Unfunded Commitment (1)

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Investment

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Unfunded Commitment

Low Income Housing Tax Credit (LIHTC)

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Proportional Amortization

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$

14,922

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$

340

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$

16,897

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$

7,579

Federal Historic Tax Credit (FHTC)

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Proportional Amortization

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2,872

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2,541

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3,403

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​

2,353

Total

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​

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$

17,794

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$

2,881

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$

20,300

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$

9,932

(1) All commitments are expected to be paid by the Company by December 31, 2025.

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The following table presents a summary of the amortization expense and tax benefit recognized for the Company’s qualified affordable housing projects and other tax credit investments during 2024, 2023 and 2022:

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​	​	​	​	​	​	​	​	​	​
​	​	Year Ended
​	​	December 31,
(dollars in thousands)		2024			2023			2022
Amortization Expense (1)	​	​	​	​	​	​	​	​	​
LIHTC	​	$	1,991	​	$	1,810	​	$	271
FHTC	​	​	719	​	​	668	​	​	408
Total	​	$	2,710	​	$	2,478	​	$	679
Tax Benefit Recognized (2)	​	​	​	​	​	​	​	​	​
LIHTC	​	$	(2,347)	​	$	(1,693)	​	$	(330)
FHTC	​	​	(885)	​	​	(912)	​	​	(607)
Total	​	$	(3,232)	​	$	(2,605)	​	$	(937)

(1) The amortization expense for the LIHTC investments are included in income tax expense. Prior to 2023, the amortization for the FHTC tax credits are included in noninterest expense. Beginning January 1, 2023, with the adoption of ASU 2023-02, the amortization expense for the FHTC investments are included in income tax expense.

(2) All of the tax benefits recognized are included in income tax expense. Prior to 2023, the tax benefit recognized for the FHTC investments primarily reflected the tax credits generated from the investments, and excluded the net tax expense/benefit of the investments’ income/loss.

X

- References

No definition available.

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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

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