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Qualified Affordable Housing Project Investments
12 Months Ended
Dec. 31, 2024
Equity Method Investments and Joint Ventures [Abstract]  
Qualified Affordable Housing Project Investments

Note 19 - Qualified Affordable Housing Project Investments

The Company invests in certain qualified affordable housing projects. The Company has elected to account for its investment in qualified affordable housing projects using the proportional amortization method described in FASB ASU 2014-01, "Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Low-Income housing Tax Credit Projects (A Consensus of the FASB Emerging Issues Task Force)", which was updated in March 2023 and released as FASB ASU 2023-02. Under the proportional amortization method, an investor amortizes the initial cost of the investment to income tax expense in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense. See Note 11 of the Notes to the Consolidated Financial Statements.

At December 31, 2024, the balance of the Company's investments in qualified affordable housing projects was $3.6 million. This balance is reflected in the other assets line on the consolidated balance sheets. The unfunded commitments related to the investments in qualified affordable housing projects totaled $880 thousand at December 31, 2024. This balance is reflected in the accrued expense and other liabilities line on the consolidated balance sheets.

The funded balance in qualified affordable housing projects was $2.7 million and $2.4 million out of a total of $4.0 million committed at December 31, 2024 and December 31, 2023, respectively.

During the year ended December 31, 2024, the Company recognized amortization expense with respect to its investments in qualified affordable housing projects of $422 thousand, partially offset by tax credits and other benefits from its investments in affordable housing tax credits of $417 thousand. The Company did not incur any impairment losses related to its investments in qualified affordable housing projects in 2024.