Income Taxes |
6 Months Ended |
|---|---|
Jun. 30, 2025 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | 14. INCOME TAXES The Company's effective tax rate was 18.4% and 21.9% for the three months ended June 30, 2025 and 2024, respectively, and 18.8% and 22.7% for the six months ended June 30, 2025 and 2024, respectively. The decrease in the effective tax rate for the three and six month periods ended June 30, 2025 compared to the same periods in 2024 was primarily due to an increase in investment tax credit benefits and decreases in the state blended tax rate and nondeductible insurance premiums. As of June 30, 2025, the net DTA balance totaled $313 million, an increase of $32 million from $281 million at December 31, 2024. The overall increase in the net DTA was primarily the result of an increase in credit carryovers, partially offset by increases in the MSR DTL and the fair market value of AFS securities. Although realization is not assured, the Company believes realization of the recognized net DTA of $313 million at June 30, 2025 is more-likely-than-not based on expectations regarding future taxable income and based on available tax planning strategies that could be implemented if necessary to prevent a carryover from expiring. At June 30, 2025 and December 31, 2024, the Company had no deferred tax valuation allowance. LIHTC and renewable energy projects The Company holds ownership interests in limited partnerships and limited liability companies that invest in affordable housing and renewable energy projects. These investments are designed to generate a return primarily through the realization of federal tax credits and deductions. Investments in LIHTC and renewable energy totaled $588 million and $606 million as of June 30, 2025 and December 31, 2024, respectively. Unfunded LIHTC and renewable energy obligations are included in Other liabilities on the Consolidated Balance Sheet and totaled $266 million and $320 million as of June 30, 2025 and December 31, 2024, respectively. The Company recognized tax credits related to LIHTC investments of $22.1 million and $21.2 million during the three months ended June 30, 2025 and 2024, respectively, and $39.7 million and $40.9 million during the six months ended June 30, 2025 and 2024, respectively. For the three months ended June 30, 2025 and 2024, amortization related to LIHTC investments of $19.0 million and $17.1 million, respectively, was recognized as a component of income tax expense, compared to $34.1 million and $35.7 million for the six months ended June 30, 2025 and 2024, respectively.
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