LOW-INCOME HOUSING TAX CREDIT INVESTMENTS

6 Months Ended

Jun. 30, 2025

LOW-INCOME HOUSING TAX CREDIT INVESTMENTS

LOW-INCOME HOUSING TAX CREDIT INVESTMENTS

16. LOW-INCOME HOUSING TAX CREDIT INVESTMENTS

The Company is a limited partner in several low-income housing partnerships whose purpose is to invest in qualified affordable housing. The Company expects to recover its remaining investments in these partnerships through the use of tax credits that are generated by the investments. These investments are included in other assets and accrued interest receivable on the Consolidated Balance Sheets, with any unfunded obligations included in other liabilities and accrued interest payable. The investments are amortized as a component of income tax expense.

The following table summarizes information related to the Company’s qualified low-income housing investments and obligations:


(in thousands)		June 30, 2025				December 31, 2024
					Unfunded				Unfunded
Investment	Accounting Method		Investments		Obligations (2)		Investments		Obligations (1)
Low-income housing tax credit - Gross	Proportional amortization	$	82,500	$	51,712	$	72,415	$	54,797
Life-to-date amortization			(26,212)		NA		(21,899)		NA
Low-income housing tax credit - Net		$	56,288	$	51,712	$	50,516	$	54,797

(1)	All obligations will be paid by the Company by December 31, 2038.

(2)	All obligations will be paid by the Company by December 31, 2039.

The following table summarizes the amortization expense and tax credits recognized in income tax expense for the Company’s qualified low-income housing investments for the three and six months ended June 30, 2025 and 2024, respectively:


	Three Months Ended June 30,				Six Months Ended June 30,

(in thousands)		2025		2024		2025		2024

Amortization expense	$	2,008	$	1,561	$	4,313	$	3,179
Tax credits recognized		(2,803)		(2,326)		(5,978)		(4,852)