On March 26, 2025, April 17, 2024 and April 21, 2023, the Bank entered into agreements to invest in investment tax credits generated by solar energy producing facilities through limited liability companies. At December 31, 2025 and 2024, the balance of the Bank’s investments were $1.5 million and $401,000, respectively, and is reflected in other assets on the consolidated balance sheets. The unfunded commitment related to the solar energy tax credit investments was $835,000 and $276,000 at December 31, 2025 and 2024, respectively, and is reflected in other liabilities on the consolidated balance sheets. The Bank expects to fulfill the commitment as capital calls are made by December 31, 2026.

The investment is accounted for using the proportional amortization method. During 2025, 2024 and 2023, the Bank recognized amortization expense of $2.9 million, $1.9 million and $1.7 million, respectively, which was included in income tax expense on the consolidated statements of income. Additionally, during 2025, 2024 and 2023, the Bank recognized tax credits and other tax benefits from its solar energy tax credit investment of $3.0 million, $2.3 million and $1.8 million, respectively, which was included in income tax expense on the consolidated statements of income.