v3.26.1
Low Income Housing Tax Credit
 12 Months Ended
Mar. 31, 2026
Investments in Affordable Housing Projects [Abstract]  
Low Income Housing Tax Credit

Note 15 - LOW INCOME HOUSING TAX CREDIT

The Association makes equity investments in various limited partnerships that sponsor affordable housing projects utilizing the Low-Income Housing Tax Credit (“LIHTC”) program pursuant to Section 42 of the Internal Revenue Code. The objectives of these investments are to earn an acceptable return on capital, support the development and availability of affordable housing, and assist in meeting the requirements of the Community Reinvestment Act.

The limited partnerships’ primary activities include the identification, development, and operation of multifamily residential housing that is leased to qualifying tenants. These investments are generally funded through a combination of debt and equity.

The Association accounts for a majority of its LIHTC investments using the proportional amortization method. These investments are included in other assets, and related unfunded commitments are included in accounts payable, accrued expenses, and other liabilities in the consolidated statements of financial condition.

The following table presents the balances of the Association’s affordable housing tax credit investments and related unfunded commitments as of March 31:

 

 

 

Year Ended March 31,

 

 

 

2026

 

 

2025

 

 

 

(Dollars in thousands)

 

Affordable housing tax credit investments - beginning of year

 

$

1,313

 

 

$

1,479

 

Less: amortization

 

 

(173

)

 

 

(166

)

Net affordable housing tax credit investments - end of year

 

$

1,140

 

 

$

1,313

 

Unfunded commitments

 

$

276

 

 

$

487

 

 

 

 

 

 

 

 

Tax credits and other tax benefits recognized

 

$

172

 

 

$

164

 

Proportional amortization expense included in income tax expense

 

 

(173

)

 

 

(166

)

 

There was no impairment recognized for the years ended March 31, 2026 and 2025.