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. 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.

At June 30, 2026 and December 31, 2025, the balance of the Company's investments in qualified affordable housing projects was $2.9 million and $3.1 million, respectively. This balance is reflected in the other assets line on the condensed consolidated balance sheets. The unfunded commitments related to the investments in qualified housing projects totaled $335 and $418 thousand at June 30, 2026 and December 31, 2025, respectively. These balances are reflected in the accrued expense and other liabilities line on the condensed consolidated balance sheets.

The Company did not incur any impairment losses related to its investments in qualified affordable housing projects in 2026 or 2025.

The following tables present the Company's investments in qualified affordable housing projects as of June 30, 2026 and December 31, 2025 along with the related expenses and tax credits recognized for the three and six months ended June 30, 2026 and June 30, 2025.


	(In Thousands)
	June 30, 2026			December 31, 2025
Low-income-housing tax credit investments	$	4,000		$	4,000
Unfunded commitments		(335	)		(418	)
Net funded low-income-housing tax credit investments	$	3,665		$	3,582


	(In Thousands)
	Three Months Ended				Six Months Ended
	June 30, 2026		June 30, 2025		June 30, 2026		June 30, 2025
Amortization expense	$	112	$	112	$	224	$	224

Tax credits recognized	$	112	$	111	$	224	$	223