v3.26.1
VARIABLE INTEREST ENTITIES
 6 Months Ended
Jun. 30, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
VARIABLE INTEREST ENTITIES VARIABLE INTEREST ENTITIES
Tax Credit Investments

The Company makes investments in unconsolidated entities that construct, own and operate solar generation facilities. An unrelated third party is the managing member and has control over the significant activities of the variable interest entities ("VIE"). The Company generates a return through the receipt of tax credits allocated to the projects, as well as operational distributions. The primary risk of loss is generally mitigated by policies requiring that the project qualify for the expected tax credits prior to the Company making its investment. Any loans to the VIE are secured. As of June 30, 2026, the Company's maximum exposure to loss is $57.8 million.
June 30, 2026December 31, 2025
(In thousands)
Unconsolidated Variable Interest Entities
Tax credit investments included in equity investments$2,005 $4,479 
Loan commitments55,772 45,012 
Funded portion of loan commitments48,093 44,525 
For additional disclosures related to commitments for investment obligations related to tax credit investments, see Note 11.
The following table summarizes the tax benefits conveyed by the Company’s solar generation VIE investments:
Three Months EndedSix Months Ended
June 30June 30
2026202520262025
(In thousands)
Tax credits and other tax benefits recognized in equity method investments income (1)
$702 $2,001 $1,406 $3,986 
Tax credits and other tax benefits recognized in income tax expense (2)
672 — 1,344 — 
Investment amortization recognized in income tax expense(2)
526 — 1,052 — 
(1) Related to equity investments that do not qualify for proportional amortization method ("PAM")
(2) Related to equity investments that do qualify for PAM
The following table shows the cash flows related to the total income tax benefits presented in the line items in the Consolidated Statements of Cash Flows for investments accounted for using the PAM:
Three Months EndedSix Months Ended
June 30June 30
2026202520262025
(In thousands)
Net Income$146 $— $292 $— 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization526 — 1,052 — 
Increase in other assets(672)— (1,344)—