VARIABLE INTEREST ENTITIES

6 Months Ended

Jun. 30, 2026

VARIABLE INTEREST ENTITIES

VARIABLE INTEREST ENTITIES

NOTE 13—VARIABLE INTEREST ENTITIES

The Company provides alternative investment management services through the syndication of tax credit funds and development of affordable housing projects. To facilitate the syndication and development of affordable housing projects, the Company is involved with the acquisition and/or formation of limited partnerships and joint ventures with investors, property developers, and property managers that are variable interest entities (“VIEs”). The Company’s continuing involvement in the VIEs usually includes either serving as the manager of the VIE or as a majority investor in the VIE with a property developer or manager serving as the manager of the VIE.

A detailed discussion of the Company’s accounting policies regarding the consolidation of VIEs and significant transactions involving VIEs is included in NOTE 2 and NOTE 18 of the 2025 Form 10-K.

As of June 30, 2026 and December 31, 2025, the assets and liabilities of the consolidated tax credit funds were insignificant. The table below presents the assets and liabilities of the Company’s consolidated joint venture development VIEs included on the Condensed Consolidated Balance Sheets:


Consolidated VIEs (in thousands)			June 30, 2026			December 31, 2025
Assets:
Cash and cash equivalents		$	396		$	439
Restricted cash			2,120			2,452
Receivables, net			31,532			27,570
Other assets			11,239			7,257
Total assets of consolidated VIEs		$	45,287		$	37,718

Liabilities:
Other liabilities		$	13,748		$	9,888
Total liabilities of consolidated VIEs		$	13,748		$	9,888

The table below presents the carrying value and classification of the Company’s interests in nonconsolidated VIEs included on the Condensed Consolidated Balance Sheets:


Nonconsolidated VIEs (in thousands)			June 30, 2026			December 31, 2025
Assets
Committed investments in tax credit equity		$	170,671		$	241,401
Other assets: Equity-method investments			97,770			93,018
Total interests in nonconsolidated VIEs		$	268,441		$	334,419

Liabilities
Commitments to fund investments in tax credit equity		$	174,093		$	219,949
Total commitments to fund nonconsolidated VIEs		$	174,093		$	219,949

Maximum exposure to losses⁽¹⁾⁽²⁾		$	268,441		$	334,419

(1)

Maximum exposure is determined as “Total interests in nonconsolidated VIEs.” The maximum exposure for the Company’s investments in tax credit equity is limited to the carrying value of its investment, as there are no funding obligations or other commitments related to the nonconsolidated VIEs other than the amounts presented in the table above.

(2)

Based on historical experience and the underlying expected cash flows from the underlying investment, the maximum exposure of loss is not representative of the actual loss, if any, that the Company may incur.