v3.26.1
Income Taxes
 6 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
Income Taxes

16. INCOME TAXES

 

The Company invests in low-income housing tax credit and solar tax funds that are designed to generate a return primarily through the realization of federal tax credits. The Company accounts for these investments using the proportional amortization method, under which the cost of the investments is amortized over the life of the investment in proportion to the tax credits and other tax benefits received. The amortization of tax credit investments is included as a component of the provision for income taxes in the consolidated statements of earnings and comprehensive income.

 

The following table presents the balances of the Company's tax credit investments recorded in other assets and related unfunded commitments recorded in other liabilities on the consolidated balance sheets at June 30, 2026 and December 31, 2025:

 

 

June 30, 2026

 

 

December 31, 2025

 

 

(Dollars in thousands)

 

Tax credit investments

 

$

203,914

 

 

$

135,254

 

Unfunded commitments - tax credit investments

 

 

154,422

 

 

 

77,499

 

 

The following table presents income tax credits and other tax benefits, as well as amortization expense, associated with the Company's tax credit investments for the periods indicated:

 

 

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

(Dollars in thousands)

 

Tax credits and other tax benefits recognized

 

$

7,735

 

 

$

5,812

 

 

$

16,733

 

 

$

8,323

 

Tax credit amortization expense included in provision for income taxes

 

 

(22,942

)

 

 

(8,516

)

 

 

(30,401

)

 

 

(16,907

)

Total

 

$

(15,207

)

 

$

(2,704

)

 

$

(13,668

)

 

$

(8,584

)