LOW-INCOME HOUSING TAX CREDIT INVESTMENT

9 Months Ended

Sep. 30, 2023

Investments in Affordable Housing Projects [Abstract]

LOW-INCOME HOUSING TAX CREDIT INVESTMENTS

LOW-INCOME HOUSING TAX CREDIT INVESTMENTS

On December 19, 2019, the Company invested in a low-income housing tax credit ("LIHTC") investment. On June 26, 2023, the Company entered into two additional LIHTC investments for $3.0 million per investment. As of September 30, 2023, total unfunded commitments related to LIHTC investments totaled $4.9 million. As of December 31, 2022, there were no unfunded commitments related to LIHTC investments. As of September 30, 2023 and December 31, 2022, the total balance of all LIHTC investments was $3.2 million and $2.4 million, respectively. These balances are reflected in the Other assets line item of the Condensed Consolidated Balance Sheets.

The Company uses the proportional amortization method to account for these investments. Amortization expense is included within the Income tax expense line item of the Condensed Consolidated Statements of Income. During the three months ended September 30, 2023 and 2022, the Company recognized amortization expense of $0.2 million and $0.1 million, respectively. During the nine months ended September 30, 2023 and 2022, the Company recognized amortization expense of $0.3 million.

Additionally, during the three months ended September 30, 2023 and 2022, the Company recognized $0.1 million of tax credits and other benefits from the LIHTC investment. During the nine months ended September 30, 2023 and 2022, the Company recognized $0.3 million of tax credits and other benefits. During the three and nine months ended September 30, 2023 and 2022, the Company did not incur any impairment losses.