TAX CREDIT INVESTMENTS

12 Months Ended

Dec. 31, 2025

Equity [Abstract]

TAX CREDIT INVESTMENTS

TAX CREDIT INVESTMENTS

The Company periodically invests in low-income housing tax credit (LIHTC) investments. As of December 31, 2025 and 2024, total unfunded commitments related to LIHTC investments totaled $2.4 million and $4.1 million, respectively. As of December 31, 2025 and 2024, the total balance of all LIHTC investments was $4.2 million and $3.1 million, respectively. These balances are reflected in the Other assets line item of the Consolidated Balance Sheets.

The Company uses the proportional amortization method to account for this investment. Amortization expense is included within the Income tax expense line item of the Consolidated Statements of Income. During the years ended December 31, 2025 and 2024, the Company recognized amortization expense of $0.6 million and $0.8 million, respectively.

Additionally, during the years ended December 31, 2025 and 2024, the Company recognized $0.8 million and $0.7 million, respectively, of tax credits and $0.2 million and $0.1 million, respectively, of other benefits from the LIHTC investments. During the years ending December 31, 2025 and 2024, the Company did not incur any impairment losses.

During the year ended December 31, 2025, the Company purchased and recognized $1.3 million of solar investment tax credits (ITC) for a purchase price of $1.2 million, resulting in an income tax benefit of $0.1 million. The Company had not invested in solar investment tax credits prior to 2025. As of December 31, 2025, the Company had no unrecognized solar investment tax credits.