VARIABLE INTEREST ENTITIES

9 Months Ended

Sep. 30, 2024

VARIABLE INTEREST ENTITIES

VARIABLE INTEREST ENTITIES

NOTE 12—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”).

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 17 of the 2023 Form 10-K.

As of September 30, 2024 and December 31, 2023, the assets and liabilities of the consolidated tax credit funds were immaterial. The table below presents the assets and liabilities of the Company’s consolidated joint venture development VIEs included in the Condensed Consolidated Balance Sheets:

Consolidated VIEs (in thousands)		September 30, 2024		December 31, 2023
Assets:
Cash and cash equivalents	$	630	$	2,841
Restricted cash		4,163		2,811
Receivables, net		27,707		28,256
Other Assets		48,246		47,249
Total assets of consolidated VIEs	$	80,746	$	81,157
Liabilities:
Other liabilities	$	57,578	$	53,526
Total liabilities of consolidated VIEs	$	57,578	$	53,526

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

Nonconsolidated VIEs (in thousands)		September 30, 2024		December 31, 2023
Assets
Committed investments in tax credit equity	$	333,713	$	154,028
Other assets: Equity-method investments		62,365		60,195
Total interests in nonconsolidated VIEs	$	396,078	$	214,223
Liabilities
Commitments to fund investments in tax credit equity	$	289,250	$	140,259
Total commitments to fund nonconsolidated VIEs	$	289,250	$	140,259
Maximum exposure to losses(1)(2)	$	396,078	$	214,223

(1) Maximum exposure 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.