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Variable Interest Entities
 3 Months Ended
Mar. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Variable Interest Entities Variable Interest Entities
The Company has an investment interest in the following non-consolidated entity that meets the definition of a variable interest entity ("VIE").
Low Income Housing Tax Credit Investments
The Company makes equity investments in an entity that sponsors affordable housing and other community development projects that qualify for the Low Income Housing Tax Credit ("LIHTC") program pursuant to Section 42 of the Internal Revenue Code. The purpose of this investment is not only to assist the Bank in meeting its responsibilities under the Community Reinvestment Act, but also to provide an investment return, primarily through the realization of tax benefits. The LIHTC partnership is managed by unrelated general partners that have the power to direct the activities which most significantly affect the performance of the partnership. The Company is therefore not the primary beneficiary of the LIHTC partnership and accordingly, does not consolidate this VIE.
The Company's funding requirements are limited to its invested capital and any additional unfunded commitments for future equity contributions. The Company's maximum exposure to loss as a result of its involvement is limited to the carrying amounts of the investments, including the unfunded commitments. The investment in the LIHTC partnership is included in Accrued Interest Receivable and Other Assets and unfunded commitments are included in Accrued Interest Payable and Other Liabilities on the Consolidated Statements of Financial Condition. The Company currently expects to fund these commitments by the end of 2035.
The following table presents the balances of the Company's LIHTC investments and related unfunded commitments:
March 31, 2025December 31, 2024
(Dollars in thousands)
Low Income Housing Tax Credit Investments$6,000 $6,000 
Less: Amortization(94)(55)
Net Low Income Housing Tax Credit Investments$5,906 $5,945 
Unfunded Commitments$4,995 $4,995 
The Company accounts for qualifying LIHTC investments under the proportional amortization method. Under this method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance as a component of income tax expense.
The following table presents other information related to the Company's low income housing tax credit investments:
Three Months Ended March 31,
20252024
(dollars in thousands)
Tax Credits and Other Tax Benefits Recognized$50 $— 
Proportional Amortization Expense Included in Provision for Income Taxes$39 $—