Affordable Housing Tax Credit Investments

12 Months Ended

Dec. 31, 2023

Investments in Affordable Housing Projects [Abstract]

Affordable Housing Tax Credit Investments

13) Affordable Housing Tax Credit Investments

The Company periodically invests in various limited partnerships that sponsor affordable housing projects. The partnerships are single purpose entities that lend money to real estate investors for the purpose of acquiring and operating, or rehabbing, commercial property. The investments qualify for Low-Income Housing Tax Credits under Code Section 42, as amended. For each of the partnerships, the Company acts strictly in a limited partner capacity. The Company has determined that it is not the primary beneficiary of these partnerships because it does not have the power to direct the activities of the entity that most significantly impact the entities’ economic performance. The Company uses the proportional amortization method to account for these investments. This method recognizes the amortized cost of the investment as a component of income tax expense. Due to the nature of the management activities of the general partner, the Company is not the primary beneficiary of these partnerships.

A summary of the Company’s affordable housing tax credit investments as of December 31 is as follows:

	2023		2022
Affordable housing tax credit investments included in other assets	$	7,151	$	3,494
Tax credits and other tax benefits recognized		533		708
Tax credit amortization expense included in provision for income taxes		516		521