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Variable Interest Entity
12 Months Ended
Dec. 31, 2024
Variable interest entities [Abstract]  
Variable interest entity
 
 
 
NOTE 3: VARIABLE
 
INTEREST ENTITIES
Generally, a variable interest
 
entity (“VIE”) is a corporation, partnership, trust or other legal structure that does not
 
have
equity investors with substantive or proportional voting rights or has
 
equity investors that do not provide sufficient financial
resources for the entity to support its activities.
 
At December 31, 2024, the Company did not have any consolidated VIEs and
 
had one nonconsolidated VIE, which is
discussed below.
New Markets Tax
 
Credit Investment
The New Markets Tax
 
Credit (“NMTC”) program provides federal tax incentives to investors to make
 
investments in
distressed communities and promotes economic improvement through
 
the development of successful businesses in these
communities.
 
The NMTCs are available to investors over seven years and is subject to recapture if
 
certain events occur
during such period.
 
The Company had one NMTC investment with a balance of $0.9 million and $
1.7
 
million at December
31, 2024 and 2023, respectively,
 
which is included in other assets in the Company’s
 
consolidated balance sheets as a VIE.
While the Company’s investment
 
exceeds 50% of the outstanding equity interests in this VIE, the Company
 
does not
consolidate the VIE because the Company lacks the power to direct the activities of
 
the VIE, and therefore is not a primary
beneficiary of the VIE.
The Company adopted ASU 2023-02 as of January 1, 2024 which allows us to account
 
for our NMTC investment using the
proportional amortization method.
 
The following table presents a summary of our NMTC investment at December
 
31,
2024, and the related tax credit and amortization expense for 2024.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in thousands)
December 31,
2024
Balance Sheet Location
New Markets Tax Credit
 
investment
$
898
Other assets
(Dollars in thousands)
Year ended
December 31,
2024
Income Statement Location
Income tax credits and other income tax benefits
$
(445)
Income tax expense
Amortization expense
369
Income tax expense