INCOME TAXES

9 Months Ended

Sep. 30, 2023

Income Tax Disclosure [Abstract]

INCOME TAXES

11. INCOME TAXES

There were no unrecognized tax benefits as of September 30, 2023. The Company records interest and penalties on potential income tax deficiencies as income tax expense. The Company's federal and state tax returns for the 2019 through 2022 tax years are subject to examination as of September 30, 2023. The Company does not expect to record or realize any material unrecognized tax benefits during 2023.

The amortization of the low-income housing credit investments has been reflected as income tax expense of $1.4 million and $1.2 million for the three months ended September 30, 2023 and 2022, respectively, and $4.1 million and $3.6 million of such amortization has been reflected as income tax expense for the nine months ended September 30, 2023 and 2022, respectively.

The amount of affordable housing tax credits, amortization, and tax benefits recorded as income tax expense for the nine months ended September 30, 2023 were $3.5 million, $4.1 million and $1.4 million, respectively. The carrying value of the investment in affordable housing credits is $64.9 million at September 30, 2023, compared to $69.0 million at December 31, 2022.