INCOME TAXES

6 Months Ended

Jun. 30, 2025

Income Tax Disclosure [Abstract]

INCOME TAXES

11. INCOME TAXES

There were no unrecognized tax benefits as of June 30, 2025. 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 2021 through 2024 tax years are subject to examination as of June 30, 2025. The Company does not expect to record or realize any material unrecognized tax benefits during 2025.

The amortization of the low-income housing credit investments has been reflected as income tax expense of $2.2 million and $1.9 million for the three months ended June 30, 2025 and 2024, respectively, and $4.4 million and $3.8 million for the six months ended June 30, 2025 and 2024, respectively.

The amount of affordable housing tax credits, amortization, and tax benefits recorded as income tax expense for the three months ended June 30, 2025 were $1.9 million, $2.2 million, and $0.6 million, respectively. The amount of affordable housing tax credits, amortization, and tax benefits recorded as income tax expense for the six months ended June 30, 2025 were $3.9 million, $4.4 million and $1.3 million, respectively. The carrying value of the investment in affordable housing credits is $118.1 million at June 30, 2025, compared to $94.3 million at December 31, 2024 and is included in the Other assets line item on the unaudited Consolidated Statements of Financial Condition.