Qualified Affordable Housing Project Investments (Notes)	3 Months Ended
Mar. 31, 2024
Federal Home Loan Banks [Abstract]
Qualified Affordable Housing Project Investments	NOTE 12. Qualified Affordable Housing Project Investments The Company invests in qualified affordable housing projects. The general purpose of these investments is to encourage and assist participants in investing in low-income residential rental properties located in the Commonwealth of Virginia, develop and implement strategies to maintain projects as low-income housing, provide tax credits and other tax benefits to investors, and to preserve and protect project assets. On January 1, 2024, the Company adopted ASU 2023-02, “Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method." The adoption resulted in an adjustment of $477 thousand, which reduced the investment balance and shareholders' equity. At March 31, 2024 and December 31, 2023, the balance of the investment for qualified affordable housing projects was $1.5 million and $2.0 million, respectively. These balances are reflected in Other assets on the Consolidated Balance Sheets. Total unfunded commitments related to the investments in qualified affordable housing projects totaled zero at both March 31, 2024 and December 31, 2023. During each of the three months ended March 31, 2024 and March 31, 2023, the Company recognized amortization expense of $74 thousand and $104 thousand, respectively. Beginning in 2024, upon adoption of ASU 2023-02, the amortization expense was included in income tax expense, while in 2023 and prior it was included in Other operating expenses on the Consolidated Statements of Income. Total estimated credits to be received during 2024 are $306 thousand based on the most recent quarterly estimates received from the funds. Total tax credits and other tax benefits recognized during the three months ended March 31, 2024 and 2023, were $77 thousand and $90 thousand, respectively.

Qualified Affordable Housing Project Investments (Notes)

3 Months Ended

Mar. 31, 2024

Qualified Affordable Housing Project Investments

NOTE 12. Qualified Affordable Housing Project Investments

The Company invests in qualified affordable housing projects. The general purpose of these investments is to encourage and assist participants in investing in low-income residential rental properties located in the Commonwealth of Virginia, develop and implement strategies to maintain projects as low-income housing, provide tax credits and other tax benefits to investors, and to preserve and protect project assets.

On January 1, 2024, the Company adopted ASU 2023-02, “Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method." The adoption resulted in an adjustment of $477 thousand, which reduced the investment balance and shareholders' equity.

At March 31, 2024 and December 31, 2023, the balance of the investment for qualified affordable housing projects was $1.5 million and $2.0 million, respectively. These balances are reflected in Other assets on the Consolidated Balance Sheets. Total unfunded commitments related to the investments in qualified affordable housing projects totaled zero at both March 31, 2024 and December 31, 2023.

During each of the three months ended March 31, 2024 and March 31, 2023, the Company recognized amortization expense of $74 thousand and $104 thousand, respectively. Beginning in 2024, upon adoption of ASU 2023-02, the amortization expense was included in income tax expense, while in 2023 and prior it was included in Other operating expenses on the Consolidated Statements of Income.

Total estimated credits to be received during 2024 are $306 thousand based on the most recent quarterly estimates received from the funds. Total tax credits and other tax benefits recognized during the three months ended March 31, 2024 and 2023, were $77 thousand and $90 thousand, respectively.