XML 34 R23.htm IDEA: XBRL DOCUMENT

Note 16 - Tax Credit Investments

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Investment Program, Proportional Amortization Method, Elected [Text Block]

NOTE 16 Tax Credit Investments

The Company invests in qualified affordable housing projects for the purpose of community reinvestment and obtaining tax credits. The Company’s tax credit investments are limited to existing lending relationships with well-known developers and projects within the Company’s market area.

The following table presents a summary of the Company’s investments in qualified affordable housing project tax credits as of September 30, 2024 and December 31, 2023:

			September 30, 2024								December 31, 2023
(dollars in thousands)			Investment				Unfunded Commitment				Investment				Unfunded Commitment
Investment	*Accounting Method*
Low income housing tax credit	Proportional amortization		$	17,906			$	5,473			$	17,906			$	12,347

The following tables present a summary of the amortization expense and tax benefit recognized for the Company’s qualified affordable housing projects for the three and nine months ended September 30, 2024 and 2023:

		*Three months ended September 30,*
		*2024*								*2023*
		*Amortization*				*Tax Benefit*				*Amortization*				*Tax Benefit*
(dollars in thousands)		Expense ⁽¹⁾				Recognized ⁽²⁾				Expense⁽¹⁾				Recognized⁽²⁾
Low income housing tax credit		$	432			$	(352	)		$	245			$	(435	)

(1)	The amortization expense for low income housing tax credits was included in the income tax expense.

(2)	All of the tax benefits recognized were included in income tax expense.

		*Nine months ended September 30,*
		*2024*								*2023*
		*Amortization*				*Tax Benefit*				*Amortization*				*Tax Benefit*
(dollars in thousands)		Expense⁽¹⁾				Recognized⁽²⁾				Expense⁽¹⁾				Recognized⁽²⁾
Low income housing tax credit		$	1,296			$	(1,103	)		$	884			$	(1,171	)

(1)	The amortization expense for low income housing tax credits was included in the income tax expense.

(2)	All of the tax benefits recognized were included in income tax expense.