Tax Credit Investments

6 Months Ended

Jun. 30, 2024

Tax Credit Investments

Tax Credit Investments

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 June 30, 2024 and December 31, 2023:

		June 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	$	7,010	$	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 six months ended June 30, 2024 and 2023:

	Three months ended June 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	$	(370)	$	278	$	(509)

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

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

	Six months ended June 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	$	864	$	(751)	$	639	$	(735)

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

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