LOW INCOME HOUSING TAX CREDIT INVESTMENTS

9 Months Ended

Sep. 30, 2024

LOW-INCOME HOUSING TAX CREDIT INVESTMENTS

LOW INCOME HOUSING TAX CREDIT INVESTMENTS

17. LOW-INCOME HOUSING TAX CREDIT INVESTMENTS

The Company is a limited partner in several low-income housing partnerships whose purpose is to invest in qualified affordable housing. The Company expects to recover its remaining investments in these partnerships through the use of tax credits that are generated by the investments. These investments are included in other assets and accrued interest receivable on the Consolidated Balance Sheets, with any unfunded obligations included in other liabilities and accrued interest payable. The investments are amortized as a component of income tax expense.

The following table summarizes information related to the Company’s qualified low-income housing investments and obligations:

(in thousands)		September 30, 2024				December 31, 2023
					Unfunded				Unfunded
Investment	Accounting Method		Investments		Obligations		Investments		Obligations
Low-income housing tax credit - Gross	Proportional amortization	$	67,614	$	59,598	$	57,596	$	58,619
Life-to-date amortization			(20,699)		NA		(15,904)		NA
Low-income housing tax credit - Net		$	46,915	$	59,598	$	41,692	$	58,619

The following table summarizes the amortization expense and tax credits recognized in income tax expense for the Company’s qualified low-income housing investments for the three and nine months ended September 30, 2024 and 2023, respectively:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)		2024		2023		2024		2023
Amortization expense	$	1,616	$	1,407	$	4,795	$	4,305
Tax credits recognized		(2,363)		(2,027)		(7,215)		(5,860)