Investment Tax Credits

12 Months Ended

Dec. 31, 2023

Investment Tax Credits

The Company's tax credit investments promote qualified affordable housing projects, some of which also support the Company’s regulatory compliance with the Community Reinvestment Act. The Company’s investments in these entities generate a return primarily through the realization of federal income tax credits and other tax benefits, such as tax deductions from operating losses of the investments, over specified time periods. These tax credits and deductions are recognized as a reduction to income tax expense.

The Company records the investments in affordable housing partnerships as a component of other assets on the Consolidated Balance Sheets and uses the proportional amortization method to account for the investments. Amortization related to these investments is recorded as a component of the provision for income taxes on the Consolidated Statements of Operations. The Company's unfunded capital commitments to these investments is included in other liabilities on the Consolidated Balance Sheets.

The Company recorded $47.2 million of affordable housing investments and $40.9 million of related unfunded capital commitments associated with the Merger.

The following table presents the Company's tax credit investments, which consisted entirely of affordable housing tax credit investments and related unfunded capital commitments as of December 31, 2023 and 2022:


(in thousands)	December 31, 2023		December 31, 2022
Other Assets:
Affordable housing tax credit investments	$	210,873	$	143,719
Other Liabilities:
Unfunded affordable housing tax credit commitments	$	114,082	$	81,632

The following table presents other information relating to the Company's affordable housing tax credit investments for the years ended December 31, 2023, 2022, and 2021:


(in thousands)	2023	2022	2021
Proportional amortization	16,777	12,026	10,003
Tax credit investment credits and tax benefits	20,932	14,553	12,253

There was no impairment recognized for the years ended December 31, 2023, 2022, and 2021.