Leases

12 Months Ended

Dec. 31, 2023

LEASES

Lessee Arrangements

The Company has banking and limited-service facilities, data centers, and certain equipment under lease agreements. Most of the leases expire between 2024 and 2028 and include one or more renewal options for up to 5 years. Five leases expire between 2030 and 2034. All leases are classified as operating leases.


	For the year ended December 31,
($ in thousands)	2023		2022
Operating lease cost	$	5,628	$	5,868
Short-term lease cost	491		814


Total lease cost	$	6,119	$	6,682

Payments on operating leases included in the measurement of lease liabilities during the twelve months ended December 31, 2023 and 2022 totaled $5.5 million and $5.8 million, respectively. Right-of-use assets obtained in exchange for lease obligations totaled $15.6 million and $9.5 million during the twelve months ended December 31, 2023 and 2022, respectively. The additions in 2023 and 2022 were primarily from lease renewals.

Supplemental balance sheet information related to leases is as follows:


($ in thousands)	December 31, 2023			December 31, 2022
Operating lease right-of-use assets, included in other assets	$	25,406		$	17,355
Operating lease liabilities, included in other liabilities	28,635			18,038

Operating leases
Weighted average remaining lease term	7 years			5 years
Weighted average discount rate	3.9		%	2.5		%

Maturities of operating lease liabilities are as follows:


($ in thousands)
Year	Amount
2024	$	5,378
2025	5,586
2026	5,682
2027	4,442
2028	2,979
Thereafter	9,011
Total operating lease liabilities, payments	33,078
Less: present value adjustment	4,443
Operating lease liabilities	$	28,635

Lessor Arrangements

The Company leases office space to a third party through an operating lease. This lease has remaining lease terms of two years. Lessor income was $1.8 million and $1.9 million for the twelve months ended December 31, 2023, and 2022.