XML 39 R23.htm IDEA: XBRL DOCUMENT

LEASES

12 Months Ended

Dec. 31, 2023

NOTE N: LEASES

The Company has operating leases for certain offices and certain equipment. These leases have remaining terms that range from less than one year to 12 years. Options to extend the leases range from a single extension option of one year to multiple extension options for up to 40 years. Certain agreements include an option to terminate the lease within one year.

The components of lease expense are as follows:


(000’s omitted)	2023		2022		2021
Operating lease cost	$	9,358	$	8,568	$	8,397
Variable lease cost		68		108		50
Short-term lease cost ⁽¹⁾		64		65		148
Total lease cost	$	9,490	$	8,741	$	8,595

⁽¹⁾Short-term lease cost includes the cost of leases with terms of twelve months or less, excluding leases with terms of one month or less.

Supplemental cash flow information related to leases is as follows:


(000’s omitted)	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows for operating leases	$	8,584	$	8,402

Right-of-use assets obtained in exchange for lease obligations:
Operating leases		19,301		6,758

Supplemental balance sheet information related to leases is as follows:


(000’s omitted, except lease term and discount rate)	2023			2022
Operating leases
Operating lease right-of-use assets	$	40,036		$	30,069

Operating lease liabilities		41,409			31,091

Weighted average remaining lease term
Operating leases		6.5 years			4.9 years

Weighted average discount rate
Operating leases		3.79	%		2.89	%

Maturities of lease liabilities as of December 31, 2023 are as follows:


(000’s omitted)	Operating Leases
2024	$	9,661
2025		8,590
2026		7,379
2027		5,264
2028		3,854
Thereafter		13,048
Total lease payments		47,796
Less imputed interest		(6,387)
Total	$	41,409

Maturities of lease liabilities as of December 31, 2022 are as follows:


(000’s omitted)	Operating Leases
2023	$	8,995
2024		7,579
2025		5,992
2026		4,180
2027		2,547
Thereafter		4,333
Total lease payments		33,626
Less imputed interest		(2,535)
Total	$	31,091

Included in the Company’s operating leases are related party leases where BPAS-APS and OneGroup, subsidiaries of the Company, lease office space from 706 North Clinton, LLC (“706 North Clinton”), an entity the Company holds a 50% membership interest in through its subsidiary OPFC II. As of December 31, 2023, the operating lease right-of-use assets and operating lease liabilities associated with these related party leases total $3.1 million and $3.2 million, respectively. As of December 31, 2022, the operating lease right-of-use assets and operating lease liabilities associated with these related party leases total $3.6 million and $3.6 million, respectively. As of December 31, 2023, the weighted average remaining lease term and weighted average discount rate for the Company’s related party leases are 6.1 years and 3.69%, respectively. As of December 31, 2022, the weighted average remaining lease term and weighted average discount rate for the Company’s related party leases are 7.0 years and 3.68%, respectively.

The maturities of the Company’s related party lease liabilities as of December 31, 2023 are as follows:


(000’s omitted)	706 North Clinton, LLC
2024	$	591
2025		605
2026		615
2027		506
2028		506
Thereafter		715
Total lease payments		3,538
Less imputed interest		(368)
Total	$	3,170

The maturities of the Company’s related party lease liabilities as of December 31, 2022 are as follows:


(000’s omitted)	706 North Clinton, LLC
2023	$	591
2024		591
2025		605
2026		615
2027		506
Thereafter		1,221
Total lease payments		4,129
Less imputed interest		(493)
Total	$	3,636

As of December 31, 2023, the Company has six additional operating leases for office space associated with new bank branches that are signed but have not yet commenced with lease terms ranging from 10 to 15 years. The Company will be involved to varying degrees in the construction and design of the space and anticipates that the operating leases will commence during 2024. Upon commencement, lease right-of-use assets and lease liabilities of approximately $9.1 million will be recorded in the consolidated statements of condition.