Leases

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Leases

Leases

The Corporation has committed to rent premises used in business operations under non-cancelable operating leases and determines if an arrangement meets the definition of a lease upon inception. Operating lease ROU assets amounted to $27.2 million and $26.7 million, respectively, as of December 31, 2022 and 2021. Operating lease liabilities totaled $29.6 million and $29.0 million, respectively, as of December 31, 2022 and 2021.

As of December 31, 2022, there were three operating leases that had not yet commenced. As of December 31, 2021, there were two operating leases that had not yet commenced.

The following table presents information regarding the Corporation’s operating leases:

At December 31,	2022		2021
Weighted average discount rate	3.34	%	3.36	%
Range of lease expiration dates	7 months - 25 years		7 months - 19 years
Range of lease renewal options	3 years - 5 years		3 years - 5 years
Weighted average remaining lease term	13.3 years		12.9 years

The following table presents the undiscounted annual lease payments under the terms of the Corporation’s operating leases at December 31, 2022, including a reconciliation to the present value of operating lease liabilities recognized in the Consolidated Balance Sheets:

(Dollars in thousands)
Years ending December 31:	2023	$4,178
	2024	4,045
	2025	3,331
	2026	2,719
	2027	2,159
	2028 and thereafter	20,816
Total operating lease payments (1)		37,248
Less: interest		7,690
Present value of operating lease liabilities (2)		$29,558

(1)Includes $439 thousand related to options to extend lease terms that are reasonably certain of being exercised.

(2)Includes short-term operating lease liabilities of $3.3 million.

The following table presents the components of total lease expense and operating cash flows:

(Dollars in thousands)
Year ended December 31,	2022	2021	2020
Lease Expense:
Operating lease expense	$4,159	$4,015	$3,921
Variable lease expense	104	69	56
Total lease expense (1)	$4,263	$4,084	$3,977
Cash Paid:
Cash paid reducing operating lease liabilities	$4,076	$3,888	$3,791

(1)Included in net occupancy expenses in the Consolidated Statements of Income.