Leases

12 Months Ended

Dec. 31, 2023

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 $29.4 million and $27.2 million, respectively, as of December 31, 2023 and 2022. Operating lease liabilities totaled $32.0 million and $29.6 million, respectively, as of December 31, 2023 and 2022.

As of December 31, 2023, there were no operating leases that had not yet commenced. As of December 31, 2022, there were three operating leases that had not yet commenced.

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

At December 31,	2023		2022
Weighted average discount rate	3.80	%	3.34	%
Range of lease expiration dates	3 months - 24 years		7 months - 25 years
Range of lease renewal options	3 years - 5 years		3 years - 5 years
Weighted average remaining lease term	13.1 years		13.3 years

The following table presents the undiscounted annual lease payments under the terms of the Corporation’s operating leases at December 31, 2023, including a reconciliation to the present value of operating lease liabilities recognized in the Consolidated Balance Sheets:

(Dollars in thousands)
Years ending December 31:	2024	$4,243
	2025	3,701
	2026	3,460
	2027	2,917
	2028	2,595
	2029 and thereafter	23,958
Total operating lease payments		40,874
Less: interest		8,847
Present value of operating lease liabilities (1)		$32,027

(1)Includes short-term operating lease liabilities of $3.1 million.

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

(Dollars in thousands)
Year ended December 31,	2023	2022	2021
Lease Expense:
Operating lease expense	$4,476	$4,159	$4,015
Variable lease expense	201	104	69
Total lease expense (1)	$4,677	$4,263	$4,084
Cash Paid:
Cash paid reducing operating lease liabilities	$4,275	$4,076	$3,888

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