Leases

9 Months Ended

Sep. 30, 2023

Leases [Abstract]

Leases

Leases

The Company leases certain land, premises and equipment from third parties. ROU assets for operating and finance leases are included in net premises and equipment and lease liabilities are included in other liabilities and other borrowed funds, respectively, on the Company’s statements of financial condition. The following table summarizes the Company’s leases:

	September 30, 2023					December 31, 2022
(Dollars in thousands)	Finance Leases			Operating Leases		Finance Leases		Operating Leases
ROU assets	$	30,801				30,254
Accumulated depreciation	(5,856)					(2,760)
Net ROU assets	$	24,945		41,529		27,494		43,551
Lease liabilities	$	25,618		44,962		28,204		46,579
Weighted-average remaining lease term	11 years			16 years		12 years		17 years
Weighted-average discount rate	3.6		%	3.6	%	3.6	%	3.6	%

Maturities of lease liabilities consist of the following:

	September 30, 2023
(Dollars in thousands)	Finance Leases		Operating Leases
Maturing within one year	$	4,568	4,689
Maturing one year through two years	4,557		4,742
Maturing two years through three years	4,566		4,565
Maturing three years through four years	4,576		4,329
Maturing four years through five years	1,578		3,810
Thereafter	11,281		39,836
Total lease payments	31,126		61,971
Present value of lease payments
Short-term	3,710		3,160
Long-term	21,908		41,802
Total present value of lease payments	25,618		44,962
Difference between lease payments and present value of lease payments	$	5,508	17,009

The components of lease expense consist of the following:

	Three Months ended			Nine Months ended
(Dollars in thousands)	September 30, 2023		September 30, 2022	September 30, 2023	September 30, 2022
Finance lease cost
Amortization of ROU assets	$	1,060	837	3,118	1,227
Interest on lease liabilities	239		200	723	334
Operating lease cost	1,359		1,493	4,243	4,483
Short-term lease cost	151		101	528	314
Variable lease cost	410		259	1,262	903
Sublease income	(9)		(11)	(32)	(35)
Total lease expense	$	3,210	2,879	9,842	7,226

Supplemental cash flow information related to leases is as follows:

	Three Months ended
	September 30, 2023			September 30, 2022
(Dollars in thousands)	Finance Leases		Operating Leases	Finance Leases	Operating Leases
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows	$	239	892	177	992
Financing cash flows	892		N/A	757	N/A

	Nine Months ended
	September 30, 2023			September 30, 2022
(Dollars in thousands)	Finance Leases		Operating Leases	Finance Leases	Operating Leases
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows	$	723	2,714	335	3,011
Financing cash flows	2,633		N/A	1,039	N/A

The Company also leases office space to third parties through operating leases. Rent income from these leases for the nine months ended September 30, 2023 and 2022 was not significant.

Leases

Leases

The Company leases certain land, premises and equipment from third parties. ROU assets for operating and finance leases are included in net premises and equipment and lease liabilities are included in other liabilities and other borrowed funds, respectively, on the Company’s statements of financial condition. The following table summarizes the Company’s leases:

	September 30, 2023					December 31, 2022
(Dollars in thousands)	Finance Leases			Operating Leases		Finance Leases		Operating Leases
ROU assets	$	30,801				30,254
Accumulated depreciation	(5,856)					(2,760)
Net ROU assets	$	24,945		41,529		27,494		43,551
Lease liabilities	$	25,618		44,962		28,204		46,579
Weighted-average remaining lease term	11 years			16 years		12 years		17 years
Weighted-average discount rate	3.6		%	3.6	%	3.6	%	3.6	%

Maturities of lease liabilities consist of the following:

	September 30, 2023
(Dollars in thousands)	Finance Leases		Operating Leases
Maturing within one year	$	4,568	4,689
Maturing one year through two years	4,557		4,742
Maturing two years through three years	4,566		4,565
Maturing three years through four years	4,576		4,329
Maturing four years through five years	1,578		3,810
Thereafter	11,281		39,836
Total lease payments	31,126		61,971
Present value of lease payments
Short-term	3,710		3,160
Long-term	21,908		41,802
Total present value of lease payments	25,618		44,962
Difference between lease payments and present value of lease payments	$	5,508	17,009

The components of lease expense consist of the following:

	Three Months ended			Nine Months ended
(Dollars in thousands)	September 30, 2023		September 30, 2022	September 30, 2023	September 30, 2022
Finance lease cost
Amortization of ROU assets	$	1,060	837	3,118	1,227
Interest on lease liabilities	239		200	723	334
Operating lease cost	1,359		1,493	4,243	4,483
Short-term lease cost	151		101	528	314
Variable lease cost	410		259	1,262	903
Sublease income	(9)		(11)	(32)	(35)
Total lease expense	$	3,210	2,879	9,842	7,226

Supplemental cash flow information related to leases is as follows:

	Three Months ended
	September 30, 2023			September 30, 2022
(Dollars in thousands)	Finance Leases		Operating Leases	Finance Leases	Operating Leases
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows	$	239	892	177	992
Financing cash flows	892		N/A	757	N/A

	Nine Months ended
	September 30, 2023			September 30, 2022
(Dollars in thousands)	Finance Leases		Operating Leases	Finance Leases	Operating Leases
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows	$	723	2,714	335	3,011
Financing cash flows	2,633		N/A	1,039	N/A

The Company also leases office space to third parties through operating leases. Rent income from these leases for the nine months ended September 30, 2023 and 2022 was not significant.