Leases

3 Months Ended

Mar. 31, 2023

Leases

Leases

7.     Leases

The Company has 31 operating leases for branches (including headquarters) and office spaces, 10 operating leases for vehicles, and one operating lease for equipment. Our leases have remaining lease terms ranging from three months to approximately 13 years, none of which has a renewal option reasonably certain of exercise, which has been reflected in the Company’s calculation of the lease term.

The Company has elected the short-term lease recognition exemption such that the Company will not recognize Right of Use (“ROU”) assets or lease liabilities for leases with a term of less than 12 months from the commencement date. The Company has three agreements in 2023 and two agreements in 2022 that qualified as short-term leases.

Certain leases have escalation clauses for operating expenses and real estate taxes. The Company’s non-cancelable operating lease agreements expire through 2036.

Supplemental balance sheet information related to leases are as follows:

(Dollars in thousands)	March 31, 2023			December 31, 2022
Operating lease ROU asset	$	42,268		$	43,289
Operating lease liability	$	45,353		$	46,125
Weighted-average remaining lease term-operating leases		6.6 years			6.6 years
Weighted average discount rate-operating leases		3.1	%		2.9	%

The components of lease expense and cash flow information related to leases were as follows:

		For the three months ended,
(Dollars in thousands)	Line Item Presented		March 31, 2023		March 31, 2022
Lease Cost
Operating lease cost	Occupancy and equipment	$	2,299	$	2,097
Operating lease cost	Other operating expenses		23		24
Short-term lease cost	Professional services and occupancy and equipment		56		61
Variable lease cost	Occupancy and equipment		281		200
Total lease cost		$	2,659	$	2,382
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases		$	2,394	$	2,426
Right-of-use assets obtained in exchange for new operating lease liabilities		$	846	$	47

The Company’s minimum annual rental payments for Bank facilities due under non-cancelable leases are as follows as of March 31, 2023:

	Minimum Rental
	(In thousands)
Years ended December 31:
2023	$	7,636
2024		9,379
2025		8,705
2026		7,806
2027		3,711
Thereafter		12,814
Total minimum payments required		50,051
Less: implied interest		4,698
Total lease obligations	$	45,353