Leases

9 Months Ended

Sep. 30, 2023

Leases

Leases

7.     Leases

The Company has 31 operating leases for branches (including headquarters) and office spaces, 9 operating leases for vehicles, and one operating lease for equipment. Our leases have remaining lease terms ranging from one month 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 four 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)	September 30, 2023			December 31, 2022
Operating lease ROU asset	$	41,404		$	43,289
Operating lease liability	$	43,067		$	46,125
Weighted-average remaining lease term-operating leases		6.3 years			6.6 years
Weighted average discount rate-operating leases		3.2	%		2.9	%

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

		For the three months ended
(In thousands)	Line Item Presented	September 30, 2023		September 30, 2022
Lease Cost
Operating lease cost	Occupancy and equipment	$	2,142	$	2,100
Operating lease cost	Other operating expenses		23		23
Short-term lease cost	Professional services, Occupancy and equipment and Other operating expenses		39		36
Variable lease cost	Occupancy and equipment		262		275
Total lease cost		$	2,466	$	2,434
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases		$	3,387	$	2,342
Right-of-use assets obtained in exchange for new operating lease liabilities		$	1,757	$	—

		For the nine months ended
(In thousands)	Line Item Presented	September 30, 2023		September 30, 2022
Lease Cost
Operating lease cost	Occupancy and equipment	$	6,584	$	6,299
Operating lease cost	Other operating expenses		69		71
Short-term lease cost	Professional Services, Occupancy and equipment and Other operating expenses		177		132
Variable lease cost	Occupancy and equipment		785		713
Total lease cost		$	7,615	$	7,215
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases		$	8,042	$	7,111
Right-of-use assets obtained in exchange for new operating lease liabilities		$	3,801	$	47

The Company’s minimum annual rental payments for Bank facilities due under non-cancelable leases are as follows as of September 30, 2023:

	Minimum Rental
	(In thousands)
Years ended December 31:
2023	$	1,794
2024		9,863
2025		9,244
2026		8,363
2027		4,286
Thereafter		14,143
Total minimum payments required		47,693
Less: implied interest		4,626
Total lease obligations	$	43,067