Leases

6 Months Ended

Jun. 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 four 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 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)	June 30, 2023			December 31, 2022
Operating lease ROU asset	$	41,526		$	43,289
Operating lease liability	$	44,402		$	46,125
Weighted-average remaining lease term-operating leases		6.5 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	June 30, 2023		June 30, 2022
Lease Cost
Operating lease cost	Occupancy and equipment	$	2,143	$	2,099
Operating lease cost	Other operating expenses		23		26
Short-term lease cost	Professional services, Occupancy and equipment and Other operating expenses		82		36
Variable lease cost	Occupancy and equipment		281		238
Total lease cost		$	2,529	$	2,399
Other information
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases		$	2,261	$	2,343
Right-of-use assets obtained in exchange for new operating lease liabilities		$	1,198	$	—

		For the six months ended
(In thousands)	Line Item Presented	June 30, 2023		June 30, 2022
Lease Cost
Operating lease cost	Occupancy and equipment	$	4,442	$	4,198
Operating lease cost	Other operating expenses		46		48
Short-term lease cost	Professional Services, Occupancy and equipment and Other operating expenses		138		97
Variable lease cost	Occupancy and equipment		523		438
Total lease cost		$	5,149	$	4,781
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases		$	4,655	$	4,769
Right-of-use assets obtained in exchange for new operating lease liabilities		$	2,044	$	47

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

	Minimum Rental
	(In thousands)
Years ended December 31:
2023	$	5,218
2024		9,520
2025		8,850
2026		7,955
2027		3,865
Thereafter		13,689
Total minimum payments required		49,097
Less: implied interest		4,695
Total lease obligations	$	44,402