Leases

12 Months Ended

Dec. 31, 2023

Leases

Leases

15. Leases

The Company has 31 operating leases for branches (including headquarters) and office spaces, 7 operating leases for vehicles, and one operating lease for equipment. Our leases have remaining lease terms ranging from less than six months to approximately 12 years, none of which has a renewal option reasonably certain of exercise, which has been reflected in the Company’s calculation of lease term.

The Company has elected the short-term lease recognition exemption such that the Company will not recognize ROU assets or lease liabilities for leases with a term of less than 12 months from the commencement date.  The Company has five 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 was as follows:

(Dollars in thousands)	December 31, 2023		December 31, 2022
Operating lease ROU assets	$	39,557	$	43,289
Operating lease liabilities	$	40,822	$	46,125
Weighted-average remaining lease term-operating leases		6.1 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 year ended December 31,
(In thousands)	Line Item Presented	2023		2022			2021
Lease Cost
Operating lease cost	Occupancy and equipment	$	8,737	$	8,510		8,609
Operating lease cost	Other operating expenses		89		93		80
Short-term lease cost	Professional services, Occupancy and equipment and Other operating expenses		212		193		164
Variable lease cost	Occupancy and equipment		1,128		999		1,065
Total lease cost		$	10,166	$	9,795	$	9,918
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases		$	10,429	$	9,459	$	12,811
Right-of-use assets obtained in exchange for new operating lease liabilities		$	3,866	$	1,208	$	6,570

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

	Minimum Rental
	(In thousands)
Years ended December 31:
2024	$	9,065
2025		9,244
2026		8,363
2027		4,286
2028		4,035
Thereafter		10,109
Total minimum payments required		45,102
Less: implied interest		(4,280)
Total lease obligations	$	40,822