Leases

3 Months Ended

Mar. 31, 2024

Leases

Leases

7.     Leases

The Company has 30 operating leases for branches (including headquarters) and office spaces, seven operating leases for vehicles, and one operating lease for equipment. Our leases have remaining lease terms ranging from four 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 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 2024 and five agreements in 2023 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, 2024			December 31, 2023
Operating lease ROU asset	$	37,631		$	39,557
Operating lease liability	$	38,674		$	40,822
Weighted-average remaining lease term-operating leases		6.0 years			6.1 years
Weighted average discount rate-operating leases		3.2	%		3.2	%

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	March 31, 2024		March 31, 2023
Lease Cost
Operating lease cost	Occupancy and equipment	$	2,236	$	2,299
Operating lease cost	Other operating expenses		19		23
Short-term lease cost	Professional services and other operating expenses		42		56
Variable lease cost	Occupancy and equipment		270		281
Total lease cost		$	2,567	$	2,659
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases		$	2,452	$	2,394
Right-of-use assets obtained in exchange for new operating lease liabilities		$	—	$	846

The Company’s minimum annual rental payments for Bank facilities due under non-cancelable leases are as follows as of March 31, 2024:

	Minimum Rental
	(In thousands)
Years ended December 31:
2024	$	6,587
2025		9,244
2026		8,363
2027		4,286
2028		4,035
Thereafter		10,109
Total minimum payments required		42,624
Less: implied interest		(3,950)
Total lease obligations	$	38,674