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Leases

9 Months Ended

Sep. 30, 2024

7. Leases

The Company has 30 operating leases for branches (including headquarters) and office spaces, five operating leases for vehicles, and one operating lease for equipment. Our leases have remaining lease terms ranging from one month 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. During the nine months ended September 30, 2024, the Company entered into agreements to extend the term of five of its operating leases by 10 years each.

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)	September 30, 2024			December 31, 2023
Operating lease ROU asset	$	44,787		$	39,557

Operating lease liability	$	45,437		$	40,822

Weighted-average remaining lease term-operating leases		7.3 years			6.1 years
Weighted average discount rate-operating leases		3.9	%		3.2	%

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


		For the three months ended September 30,
(In thousands)	Line Item Presented	2024		2023
Lease Cost
Operating lease cost	Occupancy and equipment	$	2,235	$	2,142
Operating lease cost	Other operating expenses		16		23
Short-term lease cost	Professional services and other operating expenses		40		39
Variable lease cost	Occupancy and equipment		325		262
Total lease cost		$	2,616	$	2,466

Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases		$	2,461	$	3,387
Right-of-use assets obtained in exchange for new operating lease liabilities		$	—	$	1,757


		For the nine months ended September 30,
(In thousands)	Line Item Presented	2024		2023
Lease Cost
Operating lease cost	Occupancy and equipment	$	6,693	$	6,584
Operating lease cost	Other operating expenses		53		69
Short-term lease cost	Professional Services, Occupancy and equipment and Other operating expenses		121		177
Variable lease cost	Occupancy and equipment		918		785
Total lease cost		$	7,785	$	7,615

Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases		$	7,370	$	8,042
Right-of-use assets obtained in exchange for new operating lease liabilities		$	10,894	$	3,801

The Company’s minimum annual rental payments for Bank facilities due under non-cancelable leases are as follows as of September 30, 2024:


	Minimum Rental
	(In thousands)
Years ended December 31:
2024	$	1,616
2025		9,529
2026		9,438
2027		5,776
2028		5,534
Thereafter		21,413
Total minimum payments required		53,306
Less: implied interest		(7,869)
Total lease obligations	$	45,437