Contractual Obligations and Off-Balance Sheet Items

3 Months Ended

Mar. 31, 2025

Commitments and Contingencies Disclosure [Abstract]

Contractual Obligations and Off-Balance Sheet Items

9. CONTRACTUAL OBLIGATIONS AND OFF-BALANCE SHEET ITEMS

Contractual Obligations

The Company’s contractual obligations and other commitments to make future payments (other than deposit obligations and securities sold under repurchase agreements) as of March 31, 2025 are summarized below.

Federal Home Loan Bank Borrowings

The Company’s future cash payments associated with its contractual obligations pursuant to its Federal Home Loan Bank (“FHLB”) advances as of March 31, 2025 is summarized below.


	1 year or less		More than 1 year but less than 3 years		3 years or more but less than 5 years		5 years or more		Total
	(Dollars in thousands)
FHLB advances	$	2,700,000	$	—	$	—	$	—	$	2,700,000

Leases

The Company’s leases relate primarily to operating leases for office space and banking centers. The Company determines if an arrangement is a lease or contains a lease at inception. The Company’s leases have remaining lease terms of 1 to 15 years, which may include the option to extend the lease when it is reasonably certain for the Company to exercise that option. Operating lease right-of-use (“ROU”) assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company uses its incremental collateralized borrowing rate to determine the present value of lease payments. Short-term leases and leases with variable lease costs are immaterial and the Company has one sublease arrangement. Sublease income was $846 thousand and $869 thousand for the three months ended March 31, 2025 and 2024, respectively. As of March 31, 2025, operating lease ROU assets and lease liabilities were approximately $31.2 million. ROU assets and lease liabilities were classified as other assets and other liabilities, respectively.

As of March 31, 2025, the weighted average of remaining lease terms of the Company’s operating leases was 5.8 years. The weighted average discount rate used to determine the lease liabilities as of March 31, 2025 for the Company’s operating leases was 3.0%. Cash paid for the Company’s operating leases was $2.9 million for the three months ended March 31, 2025 and 2024. During the three months ended March 31, 2025, the Company did not obtain any new ROU assets in exchange for lease liabilities.

The Company’s future undiscounted cash payments associated with its operating leases as of March 31, 2025 are summarized below (dollars in thousands).


Remaining 2025	$	7,793
2026		9,334
2027		6,332
2028		3,355
2029		2,006
2030		1,669
Thereafter		8,826
Total undiscounted lease payments	$	39,315

Off-Balance Sheet Items

In the normal course of business, the Company enters into various transactions that, in accordance with GAAP, are not included in its consolidated balance sheets. The Company enters into these transactions to meet the financing needs of its customers. These transactions include commitments to extend credit and standby letters of credit, which involve, to varying degrees, elements of credit risk and interest rate risk in excess of the amounts recognized in the consolidated balance sheets.

The Company’s commitments associated with outstanding standby letters of credit, unused capacity on Warehouse Purchase Program loans and commitments to extend credit expiring by period as of March 31, 2025 are summarized below. Since commitments associated with letters of credit, unused capacity on Warehouse Purchase Program loans and commitments to extend credit may expire unused, the amounts shown may not necessarily reflect the actual future cash funding requirements.


	1 year or less		More than 1 year but less than 3 years		3 years or more but less than 5 years		5 years or more		Total
	(Dollars in thousands)
Standby letters of credit	$	63,351	$	11,055	$	975	$	26	$	75,407
Unused capacity on Warehouse Purchase Program loans		929,956		—		—		—		929,956
Commitments to extend credit		1,587,309		867,343		104,414		1,183,211		3,742,277
Total	$	2,580,616	$	878,398	$	105,389	$	1,183,237	$	4,747,640

The Company records an allowance for credit losses on off-balance sheet credit exposure that is adjusted through a charge to provision for credit losses on the Company’s consolidated statement of income. At March 31, 2025 and December 31, 2024, this allowance, reported as a separate line item on the Company’s consolidated balance sheet, totaled $37.6 million.