Leases

12 Months Ended

Dec. 31, 2023

The Company leases land and office facilities under long-term, non-cancelable operating lease agreements. The leases expire at various dates through 2044 and do not include renewal options based on economic factors that would have implied that continuation of the lease was reasonably certain. Certain leases provide for increases in future minimum annual rental payments as defined in the lease agreements. The leases generally include real estate taxes and common area maintenance (“CAM”) charges in the rental payments. Short-term leases are leases having a term of twelve months or less. The Company does not separate nonlease components from the associated lease component of our operating leases. As a result, the Company accounts for these components as a single component under Topic 842 since (i) the timing and pattern of transfer of the nonlease components and the associated lease component are the same and (ii) the lease component, if accounted for separately, would be classified as an operating lease. The Company recognizes short-term leases on a straight-line basis and does not record a related right-of-use ("ROU") asset and liability for such leases. In addition, equipment leases were determined to be immaterial and a related ROU asset and liability for such leases is not recorded.

As of December 31, 2023, the balances of the ROU asset and lease liability were $42.2 million and $45.0 million, respectively. As of December 31, 2022, the balances of the ROU asset and lease liability were $42.9 million and $46.0 million, respectively. The ROU asset is included in bank premises and equipment, net, and the lease liability is included in accrued interest payable and other liabilities.

The minimum rental commitments under these noncancelable operating leases are as follows as of December 31, 2023 and 2022:


	December 31, 2023
	(In thousands)
2024	$	9,373
2025	8,549
2026	8,111
2027	7,223
2028	5,496
Thereafter	19,827
Total future minimum lease payments	$	58,579
Discount effect of cash flows	(13,551)
Present value of net future minimum lease payments	$	45,028


	December 31, 2022
	(In thousands)
2023	$	8,332
2024	7,463
2025	6,739
2026	6,352
2027	5,821
Thereafter	24,591
Total future minimum lease payments	$	59,298
Discount effect of cash flows	(13,344)
Present value of net future minimum lease payments	$	45,954

Additional information:


	Year Ended December 31, 2023			Year Ended December 31, 2022			Year Ended December 31, 2021
	(In thousands)
Lease expense:
Operating lease expense	$	8,087		$	7,995		$	7,857
Short-term lease expense	—			3			6
Variable lease expense	1,105			873			1,028
Total lease expense	$	9,192		$	8,871		$	8,891
Other information:
Cash paid for amounts included in the measurement of lease liabilities	$	8,384		$	8,128		$	7,881
Weighted-average remaining lease term	8.47			9.28			9.71
Weighted-average discount rate	3.43		%	3.41		%	3.48		%