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Leases | 9 Months Ended
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Sep. 30, 2024
Leases [Abstract] |
Leases | LEASES The Corporation has operating leases for certain financial centers, corporate offices and land. On May 10, 2024, the Bank and Fulton Financial Realty Company, a wholly owned subsidiary of the Corporation, entered into a sale-leaseback agreement for 40 financial center office locations for an aggregate cash purchase price of $55.4 million. The Bank entered into a lease for each of the locations sold in the Sale-Leaseback Transaction for an initial term of 15 years, with the option to extend the term of each for up to three successive terms of up to five years each. During the initial 12 months of the lease terms, the aggregate base rental amount for the properties will be approximately $4.4 million. During the initial lease terms, the base rental amount will increase annually at a rate of 2.25%. The Corporation recorded a pre-tax gain, after deduction of transaction-related expenses, of approximately $20.3 million in connection with the Sale-Leaseback Transaction. The properties are located in Pennsylvania, New Jersey, Delaware and Maryland. The following table presents the components of lease expense, which is included in net occupancy expense on the consolidated statements of income:
|  | Three months ended September 30 | Nine months ended September 30
|  | 2024 |  | 2023 | 2024 |  | 2023
|  | (dollars in thousands)
Operating lease expense | $ | 8,822 |  |  | $ | 4,755 |  | $ | 21,519 |  |  | $ | 14,347 |
Variable lease expense | 826 |  |  | 887 |  | 2,306 |  |  | 2,444 |
Sublease income | (300) |  |  | (289) |  | (883) |  |  | (829) |
Total lease expense | $ | 9,348 |  |  | $ | 5,353 |  | $ | 22,942 |  |  | $ | 15,962 |
Supplemental consolidated balance sheet information related to leases was as follows:
Operating Leases |  | Balance Sheet Classification |  | September 30, 2024 |  | December 31, 2023
|  |  |  | (dollars in thousands)
ROU assets |  | Other assets |  | $ | 135,747 |  |  | $ | 88,188 |
Lease liabilities |  | Other liabilities |  | $ | 145,349 |  |  | $ | 95,230 |
Weighted average remaining lease term |  |  |  | 9.21 years |  | 6.5 years
Weighted average discount rate |  |  |  | 5.34 | % |  | 3.34 | %
The discount rate used in determining the lease liability for each individual lease is the Bank's incremental borrowing rate which corresponds with the remaining lease term. Supplemental cash flow information related to operating leases was as follows:
| Three months ended September 30 | Nine months ended September 30
| 2024 |  | 2023 | 2024 |  | 2023
| (dollars in thousands)
Cash paid for amounts included in the measurement of lease liabilities | $ | 6,153 |  |  | $ | 6,354 |  | $ | 17,425 |  |  | $ | 16,124 |
ROU assets obtained in exchange for lease obligations | 11,891 |  |  | 10,447 |  | 64,884 |  |  | 19,465 |
Lease payment obligations for each of the next five years and thereafter, with a reconciliation to the Corporation's lease liabilities were as follows as of September 30, 2024 (dollars in thousands):
Year | Operating Leases
Remaining in 2024 | $ | 6,845 |
2025 | 25,113 |
2026 | 23,833 |
2027 | 21,568 |
2028 | 18,344 |
Thereafter | 95,341 |
Total lease payments | 191,044 |
Less: imputed interest | (45,695) |
Present value of lease liabilities | $ | 145,349 |
As of September 30, 2024, the Corporation had not entered into any significant leases that have not yet commenced.

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- Definition The entire disclosure for lessor's operating leases. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-30/tableOfContent + Details
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