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Leases | 9 Months Ended
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Sep. 30, 2024
Leases [Abstract] |
Leases | Leases As of September 30, 2024, the Company was the lessee in 46 operating leases and 1 finance lease of certain branch, mortgage and operations locations with original terms greater than one year. Many leases include options to renew, with terms that can extend the lease up to an additional 20 years or more. Certain lease agreements contain provisions to periodically adjust rental payments for inflation. Renewal options that management is reasonably certain to renew and fixed rent escalations are included in the right-of-use asset and lease liability. Information related to the Company’s leases is presented below as of September 30, 2024 and December 31, 2023:
|  |  | September 30, |  | December 31,
| Classification |  | 2024 |  | 2023
Right-of-use assets: |  |  |  |  |
Operating leases | Operating lease right-of-use assets |  | $ | 47,346 |  | $ | 54,295
Finance leases | Premises and equipment, net |  | 1,173 |  | 1,256
Total right-of-use assets |  |  | $ | 48,519 |  | $ | 55,551
Lease liabilities: |  |  |  |  |
Operating leases | Operating lease liabilities |  | $ | 59,584 |  | $ | 67,643
Finance leases | Borrowings |  | 1,254 |  | 1,326
Total lease liabilities |  |  | $ | 60,838 |  | $ | 68,969
Weighted average remaining lease term (in years) - operating |  |  | 11.1 |  | 11.6
Weighted average remaining lease term (in years) - finance |  |  | 10.6 |  | 11.4
Weighted average discount rate - operating |  |  | 3.41 | % |  | 3.39 | %
Weighted average discount rate - finance |  |  | 1.76 | % |  | 1.76 | %
The components of total lease expense included in the consolidated statements of income were as follows:
|  |  | Three Months Ended |  | Nine Months Ended
|  |  | September 30, |  | September 30,
| Classification |  | 2024 |  |  | 2023 |  |  | 2024 |  |  |  | 2023 |  |  |
Operating lease costs: |  |  |  |  |  |  |  |  |  |  |  |
Amortization of right-of-use asset | Occupancy and equipment |  | $ | 1,362 |  |  | $ | 2,104 |  |  | $ | 5,048 |  |  |  | $ | 6,226 |  |  |
Short-term lease cost | Occupancy and equipment |  | 96 |  |  | 133 |  |  | 282 |  |  |  | 397 |  |  |
Variable lease cost | Occupancy and equipment |  | 321 |  |  | 238 |  |  | 1,024 |  |  |  | 862 |  |  |
Gain on lease modifications and terminations | Occupancy and equipment |  | — |  |  | — |  |  | — |  |  |  | (73) |  |  |
Finance lease costs: |  |  |  |  |  |  |  |  |  |  |  |
Interest on lease liabilities | Interest expense on borrowings |  | 6 |  |  | 6 |  |  | 17 |  |  |  | 18 |  |  |
Amortization of right-of-use asset | Occupancy and equipment |  | 28 |  |  | 28 |  |  | 83 |  |  |  | 83 |  |  |
Sublease income | Occupancy and equipment |  | (96) |  |  | (254) |  |  | (407) |  |  |  | (750) |  |  |
Total lease cost |  |  | $ | 1,717 |  |  | $ | 2,255 |  |  | $ | 6,047 |  |  |  | $ | 6,763 |  |  |
The Company does not separate lease and non-lease components and instead elects to account for them as a single lease component. Variable lease cost primarily represents variable payments such as common area maintenance, utilities, and property taxes. A maturity analysis of operating and finance lease liabilities and a reconciliation of cash flows to lease liabilities as of September 30, 2024 is as follows:
| Operating |  | Finance
| Leases |  | Lease
Lease payments due: |  |  |
September 30, 2025 | $ | 2,154 |  |  | $ | 30 |
September 30, 2026 | 8,290 |  |  | 121 |
September 30, 2027 | 8,016 |  |  | 123 |
September 30, 2028 | 7,554 |  |  | 125 |
September 30, 2029 | 6,579 |  |  | 127 |
Thereafter | 40,285 |  |  | 850 |
Total undiscounted future minimum lease payments | 72,878 |  |  | 1,376 |
Less: imputed interest | (13,294) |  |  | (122) |
Lease liabilities | $ | 59,584 |  |  | $ | 1,254 |
Leases | Leases As of September 30, 2024, the Company was the lessee in 46 operating leases and 1 finance lease of certain branch, mortgage and operations locations with original terms greater than one year. Many leases include options to renew, with terms that can extend the lease up to an additional 20 years or more. Certain lease agreements contain provisions to periodically adjust rental payments for inflation. Renewal options that management is reasonably certain to renew and fixed rent escalations are included in the right-of-use asset and lease liability. Information related to the Company’s leases is presented below as of September 30, 2024 and December 31, 2023:
|  |  | September 30, |  | December 31,
| Classification |  | 2024 |  | 2023
Right-of-use assets: |  |  |  |  |
Operating leases | Operating lease right-of-use assets |  | $ | 47,346 |  | $ | 54,295
Finance leases | Premises and equipment, net |  | 1,173 |  | 1,256
Total right-of-use assets |  |  | $ | 48,519 |  | $ | 55,551
Lease liabilities: |  |  |  |  |
Operating leases | Operating lease liabilities |  | $ | 59,584 |  | $ | 67,643
Finance leases | Borrowings |  | 1,254 |  | 1,326
Total lease liabilities |  |  | $ | 60,838 |  | $ | 68,969
Weighted average remaining lease term (in years) - operating |  |  | 11.1 |  | 11.6
Weighted average remaining lease term (in years) - finance |  |  | 10.6 |  | 11.4
Weighted average discount rate - operating |  |  | 3.41 | % |  | 3.39 | %
Weighted average discount rate - finance |  |  | 1.76 | % |  | 1.76 | %
The components of total lease expense included in the consolidated statements of income were as follows:
|  |  | Three Months Ended |  | Nine Months Ended
|  |  | September 30, |  | September 30,
| Classification |  | 2024 |  |  | 2023 |  |  | 2024 |  |  |  | 2023 |  |  |
Operating lease costs: |  |  |  |  |  |  |  |  |  |  |  |
Amortization of right-of-use asset | Occupancy and equipment |  | $ | 1,362 |  |  | $ | 2,104 |  |  | $ | 5,048 |  |  |  | $ | 6,226 |  |  |
Short-term lease cost | Occupancy and equipment |  | 96 |  |  | 133 |  |  | 282 |  |  |  | 397 |  |  |
Variable lease cost | Occupancy and equipment |  | 321 |  |  | 238 |  |  | 1,024 |  |  |  | 862 |  |  |
Gain on lease modifications and terminations | Occupancy and equipment |  | — |  |  | — |  |  | — |  |  |  | (73) |  |  |
Finance lease costs: |  |  |  |  |  |  |  |  |  |  |  |
Interest on lease liabilities | Interest expense on borrowings |  | 6 |  |  | 6 |  |  | 17 |  |  |  | 18 |  |  |
Amortization of right-of-use asset | Occupancy and equipment |  | 28 |  |  | 28 |  |  | 83 |  |  |  | 83 |  |  |
Sublease income | Occupancy and equipment |  | (96) |  |  | (254) |  |  | (407) |  |  |  | (750) |  |  |
Total lease cost |  |  | $ | 1,717 |  |  | $ | 2,255 |  |  | $ | 6,047 |  |  |  | $ | 6,763 |  |  |
The Company does not separate lease and non-lease components and instead elects to account for them as a single lease component. Variable lease cost primarily represents variable payments such as common area maintenance, utilities, and property taxes. A maturity analysis of operating and finance lease liabilities and a reconciliation of cash flows to lease liabilities as of September 30, 2024 is as follows:
| Operating |  | Finance
| Leases |  | Lease
Lease payments due: |  |  |
September 30, 2025 | $ | 2,154 |  |  | $ | 30 |
September 30, 2026 | 8,290 |  |  | 121 |
September 30, 2027 | 8,016 |  |  | 123 |
September 30, 2028 | 7,554 |  |  | 125 |
September 30, 2029 | 6,579 |  |  | 127 |
Thereafter | 40,285 |  |  | 850 |
Total undiscounted future minimum lease payments | 72,878 |  |  | 1,376 |
Less: imputed interest | (13,294) |  |  | (122) |
Lease liabilities | $ | 59,584 |  |  | $ | 1,254 |

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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