Leases

6 Months Ended

Jun. 30, 2023

13. LEASES

The Company’s operating leases, where the Company is a lessee, include real estate, such as office space and banking centers. Lease expense for operating leases is recognized on a straight-line basis over the term of the lease and is reflected in the consolidated statement of earnings. Right-of-use (“ROU”) assets and lease liabilities are included in other assets and other liabilities, respectively, on the Company’s condensed consolidated balance sheet.

While the Company has, as a lessor, certain equipment finance leases, such leases are not material to the Company’s consolidated financial statements.

The tables below present the components of lease costs and supplemental information related to leases as of and for the periods presented.


	June 30, 2023		December 31, 2022
	(Dollars in thousands)
Lease Assets and Liabilities
ROU assets	$	23,204	$	22,696
Total lease liabilities		25,227		24,458


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	(Dollars in thousands)
Lease Cost
Operating lease expense (1)	$	1,840	$	1,849	$	3,681	$	3,695
Sublease income		—		—		—		—
Total lease expense	$	1,840	$	1,849	$	3,681	$	3,695

(1)

Includes short-term leases and variable lease costs, which are immaterial.


Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases, net	$	1,514	$	1,860


	June 30, 2023			December 31, 2022
Lease Term and Discount Rate
Weighted average remaining lease term (years)		4.22			4.12
Weighted average discount rate		3.22	%		2.80	%

The Company’s lease arrangements that have not yet commenced as of June 30, 2023 and the Company’s short-term lease costs and variable lease costs, for the six months ended June 30, 2023 and 2022 are not material to the consolidated financial statements. The future lease payments required for leases that have initial or remaining non-cancelable lease terms in excess of one year as of June 30, 2023, excluding property taxes and insurance, are as follows:


	June 30, 2023
	(Dollars in thousands)
Year:
2023 (excluding the six months ended June 30, 2023)	$	3,486
2024		6,858
2025		6,211
2026		4,929
2027		3,427
Thereafter		2,262
Total future lease payments		27,173
Less: Imputed interest		(1,946	)
Present value of lease liabilities	$	25,227