Leases

3 Months Ended

Mar. 31, 2024

12. 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.


	March 31, 2024		December 31, 2023
	(Dollars in thousands)
Lease Assets and Liabilities
ROU assets	$	20,666	$	21,655
Total lease liabilities		23,037		24,056


	Three Months Ended March 31,
	2024		2023
	(Dollars in thousands)
Lease Cost
Operating lease expense (1)	$	1,845	$	1,841
Sublease income		—		—
Total lease expense	$	1,845	$	1,841

(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	$	1,864	$	1,756


	March 31, 2024			December 31, 2023
Lease Term and Discount Rate
Weighted average remaining lease term (years)		3.84			3.94
Weighted average discount rate		3.58	%		3.48	%

The Company’s lease arrangements that have not yet commenced as of March 31, 2024 and the Company’s short-term lease costs and variable lease costs, for the three months ended March 31, 2024 and 2023 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 March 31, 2024, excluding property taxes and insurance, are as follows:


	March 31, 2024
	(Dollars in thousands)
Year:
2024 (excluding the three months ended March 31, 2024)	$	5,490
2025		6,759
2026		5,524
2027		4,040
2028		2,169
Thereafter		825
Total future lease payments		24,807
Less: Imputed interest		(1,770	)
Present value of lease liabilities	$	23,037