Leases

12 Months Ended

Dec. 31, 2024

21. LEASES

All of the Company’s operating leases, where the Company is a lessee, are for 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 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.


	December 31,
	2024		2023
	(Dollars in thousands)
Lease Assets and Liabilities
ROU assets	$	47,117	$	21,655
Total lease liabilities		49,617		24,056


	Year Ended December 31,
	2024		2023
	(Dollars in thousands)
Lease Cost
Operating lease expense (1)	$	8,109	$	7,350
Sublease income		—		—
Total lease expense	$	8,109	$	7,350

(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	$	8,094	$	6,642


	December 31,
	2024			2023
Lease Term and Discount Rate
Weighted average remaining lease term (years)		9.99			3.94
Weighted average discount rate		5.95	%		3.48	%

During the third and fourth quarters of 2024, the Bank executed sale-leaseback transactions with the sale of four properties for an aggregate sale price of $47.1 million, resulting in a pre-tax net gain of $25.9 million and cash proceeds of $44.76 million. The Bank simultaneously entered into lease agreements with the respective purchasers for initial terms of 15 and 18 years with specified renewal options for each respective lease. The Bank also recorded ROU assets and corresponding operating lease liabilities of $26.8 million.

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


	December 31, 2024
	(Dollars in thousands)
Year:
2025	$	10,114
2026		9,080
2027		7,679
2028		5,892
2029		4,205
Thereafter		32,670
Total future lease payments		69,640
Less: Imputed interest		(20,023	)
Present value of lease liabilities	$	49,617