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Leases
 6 Months Ended
Jun. 30, 2024
Leases [Abstract]  
Leases Leases
The following table represents the consolidated statements of financial condition classification of the Company’s right-of use-assets and lease liabilities as of June 30, 2024 and December 31, 2023 (in thousands):
ClassificationJune 30, 2024December 31, 2023
Lease Right-of-Use Assets:
Operating lease right-of-use assetsOther assets$67,943 56,907 
Lease Liabilities:
Operating lease liabilitiesOther liabilities$71,320 60,039 
The calculated amount of the right-of-use assets and lease liabilities in the table above are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If at lease inception the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the right-of-use asset and lease liability. Regarding the discount rate, Topic 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception based upon the term of the lease. For operating leases existing prior to January 1, 2019, the rate for the remaining lease term as of January 1, 2019 was applied.
All of the leases in which the Company is the lessee are classified as operating leases and are primarily comprised of real estate properties for branches and administrative offices with terms extending through 2046.
As of June 30, 2024, the weighted-average remaining lease term and the weighted-average discount rate for the Company's operating leases were 7.6 years and 2.06%, respectively.
The following tables represent lease costs and other lease information for the Company's operating leases. The variable lease cost primarily represents variable payments such as common area maintenance and utilities (in thousands):
Three months ended June 30, 2024Three months ended June 30, 2023
Lease Costs
Operating lease cost $3,771 2,629 
Variable lease cost 705 842 
Total lease cost$4,476 3,471 

Six months ended June 30, 2024Six months ended June 30, 2023
Lease Costs
Operating lease cost$6,398 5,257 
Variable lease cost1,491 1,722 
Total lease cost$7,889 6,979 

Cash paid for amounts included in the measurement of lease liabilities:Six months ended June 30, 2024Six months ended June 30, 2023
Operating cash flows from operating leases$5,698 4,776 

During the three and six months ended June 30, 2024, the Company added 39 new lease obligations related to the Lakeland merger. The Company recorded a $14.7 million right-of-use asset and lease liability for these lease obligations.
Future minimum payments for operating leases with initial or remaining terms of one year or more as of June 30, 2024, were as follows (in thousands):
Operating leases
Twelve months ended:
Remainder of 2024$7,064 
202513,403 
202611,718 
202710,153 
20288,655 
Thereafter29,641 
Total future minimum lease payments80,634 
Amounts representing interest9,314 
Present value of net future minimum lease payments$71,320 
Leases Leases
The following table represents the consolidated statements of financial condition classification of the Company’s right-of use-assets and lease liabilities as of June 30, 2024 and December 31, 2023 (in thousands):
ClassificationJune 30, 2024December 31, 2023
Lease Right-of-Use Assets:
Operating lease right-of-use assetsOther assets$67,943 56,907 
Lease Liabilities:
Operating lease liabilitiesOther liabilities$71,320 60,039 
The calculated amount of the right-of-use assets and lease liabilities in the table above are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If at lease inception the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the right-of-use asset and lease liability. Regarding the discount rate, Topic 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception based upon the term of the lease. For operating leases existing prior to January 1, 2019, the rate for the remaining lease term as of January 1, 2019 was applied.
All of the leases in which the Company is the lessee are classified as operating leases and are primarily comprised of real estate properties for branches and administrative offices with terms extending through 2046.
As of June 30, 2024, the weighted-average remaining lease term and the weighted-average discount rate for the Company's operating leases were 7.6 years and 2.06%, respectively.
The following tables represent lease costs and other lease information for the Company's operating leases. The variable lease cost primarily represents variable payments such as common area maintenance and utilities (in thousands):
Three months ended June 30, 2024Three months ended June 30, 2023
Lease Costs
Operating lease cost $3,771 2,629 
Variable lease cost 705 842 
Total lease cost$4,476 3,471 

Six months ended June 30, 2024Six months ended June 30, 2023
Lease Costs
Operating lease cost$6,398 5,257 
Variable lease cost1,491 1,722 
Total lease cost$7,889 6,979 

Cash paid for amounts included in the measurement of lease liabilities:Six months ended June 30, 2024Six months ended June 30, 2023
Operating cash flows from operating leases$5,698 4,776 

During the three and six months ended June 30, 2024, the Company added 39 new lease obligations related to the Lakeland merger. The Company recorded a $14.7 million right-of-use asset and lease liability for these lease obligations.
Future minimum payments for operating leases with initial or remaining terms of one year or more as of June 30, 2024, were as follows (in thousands):
Operating leases
Twelve months ended:
Remainder of 2024$7,064 
202513,403 
202611,718 
202710,153 
20288,655 
Thereafter29,641 
Total future minimum lease payments80,634 
Amounts representing interest9,314 
Present value of net future minimum lease payments$71,320