LEASES (Notes)

12 Months Ended

Dec. 31, 2024

The Company leases 89 buildings and offices under non-cancelable operating leases. The leases contain various provisions for increases in rental rates, based either on changes in the published Consumer Price Index or a predetermined escalation schedule. Substantially all of the leases provide the Company with the option to extend the lease term one or more times following expiration of the initial term. The table below presents the lease ROU assets and lease liabilities recorded on the balance sheet at December 31, 2024 and 2023 (dollars in thousands):


	December 31, 2024		December 31, 2023
Assets
Operating lease ROU assets	$	39,998	$	43,731

Liabilities
Operating lease liabilities	$	43,472	$	48,659



Weighted average remaining lease term - operating leases	4.4 years		4.5 years


Weighted average discount rate - operating leases	4.0	%	3.3	%

The table below presents certain information related to the lease costs for operating leases for the years ended December 31, 2024, 2023 and 2022 (in thousands):


	Year Ended December 31,
	2024		2023		2022
Operating lease cost	$	13,863	$	13,848	$	16,647
Short-term lease cost	9		132		125
Variable lease cost	2,454		2,231		2,189
Less sublease income	(1,547)		(1,447)		(1,126)
Total lease cost (1)	$	14,779	$	14,764	$	17,835

(1) Lease expenses and sublease income are classified within occupancy and equipment expense on the Consolidated Statements of Operations.

Operating cash flows paid for operating lease amounts included in the measurement of lease liabilities were $14.9 million for the year ended December 31, 2024, and $14.8 million for the year ended December 31, 2023. The Company recorded $8.2 million of lease ROU assets in exchange for operating lease liabilities for the year ended December 31, 2024, and $6.8 million for the year ended December 31, 2023.

The table below reconciles the undiscounted cash flows for each of the first five years beginning with 2025 and the total of the remaining years to the operating lease liabilities recorded on the Consolidated Statements of Financial Position (in thousands):


	Operating Leases
2025	$	14,117
2026	12,272
2027	9,307
2028	4,756
2029	3,025
Thereafter	3,854
Total minimum lease payments	47,331
Less: amount of lease payments representing interest	(3,859)
Lease obligations	$	43,472

As of December 31, 2024 and 2023, the Company had no undiscounted lease payments under an operating lease that had not yet commenced.