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LEASES | 12 Months Ended
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Dec. 31, 2023
Leases [Abstract] |
LEASES | LEASES The Corporation enters into leases for certain retail branches, office space, land and equipment. Operating leases are included in other assets and the lease liability is included in other liabilities in the Consolidated Balance Sheets. The Corporation does not have any finance leases. Right-of-use (“ROU”) assets represent the Corporation’s right to use an underlying asset for the lease term and lease liabilities represent the Corporation’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Corporation uses its incremental borrowing rate at commencement date in determining the present value of lease payments when the rate implicit in a lease is not known. The Corporation’s incremental borrowing rate is based on the FHLB amortizing advance rate, adjusted for the lease term and other factors. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. The Corporation’s leases are generally for periods of five to twenty years with various renewal options. The exercise of such lease renewal options is not included in the present value of lease obligations unless it is reasonably certain that the option will be exercised. The Corporation has lease agreements which contain both lease and non-lease components such as common area maintenance charges, real estate taxes, and insurance. Non-lease components are not included in the measurement of the lease liability and are recognized in expense when incurred. The Corporation has elected not to recognize short-term leases, with original lease terms of twelve months or less, on the Corporation’s balance sheet. Certain of the Corporation’s lease agreements include rental payments adjusted periodically for inflation. The Corporation’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Supplemental balance sheet information related to leases is presented in the table below as of December 31, 2023 and 2022:
| 2023 |  | 2022
Operating lease assets | $ | 18,912 |  |  | $ | 23,619 |
Total lease assets | $ | 18,912 |  |  | $ | 23,619 |
Operating lease liabilities | $ | 22,335 |  |  | $ | 25,316 |
Total lease liabilities | $ | 22,335 |  |  | $ | 25,316 |
Weighted average remaining lease term (years) |  |
Operating leases | 6.3 |  | 6.5
Weighted average discount rate |  |  |
Operating leases | 3.2 | % |  | 3.1 | %
The table below presents the components of lease expense for the years ended December 31, 2023, 2022, and 2021:
| 2023 |  | 2022 |  | 2021
Lease Cost: |  |  |  |  |
Operating lease cost | $ | 7,696 |  |  | $ | 5,233 |  |  | $ | 3,710 |
Short-term lease cost | 478 |  |  | 470 |  |  | 345 |
Variable lease cost | 1,534 |  |  | 1,073 |  |  | 980 |
Sublease income | $ | (16) |  |  | $ | (23) |  |  | $ | (33) |
Total lease cost | $ | 9,692 |  |  | $ | 6,753 |  |  | $ | 5,002 |
The Corporation performs impairment assessments for ROU assets when events or changes in circumstances indicate their carrying values may not be recoverable. Operating lease cost in the table above includes $2.1 million related to the 2023 abandonment of a leased office building.The recognized loss was recorded in net occupancy expense in the Consolidated Statements of Income. Supplemental cash flow information related to leases is presented in the tables below.
Maturity of lease liabilities | Operating Leases
2024 | $ | 5,581 |
2025 | 5,141 |
2026 | 3,648 |
2027 | 2,842 |
2028 | 2,381 |
2029 and after | 5,288 |
Total lease payments | $ | 24,881 |
Less: Present value discount | 2,546 |
Present value of lease liabilities | $ | 22,335 |
Other Information | Twelve Months Ended December 31, 2023 |  | Twelve Months Ended December 31, 2022 |  | Twelve Months Ended December 31, 2021
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |  |
Operating cash flows from operating leases | $ | 5,742 |  |  | $ | 5,329 |  |  | $ | 3,773 |
ROU assets obtained in exchange for new operating lease liabilities | $ | 2,253 |  |  | $ | 10,516 |  |  | $ | 2,700 |

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
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