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LEASES

6 Months Ended

Jun. 30, 2023

Leases [Abstract]

LEASES

LEASES

Substantially all of the leases in which the Company is the lessee are comprised of real estate property for branches, ATM locations, and office space. Most of the Company’s leases are classified as operating leases. At June 30, 2023, lease expiration dates ranged from 1 month to 17 years.

The following table represents the Consolidated Balance Sheets classification of the Company’s right-of-use (“ROU”) assets and lease liabilities:

(In thousands)												June 30, 2023						December 31, 2022
Lease Right-of-Use Assets						Classification
Operating lease right-of-use assets						Other assets						$	48,305					$	46,411
Finance lease right-of-use assets						Premises and equipment, net						5,857						6,151
Total Lease Right-of-Use Assets												$	54,162					$	52,562
Lease Liabilities
Operating lease liabilities						Other liabilities						$	54,315					$	53,736
Finance lease liabilities						Other liabilities						8,979						9,306
Total Lease Liabilities												$	63,294					$	63,042

Supplemental information related to leases was as follows:

			June 30, 2023						December 31, 2022
Weighted-Average Remaining Lease Term (in years)
Operating leases			8.7						9.3
Finance leases			11.3						11.8
Weighted-Average Discount Rate
Operating leases			2.78		%				2.56		%
Finance leases			5.00		%				5.00		%

The Company has lease agreements with lease and non-lease components, which are generally accounted for separately. For real estate leases, non-lease components and other non-components, such as common area maintenance charges, real estate taxes, and insurance are not included in the measurement of the lease liability since they are generally able to be segregated.

The Company does not have any material sub-lease agreements.

Lease expense for operating leases for the three months ended June 30, 2023 was $2.3 million. Lease expense for operating leases for the six months ended June 30, 2023 was $4.6 million. Variable lease components, such as consumer price index adjustments, are expensed as incurred and not included in ROU assets and operating lease liabilities.

Lease expense for operating leases for the three months ended June 30, 2022 was $2.6 million. Lease expense for operating leases for the six months ended June 30, 2022 was $5.1 million. Variable lease components, such as consumer price index adjustments, are expensed as incurred and not included in ROU assets and operating lease liabilities.

Supplemental cash flow information related to leases was as follows:

						Three Months Ended
(In thousands)						June 30, 2023						June 30, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases						$	2,251					$	2,533
Operating cash flows from finance leases						112						120
Financing cash flows from finance leases						148						138

						Six Months Ended
(In thousands)						June 30, 2023						June 30, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases						$	4,524					$	5,149
Operating cash flows from finance leases						225						240
Financing cash flows from finance leases						295						276

The following table presents a maturity analysis of the Company’s lease liability by lease classification at June 30, 2023:

(In thousands)						Operating Leases						Finance Leases
2023						$	4,775					$	519
2024						9,247						1,039
2025						7,770						1,039
2026						6,838						1,039
2027						6,030						1,039
Thereafter						25,963						7,075
Total undiscounted lease payments						60,623						11,750
Less amounts representing interest						(6,308)						(2,771)
Lease liability						$	54,315					$	8,979

LEASES

LEASES

Substantially all of the leases in which the Company is the lessee are comprised of real estate property for branches, ATM locations, and office space. Most of the Company’s leases are classified as operating leases. At June 30, 2023, lease expiration dates ranged from 1 month to 17 years.

The following table represents the Consolidated Balance Sheets classification of the Company’s right-of-use (“ROU”) assets and lease liabilities:

(In thousands)												June 30, 2023						December 31, 2022
Lease Right-of-Use Assets						Classification
Operating lease right-of-use assets						Other assets						$	48,305					$	46,411
Finance lease right-of-use assets						Premises and equipment, net						5,857						6,151
Total Lease Right-of-Use Assets												$	54,162					$	52,562
Lease Liabilities
Operating lease liabilities						Other liabilities						$	54,315					$	53,736
Finance lease liabilities						Other liabilities						8,979						9,306
Total Lease Liabilities												$	63,294					$	63,042

Supplemental information related to leases was as follows:

			June 30, 2023						December 31, 2022
Weighted-Average Remaining Lease Term (in years)
Operating leases			8.7						9.3
Finance leases			11.3						11.8
Weighted-Average Discount Rate
Operating leases			2.78		%				2.56		%
Finance leases			5.00		%				5.00		%

The Company has lease agreements with lease and non-lease components, which are generally accounted for separately. For real estate leases, non-lease components and other non-components, such as common area maintenance charges, real estate taxes, and insurance are not included in the measurement of the lease liability since they are generally able to be segregated.

The Company does not have any material sub-lease agreements.

Lease expense for operating leases for the three months ended June 30, 2023 was $2.3 million. Lease expense for operating leases for the six months ended June 30, 2023 was $4.6 million. Variable lease components, such as consumer price index adjustments, are expensed as incurred and not included in ROU assets and operating lease liabilities.

Lease expense for operating leases for the three months ended June 30, 2022 was $2.6 million. Lease expense for operating leases for the six months ended June 30, 2022 was $5.1 million. Variable lease components, such as consumer price index adjustments, are expensed as incurred and not included in ROU assets and operating lease liabilities.

Supplemental cash flow information related to leases was as follows:

						Three Months Ended
(In thousands)						June 30, 2023						June 30, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases						$	2,251					$	2,533
Operating cash flows from finance leases						112						120
Financing cash flows from finance leases						148						138

						Six Months Ended
(In thousands)						June 30, 2023						June 30, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases						$	4,524					$	5,149
Operating cash flows from finance leases						225						240
Financing cash flows from finance leases						295						276

The following table presents a maturity analysis of the Company’s lease liability by lease classification at June 30, 2023:

(In thousands)						Operating Leases						Finance Leases
2023						$	4,775					$	519
2024						9,247						1,039
2025						7,770						1,039
2026						6,838						1,039
2027						6,030						1,039
Thereafter						25,963						7,075
Total undiscounted lease payments						60,623						11,750
Less amounts representing interest						(6,308)						(2,771)
Lease liability						$	54,315					$	8,979

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- References

No definition available.

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- Definition

The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance 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

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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

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