XML 32 R16.htm IDEA: XBRL DOCUMENT v3.25.0.1
Leases
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Leases LEASES
The Company’s operating leases are real estate leases of bank branch locations, loan production offices, and office spaces with remaining lease terms ranging from 1 month to 8 years at December 31, 2024. Certain lease arrangements contain extension options, which are typically around five years. As these extension options are not generally considered reasonably certain of exercise, they are not included in the lease term. 
The table below summarizes supplemental information related to operating leases:
December 31,
20242023
(Dollars in thousands)
Operating lease ROU assets$39,432 $46,611 
Current portion of long-term lease liabilities13,946 14,287 
Long-term lease liabilities30,113 38,383 
The Company uses its incremental borrowing rate to present value lease payments in order to recognize a ROU asset and the related lease liability. The Company calculates its incremental borrowing rate by adding a spread to the FHLB borrowing interest rate at a given period. During the year ended December 31, 2024, the Company extended eight leases and there were no new lease contracts. Lease extension terms ranged from three to seven years and the Company reassessed the ROU assets and lease liabilities related to these leases.
During the year ended December 31, 2023, the Company wrote off $2.2 million in operating ROU assets resulting from the branch consolidation of seven locations. There was no impairment written off on operating ROU assets during the same period of 2024.
The table below summarizes the Company’s net operating lease cost:
Year Ended December 31,
202420232022
(Dollars in thousands)
Operating lease cost$14,495 $15,309 $15,455 
Variable lease cost3,495 3,341 4,617 
Sublease income(243)(143)(687)
Net lease cost$17,747 $18,507 $19,385 
Rent expense for the years ended December 31, 2024, 2023, and 2022, totaled $16.8 million, $20.5 million, and $17.8 million, respectively.
The table below summarizes supplemental information related to the Company’s operating leases:
At or for the Year Ended December 31,
20242023
(Dollars in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows for operating leases$15,721 $15,940 
Weighted-average remaining lease term - operating leases3.6 years4.1 years
Weighted-average discount rate - operating leases3.12 %2.79 %
The table below summarizes the maturity of remaining lease liabilities:
December 31, 2024
(Dollars in thousands)
2025$15,093 
202614,480 
20278,980 
20284,203 
20292,028 
2030 and thereafter2,002 
Total lease payments46,786 
Less: imputed interest2,727 
Total lease obligations$44,059 
At December 31, 2024, the Company had no operating lease commitments that had not yet commenced. On October 1, 2024, the Company sold two of its branches located in Virginia (Annandale and Centreville) to PromiseOne Bank, a Georgia state bank. As part of the transaction, PromiseOne Bank took over the Company’s lease liabilities related to the branch locations sold.
The Company had no finance leases at December 31, 2024 and 2023.