XML 25 R14.htm IDEA: XBRL DOCUMENT

Note 6 - Other Assets and Other Liabilities

3 Months Ended

Mar. 31, 2025

Other Assets and Liabilities Disclosure [Text Block]

Note 6: Other Assets and Other Liabilities

Other assets consisted of the following:

	At March 31,		At December 31,
	2025		2024
	(In thousands)
Cost method equity investments:
Federal Reserve Bank stock ⁽¹⁾	$	14,069	$	14,069
Other investments		158		158
Total cost method equity investments		14,227		14,227
Life insurance cash surrender value		68,969		68,578
Net deferred tax asset		71,243		88,606
Right-of-use asset		19,992		17,985
Limited partnership investments		32,636		28,551
Interest receivable		42,123		44,606
Prepaid assets		4,708		5,697
Other assets		5,410		12,635
Total other assets	$	259,308	$	280,885

⁽¹⁾

A bank applying for membership in the Federal Reserve System is required to subscribe to stock in the Federal Reserve Bank (FRB) in its district in a sum equal to six percent of the bank’s paid-up capital stock and surplus. One-half of the amount of the bank's subscription shall be paid to the FRB and the remaining half will be subject to call when deemed necessary by the Board of Governors of the Federal Reserve System.

The Company owns 211 thousand shares of Visa Inc. (“Visa”) Class B-1 common stock, which have transfer restrictions; the carrying value is $-0- thousand. Following the resolution of certain litigation involving Visa, shares of Visa’s Class B-1 stock will convert to shares of Visa Class A common stock based on a conversion factor (1.5609 as of March 31, 2025), which is periodically adjusted to reflect Visa’s ongoing litigation costs. Given the transfer restrictions and continuing uncertainty regarding the likelihood, ultimate timing and eventual conversion of Visa Class B-1 common stock for shares of Visa Class A common stock or other marketable classes of Visa common stock, these shares are not considered to have a readily determinable fair value and have no carrying value. Visa Class A common stock trades on the New York Stock Exchange and had a closing price of $350.46 per share on March 31, 2025, the last trading day for the first quarter 2025. The ultimate value of the Company’s Visa Class B-1 shares is subject to the extent of Visa’s future litigation escrow fundings, the resulting conversion rate to Visa Class A common stock, and current and future transfer restrictions on the Visa Class B-1 common stock. At March 31, 2025, the Company did not record an adjustment to the carrying value of the Visa Class B-1 shares.

The Company invests in flow-through limited liability entities that manage or invest in affordable housing projects that qualify for low-income housing tax credits. At March 31, 2025, these investments totaled $32,636 thousand and $13,417 thousand of this amount represents outstanding equity capital commitments that are included in other liabilities. At December 31, 2024, these investments totaled $28,551 thousand and $11,368 thousand of this amount represents outstanding equity capital commitments that are included in other liabilities. At March 31, 2025, the $13,417 thousand of outstanding equity capital commitments are expected to be paid as follows: $4,905 thousand in the remainder of 2025, $4,688 thousand in 2026, $2,569 thousand in 2027, $348 thousand in 2028, $396 thousand in 2029 and or $511 thousand in 2030 and thereafter.

The amounts recognized in net income for these investments include:

	For the Three Months Ended
	March 31,
	2025		2024
	(In thousands)
Investment loss included in pre-tax income	$	915	$	1,440
Tax credits recognized in provision for income taxes		975		975

Other liabilities consisted of the following:

	At March 31,		At December 31,
	2025		2024
	(In thousands)
Operating lease liability	$	19,992	$	17,985
Other liabilities		36,180		36,160
Total other liabilities	$	56,172	$	54,145

The Company has entered into leases for most branch locations and certain other offices that were classified as operating leases primarily with original terms of five years. Certain lease arrangements contain extension options, which can be exercised at the Company’s option, for one or more additional five year terms. Unexercised extension options are not considered reasonably certain of exercise and have not been included in the lease term used to determine the lease liability or right-of-use asset. The Company did not have any finance leases as of March 31, 2025.

As of March 31, 2025, the Company’s lease liability and right-of-use asset were $19,992 thousand. The weighted average remaining life of operating leases and weighted average discount rate used to determine operating lease liabilities were 3.8 years and 3.57%, respectively, at March 31, 2025. The Company did not have any material lease incentives, unamortized initial direct costs, prepaid lease expense, or accrued lease expense as of March 31, 2025.

Total lease costs were $1,680 thousand and $1,678 thousand in the three months ended March 31, 2025 and March 31, 2024, respectively, and were recorded within occupancy and equipment expense. The Company did not have any material short-term or variable leases costs or sublease income during the three months ended March 31, 2025 and March 31, 2024.

The following table summarizes the remaining lease payments of operating lease liabilities:

	Minimum future lease payments
	At March 31,
	2025
	(In thousands)
The remainder of 2025	$	4,872
2026		5,448
2027		4,600
2028		3,670
2029		2,040
Thereafter		865
Total minimum lease payments		21,495
Less: discount		(1,503	)
Present value of lease liability	$	19,992

[The remainder of this page intentionally left blank]