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Leased Property | 12 Months Ended
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Dec. 31, 2024
Leases [Abstract] |
Leased Property | Leased Property Lessor Arrangements The Company enters into operating leases with customers to lease vacant space in certain owned premises that is not being used by the Company. These operating leases are typically payable in monthly installments with terms ranging from around one year to around ten years and may contain renewal options. The components of lease income, which is included in non-interest expense on the Consolidated Statements of Income, were as follows for the year ending (in thousands):
| December 31, 2024 |  | December 31, 2023 |  | December 31, 2022
Operating lease income | $ | 2,597 |  |  | $ | 2,301 |  |  | $ | 1,309 |
Total lease income | $ | 2,597 |  |  | $ | 2,301 |  |  | $ | 1,309 |
The remaining maturities of operating lease receivables as of December 31, 2024, are as follows (in thousands):
| Operating Leases
2025 | $ | 2,661 |
2026 | 2,338 |
2027 | 2,124 |
2028 | 2,061 |
2029 | 2,015 |
Thereafter | 2,833 |
Total lease receivables | $ | 14,032 |
Lessee Arrangements The Company has entered into leases for branches and office space. The leases are evaluated for whether the lease will be classified as either a finance or operating lease. Certain leases offer the option to extend the lease term, and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. Including renewal options, the Company’s leases range from less than one year to around fourteen years. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. These cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. The right-of-use asset and lease liability are included in other assets and other liabilities, respectively, in the Consolidated Balance Sheets. In the fourth quarter of 2022 the Company sold two buildings in separate transactions and entered into sale-leaseback agreements to lease back the properties for up to one year. The lease terms were at market with third-parties and resulted in $655 thousand of operating lease expense in 2023. Right-of-use assets and liabilities by lease type, and the associated balance sheet classifications are as follows (in thousands):
| Balance Sheet Classification |  | December 31, 2024 |  | December 31, 2023
Right-of-use assets: |  |  |  |  |
Operating leases | Other assets |  | $ | 13,203 |  |  | $ | 5,110 |
Finance leases | Other assets |  | 3,312 |  |  | 3,590 |
Total right-of-use assets |  |  | $ | 16,515 |  |  | $ | 8,700 |
Lease liabilities: |  |  |  |  |
Operating leases | Other liabilities |  | $ | 13,586 |  |  | $ | 5,327 |
Finance Leases | Other liabilities |  | 3,620 |  |  | 3,840 |
Total lease liabilities |  |  | $ | 17,206 |  |  | $ | 9,167 |
The components of total lease cost were as follows for the period ending (in thousands):
| December 31, 2024 |  | December 31, 2023 |  | December 31, 2022
Finance lease cost |  |  |  |  |
Right-of-use asset amortization | $ | 285 |  |  | $ | 244 |  |  | $ | 204 |
Interest expense | 110 |  |  | 86 |  |  | 63 |
Operating lease cost | 2,864 |  |  | 3,210 |  |  | 2,495 |
Total lease cost | $ | 3,259 |  |  | $ | 3,540 |  |  | $ | 2,762 |
The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of December 31, 2024, are as follows (in thousands):
| Operating Leases |  | Finance Leases
2025 | $ | 3,145 |  |  | $ | 333 |
2026 | 2,659 |  |  | 340 |
2027 | 2,237 |  |  | 347 |
2028 | 1,897 |  |  | 354 |
2029 | 1,748 |  |  | 361 |
Thereafter | 4,772 |  |  | 2,629 |
Total undiscounted lease payments | 16,458 |  |  | 4,364 |
Less: discount | (2,872) |  |  | (744) |
Net lease liabilities | $ | 13,586 |  |  | $ | 3,620 |
The following table presents additional information about the Company’s leases as of December 31, 2024, and December 31, 2023.
Supplemental lease information (dollars in thousands) |  | December 31, 2024 |  | December 31, 2023
Finance lease weighted average remaining lease term (years) |  | 11.75 |  | 12.66
Finance lease weighted average discount rate |  | 3.06 | % |  | 2.96 | %
Operating lease weighted average remaining lease term (years) |  | 6.84 |  | 3.71
Operating lease weighted average discount rate |  | 4.65 | % |  | 3.33 | %
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |
Operating cash flows from operating leases |  | $ | 3,087 |  |  | $ | 3,330 |
Operating cash flows from finance leases |  | 110 |  |  | 86 |
Financing cash flows from finance leases |  | 216 |  |  | 119 |
Right-of-use assets obtained in exchange for new finance lease liabilities |  | — |  |  | 1,214 |
Right-of-use assets obtained in exchange for new operating lease liabilities |  | 12,329 |  |  | — |
Leased Property | Leased Property Lessor Arrangements The Company enters into operating leases with customers to lease vacant space in certain owned premises that is not being used by the Company. These operating leases are typically payable in monthly installments with terms ranging from around one year to around ten years and may contain renewal options. The components of lease income, which is included in non-interest expense on the Consolidated Statements of Income, were as follows for the year ending (in thousands):
| December 31, 2024 |  | December 31, 2023 |  | December 31, 2022
Operating lease income | $ | 2,597 |  |  | $ | 2,301 |  |  | $ | 1,309 |
Total lease income | $ | 2,597 |  |  | $ | 2,301 |  |  | $ | 1,309 |
The remaining maturities of operating lease receivables as of December 31, 2024, are as follows (in thousands):
| Operating Leases
2025 | $ | 2,661 |
2026 | 2,338 |
2027 | 2,124 |
2028 | 2,061 |
2029 | 2,015 |
Thereafter | 2,833 |
Total lease receivables | $ | 14,032 |
Lessee Arrangements The Company has entered into leases for branches and office space. The leases are evaluated for whether the lease will be classified as either a finance or operating lease. Certain leases offer the option to extend the lease term, and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. Including renewal options, the Company’s leases range from less than one year to around fourteen years. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. These cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. The right-of-use asset and lease liability are included in other assets and other liabilities, respectively, in the Consolidated Balance Sheets. In the fourth quarter of 2022 the Company sold two buildings in separate transactions and entered into sale-leaseback agreements to lease back the properties for up to one year. The lease terms were at market with third-parties and resulted in $655 thousand of operating lease expense in 2023. Right-of-use assets and liabilities by lease type, and the associated balance sheet classifications are as follows (in thousands):
| Balance Sheet Classification |  | December 31, 2024 |  | December 31, 2023
Right-of-use assets: |  |  |  |  |
Operating leases | Other assets |  | $ | 13,203 |  |  | $ | 5,110 |
Finance leases | Other assets |  | 3,312 |  |  | 3,590 |
Total right-of-use assets |  |  | $ | 16,515 |  |  | $ | 8,700 |
Lease liabilities: |  |  |  |  |
Operating leases | Other liabilities |  | $ | 13,586 |  |  | $ | 5,327 |
Finance Leases | Other liabilities |  | 3,620 |  |  | 3,840 |
Total lease liabilities |  |  | $ | 17,206 |  |  | $ | 9,167 |
The components of total lease cost were as follows for the period ending (in thousands):
| December 31, 2024 |  | December 31, 2023 |  | December 31, 2022
Finance lease cost |  |  |  |  |
Right-of-use asset amortization | $ | 285 |  |  | $ | 244 |  |  | $ | 204 |
Interest expense | 110 |  |  | 86 |  |  | 63 |
Operating lease cost | 2,864 |  |  | 3,210 |  |  | 2,495 |
Total lease cost | $ | 3,259 |  |  | $ | 3,540 |  |  | $ | 2,762 |
The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of December 31, 2024, are as follows (in thousands):
| Operating Leases |  | Finance Leases
2025 | $ | 3,145 |  |  | $ | 333 |
2026 | 2,659 |  |  | 340 |
2027 | 2,237 |  |  | 347 |
2028 | 1,897 |  |  | 354 |
2029 | 1,748 |  |  | 361 |
Thereafter | 4,772 |  |  | 2,629 |
Total undiscounted lease payments | 16,458 |  |  | 4,364 |
Less: discount | (2,872) |  |  | (744) |
Net lease liabilities | $ | 13,586 |  |  | $ | 3,620 |
The following table presents additional information about the Company’s leases as of December 31, 2024, and December 31, 2023.
Supplemental lease information (dollars in thousands) |  | December 31, 2024 |  | December 31, 2023
Finance lease weighted average remaining lease term (years) |  | 11.75 |  | 12.66
Finance lease weighted average discount rate |  | 3.06 | % |  | 2.96 | %
Operating lease weighted average remaining lease term (years) |  | 6.84 |  | 3.71
Operating lease weighted average discount rate |  | 4.65 | % |  | 3.33 | %
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |
Operating cash flows from operating leases |  | $ | 3,087 |  |  | $ | 3,330 |
Operating cash flows from finance leases |  | 110 |  |  | 86 |
Financing cash flows from finance leases |  | 216 |  |  | 119 |
Right-of-use assets obtained in exchange for new finance lease liabilities |  | — |  |  | 1,214 |
Right-of-use assets obtained in exchange for new operating lease liabilities |  | 12,329 |  |  | — |
Leased Property | Leased Property Lessor Arrangements The Company enters into operating leases with customers to lease vacant space in certain owned premises that is not being used by the Company. These operating leases are typically payable in monthly installments with terms ranging from around one year to around ten years and may contain renewal options. The components of lease income, which is included in non-interest expense on the Consolidated Statements of Income, were as follows for the year ending (in thousands):
| December 31, 2024 |  | December 31, 2023 |  | December 31, 2022
Operating lease income | $ | 2,597 |  |  | $ | 2,301 |  |  | $ | 1,309 |
Total lease income | $ | 2,597 |  |  | $ | 2,301 |  |  | $ | 1,309 |
The remaining maturities of operating lease receivables as of December 31, 2024, are as follows (in thousands):
| Operating Leases
2025 | $ | 2,661 |
2026 | 2,338 |
2027 | 2,124 |
2028 | 2,061 |
2029 | 2,015 |
Thereafter | 2,833 |
Total lease receivables | $ | 14,032 |
Lessee Arrangements The Company has entered into leases for branches and office space. The leases are evaluated for whether the lease will be classified as either a finance or operating lease. Certain leases offer the option to extend the lease term, and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. Including renewal options, the Company’s leases range from less than one year to around fourteen years. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. These cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. The right-of-use asset and lease liability are included in other assets and other liabilities, respectively, in the Consolidated Balance Sheets. In the fourth quarter of 2022 the Company sold two buildings in separate transactions and entered into sale-leaseback agreements to lease back the properties for up to one year. The lease terms were at market with third-parties and resulted in $655 thousand of operating lease expense in 2023. Right-of-use assets and liabilities by lease type, and the associated balance sheet classifications are as follows (in thousands):
| Balance Sheet Classification |  | December 31, 2024 |  | December 31, 2023
Right-of-use assets: |  |  |  |  |
Operating leases | Other assets |  | $ | 13,203 |  |  | $ | 5,110 |
Finance leases | Other assets |  | 3,312 |  |  | 3,590 |
Total right-of-use assets |  |  | $ | 16,515 |  |  | $ | 8,700 |
Lease liabilities: |  |  |  |  |
Operating leases | Other liabilities |  | $ | 13,586 |  |  | $ | 5,327 |
Finance Leases | Other liabilities |  | 3,620 |  |  | 3,840 |
Total lease liabilities |  |  | $ | 17,206 |  |  | $ | 9,167 |
The components of total lease cost were as follows for the period ending (in thousands):
| December 31, 2024 |  | December 31, 2023 |  | December 31, 2022
Finance lease cost |  |  |  |  |
Right-of-use asset amortization | $ | 285 |  |  | $ | 244 |  |  | $ | 204 |
Interest expense | 110 |  |  | 86 |  |  | 63 |
Operating lease cost | 2,864 |  |  | 3,210 |  |  | 2,495 |
Total lease cost | $ | 3,259 |  |  | $ | 3,540 |  |  | $ | 2,762 |
The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of December 31, 2024, are as follows (in thousands):
| Operating Leases |  | Finance Leases
2025 | $ | 3,145 |  |  | $ | 333 |
2026 | 2,659 |  |  | 340 |
2027 | 2,237 |  |  | 347 |
2028 | 1,897 |  |  | 354 |
2029 | 1,748 |  |  | 361 |
Thereafter | 4,772 |  |  | 2,629 |
Total undiscounted lease payments | 16,458 |  |  | 4,364 |
Less: discount | (2,872) |  |  | (744) |
Net lease liabilities | $ | 13,586 |  |  | $ | 3,620 |
The following table presents additional information about the Company’s leases as of December 31, 2024, and December 31, 2023.
Supplemental lease information (dollars in thousands) |  | December 31, 2024 |  | December 31, 2023
Finance lease weighted average remaining lease term (years) |  | 11.75 |  | 12.66
Finance lease weighted average discount rate |  | 3.06 | % |  | 2.96 | %
Operating lease weighted average remaining lease term (years) |  | 6.84 |  | 3.71
Operating lease weighted average discount rate |  | 4.65 | % |  | 3.33 | %
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |
Operating cash flows from operating leases |  | $ | 3,087 |  |  | $ | 3,330 |
Operating cash flows from finance leases |  | 110 |  |  | 86 |
Financing cash flows from finance leases |  | 216 |  |  | 119 |
Right-of-use assets obtained in exchange for new finance lease liabilities |  | — |  |  | 1,214 |
Right-of-use assets obtained in exchange for new operating lease liabilities |  | 12,329 |  |  | — |

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