Leases Leases

12 Months Ended

Dec. 31, 2023

The Company's noncancelable operating lease agreements relate to certain banking offices, back-office operational facilities, office equipment and sublease agreements. The majority of the leases contain renewal options and provisions for increases in rental rates based on an agreed upon index or predetermined escalation schedule. As of December 31, 2023 and December 31, 2022, the Company’s operating lease ROU asset was $23.6 million and $22.7 million, respectively, and is included in "Prepaid expenses and other assets" on the Consolidated Statements of Financial Condition. The related operating lease ROU liability was $25.5 million and $24.4 million, respectively and is included in "Accrued expenses and other liabilities" on the Consolidated Statements of Financial Condition. In addition, the Company has one operating sublease agreement in which the Company is the intermediate lessor. The operating sublease is for five years with rental increases on a predetermined escalation schedule with a projected future cash flow of $1.7 million. The Company does not have any leases designated as finance leases.

The table below summarizes the information about our leases during the periods or at period end presented:


	Year Ended December 31,
	2023			2022
	(Dollars in thousands)
Operating lease cost	$	5,279		$	4,942
Short-term lease cost	80			80
Variable lease cost	1,243			1,118
Sublease income	(392)			(87)
Total net lease cost during the period	$	6,210		$	6,053

Operating cash used for amounts included in the measurement of lease liabilities during the period	$	4,982		$	4,748
ROU assets obtained in exchange for lease liabilities during the period	6,880			2,869

Weighted average remaining lease term of operating leases, in years, at period end	6.2			6.5
Weighted average discount rate of operating leases, at period end	2.95		%	2.42		%

The following table presents the lease payment obligations as of December 31, 2023 as outlined in the Company’s lease agreements for each of the next five years and thereafter, in thousands:




2024	$	5,163
2025	4,977
2026	4,575
2027	4,134
2028	2,583
Thereafter	6,754
Total lease payments	28,186
Implied interest	(2,644)
ROU liability	$	25,542

During the year ended December 31, 2023, the Company entered into two lease agreements for $2.9 million and $700,000 commencing on January 22, 2024 and February 1, 2024. These lease agreements are not included in the lease payment obligations in the table above.