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Leases
 3 Months Ended
Mar. 31, 2025
Leases [Abstract]  
Leases Leases
As Lessee - Operating Leases
The Company's operating leases primarily include office space and bank branches. Certain leases include one or more options to renew, with renewal terms that can extend the lease term up to 15 additional years. The exercise of lease renewal options is at management's sole discretion. When it is reasonably certain that the Company will exercise our option to renew or extend the lease term, that option is included in estimating the value of the ROU and lease liability. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Most of the Company's lease agreements include periodic rate adjustments for inflation. The depreciable life of ROU assets and leasehold improvements are limited to the shorter of the useful life or the expected lease term. Leases with an initial term of 12 months or less are not recorded on the Company's Consolidated Balance Sheet. The Company recognizes lease expenses for these leases over the lease term.
The following tables present supplemental balance sheet information related to operating leases. ROU assets are included in other assets and lease liabilities are included in other liabilities.
March 31, 2025December 31, 2024
Supplemental balance sheet information
ROU assets$8,106 $8,072 
Lease liabilities$9,649 $9,557 
Weighted-average remaining lease terms (years)7.98.2
Weighted-average discount rate3.58 %3.48 %
The following schedule summarizes aggregate future minimum lease payments under these operating leases at March 31, 2025:
Remainder of 2025$1,355 
20261,814 
20271,839 
20281,652 
2029892 
Thereafter3,625 
Total undiscounted minimum lease payments11,177 
Less: amount representing interest(1,528)
Total lease liability$9,649 
The following table presents components of operating lease expense for the periods indicated:
Three Months Ended March 31,
20252024
Operating lease cost (included in occupancy expense, net)$391 $406 
Variable lease cost (included in occupancy expense, net)— 1 
Sublease income (included in other noninterest income)(43)(42)
Total operating lease expense, net$348 $365 
The following table presents supplemental operating lease cash flow information for the periods indicated:
Three Months Ended March 31,
2025
2024
ROU assets - noncash additions$448 $24 
Cash paid for amounts included in the measurement of lease liabilities378 378 
As Lessor - General
The Company leases equipment to commercial end users under operating and finance lease arrangements. The Company's equipment finance leases consist mainly of construction, transportation, healthcare and manufacturing equipment. Many of its operating and finance leases offer the lessee the option to purchase the equipment at fair value or for a fixed purchase option, and most of the leases that do not have a purchase option include renewal provisions resulting in some leases continuing beyond initial contractual terms. The Company's leases do not include early termination options, and continued rent payments are due if leased equipment is not returned at the end of the lease.
As Lessor - Operating Leases
Operating lease income is recognized as a component of noninterest income on a straight-line basis over the lease term. Lease terms range from one to seven years. Assets related to operating leases are included in other assets and the corresponding depreciation expense is recorded on a straight-line basis as a component of other noninterest expense. The net book value of leased assets totaled $31,020 and $31,572 with a residual value of $13,959 and $13,662 as of March 31, 2025 and December 31, 2024, respectively.
The following schedule summarizes aggregate future minimum lease payments to be received at March 31, 2025:
Remainder of 2025$6,413 
20266,377 
20273,475 
20283,199 
20292,698 
Thereafter1,363 
Total of future minimum payments$23,525 
As Lessor - Financing Leases
Finance lease income is recognized as a component of loan interest income over the lease term. The finance leases are included as a component of the equipment finance class of financing receivables under the commercial loan segment of the loan portfolio. For the three months ended March 31, 2025 and 2024, interest income on equipment finance leases totaled $1,218 and $1,055, respectively.
The lease receivable component of finance lease net investment included within the equipment finance class of financing receivables was $71,922 and $70,420 at March 31, 2025 and December 31, 2024, respectively.
The following schedule summarizes, as of March 31, 2025, aggregate future minimum finance lease payments to be received:
Remainder of 2025$19,213 
202622,712 
202718,281 
202811,651 
20296,038 
Thereafter4,338 
Total undiscounted minimum lease payments82,233 
Less: amount representing interest(10,311)
Total lease receivable$71,922 
Leases Leases
As Lessee - Operating Leases
The Company's operating leases primarily include office space and bank branches. Certain leases include one or more options to renew, with renewal terms that can extend the lease term up to 15 additional years. The exercise of lease renewal options is at management's sole discretion. When it is reasonably certain that the Company will exercise our option to renew or extend the lease term, that option is included in estimating the value of the ROU and lease liability. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Most of the Company's lease agreements include periodic rate adjustments for inflation. The depreciable life of ROU assets and leasehold improvements are limited to the shorter of the useful life or the expected lease term. Leases with an initial term of 12 months or less are not recorded on the Company's Consolidated Balance Sheet. The Company recognizes lease expenses for these leases over the lease term.
The following tables present supplemental balance sheet information related to operating leases. ROU assets are included in other assets and lease liabilities are included in other liabilities.
March 31, 2025December 31, 2024
Supplemental balance sheet information
ROU assets$8,106 $8,072 
Lease liabilities$9,649 $9,557 
Weighted-average remaining lease terms (years)7.98.2
Weighted-average discount rate3.58 %3.48 %
The following schedule summarizes aggregate future minimum lease payments under these operating leases at March 31, 2025:
Remainder of 2025$1,355 
20261,814 
20271,839 
20281,652 
2029892 
Thereafter3,625 
Total undiscounted minimum lease payments11,177 
Less: amount representing interest(1,528)
Total lease liability$9,649 
The following table presents components of operating lease expense for the periods indicated:
Three Months Ended March 31,
20252024
Operating lease cost (included in occupancy expense, net)$391 $406 
Variable lease cost (included in occupancy expense, net)— 1 
Sublease income (included in other noninterest income)(43)(42)
Total operating lease expense, net$348 $365 
The following table presents supplemental operating lease cash flow information for the periods indicated:
Three Months Ended March 31,
2025
2024
ROU assets - noncash additions$448 $24 
Cash paid for amounts included in the measurement of lease liabilities378 378 
As Lessor - General
The Company leases equipment to commercial end users under operating and finance lease arrangements. The Company's equipment finance leases consist mainly of construction, transportation, healthcare and manufacturing equipment. Many of its operating and finance leases offer the lessee the option to purchase the equipment at fair value or for a fixed purchase option, and most of the leases that do not have a purchase option include renewal provisions resulting in some leases continuing beyond initial contractual terms. The Company's leases do not include early termination options, and continued rent payments are due if leased equipment is not returned at the end of the lease.
As Lessor - Operating Leases
Operating lease income is recognized as a component of noninterest income on a straight-line basis over the lease term. Lease terms range from one to seven years. Assets related to operating leases are included in other assets and the corresponding depreciation expense is recorded on a straight-line basis as a component of other noninterest expense. The net book value of leased assets totaled $31,020 and $31,572 with a residual value of $13,959 and $13,662 as of March 31, 2025 and December 31, 2024, respectively.
The following schedule summarizes aggregate future minimum lease payments to be received at March 31, 2025:
Remainder of 2025$6,413 
20266,377 
20273,475 
20283,199 
20292,698 
Thereafter1,363 
Total of future minimum payments$23,525 
As Lessor - Financing Leases
Finance lease income is recognized as a component of loan interest income over the lease term. The finance leases are included as a component of the equipment finance class of financing receivables under the commercial loan segment of the loan portfolio. For the three months ended March 31, 2025 and 2024, interest income on equipment finance leases totaled $1,218 and $1,055, respectively.
The lease receivable component of finance lease net investment included within the equipment finance class of financing receivables was $71,922 and $70,420 at March 31, 2025 and December 31, 2024, respectively.
The following schedule summarizes, as of March 31, 2025, aggregate future minimum finance lease payments to be received:
Remainder of 2025$19,213 
202622,712 
202718,281 
202811,651 
20296,038 
Thereafter4,338 
Total undiscounted minimum lease payments82,233 
Less: amount representing interest(10,311)
Total lease receivable$71,922 
Leases Leases
As Lessee - Operating Leases
The Company's operating leases primarily include office space and bank branches. Certain leases include one or more options to renew, with renewal terms that can extend the lease term up to 15 additional years. The exercise of lease renewal options is at management's sole discretion. When it is reasonably certain that the Company will exercise our option to renew or extend the lease term, that option is included in estimating the value of the ROU and lease liability. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Most of the Company's lease agreements include periodic rate adjustments for inflation. The depreciable life of ROU assets and leasehold improvements are limited to the shorter of the useful life or the expected lease term. Leases with an initial term of 12 months or less are not recorded on the Company's Consolidated Balance Sheet. The Company recognizes lease expenses for these leases over the lease term.
The following tables present supplemental balance sheet information related to operating leases. ROU assets are included in other assets and lease liabilities are included in other liabilities.
March 31, 2025December 31, 2024
Supplemental balance sheet information
ROU assets$8,106 $8,072 
Lease liabilities$9,649 $9,557 
Weighted-average remaining lease terms (years)7.98.2
Weighted-average discount rate3.58 %3.48 %
The following schedule summarizes aggregate future minimum lease payments under these operating leases at March 31, 2025:
Remainder of 2025$1,355 
20261,814 
20271,839 
20281,652 
2029892 
Thereafter3,625 
Total undiscounted minimum lease payments11,177 
Less: amount representing interest(1,528)
Total lease liability$9,649 
The following table presents components of operating lease expense for the periods indicated:
Three Months Ended March 31,
20252024
Operating lease cost (included in occupancy expense, net)$391 $406 
Variable lease cost (included in occupancy expense, net)— 1 
Sublease income (included in other noninterest income)(43)(42)
Total operating lease expense, net$348 $365 
The following table presents supplemental operating lease cash flow information for the periods indicated:
Three Months Ended March 31,
2025
2024
ROU assets - noncash additions$448 $24 
Cash paid for amounts included in the measurement of lease liabilities378 378 
As Lessor - General
The Company leases equipment to commercial end users under operating and finance lease arrangements. The Company's equipment finance leases consist mainly of construction, transportation, healthcare and manufacturing equipment. Many of its operating and finance leases offer the lessee the option to purchase the equipment at fair value or for a fixed purchase option, and most of the leases that do not have a purchase option include renewal provisions resulting in some leases continuing beyond initial contractual terms. The Company's leases do not include early termination options, and continued rent payments are due if leased equipment is not returned at the end of the lease.
As Lessor - Operating Leases
Operating lease income is recognized as a component of noninterest income on a straight-line basis over the lease term. Lease terms range from one to seven years. Assets related to operating leases are included in other assets and the corresponding depreciation expense is recorded on a straight-line basis as a component of other noninterest expense. The net book value of leased assets totaled $31,020 and $31,572 with a residual value of $13,959 and $13,662 as of March 31, 2025 and December 31, 2024, respectively.
The following schedule summarizes aggregate future minimum lease payments to be received at March 31, 2025:
Remainder of 2025$6,413 
20266,377 
20273,475 
20283,199 
20292,698 
Thereafter1,363 
Total of future minimum payments$23,525 
As Lessor - Financing Leases
Finance lease income is recognized as a component of loan interest income over the lease term. The finance leases are included as a component of the equipment finance class of financing receivables under the commercial loan segment of the loan portfolio. For the three months ended March 31, 2025 and 2024, interest income on equipment finance leases totaled $1,218 and $1,055, respectively.
The lease receivable component of finance lease net investment included within the equipment finance class of financing receivables was $71,922 and $70,420 at March 31, 2025 and December 31, 2024, respectively.
The following schedule summarizes, as of March 31, 2025, aggregate future minimum finance lease payments to be received:
Remainder of 2025$19,213 
202622,712 
202718,281 
202811,651 
20296,038 
Thereafter4,338 
Total undiscounted minimum lease payments82,233 
Less: amount representing interest(10,311)
Total lease receivable$71,922 
Leases Leases
As Lessee - Operating Leases
The Company's operating leases primarily include office space and bank branches. Certain leases include one or more options to renew, with renewal terms that can extend the lease term up to 15 additional years. The exercise of lease renewal options is at management's sole discretion. When it is reasonably certain that the Company will exercise our option to renew or extend the lease term, that option is included in estimating the value of the ROU and lease liability. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Most of the Company's lease agreements include periodic rate adjustments for inflation. The depreciable life of ROU assets and leasehold improvements are limited to the shorter of the useful life or the expected lease term. Leases with an initial term of 12 months or less are not recorded on the Company's Consolidated Balance Sheet. The Company recognizes lease expenses for these leases over the lease term.
The following tables present supplemental balance sheet information related to operating leases. ROU assets are included in other assets and lease liabilities are included in other liabilities.
March 31, 2025December 31, 2024
Supplemental balance sheet information
ROU assets$8,106 $8,072 
Lease liabilities$9,649 $9,557 
Weighted-average remaining lease terms (years)7.98.2
Weighted-average discount rate3.58 %3.48 %
The following schedule summarizes aggregate future minimum lease payments under these operating leases at March 31, 2025:
Remainder of 2025$1,355 
20261,814 
20271,839 
20281,652 
2029892 
Thereafter3,625 
Total undiscounted minimum lease payments11,177 
Less: amount representing interest(1,528)
Total lease liability$9,649 
The following table presents components of operating lease expense for the periods indicated:
Three Months Ended March 31,
20252024
Operating lease cost (included in occupancy expense, net)$391 $406 
Variable lease cost (included in occupancy expense, net)— 1 
Sublease income (included in other noninterest income)(43)(42)
Total operating lease expense, net$348 $365 
The following table presents supplemental operating lease cash flow information for the periods indicated:
Three Months Ended March 31,
2025
2024
ROU assets - noncash additions$448 $24 
Cash paid for amounts included in the measurement of lease liabilities378 378 
As Lessor - General
The Company leases equipment to commercial end users under operating and finance lease arrangements. The Company's equipment finance leases consist mainly of construction, transportation, healthcare and manufacturing equipment. Many of its operating and finance leases offer the lessee the option to purchase the equipment at fair value or for a fixed purchase option, and most of the leases that do not have a purchase option include renewal provisions resulting in some leases continuing beyond initial contractual terms. The Company's leases do not include early termination options, and continued rent payments are due if leased equipment is not returned at the end of the lease.
As Lessor - Operating Leases
Operating lease income is recognized as a component of noninterest income on a straight-line basis over the lease term. Lease terms range from one to seven years. Assets related to operating leases are included in other assets and the corresponding depreciation expense is recorded on a straight-line basis as a component of other noninterest expense. The net book value of leased assets totaled $31,020 and $31,572 with a residual value of $13,959 and $13,662 as of March 31, 2025 and December 31, 2024, respectively.
The following schedule summarizes aggregate future minimum lease payments to be received at March 31, 2025:
Remainder of 2025$6,413 
20266,377 
20273,475 
20283,199 
20292,698 
Thereafter1,363 
Total of future minimum payments$23,525 
As Lessor - Financing Leases
Finance lease income is recognized as a component of loan interest income over the lease term. The finance leases are included as a component of the equipment finance class of financing receivables under the commercial loan segment of the loan portfolio. For the three months ended March 31, 2025 and 2024, interest income on equipment finance leases totaled $1,218 and $1,055, respectively.
The lease receivable component of finance lease net investment included within the equipment finance class of financing receivables was $71,922 and $70,420 at March 31, 2025 and December 31, 2024, respectively.
The following schedule summarizes, as of March 31, 2025, aggregate future minimum finance lease payments to be received:
Remainder of 2025$19,213 
202622,712 
202718,281 
202811,651 
20296,038 
Thereafter4,338 
Total undiscounted minimum lease payments82,233 
Less: amount representing interest(10,311)
Total lease receivable$71,922