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Leases

12 Months Ended

Dec. 31, 2024

Leases [Abstract]

Leases

Leases

Operating lease assets represent the Corporation's right to use an underlying asset during the lease term and operating lease liabilities represent the Corporation's obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents the Corporation's incremental borrowing rate at the lease commencement date. Operating lease cost, which is comprised of amortization of the operating lease asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term, and is recorded in net occupancy expense in the consolidated statements of income.

The Corporation leases certain full-service branch offices, land and equipment. Leases with an initial term of twelve months or less are not recorded on the balance sheet. Most leases include one or more options to renew and the exercise of the lease renewal options are at the Corporation's sole discretion. The Corporation includes lease extension and termination options in the lease term if, after considering relevant economic factors, it is reasonably certain the Corporation will exercise the option. Certain lease agreements of the Corporation include rental payments adjusted periodically for changes in the consumer price index.

Leases						Classification						December 31, 2024						December 31, 2023
Assets:
Operating lease assets						Operating lease right-of-use assets						$	37,764					$	35,699
Finance lease assets						Finance lease right-of-use assets						14,951						—
Finance lease assets						Premises and equipment, net (1)						143						215
Total leased assets												$	52,858					$	35,914
Liabilities:
Operating lease liabilities						Operating lease liabilities						$	40,315					$	37,650
Finance lease liabilities						Accrued interest payable and other liabilities						15,151						294
Total leased liabilities												$	55,466					$	37,944

(1) Finance lease assets are recorded net of accumulated amortization of $1.1 million and $1.0 million as of December 31, 2024 and 2023, respectively.

The components of the Corporation's net lease expense for the years ended December 31, 2024, 2023, and 2022 were as follows:

Lease Cost						Classification												December 31, 2024						December 31, 2023						December 31, 2022
Operating lease cost						Net occupancy expense												$	3,066					$	2,963					$	2,264
Variable lease cost						Net occupancy expense												103						92						59
Finance lease cost:
Amortization of leased assets						Net occupancy expense												72						72						72
Interest on lease liabilities						Interest expense - borrowed funds												11						15						19
Sublease income (1)						Net occupancy expense												(96)						(93)						(79)
Gain on sale-leaseback transactions						Noninterest income - other												(63)						—						—
Net lease cost																		$	3,093					$	3,049					$	2,335

(1) Sublease income excludes rental income from owned properties.

The following table sets forth future minimum rental payments under noncancelable leases with terms in excess of one year as of December 31, 2024:

Maturity of Lease Liabilities as of December 31, 2024						Operating Leases (1)						Finance Leases						Total
2025						$	2,755					$	843					$	3,598
2026						2,737						843						3,580
2027						2,759						738						3,497
2028						2,827						783						3,610
2029						2,862						783						3,645
After 2029						51,757						32,228						83,985
Total lease payments						65,697						36,218						101,915
Less: Interest						25,382						21,067						46,449
Present value of lease liabilities						$	40,315					$	15,151					$	55,466

(1) Operating lease payments include payments related to options to extend lease terms that are reasonably certain of being exercised and exclude $5.6 million of legally binding minimum lease payments for leases signed, but not yet commenced.

Other information related to the Corporation's lease liabilities as of December 31, 2024 and 2023 was as follows:

Lease Term and Discount Rate						December 31, 2024						December 31, 2023
Weighted-average remaining lease term (years)
Operating leases						22.8						23.0
Finance leases						34.6						3.0
Weighted-average discount rate
Operating leases						4.22		%				4.05		%
Finance leases						5.24		%				4.49		%

Other information related to the Corporation's lease liabilities as of December 31, 2024 and 2023 was as follows:

Other Information						December 31, 2024						December 31, 2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows used by operating leases						$	1,052					$	1,134

Leases

Leases

Operating lease assets represent the Corporation's right to use an underlying asset during the lease term and operating lease liabilities represent the Corporation's obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents the Corporation's incremental borrowing rate at the lease commencement date. Operating lease cost, which is comprised of amortization of the operating lease asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term, and is recorded in net occupancy expense in the consolidated statements of income.

The Corporation leases certain full-service branch offices, land and equipment. Leases with an initial term of twelve months or less are not recorded on the balance sheet. Most leases include one or more options to renew and the exercise of the lease renewal options are at the Corporation's sole discretion. The Corporation includes lease extension and termination options in the lease term if, after considering relevant economic factors, it is reasonably certain the Corporation will exercise the option. Certain lease agreements of the Corporation include rental payments adjusted periodically for changes in the consumer price index.

Leases						Classification						December 31, 2024						December 31, 2023
Assets:
Operating lease assets						Operating lease right-of-use assets						$	37,764					$	35,699
Finance lease assets						Finance lease right-of-use assets						14,951						—
Finance lease assets						Premises and equipment, net (1)						143						215
Total leased assets												$	52,858					$	35,914
Liabilities:
Operating lease liabilities						Operating lease liabilities						$	40,315					$	37,650
Finance lease liabilities						Accrued interest payable and other liabilities						15,151						294
Total leased liabilities												$	55,466					$	37,944

(1) Finance lease assets are recorded net of accumulated amortization of $1.1 million and $1.0 million as of December 31, 2024 and 2023, respectively.

The components of the Corporation's net lease expense for the years ended December 31, 2024, 2023, and 2022 were as follows:

Lease Cost						Classification												December 31, 2024						December 31, 2023						December 31, 2022
Operating lease cost						Net occupancy expense												$	3,066					$	2,963					$	2,264
Variable lease cost						Net occupancy expense												103						92						59
Finance lease cost:
Amortization of leased assets						Net occupancy expense												72						72						72
Interest on lease liabilities						Interest expense - borrowed funds												11						15						19
Sublease income (1)						Net occupancy expense												(96)						(93)						(79)
Gain on sale-leaseback transactions						Noninterest income - other												(63)						—						—
Net lease cost																		$	3,093					$	3,049					$	2,335

(1) Sublease income excludes rental income from owned properties.

The following table sets forth future minimum rental payments under noncancelable leases with terms in excess of one year as of December 31, 2024:

Maturity of Lease Liabilities as of December 31, 2024						Operating Leases (1)						Finance Leases						Total
2025						$	2,755					$	843					$	3,598
2026						2,737						843						3,580
2027						2,759						738						3,497
2028						2,827						783						3,610
2029						2,862						783						3,645
After 2029						51,757						32,228						83,985
Total lease payments						65,697						36,218						101,915
Less: Interest						25,382						21,067						46,449
Present value of lease liabilities						$	40,315					$	15,151					$	55,466

(1) Operating lease payments include payments related to options to extend lease terms that are reasonably certain of being exercised and exclude $5.6 million of legally binding minimum lease payments for leases signed, but not yet commenced.

Other information related to the Corporation's lease liabilities as of December 31, 2024 and 2023 was as follows:

Lease Term and Discount Rate						December 31, 2024						December 31, 2023
Weighted-average remaining lease term (years)
Operating leases						22.8						23.0
Finance leases						34.6						3.0
Weighted-average discount rate
Operating leases						4.22		%				4.05		%
Finance leases						5.24		%				4.49		%

Other information related to the Corporation's lease liabilities as of December 31, 2024 and 2023 was as follows:

Other Information						December 31, 2024						December 31, 2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows used by operating leases						$	1,052					$	1,134

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- References

No definition available.

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- Definition

The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 842
-SubTopic 20
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/842-20/tableOfContent

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X

- Definition

The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 842
-SubTopic 20
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/842-20/tableOfContent

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