XML 25 R14.htm IDEA: XBRL DOCUMENT v3.25.1
LEASES
 3 Months Ended
Mar. 31, 2025
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 condensed 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.

LeasesClassificationMarch 31, 2025December 31, 2024
Assets:
Operating lease assetsOperating lease right-of-use assets$37,391 $37,764 
Finance lease assetsFinance lease right-of-use assets14,822 14,951 
Finance lease assets
Premises and equipment, net (1)
125 143 
Total leased assets$52,338 $52,858 
Liabilities:
Operating lease liabilitiesOperating lease liabilities$40,030 $40,315 
Finance lease liabilitiesAccrued interest payable and other liabilities15,137 15,151 
Total leased liabilities$55,167 $55,466 
(1) Finance lease assets are recorded net of accumulated amortization of $1.1 million as of March 31, 2025 and $1.1 million as of December 31, 2024.
The components of the Corporation's net lease expense for the three months ended March 31, 2025 and 2024, respectively, were as follows:
Three Months Ended March 31,
Lease CostClassification20252024
Operating lease costNet occupancy expense$790 $742 
Variable lease costNet occupancy expense49 27 
Finance lease cost:
Amortization of leased assetsNet occupancy expense147 18 
Interest on lease liabilitiesInterest expense - borrowed funds236 3 
Sublease income (1)
Net occupancy expense(26)(24)
Net lease cost$1,196 $766 
(1) Sublease income excludes rental income from owned properties.

The following table sets forth future minimum rental payments under noncancellable leases with initial terms in excess of one year as of March 31, 2025:
Maturity of Lease Liabilities as of March 31, 2025
Operating Leases (1)
Finance LeasesTotal
2025$2,067 $635 $2,702 
20262,737 846 3,583 
20272,759 738 3,497 
20282,827 783 3,610 
20292,862 7833,645 
After 202951,797 32,18883,985 
Total lease payments65,049 35,973 101,022 
Less: Interest25,019 20,836 45,855 
Present value of lease liabilities$40,030 $15,137 $55,167 
(1) Operating lease payments include payments related to options to extend lease terms that are reasonably certain of being exercised and exclude $3.4 million of legally binding minimum lease payments for leases signed, but not yet commenced.

Lease terms and discount rates related to the Corporation's lease liabilities as of March 31, 2025 and December 31, 2024 were as follows:
Lease Term and Discount RateMarch 31, 2025December 31, 2024
Weighted-average remaining lease term (years)
Operating leases22.622.8
Finance leases34.334.6
Weighted-average discount rate
Operating leases4.22 %4.22 %
Finance leases5.25 %5.24 %

Other information related to the Corporation's lease liabilities as of March 31, 2025 and 2024, respectively, was as follows:
Other InformationMarch 31, 2025March 31, 2024
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$286 $268 
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 condensed 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.

LeasesClassificationMarch 31, 2025December 31, 2024
Assets:
Operating lease assetsOperating lease right-of-use assets$37,391 $37,764 
Finance lease assetsFinance lease right-of-use assets14,822 14,951 
Finance lease assets
Premises and equipment, net (1)
125 143 
Total leased assets$52,338 $52,858 
Liabilities:
Operating lease liabilitiesOperating lease liabilities$40,030 $40,315 
Finance lease liabilitiesAccrued interest payable and other liabilities15,137 15,151 
Total leased liabilities$55,167 $55,466 
(1) Finance lease assets are recorded net of accumulated amortization of $1.1 million as of March 31, 2025 and $1.1 million as of December 31, 2024.
The components of the Corporation's net lease expense for the three months ended March 31, 2025 and 2024, respectively, were as follows:
Three Months Ended March 31,
Lease CostClassification20252024
Operating lease costNet occupancy expense$790 $742 
Variable lease costNet occupancy expense49 27 
Finance lease cost:
Amortization of leased assetsNet occupancy expense147 18 
Interest on lease liabilitiesInterest expense - borrowed funds236 3 
Sublease income (1)
Net occupancy expense(26)(24)
Net lease cost$1,196 $766 
(1) Sublease income excludes rental income from owned properties.

The following table sets forth future minimum rental payments under noncancellable leases with initial terms in excess of one year as of March 31, 2025:
Maturity of Lease Liabilities as of March 31, 2025
Operating Leases (1)
Finance LeasesTotal
2025$2,067 $635 $2,702 
20262,737 846 3,583 
20272,759 738 3,497 
20282,827 783 3,610 
20292,862 7833,645 
After 202951,797 32,18883,985 
Total lease payments65,049 35,973 101,022 
Less: Interest25,019 20,836 45,855 
Present value of lease liabilities$40,030 $15,137 $55,167 
(1) Operating lease payments include payments related to options to extend lease terms that are reasonably certain of being exercised and exclude $3.4 million of legally binding minimum lease payments for leases signed, but not yet commenced.

Lease terms and discount rates related to the Corporation's lease liabilities as of March 31, 2025 and December 31, 2024 were as follows:
Lease Term and Discount RateMarch 31, 2025December 31, 2024
Weighted-average remaining lease term (years)
Operating leases22.622.8
Finance leases34.334.6
Weighted-average discount rate
Operating leases4.22 %4.22 %
Finance leases5.25 %5.24 %

Other information related to the Corporation's lease liabilities as of March 31, 2025 and 2024, respectively, was as follows:
Other InformationMarch 31, 2025March 31, 2024
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$286 $268