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LEASES | 9 Months Ended
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Sep. 30, 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.
Leases |  | Classification |  | September 30, 2025 |  | December 31, 2024
Assets: |  |  |  |  |  |
Operating lease assets |  | Operating lease right-of-use assets |  | $ | 41,372 |  |  | $ | 37,764 |
Finance lease assets |  | Finance lease right-of-use assets |  | 17,545 |  |  | 14,951 |
Finance lease assets |  | Premises and equipment, net (1) |  | 89 |  |  | 143 |
Total leased assets |  |  |  | $ | 59,006 |  |  | $ | 52,858 |
Liabilities: |  |  |  |  |  |
Operating lease liabilities |  | Operating lease liabilities |  | $ | 44,127 |  |  | $ | 40,315 |
Finance lease liabilities |  | Accrued interest payable and other liabilities |  | 18,069 |  |  | 15,151 |
Total leased liabilities |  |  |  | $ | 62,196 |  |  | $ | 55,466 |
(1) Finance lease assets are recorded net of accumulated amortization of $1.1 million as of September 30, 2025 and $1.1 million as of December 31, 2024. The components of the Corporation's net lease expense for the three and nine months ended September 30, 2025 and 2024, respectively, were as follows:
|  |  |  | Three Months Ended September 30, |  | Nine Months Ended September 30,
Lease Cost |  | Classification |  | 2025 |  | 2024 |  | 2025 |  | 2024
Operating lease cost |  | Net occupancy expense |  | $ | 941 |  |  | $ | 757 |  |  | $ | 2,518 |  |  | $ | 2,235 |
Variable lease cost |  | Net occupancy expense |  | 93 |  |  | 27 |  |  | 178 |  |  | 83 |
Finance lease cost: |  |  |  |  |  |  |  |  |  |
Amortization of leased assets |  | Net occupancy expense |  | 146 |  |  | 18 |  |  | 430 |  |  | 54 |
Interest on lease liabilities |  | Interest expense - borrowed funds |  | 242 |  |  | 3 |  |  | 700 |  |  | 9 |
Sublease income (1) |  | Net occupancy expense |  | (24) |  |  | (24) |  |  | (75) |  |  | (72) |
Net lease cost |  |  |  | $ | 1,398 |  |  | $ | 781 |  |  | $ | 3,751 |  |  | $ | 2,309 |
(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 September 30, 2025:
Maturity of Lease Liabilities as of September 30, 2025 |  | Operating Leases (1) |  | Finance Leases |  | Total
2025 |  | $ | 939 |  |  | $ | 260 |  |  | $ | 1,199 |
2026 |  | 3,654 |  |  | 1,042 |  |  | 4,696 |
2027 |  | 3,395 |  |  | 934 |  |  | 4,329 |
2028 |  | 3,369 |  |  | 978 |  |  | 4,347 |
2029 |  | 3,198 |  |  | 978 |  | 4,176 |
After 2029 |  | 56,943 |  |  | 38,134 |  | 95,077 |
Total lease payments |  | 71,498 |  |  | 42,326 |  |  | 113,824 |
Less: Interest |  | 27,371 |  |  | 24,257 |  |  | 51,628 |
Present value of lease liabilities |  | $ | 44,127 |  |  | $ | 18,069 |  |  | $ | 62,196 |
(1) Operating lease payments include payments related to options to extend lease terms that are reasonably certain of being exercised. Lease terms and discount rates related to the Corporation's lease liabilities as of September 30, 2025 and December 31, 2024 were as follows:
Lease Term and Discount Rate |  | September 30, 2025 |  | December 31, 2024
Weighted-average remaining lease term (years) |  |  |  |
Operating leases |  | 21.0 |  | 22.8
Finance leases |  | 34.1 |  | 34.6
Weighted-average discount rate |  |  |  |
Operating leases |  | 4.33 | % |  | 4.22 | %
Finance leases |  | 5.32 | % |  | 5.24 | %
Other information related to the Corporation's lease liabilities as of September 30, 2025 and 2024, respectively, was as follows:
Other Information |  | September 30, 2025 |  | September 30, 2024
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |
Operating cash flows from operating leases |  | $ | 983 |  |  | $ | 789 |
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.
Leases |  | Classification |  | September 30, 2025 |  | December 31, 2024
Assets: |  |  |  |  |  |
Operating lease assets |  | Operating lease right-of-use assets |  | $ | 41,372 |  |  | $ | 37,764 |
Finance lease assets |  | Finance lease right-of-use assets |  | 17,545 |  |  | 14,951 |
Finance lease assets |  | Premises and equipment, net (1) |  | 89 |  |  | 143 |
Total leased assets |  |  |  | $ | 59,006 |  |  | $ | 52,858 |
Liabilities: |  |  |  |  |  |
Operating lease liabilities |  | Operating lease liabilities |  | $ | 44,127 |  |  | $ | 40,315 |
Finance lease liabilities |  | Accrued interest payable and other liabilities |  | 18,069 |  |  | 15,151 |
Total leased liabilities |  |  |  | $ | 62,196 |  |  | $ | 55,466 |
(1) Finance lease assets are recorded net of accumulated amortization of $1.1 million as of September 30, 2025 and $1.1 million as of December 31, 2024. The components of the Corporation's net lease expense for the three and nine months ended September 30, 2025 and 2024, respectively, were as follows:
|  |  |  | Three Months Ended September 30, |  | Nine Months Ended September 30,
Lease Cost |  | Classification |  | 2025 |  | 2024 |  | 2025 |  | 2024
Operating lease cost |  | Net occupancy expense |  | $ | 941 |  |  | $ | 757 |  |  | $ | 2,518 |  |  | $ | 2,235 |
Variable lease cost |  | Net occupancy expense |  | 93 |  |  | 27 |  |  | 178 |  |  | 83 |
Finance lease cost: |  |  |  |  |  |  |  |  |  |
Amortization of leased assets |  | Net occupancy expense |  | 146 |  |  | 18 |  |  | 430 |  |  | 54 |
Interest on lease liabilities |  | Interest expense - borrowed funds |  | 242 |  |  | 3 |  |  | 700 |  |  | 9 |
Sublease income (1) |  | Net occupancy expense |  | (24) |  |  | (24) |  |  | (75) |  |  | (72) |
Net lease cost |  |  |  | $ | 1,398 |  |  | $ | 781 |  |  | $ | 3,751 |  |  | $ | 2,309 |
(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 September 30, 2025:
Maturity of Lease Liabilities as of September 30, 2025 |  | Operating Leases (1) |  | Finance Leases |  | Total
2025 |  | $ | 939 |  |  | $ | 260 |  |  | $ | 1,199 |
2026 |  | 3,654 |  |  | 1,042 |  |  | 4,696 |
2027 |  | 3,395 |  |  | 934 |  |  | 4,329 |
2028 |  | 3,369 |  |  | 978 |  |  | 4,347 |
2029 |  | 3,198 |  |  | 978 |  | 4,176 |
After 2029 |  | 56,943 |  |  | 38,134 |  | 95,077 |
Total lease payments |  | 71,498 |  |  | 42,326 |  |  | 113,824 |
Less: Interest |  | 27,371 |  |  | 24,257 |  |  | 51,628 |
Present value of lease liabilities |  | $ | 44,127 |  |  | $ | 18,069 |  |  | $ | 62,196 |
(1) Operating lease payments include payments related to options to extend lease terms that are reasonably certain of being exercised. Lease terms and discount rates related to the Corporation's lease liabilities as of September 30, 2025 and December 31, 2024 were as follows:
Lease Term and Discount Rate |  | September 30, 2025 |  | December 31, 2024
Weighted-average remaining lease term (years) |  |  |  |
Operating leases |  | 21.0 |  | 22.8
Finance leases |  | 34.1 |  | 34.6
Weighted-average discount rate |  |  |  |
Operating leases |  | 4.33 | % |  | 4.22 | %
Finance leases |  | 5.32 | % |  | 5.24 | %
Other information related to the Corporation's lease liabilities as of September 30, 2025 and 2024, respectively, was as follows:
Other Information |  | September 30, 2025 |  | September 30, 2024
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |
Operating cash flows from operating leases |  | $ | 983 |  |  | $ | 789 |

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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 + Details
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- 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 + Details
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