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LEASES
 9 Months Ended
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.

LeasesClassificationSeptember 30, 2025December 31, 2024
Assets:
Operating lease assetsOperating lease right-of-use assets$41,372 $37,764 
Finance lease assetsFinance lease right-of-use assets17,545 14,951 
Finance lease assets
Premises and equipment, net (1)
89 143 
Total leased assets$59,006 $52,858 
Liabilities:
Operating lease liabilitiesOperating lease liabilities$44,127 $40,315 
Finance lease liabilitiesAccrued interest payable and other liabilities18,069 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 CostClassification2025202420252024
Operating lease costNet occupancy expense$941 $757 $2,518 $2,235 
Variable lease costNet occupancy expense93 27 178 83 
Finance lease cost:
Amortization of leased assetsNet occupancy expense146 18 430 54 
Interest on lease liabilitiesInterest expense - borrowed funds242 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 LeasesTotal
2025$939 $260 $1,199 
20263,654 1,042 4,696 
20273,395 934 4,329 
20283,369 978 4,347 
20293,198 9784,176 
After 202956,943 38,13495,077 
Total lease payments71,498 42,326 113,824 
Less: Interest27,371 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 RateSeptember 30, 2025December 31, 2024
Weighted-average remaining lease term (years)
Operating leases21.022.8
Finance leases34.134.6
Weighted-average discount rate
Operating leases4.33 %4.22 %
Finance leases5.32 %5.24 %

Other information related to the Corporation's lease liabilities as of September 30, 2025 and 2024, respectively, was as follows:
Other InformationSeptember 30, 2025September 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.

LeasesClassificationSeptember 30, 2025December 31, 2024
Assets:
Operating lease assetsOperating lease right-of-use assets$41,372 $37,764 
Finance lease assetsFinance lease right-of-use assets17,545 14,951 
Finance lease assets
Premises and equipment, net (1)
89 143 
Total leased assets$59,006 $52,858 
Liabilities:
Operating lease liabilitiesOperating lease liabilities$44,127 $40,315 
Finance lease liabilitiesAccrued interest payable and other liabilities18,069 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 CostClassification2025202420252024
Operating lease costNet occupancy expense$941 $757 $2,518 $2,235 
Variable lease costNet occupancy expense93 27 178 83 
Finance lease cost:
Amortization of leased assetsNet occupancy expense146 18 430 54 
Interest on lease liabilitiesInterest expense - borrowed funds242 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 LeasesTotal
2025$939 $260 $1,199 
20263,654 1,042 4,696 
20273,395 934 4,329 
20283,369 978 4,347 
20293,198 9784,176 
After 202956,943 38,13495,077 
Total lease payments71,498 42,326 113,824 
Less: Interest27,371 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 RateSeptember 30, 2025December 31, 2024
Weighted-average remaining lease term (years)
Operating leases21.022.8
Finance leases34.134.6
Weighted-average discount rate
Operating leases4.33 %4.22 %
Finance leases5.32 %5.24 %

Other information related to the Corporation's lease liabilities as of September 30, 2025 and 2024, respectively, was as follows:
Other InformationSeptember 30, 2025September 30, 2024
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$983 $789