Leases

12 Months Ended

Dec. 31, 2022

(9.) LEASES

Accounting Standards Codification (“ASC”) 842, Leases (“ASC 842”), establishes a right of use model that requires a lessee to record a right of use asset and a lease liability for all leases with terms longer than 12 months. The Company is obligated under a number of non-cancellable operating lease agreements for land, buildings and equipment with terms, including renewal options reasonably certain to be exercised, extending through 2061. Two building leases were subleased with terms that extended through December 31, 2023.

The following table represents the consolidated statements of financial condition classification of the Company’s right of use assets and lease liabilities as of December 31 (in thousands):


		2022			2021
	Balance Sheet Location
Operating Lease Right of Use Assets:
Gross carrying amount	Other assets	$	36,723		$	27,063
Accumulated amortization	Other assets		(5,603	)		(4,993	)
Net book value		$	31,120		$	22,070

Operating Lease Liabilities:
Right of use lease obligations	Other liabilities	$	33,229		$	23,867

The weighted average remaining lease term for operating leases was 22.2 years at December 31, 2022 and the weighted-average discount rate used in the measurement of operating lease liabilities was 3.89%. The Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term for the discount rate.

The following table represents lease costs and other lease information for the years ended December 31 (in thousands):


	2022			2021			2020
Lease Costs:
Operating lease costs	$	2,885		$	2,830		$	2,673
Variable lease costs (1)		475			427			410
Sublease income		(69	)		(23	)		(46	)
Net lease costs	$	3,291		$	3,234		$	3,037

Other information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,587		$	2,647		$	2,599
Right of use assets obtained in exchange for new operating lease liabilities	$	11,006		$	4,251		$	477

(1)

Variable lease costs primarily represent variable payments such as common area maintenance, insurance, taxes and utilities.

(9.) LEASES (Continued)

Future minimum payments under non-cancellable operating leases with initial or remaining terms of one year or more are as follows at December 31, 2022 (in thousands):


Year ended December 31(1),
2023	$	2,925
2024		2,888
2025		2,785
2026		2,641
2027		2,612
Thereafter		39,337
Total future minimum operating lease payments		53,188
Amounts representing interest		(19,959	)
Present value of net future minimum operating lease payments	$	33,229