Leases

9 Months Ended

Sep. 30, 2024

(5.) LEASES

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, 2024.

The following table represents the consolidated statements of financial condition classification of the Company’s right of use assets and lease liabilities:


		September 30,			December 31,
	Balance Sheet Location	2024			2023
Operating Lease Right of Use Assets:
Gross carrying amount	Other assets	$	39,342		$	38,684
Accumulated amortization	Other assets		(8,511	)		(7,160	)
Net book value		$	30,831		$	31,524

Operating Lease Liabilities:
Right of use lease obligations	Other liabilities	$	33,192		$	33,788

The weighted average remaining lease term for operating leases was 20.0 years at September 30, 2024 and the weighted-average discount rate used in the measurement of operating lease liabilities was 3.92%. The Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term for the discount rate.

(5.) LEASES (Continued)

The following table represents lease costs and other lease information:


	Three months ended September 30,						Nine months ended September 30,
	2024			2023			2024			2023
Lease costs:
Operating lease costs	$	775		$	773		$	2,327		$	2,308
Variable lease costs (1)		139			113			334			324
Sublease income		(36	)		(29	)		(103	)		(77	)
Net lease costs	$	878		$	857		$	2,558		$	2,555

Other information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	775		$	769		$	2,327		$	2,212
Right of use assets obtained in exchange for new operating lease liabilities	$	139		$	932		$	334		$	2,167

(1)

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

Future minimum payments under non-cancellable operating leases with initial or remaining terms of one year or more, are as follows at September 30, 2024 (in thousands):


Twelve months ended September 30,
2024	$	755
2025		2,927
2026		2,775
2027		2,748
2028		2,464
Thereafter		37,256
Total future minimum operating lease payments		48,925
Amounts representing interest		(15,733	)
Present value of net future minimum operating lease payments	$	33,192