The Company maintains certain property and equipment under direct financing and operating leases. As of September 30, 2024, the Company's operating lease ROU asset and operating lease liability totaled $41.7 million and $44.8 million, respectively. As of December 31, 2023, the Company's operating lease ROU asset and operating lease liability totaled $12.1 million and $12.9 million, respectively. The increase in the Company’s operating lease liability and ROU asset was primarily due to the modification of the existing lease on the main office which had an operating lease liability balance of $19.0 million and an ROU asset balance of $18.2 million as of September 30, 2024. Additionally, the Company executed a lease for our New York City location, which resulted in an operating lease liability of $15.0 million and an ROU asset of $13.4 million as of September 30, 2024. A weighted average discount rate of 4.39 percent and 2.72 percent was used in the measurement of the ROU asset and lease liability as of September 30, 2024 and December 31, 2023, respectively.

The Company's leases have remaining lease terms between two months to 12 years, with a weighted average lease term of 9.46 years at September 30, 2024. The Company's leases had remaining lease terms between four months to 13 years, with a weighted average lease term of 6.75 years at December 31, 2023. The Company’s lease agreements may include options to extend or terminate the lease. The Company’s decision to exercise renewal options is based on an assessment of its current business needs and market factors at the time of the renewal.

Total operating lease costs were $1.7 million and $792,000 for the three months ended September 30, 2024 and 2023, respectively. The variable lease costs were $104,000 and $58,000 for the three months ended September 30, 2024 and 2023, respectively.

Total operating lease costs were $4.0 million and $2.4 million for the nine months ended September 30, 2024 and 2023, respectively. The variable lease costs were $262,000 and $200,000 for the nine months ended September 30, 2024 and 2023, respectively.

The following is a schedule of the Company's operating lease liabilities by contractual maturity as of September 30, 2024:


(In thousands)
2024		1,282
2025		6,162
2026		6,173
2027		5,839
2028		5,659
Thereafter		30,195
Total lease payments		55,310
Less: imputed interest		10,535
Total present value of lease payments	$	44,775


	For the Nine Months Ended September 30,
(In thousands)	2024		2023
Right-of-use asset obtained in exchange for lease obligation	$	32,483	$	1,926
Operating cash flows from operating leases		3,108		2,184
Operating cash flows from direct finance leases		74		149
Financing cash flows from direct finance leases		308		561