XML 33 R20.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Commitments and Contingencies | 12 Months Ended
--- | ---
Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract] |
Commitments and Contingencies | Commitments and Contingencies Leases We lease premises under long-term non-cancelable operating leases with remaining terms of approximately 4 months to 18 years, 5 months, most of which include escalation clauses and one or more options to extend the lease term, and some of which contain lease termination clauses. Lease terms may include certain renewal options that were considered reasonably certain to be exercised. We lease certain equipment under finance leases with initial terms of 3 to 5 years. The equipment finance leases do not contain renewal options, bargain purchase options, or residual value guarantees. The following table shows the balances of operating and finance lease right-of-use assets and lease liabilities as of December 31, 2023 and 2022.
(in thousands) | December 31, 2023 | December 31, 2022
Operating leases: |  |
Operating lease right-of-use assets | $ | 20,316 |  | $ | 24,821 |
Operating lease liabilities | 22,906 |  | 26,639 |
Finance leases: |  |
Finance lease right-of-use assets | 608 |  | 616 |
Accumulated amortization | (319) |  | (187) |
Finance lease right-of-use assets, net 1 | $ | 289 |  | $ | 429 |
Finance lease liabilities 2 | $ | 298 |  | $ | 439 |
1 Included in premises and equipment in the consolidated statements of condition. |
2 Included in borrowings and other obligations in the consolidated statements of condition. |
The following table shows supplemental disclosures of noncash investing and financing activities for the years ended December 31, 2023, 2022 and 2021.
(in thousands) | 2023 | 2022 | 2021
Right-of-use assets obtained in exchange for operating lease liabilities | $ | 437 |  | $ | 6,116 |  | $ | 2,376 |
Right-of-use assets obtained in exchange for finance lease liabilities | $ | 7 |  | $ | 151 |  | $ | 444 |
The following table shows components of operating and finance lease cost for the years ended December 31, 2023, 2022 and 2021.
(in thousands) | 2023 | 2022 | 2021
Operating lease cost 1 | $ | 5,493 |  | $ | 5,356 |  | $ | 4,823 |
Variable lease cost | — |  | — |  | — |
Total operating lease cost | $ | 5,493 |  | $ | 5,356 |  | $ | 4,823 |
Finance lease cost: |  |  |
Amortization of right-of-use assets 2 | $ | 147 |  | $ | 127 |  | $ | 96 |
Interest on finance lease liabilities 3 | 7 |  | 3 |  | 2 |
Total finance lease cost | $ | 154 |  | $ | 130 |  | $ | 98 |
Total lease cost | $ | 5,647 |  | $ | 5,486 |  | $ | 4,921 |
1 Included in occupancy and equipment expense in the consolidated statements of comprehensive income (loss).
2 Included in depreciation and amortization in the consolidated statements of comprehensive income (loss).
3 Included in interest on borrowings and other obligations in the consolidated statements of comprehensive income (loss).
The following table shows the future minimum lease payments, weighted average remaining lease terms, and weighted average discount rates under operating and finance lease arrangements as of December 31, 2023. Total minimum lease payments do not include future minimum payment obligations of approximately $2.0 million, excluding renewal options, for an operating lease agreement related to an existing retail branch that commenced subsequent to December 31, 2023. The discount rates used to calculate the present value of lease liabilities were based on the collateralized FHLB borrowing rates that were commensurate with lease terms and minimum payments on the lease commencement date.
(in thousands) | December 31, 2023
Year | Operating Leases |  | Finance Leases
2024 | $ | 4,753 |  |  | $ | 155 |
2025 | 4,112 |  |  | 108 |
2026 | 3,373 |  |  | 38 |
2027 | 3,096 |  |  | 5 |
2028 | 2,710 |  |  | — |
Thereafter | 7,308 |  |  | — |
Total minimum lease payments | 25,352 |  |  | 306 |
Amounts representing interest (present value discount) | (2,446) |  |  | (8) |
Present value of net minimum lease payments (lease liability) | $ | 22,906 |  |  | $ | 298 |
Weighted average remaining term (in years) | 7.3 |  | 2.2
Weighted average discount rate | 2.40 | % |  | 2.07 | %
Litigation Matters Bancorp may be subject to legal actions that arise from time to time in the normal course of business. Bancorp's management is not aware of any pending legal proceedings to which either it or the Bank may be a party or has recently been a party that will have a material adverse effect on the financial condition or results of operations of Bancorp or the Bank. The Bank is responsible for a proportionate share of certain litigation indemnifications provided to Visa U.S.A. ("Visa") by its member banks in connection with Visa's lawsuits related to anti-trust charges and interchange fees ("Covered Litigation"). We sold our remaining shares on July 13, 2023, however, our proportionate share of the litigation indemnification liability does not change or transfer upon the sale of our Class B Visa shares to member banks or, per the terms of the sale, to the recent purchaser of our shares. Visa established an escrow account for the Covered Litigation that it periodically funds, which is expected to cover the settlement payment obligations. Litigation is ongoing, and until the court approval process is complete, there is no assurance that Visa will resolve the claims as contemplated by the amended class settlement agreement, and additional lawsuits may arise from individual merchants who opted out of the class settlement. However, until the escrow account is fully depleted and the conversion rate of Class B to Class A common stock is reduced to zero, no future cash settlement payments are required by the member banks, such as us, on the Covered Litigation. Therefore, we are not required to record any contingent liabilities for the indemnification related to the Covered Litigation, as we consider the probability of losses to be remote.

X
- References No definition available. + Details
Name: | us-gaap_CommitmentsAndContingenciesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for commitments and contingencies. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 440 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482648/440-10-50-4 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 450 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//450/tableOfContent Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 954 -SubTopic 440 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480327/954-440-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 440 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482648/440-10-50-4 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 440 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//440/tableOfContent + Details
Name: | us-gaap_CommitmentsAndContingenciesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration