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, net1	$	289	$	429
Finance lease liabilities2	$	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


(in thousands)	2023		2022		2021
Operating lease cost1	$	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 assets2	$	147	$	127	$	96
Interest on finance lease liabilities3	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		%

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.