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Commitments and Contingencies
 12 Months Ended
Dec. 31, 2024
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 6 months to 17 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 three years to five 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, 2024 and 2023.
(in thousands)December 31, 2024December 31, 2023
Operating leases:
Operating lease right-of-use assets$19,025 $20,316 
Operating lease liabilities21,509 22,906 
Finance leases:
Finance lease right-of-use assets616 608 
Accumulated amortization(467)(319)
Finance lease right-of-use assets, net1
$149 $289 
Finance lease liabilities2
$154 $298 
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, 2024, 2023 and 2022.
(in thousands)202420232022
Right-of-use assets obtained in exchange for operating lease liabilities$3,034 $437 $6,116 
Right-of-use assets obtained in exchange for finance lease liabilities$8 $7 $151 

The following table shows components of operating and finance lease cost for the years ended December 31, 2024, 2023 and 2022.
(in thousands)202420232022
Operating lease cost1
$4,911 $5,493 $5,356 
Variable lease cost— — — 
Total operating lease cost$4,911 $5,493 $5,356 
Finance lease cost:
Amortization of right-of-use assets2
$148 $147 $127 
Interest on finance lease liabilities3
5 7 3 
Total finance lease cost$153 $154 $130 
Total lease cost$5,064 $5,647 $5,486 
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, 2024. 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, 2024
YearOperating LeasesFinance Leases
2025$4,728 $110 
20263,626 40 
20273,332 7 
20282,910 1 
2029
2,251 — 
Thereafter7,606 — 
Total minimum lease payments24,453 158 
Amounts representing interest (present value discount)(2,944)(4)
Present value of net minimum lease payments (lease liability)$21,509 $154 
Weighted average remaining term (in years)7.61.5
Weighted average discount rate2.85 %2.70 %

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.

In the third quarter of 2024, the Bank recorded a non-recurring accrual for a legal resolution of a Private Attorneys General Act/putative class action lawsuit of $615 thousand, pre-tax, involving alleged violations of wage and hour laws for all non-exempt employees covering any and all claims that were or could have been alleged in the operative complaint through the financial period of December 11, 2019 to October 12, 2024. The Bank shall pay an "all in" Gross Settlement Amount ("GSA") of $615 thousand to settle all of the wage and hour class and PAGA claims, and the named Plaintiff's individual claims. This amount settles all claims that were or could have been asserted based on the facts alleged in the operative complaint, and the as of yet unasserted individual claims by the named plaintiff, and includes attorneys' fees, costs including the cost of administration, and incentive payments. The only amount over and above the GSA which the Bank shall pay is its share of payroll taxes on the amount of the net settlement that is allocated as wages. There has been no finding of wrongdoing and the Bank denies all claims. The settlement agreement still requires final court approval and notice requirements; however, the Bank does not anticipate further costs related to this action. We are not aware of any other similar wage and hour claims at this time.