LEASE COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2025


19. LEASE COMMITMENTS AND CONTINGENCIES

The Company’s operating leases are primarily comprised of corporate office leases with remaining lease terms of approximately three years and seventeen years. The corporate office leases include options to extend for up to five years, however the extension terms were not included in the operating lease liability calculation. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. The lease cost for the three months ended March 31, 2025 and 2024 was $1.1 million and $0.8 million, respectively.

Supplemental information related to leases as of and for the three months ended March 31, 2025 was as follows:

Operating Leases

Classification

March 31, 2025

Assets

(dollars in thousands)

Operating lease right-of-use assets

Other assets

27,523

Liabilities

Operating lease liabilities (1)

Other liabilities

28,106

Lease term and discount rate

Weighted average remaining lease term

16.8 years

Weighted average discount rate (1)

7.0%

Cash paid for amounts included in the measurement of lease liabilities

Operating cash flows from operating leases

1,028

(1) For the Company’s leases that do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at adoption date in determining the present value of lease payments.

The following table provides details related to maturities of lease liabilities:


	Maturity of Lease Liabilities
Years ending December 31,	(dollars in thousands)
2025 (remaining)	$	2,121
2026	261
2027	2,503
2028	3,854
2029	3,831

Later years	52,041
Total lease payments	$	64,611
Less imputed interest	36,505
Present value of lease liabilities	$	28,106

Contingencies

From time to time, the Company is involved in various claims and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material effect on the Company’s consolidated financial statements. There were no material contingencies at March 31, 2025 and December 31, 2024.