LEASES

12 Months Ended

Dec. 31, 2024

Leases in which the Company is determined to be the lessee are primarily operating leases comprised of real estate property and office space for our corporate headquarters and profit centers with terms that extend to 2036. In accordance with ASC 842, operating leases are required to be recognized as a right-of-use asset with a corresponding lease liability.

The Company elected to not include short-term leases with initial terms of twelve months or less, on the Consolidated Balance Sheets. The following table presents the classification of the right-of-use assets and corresponding liabilities within the Consolidated Balance Sheets, as of the dates noted:


		December 31,
(dollars in thousands)		2024		2023
Lease Right-of-Use Assets	Classification
Operating lease right-of-use assets	Other assets	$	19,161	$	8,929

Lease Liabilities	Classification
Operating lease liabilities	Other liabilities	$	20,959	$	10,900

The Company’s operating lease agreements typically include an option to renew the lease at the Company’s discretion. To the extent the Company is reasonably certain it will exercise the renewal option at the inception of the lease, the Company will include the extended term in the calculation of the right-of-use asset and lease liability. ASC 842 requires the use of the rate implicit in the lease when it is readily determinable. As this rate is typically not readily determinable, at the inception of the lease, the Company uses its collateralized incremental borrowing rate over a similar term. The amount of the right-of-use asset and lease liability are impacted by the discount rate used to calculate the present value of the minimum lease payments over the term of the lease. The following table presents information related to operating leases:


	December 31,
	2024	2023
Weighted-Average Remaining Lease Term
Operating leases	9.09 years	4.67 years

Weighted-Average Discount Rate
Operating leases	4.14%	2.78%

The Company’s operating leases contain fixed and variable lease components and it has elected to account for all classes of underlying assets as a single lease component. Variable lease costs primarily represent common area maintenance and parking. The Company recognized lease costs in Occupancy and equipment expense in the accompanying Consolidated Statements of Income. The following table represents the Company’s net lease costs during the periods presented:


	Year Ended December 31,
(dollars in thousands)	2024		2023
Lease Costs
Operating lease cost	$	3,370	$	2,964
Variable lease cost	2,282		1,953

Lease costs, net	$	5,652	$	4,917

The following table presents a maturity analysis of the Company’s operating lease liabilities on an annual basis for each of the next five years and total amounts thereafter (dollars in thousands):


Year Ending December 31,	Operating Leases
2025	$	3,047
2026	1,673
2027	1,330
2028	1,200
2029	3,000
Thereafter	16,632
Total future minimum lease payments	26,882
Less: imputed interest	(5,923)
Present value of net future minimum lease payments	$	20,959

Leases in which the Company is determined to be the lessor are considered operating leases and consist of the partial lease of Company owned buildings. In accordance with ASC 842, these leases have been accounted for as operating leases. During the years ended December 31, 2024 and 2023, the Company recognized $0.3 million of lease income.

The following table presents a maturity analysis of the Company’s lease payments to be received on an annual basis for each of the next three years and total amounts thereafter (dollars in thousands):


Year Ending December 31,	Undiscounted Operating Lease Income
2025	$	194
2026	149
2027	124


Thereafter	—
Total undiscounted operating lease income	$	467