Leases

3 Months Ended

Mar. 31, 2024

As of March 31, 2024, the Company was the lessee in 48 operating leases and 1 finance lease of certain branch, mortgage and operations locations with original terms greater than one year.

Many leases include options to renew, with terms that can extend the lease up to an additional 20 years or more. Certain lease agreements contain provisions to periodically adjust rental payments for inflation. Renewal options that management is reasonably certain to renew and fixed rent escalations are included in the right-of-use asset and lease liability.

Information related to the Company's leases is presented below as of March 31, 2024 and December 31, 2023:


		March 31,			December 31,

	Classification	2024			2023
Right-of-use assets:
Operating leases	Operating lease right-of-use assets	$	51,421		$	54,295
Finance leases	Premises and equipment, net	1,228			1,256
Total right-of-use assets		$	52,649		$	55,551
Lease liabilities:
Operating leases	Operating lease liabilities	$	64,562		$	67,643
Finance leases	Borrowings	1,302			1,326
Total lease liabilities		$	65,864		$	68,969
Weighted average remaining lease term (in years) - operating		11.5			11.6
Weighted average remaining lease term (in years) - finance		11.1			11.4
Weighted average discount rate - operating		3.40		%	3.39		%
Weighted average discount rate - finance		1.76		%	1.76		%

The components of total lease expense included in the consolidated statements of income were as follows:


		Three Months Ended March 31,

	Classification		2024		2023
Operating lease costs:
Amortization of right-of-use asset	Occupancy and equipment		$	1,927	$	1,815
Short-term lease cost	Occupancy and equipment		97		121
Variable lease cost	Occupancy and equipment		336		298

Gain on lease modifications and terminations	Occupancy and equipment		—		(72)
Finance lease costs:
Interest on lease liabilities	Interest expense on borrowings		6		6
Amortization of right-of-use asset	Occupancy and equipment		28		28

Sublease income	Occupancy and equipment		(172)		(281)
Total lease cost			$	2,222	$	1,915

The Company does not separate lease and non-lease components and instead elects to account for them as a single lease component. Variable lease cost primarily represents variable payments such as common area maintenance, utilities, and property taxes.

A maturity analysis of operating and finance lease liabilities and a reconciliation of undiscounted cash flows to lease liabilities as of March 31, 2024 is as follows:


	Operating		Finance
	Leases		Lease
Lease payments due:
March 31, 2025	$	6,358	$	90
March 31, 2026	8,454		121
March 31, 2027	8,314		123
March 31, 2028	7,864		125
March 31, 2029	6,939		127
Thereafter	44,094		850
Total undiscounted future minimum lease payments	82,023		1,436
Less: imputed interest	(17,461)		(134)
Lease liabilities	$	64,562	$	1,302

Leases

As of March 31, 2024, the Company was the lessee in 48 operating leases and 1 finance lease of certain branch, mortgage and operations locations with original terms greater than one year.

Information related to the Company's leases is presented below as of March 31, 2024 and December 31, 2023:


		March 31,			December 31,

	Classification	2024			2023
Right-of-use assets:
Operating leases	Operating lease right-of-use assets	$	51,421		$	54,295
Finance leases	Premises and equipment, net	1,228			1,256
Total right-of-use assets		$	52,649		$	55,551
Lease liabilities:
Operating leases	Operating lease liabilities	$	64,562		$	67,643
Finance leases	Borrowings	1,302			1,326
Total lease liabilities		$	65,864		$	68,969
Weighted average remaining lease term (in years) - operating		11.5			11.6
Weighted average remaining lease term (in years) - finance		11.1			11.4
Weighted average discount rate - operating		3.40		%	3.39		%
Weighted average discount rate - finance		1.76		%	1.76		%

The components of total lease expense included in the consolidated statements of income were as follows:


		Three Months Ended March 31,

	Classification		2024		2023
Operating lease costs:
Amortization of right-of-use asset	Occupancy and equipment		$	1,927	$	1,815
Short-term lease cost	Occupancy and equipment		97		121
Variable lease cost	Occupancy and equipment		336		298

Gain on lease modifications and terminations	Occupancy and equipment		—		(72)
Finance lease costs:
Interest on lease liabilities	Interest expense on borrowings		6		6
Amortization of right-of-use asset	Occupancy and equipment		28		28

Sublease income	Occupancy and equipment		(172)		(281)
Total lease cost			$	2,222	$	1,915

A maturity analysis of operating and finance lease liabilities and a reconciliation of undiscounted cash flows to lease liabilities as of March 31, 2024 is as follows:


	Operating		Finance
	Leases		Lease
Lease payments due:
March 31, 2025	$	6,358	$	90
March 31, 2026	8,454		121
March 31, 2027	8,314		123
March 31, 2028	7,864		125
March 31, 2029	6,939		127
Thereafter	44,094		850
Total undiscounted future minimum lease payments	82,023		1,436
Less: imputed interest	(17,461)		(134)
Lease liabilities	$	64,562	$	1,302