Leases

12 Months Ended

Dec. 31, 2024

Leases [Abstract]

Leases

Leases

As of December 31, 2024, the Company was the lessee in 47 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 December 31, 2024 and 2023:

		December 31,
	Classification	2024			2023
Right-of-use assets:
Operating leases	Operating lease right-of-use assets	$	47,963		$	54,295
Finance leases	Premises and equipment, net	1,145			1,256
Total right-of-use assets		$	49,108		$	55,551
Lease liabilities:
Operating leases	Operating lease liabilities	$	60,024		$	67,643
Finance leases	Borrowings	1,229			1,326
Total lease liabilities		$	61,253		$	68,969
Weighted average remaining lease term (in years) -     operating		11.0			11.6
Weighted average remaining lease term (in years) -     finance		10.4			11.4
Weighted average discount rate - operating		3.47		%	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:

		Years Ended December 31,
	Classification	2024		2023		2022
Operating lease costs:
Amortization of right-of-use asset	Occupancy and equipment	$	6,962	$	8,516	$	8,441
Short-term lease cost	Occupancy and equipment	371		540		526
Variable lease cost	Occupancy and equipment	1,335		1,205		1,078
Loss on lease modifications and     terminations	(1)	—		1,770		346
Finance lease costs:
Interest on lease liabilities	Interest expense on borrowings	22		24		28
Amortization of right-of-use asset	Occupancy and equipment	111		111		120
Sublease income	Occupancy and equipment	(522)		(957)		(993)
Total lease cost		$	8,279	$	11,209	$	9,546

(1) For the year ended December 31, 2023, amount is included in "Occupancy and equipment" related to the closure of two branch locations. For the year ended December 31, 2022, $364 was related to loss on lease modifications and terminations from vacating two locations included in "Mortgage restructuring expense" and $18 of gains on early lease terminations and modifications from other vacated locations included in "Occupancy and equipment".

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 cash flows to lease liabilities as of December 31, 2024 is as follows:

	Operating		Finance
	Leases		Lease
Lease payments due:
December 31, 2025	$	8,562	$	121
December 31, 2026	8,309		123
December 31, 2027	7,849		125
December 31, 2028	6,957		127
December 31, 2029	5,897		129
Thereafter	35,828		721
Total undiscounted future minimum lease payments	73,402		1,346
Less: imputed interest	(13,378)		(117)
Lease liabilities	$	60,024	$	1,229

Leases

Leases

As of December 31, 2024, the Company was the lessee in 47 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 December 31, 2024 and 2023:

		December 31,
	Classification	2024			2023
Right-of-use assets:
Operating leases	Operating lease right-of-use assets	$	47,963		$	54,295
Finance leases	Premises and equipment, net	1,145			1,256
Total right-of-use assets		$	49,108		$	55,551
Lease liabilities:
Operating leases	Operating lease liabilities	$	60,024		$	67,643
Finance leases	Borrowings	1,229			1,326
Total lease liabilities		$	61,253		$	68,969
Weighted average remaining lease term (in years) -     operating		11.0			11.6
Weighted average remaining lease term (in years) -     finance		10.4			11.4
Weighted average discount rate - operating		3.47		%	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:

		Years Ended December 31,
	Classification	2024		2023		2022
Operating lease costs:
Amortization of right-of-use asset	Occupancy and equipment	$	6,962	$	8,516	$	8,441
Short-term lease cost	Occupancy and equipment	371		540		526
Variable lease cost	Occupancy and equipment	1,335		1,205		1,078
Loss on lease modifications and     terminations	(1)	—		1,770		346
Finance lease costs:
Interest on lease liabilities	Interest expense on borrowings	22		24		28
Amortization of right-of-use asset	Occupancy and equipment	111		111		120
Sublease income	Occupancy and equipment	(522)		(957)		(993)
Total lease cost		$	8,279	$	11,209	$	9,546

(1) For the year ended December 31, 2023, amount is included in "Occupancy and equipment" related to the closure of two branch locations. For the year ended December 31, 2022, $364 was related to loss on lease modifications and terminations from vacating two locations included in "Mortgage restructuring expense" and $18 of gains on early lease terminations and modifications from other vacated locations included in "Occupancy and equipment".

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 cash flows to lease liabilities as of December 31, 2024 is as follows:

	Operating		Finance
	Leases		Lease
Lease payments due:
December 31, 2025	$	8,562	$	121
December 31, 2026	8,309		123
December 31, 2027	7,849		125
December 31, 2028	6,957		127
December 31, 2029	5,897		129
Thereafter	35,828		721
Total undiscounted future minimum lease payments	73,402		1,346
Less: imputed interest	(13,378)		(117)
Lease liabilities	$	60,024	$	1,229