Leases

3 Months Ended

Mar. 31, 2025

Leases [Abstract]

Leases

Leases

As of March 31, 2025, 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, 2025 and December 31, 2024:

		March 31,			December 31,
	Classification	2025			2024
Right-of-use assets:
Operating leases	Operating lease right-of-use assets	$	47,381		$	47,963
Finance leases	Premises and equipment, net	1,118			1,145
Total right-of-use assets		$	48,499		$	49,108
Lease liabilities:
Operating leases	Operating lease liabilities	$	59,174		$	60,024
Finance leases	Borrowings	1,204			1,229
Total lease liabilities		$	60,378		$	61,253
Weighted average remaining lease term (in years) -     operating		10.9			11.0
Weighted average remaining lease term (in years) -     finance		10.1			10.4
Weighted average discount rate - operating		3.49		%	3.47		%
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	2025		2024
Operating lease costs:
Amortization of right-of-use asset	Occupancy and equipment	$	1,878	$	1,927
Short-term lease cost	Occupancy and equipment	85		97
Variable lease cost	Occupancy and equipment	494		336
Finance lease costs:
Interest on lease liabilities	Interest expense on borrowings	5		6
Amortization of right-of-use asset	Occupancy and equipment	28		28
Sublease income	Occupancy and equipment	(205)		(172)
Total lease cost		$	2,285	$	2,222

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 March 31, 2025 is as follows:

	Operating		Finance
	Leases		Lease
Lease payments due:
March 31, 2026	$	8,516	$	122
March 31, 2027	8,386		124
March 31, 2028	7,784		126
March 31, 2029	6,807		127
March 31, 2030	5,917		129
Thereafter	34,845		688
Total undiscounted future minimum lease payments	72,255		1,316
Less: imputed interest	(13,081)		(112)
Lease liabilities	$	59,174	$	1,204

Leases

Leases

As of March 31, 2025, 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, 2025 and December 31, 2024:

		March 31,			December 31,
	Classification	2025			2024
Right-of-use assets:
Operating leases	Operating lease right-of-use assets	$	47,381		$	47,963
Finance leases	Premises and equipment, net	1,118			1,145
Total right-of-use assets		$	48,499		$	49,108
Lease liabilities:
Operating leases	Operating lease liabilities	$	59,174		$	60,024
Finance leases	Borrowings	1,204			1,229
Total lease liabilities		$	60,378		$	61,253
Weighted average remaining lease term (in years) -     operating		10.9			11.0
Weighted average remaining lease term (in years) -     finance		10.1			10.4
Weighted average discount rate - operating		3.49		%	3.47		%
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	2025		2024
Operating lease costs:
Amortization of right-of-use asset	Occupancy and equipment	$	1,878	$	1,927
Short-term lease cost	Occupancy and equipment	85		97
Variable lease cost	Occupancy and equipment	494		336
Finance lease costs:
Interest on lease liabilities	Interest expense on borrowings	5		6
Amortization of right-of-use asset	Occupancy and equipment	28		28
Sublease income	Occupancy and equipment	(205)		(172)
Total lease cost		$	2,285	$	2,222

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 March 31, 2025 is as follows:

	Operating		Finance
	Leases		Lease
Lease payments due:
March 31, 2026	$	8,516	$	122
March 31, 2027	8,386		124
March 31, 2028	7,784		126
March 31, 2029	6,807		127
March 31, 2030	5,917		129
Thereafter	34,845		688
Total undiscounted future minimum lease payments	72,255		1,316
Less: imputed interest	(13,081)		(112)
Lease liabilities	$	59,174	$	1,204