Leases

9 Months Ended

Sep. 30, 2025

As of September 30, 2025, the Company was the lessee in 50 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 September 30, 2025 and December 31, 2024:


		September 30,			December 31,

	Classification	2025			2024
Right-of-use assets:
Operating leases	Operating lease right-of-use assets	$	51,035		$	47,963
Finance leases	Premises and equipment, net	1,063			1,145
Total right-of-use assets		$	52,098		$	49,108
Lease liabilities:
Operating leases	Operating lease liabilities	$	62,664		$	60,024
Finance leases	Borrowings	1,154			1,229
Total lease liabilities		$	63,818		$	61,253
Weighted average remaining lease term (in years) - operating		11.0			11.0
Weighted average remaining lease term (in years) - finance		9.6			10.4
Weighted average discount rate - operating		3.68		%	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				Nine Months Ended
		September 30,				September 30,
	Classification	2025		2024		2025		2024
Operating lease costs:
Amortization of right-of-use asset	Occupancy and equipment	$	2,023	$	1,362	$	5,846	$	5,048
Short-term lease cost	Occupancy and equipment	70		96		229		282
Variable lease cost	Occupancy and equipment	333		321		1,302		1,024

Loss on lease terminations	Occupancy and equipment	265		—		265		—
Finance lease costs:
Interest on lease liabilities	Interest expense on borrowings	6		6		16		17
Amortization of right-of-use asset	Occupancy and equipment	28		28		83		83

Sublease income	Occupancy and equipment	(214)		(96)		(634)		(407)
Total lease cost		$	2,511	$	1,717	$	7,107	$	6,047

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 September 30, 2025 is as follows:


	Operating		Finance
	Leases		Lease

September 30, 2026	$	2,317	$	31
September 30, 2027	9,127		123
September 30, 2028	8,658		125
September 30, 2029	7,744		127
September 30, 2030	6,718		129
Thereafter	42,864		721
Total undiscounted future minimum lease payments	77,428		1,256
Less: imputed interest	(14,764)		(102)
Lease liabilities	$	62,664	$	1,154

Leases

As of September 30, 2025, the Company was the lessee in 50 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 September 30, 2025 and December 31, 2024:


		September 30,			December 31,

	Classification	2025			2024
Right-of-use assets:
Operating leases	Operating lease right-of-use assets	$	51,035		$	47,963
Finance leases	Premises and equipment, net	1,063			1,145
Total right-of-use assets		$	52,098		$	49,108
Lease liabilities:
Operating leases	Operating lease liabilities	$	62,664		$	60,024
Finance leases	Borrowings	1,154			1,229
Total lease liabilities		$	63,818		$	61,253
Weighted average remaining lease term (in years) - operating		11.0			11.0
Weighted average remaining lease term (in years) - finance		9.6			10.4
Weighted average discount rate - operating		3.68		%	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				Nine Months Ended
		September 30,				September 30,
	Classification	2025		2024		2025		2024
Operating lease costs:
Amortization of right-of-use asset	Occupancy and equipment	$	2,023	$	1,362	$	5,846	$	5,048
Short-term lease cost	Occupancy and equipment	70		96		229		282
Variable lease cost	Occupancy and equipment	333		321		1,302		1,024

Loss on lease terminations	Occupancy and equipment	265		—		265		—
Finance lease costs:
Interest on lease liabilities	Interest expense on borrowings	6		6		16		17
Amortization of right-of-use asset	Occupancy and equipment	28		28		83		83

Sublease income	Occupancy and equipment	(214)		(96)		(634)		(407)
Total lease cost		$	2,511	$	1,717	$	7,107	$	6,047

A maturity analysis of operating and finance lease liabilities and a reconciliation of cash flows to lease liabilities as of September 30, 2025 is as follows:


	Operating		Finance
	Leases		Lease

September 30, 2026	$	2,317	$	31
September 30, 2027	9,127		123
September 30, 2028	8,658		125
September 30, 2029	7,744		127
September 30, 2030	6,718		129
Thereafter	42,864		721
Total undiscounted future minimum lease payments	77,428		1,256
Less: imputed interest	(14,764)		(102)
Lease liabilities	$	62,664	$	1,154