Leases

3 Months Ended

Mar. 31, 2024

Note 6. Leases

The Company has 16 operating leases for branches (including headquarters) and office spaces and five operating leases for equipment. Our leases have remaining lease terms ranging from less than one year to approximately 14.8 years, none of which has a renewal option reasonably certain of exercise, which has been reflected in the Company’s calculation of lease term.

Certain leases have escalation clauses for operating expenses and real estate taxes. The Company’s non-cancelable operating lease agreements expire through 2038.

Supplemental balance sheet information related to leases was as follows:


	March 31,			December 31,
	2024			2023
	(Dollars in thousands)
Operating lease ROU assets	$	31,021		$	31,272
Operating lease liabilities		32,486			32,684
Weighted-average remaining lease term-operating leases	12.4 years			12.6 years
Weighted average discount rate-operating leases		4.9	%		4.9	%

The components of lease expense and cash flow information related to leases were as follows:


		For the Three Months Ended
		March 31,
		2024		2023
		(Dollars in thousands)
Lease Cost
Operating lease cost	Occupancy and equipment	$	1,026	$	1,015
Operating lease cost	Other operating expenses		3		4
Short-term lease cost	Other operating expenses		5		6
Variable lease cost	Occupancy and equipment		39		31
Total lease cost		$	1,073	$	1,056

The Company’s minimum annual rental payments under the terms of the leases are as follows at March 31, 2024:


	Minimum Rental
Years ended December 31:	(in thousands)
Remainder of 2024	$	2,912
2025		3,818
2026		3,668
2027		3,537
2028		3,594
Thereafter		25,474
Total Minimum payments required		43,003
Less: implied interest		10,517
Present value of lease liabilities	$	32,486