Leases

6 Months Ended

Jun. 30, 2024

Note 6. Leases

The Company has 17 operating leases for branches (including headquarters) and office spaces and six operating leases for equipment. Our leases have remaining lease terms ranging from less than one year to approximately 14.5 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:


	June 30,			December 31,
	2024			2023
	(Dollars in thousands)
Operating lease ROU assets	$	30,349		$	31,272
Operating lease liabilities		31,861			32,684
Weighted-average remaining lease term-operating leases	12.2 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				For the Six Months Ended
		June 30,				June 30,
		2024		2023		2024		2023
		(Dollars in thousands)
Lease Cost
Operating lease cost	Occupancy and equipment	$	1,021	$	1,079	$	2,047	$	2,094
Operating lease cost	Other operating expenses		19		6		22		10
Short-term lease cost	Other operating expenses		5		4		10		10
Variable lease cost	Occupancy and equipment		36		31		76		62
Total lease cost		$	1,081	$	1,120	$	2,155	$	2,176

The Company’s minimum annual rental payments under the terms of the leases are as follows at June 30, 2024:


	Minimum Rental
Years ended December 31:	(in thousands)
Remainder of 2024	$	1,956
2025		3,864
2026		3,716
2027		3,561
2028		3,594
Thereafter		25,474
Total Minimum payments required		42,165
Less: implied interest		10,304
Present value of lease liabilities	$	31,861