Leases

3 Months Ended

Mar. 31, 2024

Note 8 – Leases

Leases (Topic 842) establishes a right of use model that requires a lessee to record a right of use asset (“ROU”) and a lease liability for all leases with terms longer than 12 months. The Company is obligated under 26 operating lease agreements for 25 branches and its corporate offices with terms extending through 2039. The Company’s lease agreements include options to renew at the Company’s discretion. The extensions are reasonably certain to be exercised, therefore they were considered in the calculations of the ROU asset and lease liability.

The following table represents the classification of the Company’s right of use and lease liability.


	Statement of Financial Condition Location		Three Months Ended March 31, 2024			Year ended December 31, 2023
			(In thousands)
Operating Lease Right of Use Asset:
Gross carrying amount			$	23,398		$	16,026
Increased asset from new leases				1,808			9,799
Accumulated amortization				(2,480	)		(2,427	)

Net book value		Operating lease right-of-use asset	$	22,726		$	23,398

Operating Lease Liability:
Lease liability		Operating lease liability	$	23,643		$	24,280

As of March 31, 2024, the weighted-average remaining lease terms for operating leases was 11.6 years and the weighted-average discount rate used in the measurement of operating lease liabilities was 3.48%. The Company used FHLB fixed rate advances or at the time the lease was placed in service for the term most closely aligning with remaining lease term.

Future minimum payments under operating leases with terms longer than 12 months are as follows at March 31, 2024 (in thousands):


Twelve months ended March 31,
2024	$	3,501
2025		3,453
2026		3,269
2027		2,992
2028		2,779
Thereafter		15,748

Total future operating lease payment		31,742
Amounts representing interest		(8,099	)

Present value of net future lease payments	$	23,643


	Three Months Ended March 31,
	2024		2023
	(In thousands)
Lease cost:
Operating lease	$	987	$	665
Short-term lease cost		48		2

Total lease cost	$	1,035	$	667

Other information:
Cash paid for amounts included in the measurement of lease liabilities	$	898	$	585