Leases

12 Months Ended

Dec. 31, 2024

Leases [Abstract]

Leases

Leases

(In Thousands)

The Company enters into leases in both lessor and lessee capacities.

Lessor Arrangements

As of December 31, 2024 and 2023, the net investment in these leases was $30,846 and $42,761, comprised of $26,655 and $34,929 in lease receivables, $7,961 and $13,446 in residual balances and $3,770 and $5,614 in deferred income, respectively. In order to mitigate potential exposure to residual asset risk, the Company utilizes first amendment or terminal rental adjustment clause leases.

For the twelve months ended December 31, 2024 and 2023, the Company generated $1,080 and $1,441 in income from these leases, respectively, which is included in interest income on loans on the Consolidated Statements of Income.

The maturities of the lessor arrangements outstanding at December 31, 2024 is presented in the table below.

2025	$	365
2026	722
2027	205
2028	479
2029	8,395
Thereafter	20,680
Total lease receivables	$	30,846

Lessee Arrangements

As of December 31, 2024 and 2023, right-of-use assets totaled $46,811 and $48,517 and lease liabilities totaled $49,385 and $51,130, respectively. The table below provides the components of lease cost and supplemental information for the periods presented.

	Year ended December 31,
	2024			2023
Operating lease cost (cost resulting from lease payments)	$	6,705		$	7,333
Short-term lease cost	51			217
Variable lease cost (cost excluded from lease payments)	960			800
Sublease income	(639)			(551)
Net lease cost	$	7,077		$	7,799
Operating lease - operating cash flows (fixed payments)	6,714			7,171
Operating lease - operating cash flows (liability reduction)	4,943			5,472
Weighted average lease term - operating leases (in years) (at period end)	18.11			18.51
Weighted average discount rate - operating leases (at period end)	3.55		%	3.49		%
Right-of-use assets obtained in exchange for new lease liabilities - operating leases	$	4,630		$	3,126

The maturities of the lessee arrangements outstanding at December 31, 2024 are presented in the table below.

2025	$	6,186
2026	5,367
2027	4,727
2028	4,494
2029	4,274
Thereafter	42,294
Total undiscounted cash flows	67,342
Discount on cash flows	17,957
Total operating lease liabilities	$	49,385

Rental expense was $6,136, $6,859, and $7,623 for 2024, 2023, and 2022, respectively.

For more information on lease accounting, see Note 1, “Significant Accounting Policies” and on lease financing receivables, see Note 3, “Loans.”

Leases

Leases

(In Thousands)

The Company enters into leases in both lessor and lessee capacities.

Lessor Arrangements

As of December 31, 2024 and 2023, the net investment in these leases was $30,846 and $42,761, comprised of $26,655 and $34,929 in lease receivables, $7,961 and $13,446 in residual balances and $3,770 and $5,614 in deferred income, respectively. In order to mitigate potential exposure to residual asset risk, the Company utilizes first amendment or terminal rental adjustment clause leases.

For the twelve months ended December 31, 2024 and 2023, the Company generated $1,080 and $1,441 in income from these leases, respectively, which is included in interest income on loans on the Consolidated Statements of Income.

The maturities of the lessor arrangements outstanding at December 31, 2024 is presented in the table below.

2025	$	365
2026	722
2027	205
2028	479
2029	8,395
Thereafter	20,680
Total lease receivables	$	30,846

Lessee Arrangements

As of December 31, 2024 and 2023, right-of-use assets totaled $46,811 and $48,517 and lease liabilities totaled $49,385 and $51,130, respectively. The table below provides the components of lease cost and supplemental information for the periods presented.

	Year ended December 31,
	2024			2023
Operating lease cost (cost resulting from lease payments)	$	6,705		$	7,333
Short-term lease cost	51			217
Variable lease cost (cost excluded from lease payments)	960			800
Sublease income	(639)			(551)
Net lease cost	$	7,077		$	7,799
Operating lease - operating cash flows (fixed payments)	6,714			7,171
Operating lease - operating cash flows (liability reduction)	4,943			5,472
Weighted average lease term - operating leases (in years) (at period end)	18.11			18.51
Weighted average discount rate - operating leases (at period end)	3.55		%	3.49		%
Right-of-use assets obtained in exchange for new lease liabilities - operating leases	$	4,630		$	3,126

The maturities of the lessee arrangements outstanding at December 31, 2024 are presented in the table below.

2025	$	6,186
2026	5,367
2027	4,727
2028	4,494
2029	4,274
Thereafter	42,294
Total undiscounted cash flows	67,342
Discount on cash flows	17,957
Total operating lease liabilities	$	49,385

Rental expense was $6,136, $6,859, and $7,623 for 2024, 2023, and 2022, respectively.

For more information on lease accounting, see Note 1, “Significant Accounting Policies” and on lease financing receivables, see Note 3, “Loans.”