Leases

12 Months Ended

Dec. 31, 2025

Leases [Abstract]

Leases

Leases

Under non-cancellable operating leases, the Corporation has committed to rent premises used in business operations, including branch offices, lending offices, and wealth management offices.

In the first quarter of 2025, sale-leaseback transactions were completed for five branch locations. The transactions qualified as a sale under GAAP and as a result a pre-tax net gain on the sale of bank-owned properties totaling $7.0 million was recognized in noninterest income. In addition, operating lease ROU assets of $10.0 million and operating lease liabilities of $10.0 million were recorded. These leases expire in 17 years and include the option to renew for two additional 15-year terms.

As of both December 31, 2025 and 2024, there were no operating leases that had not yet commenced.

The following table presents information regarding the Corporation’s operating leases:

At December 31,	2025		2024
Operating lease ROU assets	$35,904		$26,943
Operating lease liabilities	$38,726		$29,578
Weighted average discount rate	5.41	%	3.80	%
Range of lease expiration dates	4 months - 22 years		4 months - 23 years
Range of lease renewal options	3 years - 15 years		1 year - 5 years
Weighted average remaining lease term	12.9 years		12.6 years

The following table presents the undiscounted annual lease payments under the terms of the Corporation’s operating leases at December 31, 2025, including a reconciliation to the present value of operating lease liabilities recognized in the Consolidated Balance Sheets:

(Dollars in thousands)
Years ending December 31:	2026	$4,882
	2027	4,485
	2028	4,205
	2029	4,101
	2030	4,109
	2031 and thereafter	32,472
Total operating lease payments		54,254
Less: interest		15,528
Present value of operating lease liabilities (1)		$38,726

(1)Includes short-term operating lease liabilities of $3.0 million.

The following table presents the components of total lease expense and operating cash flows:

(Dollars in thousands)
Year ended December 31,	2025	2024	2023
Lease Expense:
Operating lease expense	$5,298	$4,482	$4,476
Variable lease expense	206	170	201
Total lease expense (1)	$5,504	$4,652	$4,677
Cash Paid:
Cash paid reducing operating lease liabilities	$5,111	$4,510	$4,275

(1)Included in net occupancy expenses in the Consolidated Statements of Income (Loss).