XML 36 R14.htm IDEA: XBRL DOCUMENT v3.25.0.1
Leases
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Capital Leases in Financial Statements of Lessee Disclosure Leases
The Corporation has operating leases for retail and corporate offices, land, and equipment. The Corporation also has a finance lease for retail and corporate offices.
These leases have original terms of 1 year or longer with remaining maturities up to 38 years, some of which include options to extend the lease term. An analysis of the lease options has been completed and any purchase options or optional periods that the Corporation is reasonably likely to extend have been included in the capitalization.
The discount rate used to capitalize the operating leases is the FHLB borrowing rate on the date of lease commencement. When determining the rate to discount specific lease obligations, the repayment period and term are considered.
Operating and finance lease costs and cash flows resulting from these leases are presented below:
Twelve Months Ended December 31,
($ in thousands)202420232022
Operating lease costs$6,414 $6,281 $6,812 
Finance lease costs373 92 119 
Operating lease cash flows6,617 7,171 8,440 
Finance lease cash flows93 92 125 
The right-of-use asset and lease liability by lease classifications on the consolidated balance sheets were as follows:
Consolidated Balance Sheets Category
($ in thousands)December 31, 2024December 31, 2023
Operating lease right-of-use assetPremises and equipment$33,202 $24,712 
Finance lease right-of-use assetOther assets— 368 
Operating lease liabilityAccrued expenses and other liabilities35,596 27,311 
Finance lease liabilityOther long-term funding295 383 
The lease payment obligations, weighted-average remaining lease term, and weighted-average original discount rate were as follows:
December 31, 2024December 31, 2023
($ in thousands)Lease PaymentsWeighted-average Lease Term (in years)Weighted-average Discount RateLease PaymentsWeighted-average Lease Term (in years)Weighted-average Discount Rate
Operating leases
Retail and corporate offices$39,072 8.304.26 %$25,729 5.763.12 %
Land3,228 6.633.52 %4,050 6.983.48 %
Equipment204 1.504.62 %408 2.504.62 %
Total operating leases$42,505 8.134.20 %$30,187 5.883.19 %
Finance leases
Retail and corporate offices$301 3.251.32 %$394 4.251.32 %
Total finance leases$301 3.251.32 %$394 4.251.32 %
Contractual lease payment obligations for each of the next five years and thereafter, in addition to a reconciliation to the Corporation’s lease liability, were as follows:
($ in thousands)Operating LeasesFinance LeasesTotal Leases
2025$6,760 $93 $6,853 
20266,228 93 6,321 
20275,572 93 5,664 
20284,845 23 4,868 
20293,612 — 3,612 
Beyond 202915,487 — 15,487 
Total lease payments$42,505 $301 $42,806 
Less: interest6,909 6 6,915 
Present value of lease payments$35,596 $295 $35,891 
At December 31, 2024 and 2023, additional operating leases, primarily retail and corporate offices, that had not yet commenced totaled $2 million and $3 million, respectively. The leases that had not yet commenced as of December 31, 2024 will commence between January 2025 and April 2025 with lease terms of 1 year to 7 years.
The Corporation conducts a portion of its business through certain facilities and equipment under non-cancelable operating leases. The Corporation also leases a subdivision of some of its facilities and receives rental income from such lease agreements, included within occupancy expense on the consolidated statements of income. The approximate minimum annual rental payments and rental receipts under non-cancelable agreements and leases are as follows:
($ in thousands)PaymentsReceipts
2025$6,565 $3,628 
20266,293 3,475 
20275,636 3,170 
20284,855 2,510 
20293,604 2,454 
Beyond 202915,650 11,493 
Total$42,603 $26,730 
Total rental expense from leases, net of lease income, totaled $3 million in 2024, $2 million in 2023, and $3 million in 2022