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LEASES
 9 Months Ended
Sep. 30, 2025
Leases [Abstract]  
LEASES
8. LEASES
As a lessee, the Company enters into leases for its bank branches, corporate offices, and certain equipment. As a lessor, the Company primarily provides financing through its equipment leasing business.
Lessee
The Company's ongoing leases have remaining lease terms of less than one year to 20 years, which includes renewal options that are reasonably expected to be exercised at its discretion. The Company's lease terms to calculate the lease liability and right-of-use asset include options to extend the lease when it is reasonably certain that the Company will exercise the option. The lease liability and right-of-use asset is included in Other liabilities and Other assets, respectively, in the unaudited Consolidated Statements of Financial Condition. Leases with an initial term of 12 months or less are not recorded on the unaudited Consolidated Statements of Financial Condition. Lease expense is recognized on a straight-line basis over the lease term. Operating lease expense is included in Occupancy expense in the unaudited Consolidated Statements of Income. The Company accounts for lease components separately from nonlease components. The Company subleases certain real estate to third parties.
The components of operating lease cost were as follows:
Three months endedNine months ended
(Dollars in thousands)September 30, 2025September 30, 2024September 30, 2025September 30, 2024
Operating lease cost (1)
$3,919 $4,308 $12,547 $12,732 
Sublease income(27)(30)(78)(90)
Net lease cost$3,892 $4,278 $12,469 $12,642 
(1)Includes variable lease cost and short-term lease cost.
Supplemental information related to operating leases was as follows:
(Dollars in thousands)September 30, 2025December 31, 2024
Right-of-use assets$107,267 $131,126 
Lease liabilities$130,465 $152,364 
Lease term and discount rate
Weighted average remaining lease term (in years)11.4612.62
Weighted average discount rate5.24 %5.28 %
Maturities of operating lease liabilities were as follows:
(Dollars in thousands)September 30, 2025
Remaining in 2025$4,643 
202617,577 
202715,563 
202815,365 
202914,932 
After 2029106,247 
Total lease payments174,327 
Less: Interest(43,862)
Present value of lease liabilities$130,465 
Supplemental cash flow information related to operating leases was as follows:
Three months endedNine months ended
(Dollars in thousands)September 30, 2025September 30, 2024September 30, 2025September 30, 2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$4,901 $4,999 $14,368 $14,482 
As of September 30, 2025, the Company had entered into one lease that has not yet commenced with estimated future lease payments of approximately $25.2 million. This lease is expected to commence in the third quarter of 2026, with an initial lease term of 13 years.
Lessor Equipment Leasing
The Company provides equipment and small business lease financing through its leasing subsidiary, NewLane Finance®. Interest income from direct financing leases where the Company is a lessor is recognized in Interest and fees on loans and leases on the unaudited Consolidated Statements of Income. The allowance for credit losses on finance leases is included in Provision for credit losses on the unaudited Consolidated Statements of Income.
The components of direct finance lease income are summarized in the table below:
Three months endedNine months ended
(Dollars in thousands)September 30, 2025September 30, 2024September 30, 2025September 30, 2024
Direct financing leases:
Interest income on lease receivable$15,893 $16,051 $48,173 $46,665 
Interest income on deferred fees and costs, net(2,307)(2,034)(6,853)(5,715)
Total direct financing lease net interest income$13,586 $14,017 $41,320 $40,950 
Equipment leasing receivables relate to direct financing leases. The composition of the net investment in direct financing leases was as follows:
(Dollars in thousands)September 30, 2025December 31, 2024
Lease receivables$712,221 $749,968 
Unearned income(113,865)(122,846)
Deferred fees and costs18,900 20,394 
Net investment in direct financing leases$617,256 $647,516 
LEASES
8. LEASES
As a lessee, the Company enters into leases for its bank branches, corporate offices, and certain equipment. As a lessor, the Company primarily provides financing through its equipment leasing business.
Lessee
The Company's ongoing leases have remaining lease terms of less than one year to 20 years, which includes renewal options that are reasonably expected to be exercised at its discretion. The Company's lease terms to calculate the lease liability and right-of-use asset include options to extend the lease when it is reasonably certain that the Company will exercise the option. The lease liability and right-of-use asset is included in Other liabilities and Other assets, respectively, in the unaudited Consolidated Statements of Financial Condition. Leases with an initial term of 12 months or less are not recorded on the unaudited Consolidated Statements of Financial Condition. Lease expense is recognized on a straight-line basis over the lease term. Operating lease expense is included in Occupancy expense in the unaudited Consolidated Statements of Income. The Company accounts for lease components separately from nonlease components. The Company subleases certain real estate to third parties.
The components of operating lease cost were as follows:
Three months endedNine months ended
(Dollars in thousands)September 30, 2025September 30, 2024September 30, 2025September 30, 2024
Operating lease cost (1)
$3,919 $4,308 $12,547 $12,732 
Sublease income(27)(30)(78)(90)
Net lease cost$3,892 $4,278 $12,469 $12,642 
(1)Includes variable lease cost and short-term lease cost.
Supplemental information related to operating leases was as follows:
(Dollars in thousands)September 30, 2025December 31, 2024
Right-of-use assets$107,267 $131,126 
Lease liabilities$130,465 $152,364 
Lease term and discount rate
Weighted average remaining lease term (in years)11.4612.62
Weighted average discount rate5.24 %5.28 %
Maturities of operating lease liabilities were as follows:
(Dollars in thousands)September 30, 2025
Remaining in 2025$4,643 
202617,577 
202715,563 
202815,365 
202914,932 
After 2029106,247 
Total lease payments174,327 
Less: Interest(43,862)
Present value of lease liabilities$130,465 
Supplemental cash flow information related to operating leases was as follows:
Three months endedNine months ended
(Dollars in thousands)September 30, 2025September 30, 2024September 30, 2025September 30, 2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$4,901 $4,999 $14,368 $14,482 
As of September 30, 2025, the Company had entered into one lease that has not yet commenced with estimated future lease payments of approximately $25.2 million. This lease is expected to commence in the third quarter of 2026, with an initial lease term of 13 years.
Lessor Equipment Leasing
The Company provides equipment and small business lease financing through its leasing subsidiary, NewLane Finance®. Interest income from direct financing leases where the Company is a lessor is recognized in Interest and fees on loans and leases on the unaudited Consolidated Statements of Income. The allowance for credit losses on finance leases is included in Provision for credit losses on the unaudited Consolidated Statements of Income.
The components of direct finance lease income are summarized in the table below:
Three months endedNine months ended
(Dollars in thousands)September 30, 2025September 30, 2024September 30, 2025September 30, 2024
Direct financing leases:
Interest income on lease receivable$15,893 $16,051 $48,173 $46,665 
Interest income on deferred fees and costs, net(2,307)(2,034)(6,853)(5,715)
Total direct financing lease net interest income$13,586 $14,017 $41,320 $40,950 
Equipment leasing receivables relate to direct financing leases. The composition of the net investment in direct financing leases was as follows:
(Dollars in thousands)September 30, 2025December 31, 2024
Lease receivables$712,221 $749,968 
Unearned income(113,865)(122,846)
Deferred fees and costs18,900 20,394 
Net investment in direct financing leases$617,256 $647,516