Note 24 - Leases

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

(24) Leases

Bancorp has operating leases for various locations with terms ranging from approximately three months to 24 years, several of which include options to extend the leases in five-year increments. Options reasonably expected to be exercised are included in determination of the right-of-use asset. Bancorp elected to use a practical expedient to expense short-term lease obligations associated with leases with original terms of 12 months or less. Bancorp elected not to separate non-lease components from lease components for its operating leases. The right-of-use lease asset and operating lease liability are recorded in premises and equipment and other liabilities on the consolidated balance sheet.

Balance sheet, income statement and cash flow detail regarding operating leases follows:

(dollars in thousands)	September 30, 2024			December 31, 2023
Balance Sheet
Operating lease right-of-use asset	$	29,468		$	21,007
Operating lease liability		30,953			22,487
Weighted average remaining lease term (years)		11.2			9.8
Weighted average discount rate		3.73	%		2.84	%
Maturities of lease liabilities:
One year or less	$	1,012		$	3,365
Year two		3,855			2,864
Year three		3,666			2,543
Year four		3,674			2,536
Year five		3,712			2,547
Greater than five years		22,590			12,059
Total lease payments	$	38,509		$	25,914
Less imputed interest		7,556			3,427
Total	$	30,953		$	22,487

	Three months ended		Three months ended
(in thousands)	September 30, 2024		September 30, 2023
Income Statement
Components of lease expense:
Operating lease cost	$	1,057	$	815
Variable lease cost		88		96
Less sublease income		26		25
Total lease cost	$	1,119	$	886

	Nine months ended		Nine months ended
(in thousands)	September 30, 2024		September 30, 2023
Income Statement
Components of lease expense:
Operating lease cost	$	3,215	$	2,492
Variable lease cost		257		235
Less sublease income		77		75
Total lease cost	$	3,395	$	2,652

	Nine months ended		Nine months ended
(in thousands)	September 30, 2024		September 30, 2023
Cash flow Statement
Supplemental cash flow information:
Operating cash flows from operating leases	$	3,567	$	3,111

As of September 30, 2024, Bancorp had not entered into any lease agreements that had yet to commence.