Leases

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Leases

11. LEASES

Right-of-use (ROU) assets are included in the other assets line item and lease liabilities are included in the other liabilities line item of the consolidated balance sheet. We determine if a contract contains a lease at inception and recognize operating lease ROU assets and operating lease liabilities based on the present value of the future minimum lease payments at the commencement date. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the

commencement date in determining the present value of future payments. Lease agreements may include options to extend or terminate. The options are exercised at our discretion and are included in operating lease liabilities if it is reasonably certain the option will be exercised. Lease agreements have lease and non-lease components, which are accounted for as a single lease component. Operating lease cost for future minimum lease payments is recognized on a straight-line basis over the lease term. Variable lease cost is expensed in the period in which the obligation is incurred. Sublease income is recognized on a straight-line basis over the sublease term.

The components of lease expense and other lease information as of and during the years ended December 31, 2022, 2021 and 2020 were as follows:

(in thousands)	2022		2021		2020
Operating lease cost	$	4,957	$	5,131	$	5,504
Variable lease cost		1,423		1,433		1,346
Sublease income		(555)		(508)		(262)
Total lease cost	$	5,825	$	6,056	$	6,588
Cash paid for amounts included in measurement of lease liabilities
Operating cash flows from operating leases	$	5,435	$	5,738	$	5,963
ROU assets obtained in exchange for new operating lease liabilities	$	2,694	$	4,828	$	81
Reduction to ROU assets resulting from reduction to lease liabilities	$	2	$	1,042	$	18
Other non-cash reductions to ROU assets	$	73	$	48	$	1,192

(in thousands)	2022			2021
Operating lease ROU assets	$	12,766		$	14,765
Operating lease liabilities	$	14,499		$	16,905
Weighted-average remaining lease term - operating leases		4.21	years		4.52	years
Weighted-average discount rate - operating leases		2.11	%		2.02	%

Future minimum lease payments under non-cancellable leases as of December 31, 2022 were as follows:

(in thousands)	2022
2023	$	5,578
2024		3,628
2025		2,216
2026		1,311
2027		826
Thereafter		1,587
Total future minimum lease payments	$	15,146
Less imputed interest		(647)
Total operating lease liability	$	14,499