Leases

12 Months Ended

Dec. 31, 2023

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 costs for future minimum lease payments are recognized on a straight-line basis over the lease terms. Variable lease costs are expensed in the period in which the obligations are 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, 2023, 2022 and 2021 were as follows:

(in thousands)	2023		2022		2021
Operating lease cost	$	4,935	$	4,957	$	5,131
Variable lease cost		1,469		1,423		1,433
Sublease income		(469)		(555)		(508)
Total lease cost	$	5,935	$	5,825	$	6,056
Cash paid for amounts included in measurement of lease liabilities
Operating cash flows from operating leases	$	5,407	$	5,435	$	5,738
ROU assets obtained in exchange for new operating lease liabilities	$	5,805	$	2,694	$	4,828
Reduction to ROU assets resulting from reduction to lease liabilities	$	300	$	2	$	1,042
Other non-cash reductions to ROU assets	$	—	$	73	$	48

(in thousands)	2023			2022
Operating lease ROU assets	$	13,666		$	12,766
Operating lease liabilities	$	14,880		$	14,499
Weighted-average remaining lease term - operating leases		6.08	years		4.21	years
Weighted-average discount rate - operating leases		3.21	%		2.11	%

Future minimum lease payments under non-cancellable leases as of December 31, 2023 were as follows:

(in thousands)	2023
2024	$	4,090
2025		3,202
2026		2,313
2027		1,544
2028		1,266
Thereafter		4,503
Total future minimum lease payments	$	16,918
Less imputed interest		(2,038)
Total operating lease liability	$	14,880