Leases

3 Months Ended

Mar. 31, 2025

Leases [Abstract]

Leases

7. 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 Company’s operating lease obligations are for branch office facilities. The components of lease expense and other lease-related information, as of and during the three-month period ended March 31, 2025 and 2024, were as follows:

	For the Three Months
	Ended March 31,
(in thousands)	2025		2024
Operating lease cost	$	1,150	$	1,181
Variable lease cost		289		269
Sublease income		(42)		(42)
Total lease cost	$	1,397	$	1,408
Cash paid for amounts included in measurement of lease liabilities
Operating cash outflows from operating leases	$	1,229	$	1,063
ROU assets obtained in exchange for new operating lease liabilities	$	13	$	3,456

(in thousands)	March 31, 2025			December 31, 2024
Operating lease ROU assets	$	13,018		$	14,016
Operating lease liabilities	$	14,633		$	15,711
Weighted-average remaining lease term - operating leases		6.00	years		6.01	years
Weighted-average discount rate - operating leases		3.65	%		3.63	%

Future minimum lease payments under non-cancellable leases as of March 31, 2025 were as follows:

(in thousands)	March 31, 2025
2025	$	3,141
2026		3,713
2027		2,306
2028		1,617
2029		1,443
2030		887
Thereafter		3,602
Total future minimum lease payments	$	16,709
Less imputed interest		(2,076)
Total operating lease liability	$	14,633