Premises and Equipment

12 Months Ended

Dec. 31, 2024

Property, Plant and Equipment [Abstract]

Premises and Equipment

Premises and Equipment

Premises and equipment, net of accumulated depreciation, consist of the following:

(Dollars in thousands)	December 31, 2024		December 31, 2023
Land	$	84,402	76,557
Buildings and construction in progress	395,458		344,906
Furniture, fixtures and equipment	123,901		120,096
Leasehold improvements	15,950		16,328
Accumulated depreciation	(207,743)		(201,159)
Net premises and equipment, excluding ROU assets	411,968		356,728
ROU assets, net	56,252		65,063
Net premises and equipment	$	468,220	421,791

The Company capitalized interest related to assets of $618,000 and $913,000 for the years ended December 31, 2024 and December 31, 2023, respectively. The Company had $8,122,000, and $0 of premises held for sale at December 31, 2024 and December 31, 2023, respectively.

Leases

The Company leases certain land, premises and equipment from third parties. ROU assets for operating and finance leases are included in net premises and equipment and lease liabilities are included in other liabilities and other borrowed funds, respectively, on the Company’s statements of financial condition. The following table summarizes the Company’s leases:

	December 31, 2024					December 31, 2023
(Dollars in thousands)	Finance Leases			Operating Leases		Finance Leases		Operating Leases
ROU assets	$	31,022				31,222
Accumulated depreciation	(11,056)					(6,940)
Net ROU assets	$	19,966		36,286		24,282		40,781
Lease liabilities	$	21,279		39,902		25,116		44,319
Weighted-average remaining lease term	11 years			15 years		11 years		16 years
Weighted-average discount rate	3.6		%	3.7	%	3.6	%	3.7	%

Maturities of lease liabilities consist of the following:

	December 31, 2024
(Dollars in thousands)	Finance Leases		Operating Leases
Maturing within one year	$	4,666	4,651
Maturing one year through two years	4,677		4,724
Maturing two years through three years	4,686		4,433
Maturing three years through four years	589		3,752
Maturing four years through five years	596		3,429
Thereafter	10,549		33,608
Total lease payments	25,763		54,597
Present value of lease payments
Short-term	3,985		3,245
Long-term	17,294		36,657
Total present value of lease payments	21,279		39,902
Difference between lease payments and present value of lease payments	$	4,484	14,695

The components of lease expense included in other expense on the consolidated statements of operations consist of the following:

	Year ended
(Dollars in thousands)	December 31, 2024	December 31, 2023
Finance lease cost
Amortization of ROU assets	4,364	4,201
Interest on lease liabilities	844	958
Operating lease cost	5,204	5,531
Short-term lease cost	481	633
Variable lease cost	1,706	1,666
Sublease income	(44)	(39)
Total lease expense	12,555	12,950

Supplemental cash flow information related to leases is as follows:

	Year ended
	December 31, 2024			December 31, 2023
(Dollars in thousands)	Finance Leases		Operating Leases	Finance Leases	Operating Leases
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows	$	844	3,418	958	3,500
Financing cash flows	3,852		N/A	3,588	N/A

______________________________

N/A - Not applicable

The Company also leases office space to third parties through operating leases. Rent income from these leases for the year ended December 31, 2024 and 2023 was $1,592,000 and $1,298,000, respectively, and is recorded in other income within non-interest income.