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LEASE OBLIGATIONS
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
LEASE OBLIGATIONS LEASE OBLIGATIONS
The Company enters into leases in the normal course of business primarily for financial centers, back-office operations locations and business development offices. The Company’s leases have remaining terms ranging from 1 to 7 years.
The Company includes lease extension and termination options in the lease term if, after considering relevant economic factors, it is reasonably certain the Company will exercise the option. In addition, the Company has elected to account for any non-lease components in its real estate leases as part of the associated lease component. The Company has also elected not to recognize leases with original lease terms of 12 months or less (short-term leases) on the Company’s balance sheet.
Leases are classified as operating or finance leases at the lease commencement date. Lease expense for operating leases and short-term leases is recognized on a straight-line basis over the lease term and is recorded in net occupancy and furniture and equipment expense in the consolidated statements of income and other comprehensive income. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the lease commencement date and based on the estimated present value of lease payments over the lease term.
The Company uses its incremental borrowing rate at lease commencement to calculate the present value of lease payments when the rate implicit in a lease is not known. The Company’s incremental borrowing rate is based on the FHLB amortizing advance rate, adjusted for the lease term and other factors.
The following table details balance sheet information, as well as weighted-average lease terms and discount rates, related to leases at December 31, 2024 and 2023.
($ in thousands)December 31,
2024		December 31,
2023
Right-of-use assets:
Operating leases$6,102 $6,387 
Finance leases, net of accumulated depreciation1,002 1,466 
Total right-of-use assets$7,104 $7,853 
Lease liabilities:  
Operating lease$6,273 $6,550 
Finance lease1,556 1,739 
Total lease liabilities$7,829 $8,289 
Weighted average remaining lease term
Operating leases6.7 years7.2 years
Finance leases6.9 years7.9 years
Weighted average discount rate
Operating leases2.2%2.0%
Finance leases2.2%2.2%
The table below summarizes our net lease costs.
($ in thousands)December 31,
202420232022
Operating lease cost$1,489 $1,504 $1,464 
Finance lease cost:
Interest on lease liabilities36 40 44 
Amortization of right-of-use464 464 464 
Net lease cost$1,989 $2,008 $1,972 
The table below summarizes the maturity of remaining lease liabilities at December 31, 2024.
($ in thousands)December 31, 2024
Operating Leases Finance Leases
2025$1,179 $220 
20261,098 222 
2027908 252 
2028855 252 
2029769 252 
Thereafter2,004 483 
Total lease payments6,813 1,681 
Less: Interest(540)(125)
Present value of lease liabilities$6,273 $1,556 
LEASE OBLIGATIONS LEASE OBLIGATIONS
The Company enters into leases in the normal course of business primarily for financial centers, back-office operations locations and business development offices. The Company’s leases have remaining terms ranging from 1 to 7 years.
The Company includes lease extension and termination options in the lease term if, after considering relevant economic factors, it is reasonably certain the Company will exercise the option. In addition, the Company has elected to account for any non-lease components in its real estate leases as part of the associated lease component. The Company has also elected not to recognize leases with original lease terms of 12 months or less (short-term leases) on the Company’s balance sheet.
Leases are classified as operating or finance leases at the lease commencement date. Lease expense for operating leases and short-term leases is recognized on a straight-line basis over the lease term and is recorded in net occupancy and furniture and equipment expense in the consolidated statements of income and other comprehensive income. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the lease commencement date and based on the estimated present value of lease payments over the lease term.
The Company uses its incremental borrowing rate at lease commencement to calculate the present value of lease payments when the rate implicit in a lease is not known. The Company’s incremental borrowing rate is based on the FHLB amortizing advance rate, adjusted for the lease term and other factors.
The following table details balance sheet information, as well as weighted-average lease terms and discount rates, related to leases at December 31, 2024 and 2023.
($ in thousands)December 31,
2024		December 31,
2023
Right-of-use assets:
Operating leases$6,102 $6,387 
Finance leases, net of accumulated depreciation1,002 1,466 
Total right-of-use assets$7,104 $7,853 
Lease liabilities:  
Operating lease$6,273 $6,550 
Finance lease1,556 1,739 
Total lease liabilities$7,829 $8,289 
Weighted average remaining lease term
Operating leases6.7 years7.2 years
Finance leases6.9 years7.9 years
Weighted average discount rate
Operating leases2.2%2.0%
Finance leases2.2%2.2%
The table below summarizes our net lease costs.
($ in thousands)December 31,
202420232022
Operating lease cost$1,489 $1,504 $1,464 
Finance lease cost:
Interest on lease liabilities36 40 44 
Amortization of right-of-use464 464 464 
Net lease cost$1,989 $2,008 $1,972 
The table below summarizes the maturity of remaining lease liabilities at December 31, 2024.
($ in thousands)December 31, 2024
Operating Leases Finance Leases
2025$1,179 $220 
20261,098 222 
2027908 252 
2028855 252 
2029769 252 
Thereafter2,004 483 
Total lease payments6,813 1,681 
Less: Interest(540)(125)
Present value of lease liabilities$6,273 $1,556