| Leases |
7. Leases The Company has 32 operating leases for branches (including headquarters) and office spaces, one operating lease for a vehicle, and one operating lease for equipment. Our leases have remaining lease terms ranging from seven months to approximately 11 years, none of which has a renewal option reasonably certain of exercise, which has been reflected in the Company’s calculation of the lease term. During the three months ended June 30, 2025, the Company entered into an agreement to extend the term of its corporate headquarters operating lease by 3 years. During the three months ended June 30, 2024, the Company entered into agreements to extend the term of five of its operating leases by 10 years each. The Company has elected the short-term lease recognition exemption such that the Company will not recognize Right of Use (“ROU”) assets or lease liabilities for leases with a term of less than 12 months from the commencement date. The Company has two agreements in 2025 and 2024 that qualified as short-term leases, respectively. Certain leases have escalation clauses for operating expenses and real estate taxes, which are recorded as variable lease cost. The Company’s non-cancelable operating lease agreements expire through 2036. Supplemental balance sheet information related to leases are as follows: | | | | | | | | | | | | | | | | | | | | | (Dollars in thousands) | | June 30, 2025 | | December 31, 2024 | | | | | | | | Operating lease ROU assets | | $ | 49,759 | | $ | 45,800 | | | | | | | | Operating lease liabilities | | $ | 50,102 | | $ | 46,443 | | | | | | | | Weighted-average remaining lease term-operating leases | | | 7.0 years | | | 7.3 years | Weighted average discount rate-operating leases | | | 4.2% | | | 4.0% |
The components of lease expense and cash flow information related to leases were as follows: | | | | | | | | | | | | | For the three months ended June 30, | (In thousands) | | Line Item Presented | | 2025 | | 2024 | Lease Cost | | | | | | | | | Operating lease cost | | Occupancy and equipment | | $ | 2,321 | | $ | 2,221 | Operating lease cost | | Other operating expenses | | | 2 | | | 17 | Short-term lease cost | | Professional services, Occupancy and equipment and other operating expenses | | | 57 | | | 40 | Variable lease cost | | Occupancy and equipment | | | 303 | | | 323 | Total lease cost | | | | $ | 2,683 | | $ | 2,601 | | | | | | | | | | Other information | | | | | | | | | Cash paid for amounts included in the measurement of lease liabilities: | | | | | | | Operating cash flows from operating leases | | | | $ | 2,584 | | $ | 2,457 | Right-of-use assets obtained in exchange for new operating lease liabilities | | $ | 7,833 | | $ | 10,894 |
| | | | | | | | | | | | | For the six months ended June 30, | (In thousands) | | Line Item Presented | | 2025 | | 2024 | Lease Cost | | | | | | | | | Operating lease cost | | Occupancy and equipment | | $ | 4,641 | | $ | 4,457 | Operating lease cost | | Other operating expenses | | | 7 | | | 37 | Short-term lease cost | | Professional Services, Occupancy and equipment and Other operating expenses | | | 100 | | | 82 | Variable lease cost | | Occupancy and equipment | | | 627 | | | 593 | Total lease cost | | | | $ | 5,375 | | $ | 5,169 | | | | | | | | | | Other information | | | | | | | | | Cash paid for amounts included in the measurement of lease liabilities: | | | | | | | Operating cash flows from operating leases | | | | $ | 5,095 | | $ | 4,909 | Supplemental disclosure of non-cash activities: | | | | | | | Right-of-use assets obtained in exchange for new operating lease liabilities | | $ | 7,833 | | $ | 10,894 |
The Company’s minimum annual rental payments for Bank facilities due under non-cancelable leases are as follows as of June 30, 2025: | | | | | | Minimum Rental | | | (In thousands) | Years ended December 31: | | | | 2025 | | $ | 3,827 | 2026 | | | 9,809 | 2027 | | | 9,042 | 2028 | | | 8,899 | 2029 | | | 7,688 | Thereafter | | | 19,488 | Total minimum payments required | | | 58,753 | Less: implied interest | | | (8,651) | Total lease obligations | | $ | 50,102 |
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