The Company’s operating leases, where the Company is a lessee, include real estate, such as office space and banking centers. Lease expense for operating leases is recognized on a straight-line basis over the term of the lease and is reflected in the consolidated statement of earnings. Right-of-use (“ROU”) assets and lease liabilities are included in other assets and other liabilities, respectively, on the Company’s condensed consolidated balance sheet.

While the Company has, as a lessor, certain equipment finance leases, such leases are not material to the Company’s consolidated financial statements.

In connection with the Heritage acquisition, the Company assumed Heritage's $28.0 million ROU assets and $28.0 million lease liabilities at the acquisition date.

The tables below present the components of lease costs and supplemental information related to leases as of and for the periods presented.


(Dollars in thousands)	September 30, 2026		December 31, 2025
Lease Assets and Liabilities
ROU assets	$	68,704	$	43,786
Total lease liabilities		71,645		46,537


	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in thousands)	2026		2025		2026		2025
Lease Cost
Operating lease expense (1)	$	4,365	$	2,566	$	10,991	$	7,690
Sublease income		—		—		—		—
Total lease expense	$	4,365	$	2,566	$	10,991	$	7,690


Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases, net	$	4,395	$	2,429	$	10,891	$	7,228

(1)

Includes short-term leases and variable lease costs, which are immaterial.


	September 30, 2026			December 31, 2025
Lease Term and Discount Rate
Weighted average remaining lease term (years)		7.38			9.92
Weighted average discount rate		5.77	%		6.13	%

The Company’s lease arrangements that have not yet commenced as of September 30, 2026 and the Company’s short-term lease costs and variable lease costs, for the nine months ended September 30, 2026 and 2025 are not material to the consolidated financial statements. The future lease payments required for leases that have initial or remaining non-cancelable lease terms in excess of one year as of September 30, 2026, excluding property taxes and insurance, are as follows:


	September 30, 2026
	(Dollars in thousands)
Year:
Remainder of 2026	$	4,300
2027		16,840
2028		14,669
2029		12,695
2030		9,949
2031		5,415
Thereafter		27,265
Total future lease payments		91,133
Less: Imputed interest		(19,488	)
Present value of lease liabilities	$	71,645