Quarterly report [Sections 13 or 15(d)]

LEASES

v3.25.1
LEASES
3 Months Ended
Mar. 31, 2025
Leases [Abstract]  
Leases
NOTE 6 – LEASES
Operating leases in which the Company is the lessee are recorded as operating
 
lease right of use (“ROU”) assets and operating
liabilities, included in other assets and liabilities, respectively,
 
on its Consolidated Statement of Financial Condition.
 
The Company’s operating
 
leases primarily relate to banking offices with remaining lease terms
 
from
one
 
to
41
 
years.
 
The Company’s
leases are not complex and do not contain residual value guarantees, variable
 
lease payments, or significant assumptions or judgments
made in applying the requirements of Topic
 
842.
 
Operating leases with an initial term of 12 months or less are not recorded on the
Consolidated Statement of Financial Condition and the related lease expense is recognized on a straight-line basis over the lease term.
 
At March 31, 2025, the operating lease ROU assets and liabilities were $
27.2
 
million and $
27.7
 
million, respectively. At December
31, 2024, ROU assets and liabilities were $
24.9
 
million and $
25.5
 
million, respectively.
 
The Company recognized $
0.1
 
million of
rental income during the three months ended March 31, 2025 for a lease that terminated
 
in February 2025. The Company does not
have any finance leases.
 
The table below summarizes our lease expense and other information related
 
to the Company’s operating leases.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
March 31,
(Dollars in Thousands)
2025
2024
Operating lease expense
$
864
$
841
Short-term lease expense
311
194
Total lease expense
$
1,175
$
1,035
Other information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases
$
912
$
677
Right-of-use assets obtained in exchange for new operating lease liabilities
2,880
-
Weighted average
 
remaining lease term — operating leases (in years)
16.2
16.8
Weighted average
 
discount rate — operating leases
3.7%
3.5%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The table below summarizes the maturity of remaining lease liabilities:
(Dollars in Thousands)
March 31, 2025
2025
$
3,520
2026
3,306
2027
3,127
2028
2,822
2029
2,741
2030 and thereafter
20,171
Total
$
35,687
Less: Interest
(7,938)
Present Value
 
of Lease liability
$
27,749
A related party is the lessor in a land lease with the Company.
 
The payments under the lease agreement provide for annual lease
payments of approximately $
0.1
 
million annually through December 2033, and thereafter,
 
increase by
5
% every
10
 
years until 2053 at
which time the rent amount will adjust based on reappraisal of the parcel rental
 
value.
 
The Company then has
four
 
successive options
to extend the lease for
five years
 
each with rental increases of 5% at each extension.
 
The aggregate remaining obligation of the lease
totaled $
2.1
 
million at March 31, 2025.