Annual report pursuant to Section 13 and 15(d)

LEASES

v3.24.2
LEASES
12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Leases
Note 7
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.
 
Operating lease ROU assets represent the Company’s
 
right to use an underlying asset during the lease term and operating lease
liabilities represent the Company’s
 
obligation to make lease payments arising from the lease.
 
ROU assets and operating lease
liabilities are recognized at lease commencement based on the present value of
 
the remaining lease payments using a discount rate
that represents the Company’s incremental
 
borrowing rate at the lease commencement date.
 
Operating lease expense, which is
comprised of amortization of the ROU asset and the implicit interest accreted
 
on the operating lease liability,
 
is recognized on a
straight-line basis over the lease term, and is recorded in occupancy expense in
 
the Consolidated Statement of Income.
 
The Company’s operating
 
leases primarily relate to banking offices with remaining lease terms
 
from
one
 
to
forty-two 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 ASC 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 December 31, 2023, ROU assets and liabilities were $
27.0
 
million and $
27.4
million, respectively.
 
At December 31, 2022, the operating lease ROU assets and liabilities were $
22.3
 
million and $
22.7
 
million,
respectively.
 
The Company does not have any finance leases or any significant lessor agreements.
The table below summarizes our lease expense and other information at
 
December 31, related to the Company’s
 
operating leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in Thousands)
2023
2022
2021
Operating lease expense
$
2,919
$
1,719
$
1,445
Short-term lease expense
622
658
663
Total lease expense
$
3,541
$
2,377
$
2,108
Other information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases
$
2,847
$
1,937
$
1,609
Right-of-use assets obtained in exchange for new operating lease liabilities
6,748
12,475
784
Weighted-average
 
remaining lease term — operating leases (in years)
16.9
19.5
25.3
Weighted-average
 
discount rate — operating leases
3.5
%
3.1
%
2.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The table below summarizes the maturity of remaining lease liabilities:
(Dollars in Thousands)
December 31, 2023
2024
$
3,127
2025
3,105
2026
2,966
2027
2,888
2028
2,611
2028 and thereafter
20,670
Total
$
35,367
Less: Interest
(7,976)
Present Value
 
of Lease Liability
$
27,391
A related party is the lessor in an operating lease with the Company.
 
The terms of this lease agreement are further described in
Note 19 – Related Party Transactions.