Leases
As of December 31, 2025, the Company was the lessee in 49 operating leases and 1 finance lease of certain branch, mortgage and operations locations with original terms greater than one year.
Many leases include options to renew, with terms that can extend the lease up to an additional 20 years or more. Certain lease agreements contain provisions to periodically adjust rental payments for inflation. Renewal options that management is reasonably certain to renew and fixed rent escalations are included in the right-of-use asset and lease liability.
Information related to the Company’s leases is presented below as of December 31, 2025 and 2024:
December 31,
Classification20252024
Right-of-use assets:
Operating leasesOperating lease right-of-use assets$49,249$47,963
Finance leasesPremises and equipment, net1,0351,145
Total right-of-use assets$50,284$49,108
Lease liabilities:
Operating leasesOperating lease liabilities$60,556$60,024
Finance leasesBorrowings 1,1271,229
Total lease liabilities $61,683$61,253
Weighted average remaining lease term (in years) -
    operating
10.911.0
Weighted average remaining lease term (in years) -
    finance
9.3510.4
Weighted average discount rate - operating3.68 %3.47 %
Weighted average discount rate - finance1.76 %1.76 %
The components of total lease expense included in the consolidated statements of income were as follows:
Years Ended December 31,
Classification2025 2024 2023
Operating lease costs:
Amortization of right-of-use assetOccupancy and equipment$7,796 $6,962 $8,516 
Short-term lease costOccupancy and equipment393 371 540 
Variable lease costOccupancy and equipment1,664 1,335 1,205 
Loss on lease terminationsOccupancy and equipment265 — 1,770 
Finance lease costs:
Interest on lease liabilitiesInterest expense on borrowings21 22 24 
Amortization of right-of-use assetOccupancy and equipment111 111 111 
Sublease income Occupancy and equipment(846)(522)(957)
Total lease cost$9,404 $8,279 $11,209 
The Company does not separate lease and non-lease components and instead elects to account for them as a single lease component. Variable lease cost primarily represents variable payments such as common area maintenance, utilities, and property taxes.
A maturity analysis of operating and finance lease liabilities and a reconciliation of cash flows to lease liabilities as of December 31, 2025 is as follows:
OperatingFinance
Leases Lease
December 31, 2026$8,993 $123 
December 31, 20278,524 125 
December 31, 20287,697 127 
December 31, 20296,656 129 
December 31, 20306,250 131 
Thereafter36,614 590 
     Total undiscounted future minimum lease payments74,734 1,225 
Less: imputed interest(14,178)(98)
     Lease liabilities$60,556 $1,127 

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Feb 25, 2025
2023Feb 27, 2024
2022Feb 28, 2023
2021Feb 25, 2022
2020Mar 12, 2021
2019Mar 13, 2020

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.