8. LEASES
The Company has operating leases under which it leases its branch offices, corporate headquarters, and other offices. As of December 31, 2025 and 2024, the Company's operating lease ROU asset totaled $131 million and $128 million, respectively, and operating lease liability totaled $160 million and $159 million, respectively. A weighted average discount rate of 3.48%, 3.08%, and 2.96% was used in the measurement of the ROU asset and lease liability as of December 31, 2025, 2024, and 2023, respectively.
The Company's leases have remaining lease terms of one to eight years, with a weighted average lease term of 5.5, 5.9, and 6.6 years at December 31, 2025, 2024, and 2023, respectively. Some leases include multiple five-year renewal options. The Company’s decision to exercise these renewal options is based on an assessment of its current business needs and market factors at the time of the renewal. The Company has no leases for which the option to renew is reasonably certain and therefore, options to renew were not factored into the calculation of its ROU asset and lease liability as of December 31, 2025.
The following is a schedule of the Company's operating lease liabilities by contractual maturity as of December 31, 2025:
| | | | | | | | |
| | (in millions) |
| 2026 | | $ | 32 | |
| 2027 | | 32 | |
| 2028 | | 31 | |
| 2029 | | 31 | |
| 2030 | | 27 | |
| Thereafter | | 24 | |
| Total lease payments | | $ | 177 | |
| Less: imputed interest | | 17 | |
| Total present value of lease liabilities | | $ | 160 | |
The Company has no additional operating leases that will commence within the next 12 months.
Total operating lease costs of $28.8 million and other lease costs of $7.7 million, which include common area maintenance, parking, and taxes during the year ended December 31, 2025, were included as part of Occupancy expense in the Consolidated Income Statement. For the year ended December 31, 2024, operating lease costs and other lease costs totaled $28.8 million and $6.0 million, respectively, and for the year ended December 31, 2023, totaled $28.8 million and $4.9 million, respectively. Short-term lease costs were not material for the years ended December 31, 2025, 2024, and 2023.
The below table shows the supplemental cash flow information related to the Company's operating leases:
| | | | | | | | | | | | | | | | | | | | |
| | Year Ended December 31, |
| | 2025 | | 2024 | | 2023 |
| | (in millions) |
| Cash paid for amounts included in the measurement of operating lease liabilities | | $ | 29.8 | | | $ | 31.6 | | | $ | 19.3 | |
| Right-of-use assets obtained in exchange for new operating lease liabilities | | 26.5 | | | 6.4 | | | 6.3 | |