Premises and Equipment

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

Premises and Equipment

Premises and Equipment

Premises and equipment at December 31 were as follows:

(In thousands)	2022		2021
Land	$	8,063	$	9,195
Premises and equipment	106,297		105,164
Furniture, fixtures, and equipment	87,619		83,803
Accumulated depreciation and amortization	(119,839)		(112,746)
Total	$	82,140	$	85,416

Depreciation and amortization expenses in 2022, 2021, and 2020 are included in operating expenses as follows:

(In thousands)	2022		2021		2020
Premises	$	2,500	$	2,599	$	2,608
Furniture, fixtures, and equipment	5,138		5,367		5,225
Total	$	7,638	$	7,966	$	7,833

The Company leases land, buildings and equipment under operating lease arrangements. Total gross rental expense amounted to $4.6 million in 2022, $4.9 million in 2021, and $4.9 million in 2020. Most leases include options to renew for periods ranging from 5 to 20 years.

Lease components

Right-of-use lease assets totaled $33.1 million and $30.3 million at December 31, 2022 and 2021, respectively and are reported in accrued interest and other assets in the accompanying consolidated statements of condition. The related lease liabilities totaled $34.5 million and $31.1 million at December 31, 2022 and 2021, respectively, and are reported as a component of other liabilities in the accompanying consolidated statements of condition. Lease payments under operating leases that were applied to our operating lease liability totaled $3.4 million during 2022 and $5.2 million during 2021. Included in the 2021 figures above was a $2.2 million lease termination payment on a property no longer utilized by the Company; $1.8 million was applied to the lease liability and $410,000 was applied to rent expense.

The components of operating lease expense, primarily included in “Net occupancy expense of premises,” in 2022, 2021, and 2020 were as follows:

(In thousands)	2022		2021		2020
Operating lease cost	$	4,654	$	4,939	$	4,905
Variable lease cost	695		668		674
Short-term lease cost	2		2		5
Sublease income	(11)		(25)		(32)
Total lease cost	$	5,340	$	5,584	$	5,552

At December 31, 2022, we did not have any material finance lease assets or liabilities.

Other information related to operating leases for 2022 and 2021 was as follows:

(In thousands)	2022			2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	4,389		$	6,482
Weighted-average remaining lease term on operating leases	13.45			13.68
Weighted-average discount rates on operating leases	3.47		%	3.53		%
Right-of-use assets obtained in exchange for lease liabilities	2,498			2,280

The following table reconciles future undiscounted lease payments due under non-cancelable operating leases (those amounts subject to recognition) to the aggregate operating lessee lease liability as of December 31, 2022:

(In thousands)	December 31, 2022
2023	$	3,995
2024	3,919
2025	3,622
2026	3,511
2027	3,172
2028 and subsequent years	25,987
Total lease payments	44,206
Less: Interest	9,705
Present value of lease liabilities	$	34,501