Leases

12 Months Ended

Dec. 31, 2021

The Company leases certain premises and equipment under operating leases. The leases have remaining lease terms ranging from less than one year to 44 years, some of which have renewal options reasonably certain to be exercised and, therefore, have been reflected in the total lease term and used for the calculation of minimum payments required. Certain leases contain variable lease payments which include mostly common area maintenance and taxes, included in occupancy and equipment on the consolidated statements of income.

The following table presents lease costs for the year ended December 31, 2021:


(in thousands)	December 31, 2021
Lease cost
Operating lease cost	$	8,497
Short-term lease cost	176
Variable lease cost	1,371
Sublease income	(105)
Total lease cost	$	9,939

As of December 31, 2021 a right-of-use asset of $141.1 million and an operating lease liability of $143.0 million were included in “Other assets” and “Other liabilities”, respectively, on the consolidated balance sheets.

The following table provides supplemental information to leases as of and for the year ended December 31, 2021:


(in thousands, except weighted average data)
Cash paid for amounts included in the measurement of operating lease liabilities	8,202
Operating lease right-of-use asset obtained in exchange for operating lease liability	5,057
Weighted average remaining lease term for operating leases	19.2
Weighted average discount rate for operating leases	5.94	%

The following table presents a maturity analysis and reconciliation of the undiscounted cash flows to the total operating lease liabilities as of December 31, 2021:


(in thousands)
Twelve Months Ended December 31,
2022	$	14,298
2023	11,994
2024	12,002
2025	11,945
2026	12,120
Thereafter	189,022
Total minimum payments required	251,381
Less: implied interest	(108,425)
Total lease obligations	$	142,956

In December 2021, the Company completed the plan for the sale and leaseback of its headquarters building in Coral Gables, Florida, resulting in a gain on sale of $62.4 million . The lease is an 18-year triple net lease under which the Company will pay insurance, real estate taxes, and maintenance and repair services. The Company recorded a right-of-use asset and lease liability of $91.6 million, in connection with this lease, as of December 31, 2021.

Actual rental expenses may include deferred rents that are recognized as rent expense on a straight line basis. Rent expense under these leases was approximately $9.9 million, $7.5 million, and $5.5 million for the years ended December 31, 2021, 2020 and 2019, respectively. In 2021, rent expense includes an additional expense of $0.5 million related to the closing of one branch in the fourth quarter. In 2020, rent expense included an additional expense of $1.1 million for the remaining lease obligation in connection with the closure of two of our branches.

Additionally, the Company recorded a $0.8 million impairment of ROUA associated with the closing of the NY LPO announced during the three months ended June 30, 2021. This impairment was recorded as occupancy and equipment expense on the consolidated statements of income.