Leases

9 Months Ended

Sep. 30, 2022

Busey as the Lessee

The Company has operating leases consisting primarily of equipment leases and real estate leases for banking centers, ATM locations, and office space. The following table summarizes lease-related information and balances the Company reported in its unaudited Consolidated Balance Sheets for the periods presented (dollars in thousands):


	As of
	September 30, 2022			December 31, 2021
Lease balances
Right of use assets	$	10,202		$	10,533
Lease liabilities	10,311			10,591

Supplemental information
Year through which lease terms extend	2037			2031
Weighted average remaining lease term (in years)	8.61			6.47
Weighted average discount rate	2.91		%	2.16		%

The following table represents lease costs and cash flows related to leases for the periods presented (dollars in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Lease costs
Operating lease costs	$	563	$	656	$	1,762	$	1,828
Variable lease costs	214		94		436		394
Short-term lease costs	5		9		15		43
Total lease cost1	$	782	$	759	$	2,213	$	2,265

Cash flows related to leases
Cash paid for amounts included in the measurement of lease liabilities:
Operating lease cash flows – Fixed payments	$	1,076	$	620	$	2,445	$	1,756
Operating lease cash flows – Liability reduction	464		569		1,741		1,610
Right of use assets obtained during the period in exchange for operating lease liabilities	1,127		3,408		1,182		5,018

1.Lease costs are included in net occupancy and equipment expense in the unaudited Consolidated Statements of Income.

The Company was obligated under noncancelable operating leases for office space and other commitments, as follows (dollars in thousands):


	As of September 30, 2022
Rent commitments
Remainder of 2022	$	539
2023	1,857
2024	1,573
2025	1,349
2026	1,059
2027	886
Thereafter	4,626
Total undiscounted cash flows	11,889
Less: Amounts representing interest	1,578
Present value of net future minimum lease payments	$	10,311

Busey as the Lessor

Busey occasionally leases parking lots and office space to outside parties. Further, in connection with the acquisition of CAC in the second quarter of 2021, the Company acquired office buildings in Glenview, IL and Northbrook, IL, along with operating leases for space within these buildings that is rented to third parties. Revenues recorded in connection with these leases and reported in other income on our unaudited Consolidated Statements of Income are summarized as follows (dollars in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Rental income	$	146	$	208	$	519	$	339