LEASES

12 Months Ended

Dec. 31, 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 Consolidated Balance Sheets for the periods presented (dollars in thousands):


	As of December 31,
	2022			2021
Lease balances
Right of use assets	$	12,829		$	10,533
Lease liabilities	12,995			10,591

Supplemental information
Year through which lease terms extend	2037			2031
Weighted average remaining lease term (in years)	8.90			6.47
Weighted average discount rate	3.45		%	2.16		%

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


	Years Ended December 31,
	2022		2021		2020
Lease costs
Operating lease costs	$	2,495	$	2,464	$	2,524
Variable lease costs	365		540		416
Short-term lease costs	22		49		35
Total lease cost1	$	2,882	$	3,053	$	2,975

Cash flows related to leases
Cash paid for amounts included in the measurement of lease liabilities:
Operating lease cash flows – Fixed payments	$	3,080	$	2,417	$	2,526
Operating lease cash flows – Liability reduction	2,285		2,217		2,289
Right of use assets obtained during the period in exchange for operating lease liabilities2	6,206		5,818		743

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

2.The year ended December 31, 2021, includes $0.4 million related to a lease obtained in the acquisition of CAC.

At December 31, 2022, the Company was obligated under noncancelable operating leases for office space and other commitments. Future undiscounted lease payments with initial terms of one year or more, are as follows (dollars in thousands):


	As of December 31, 2022
Rent commitments

2023	$	2,254
2024	1,942
2025	1,719
2026	1,442
2027	1,277
Thereafter	6,699
Total undiscounted cash flows	15,333
Less: Amounts representing interest	2,338
Present value of net future minimum lease payments	$	12,995

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 and Northbrook, Illinois, 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 Consolidated Statements of Income are summarized as follows (dollars in thousands):


	Years Ended December 31,
		2022		2021		2020
Rental income		$	707	$	566	$	228