Leases (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Right-of-Use Assets and Lease Liabilities

The following table represents the consolidated statements of condition classification of the Company’s ROU assets and lease liabilities. The Company elected not to include short-term leases (i.e., leases with initial terms of twelve months or less), or equipment leases (deemed immaterial) on the consolidated statements of condition.

(dollars in thousands)		December 31, 2022		December 31, 2021
Lease Right-of-Use Assets	Classification
Operating lease right-of-use assets	Operating Lease Right-of-Use Assets	$	92,307	$	95,621
Finance lease right-of-use assets	Premises and Equipment, Net		2,160		2,232
Total Lease Right-of-Use Assets		$	94,467	$	97,853

Lease Liabilities
Operating lease liabilities	Operating Lease Liabilities	$	100,526	$	103,210
Finance lease liabilities	Other Debt		10,294		10,391
Total Lease Liabilities		$	110,820	$	113,601

Schedule of Lease Cost and Other Information

For the Company’s only finance lease, the Company utilized its incremental borrowing rate at lease inception.

	December 31, 2022			December 31, 2021
Weighted-Average Remaining Lease Term
Operating leases		15.4		16.4 years
Finance leases		30.0		31.0 years
Weighted-Average Discount Rate
Operating leases		3.56	%		3.57	%
Finance leases		7.04	%		7.04	%

The following table represents lease costs and other lease information. As the Company elected, for all classes of underlying assets, not to separate lease and non-lease components and instead to account for them as a single lease component, the variable lease cost primarily represents variable payments such as common area maintenance and utilities. Variable lease cost also includes payments for ATM location leases in which payments are based on a percentage of ATM transactions (i.e., ATM surcharge fees), rather than a fixed amount.

(dollars in thousands)	2022			2021
Lease Costs
Operating lease cost	$	11,843		$	11,493
Variable lease cost		3,305			2,954
Short-term lease cost		328			407
Interest on lease liabilities ¹		728			735
Amortization of right-of-use assets		72			72
Sublease income		(7,147	)		(7,452	)
Net Lease Costs	$	9,129		$	8,209

Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	11,502		$	13,741
Operating cash flows from finance leases		728			735
Financing cash flows from finance leases		97			90
Right-of-use assets obtained in exchange for new operating lease liabilities		10,804			12,207

¹	Included in other debt interest expense in the Company’s consolidated statements of income. All other lease costs in this table are included in net occupancy expense.

Future Minimum Payments for Finance Leases and Operating Leases

Future minimum payments for finance leases and operating leases with initial or remaining terms of one year or more as of December 31, 2022, were as follows:

(dollars in thousands)	Finance Leases			Operating Leases
2023	$	825		$	11,365
2024		825			10,538
2025		825			10,113
2026		825			8,816
2027		825			7,732
Thereafter		20,630			77,571
Total Future Minimum Lease Payments		24,755			126,135
Amounts Representing Interest		(14,461	)		(25,609	)
Present Value of Net Future Minimum Lease Payments	$	10,294		$	100,526

Future Minimum Rental Income under Operating Leases Including Subleases

Future minimum rental income under operating leases, including subleases, as of December 31, 2022, were as follows:

(dollars in thousands)	Minimum Rental Income
2023	$	4,924
2024		3,241
2025		2,342
2026		1,651
2027		837
Thereafter		3,047
Total	$	16,042