Leases

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Leases

Leases

(In Thousands)

The Company enters into leases in both lessor and lessee capacities.

Lessor Arrangements

As of December 31, 2021 and 2020, the net investment in these leases was $24,979 and $20,804, comprised of $19,646 and $16,012 in lease receivables, $8,323 and $7,532 in residual balances and $2,990 and $2,740 in deferred income, respectively. In order to mitigate potential exposure to residual asset risk, the Company utilizes first amendment or terminal rental adjustment clause leases.

For the twelve months ended December 31, 2021 and 2020, the Company generated $698 and $554 in income from these leases, respectively, which is included in interest income on loans on the Consolidated Statements of Income.

The maturities of the lessor arrangements outstanding at December 31, 2021 is presented in the table below.

2022	$	433
2023	970
2024	1,335
2025	1,363
2026	1,173
Thereafter	19,705
Total lease receivables	$	24,979

Lessee Arrangements

As of December 31, 2021 and 2020, right-of-use assets totaled $63,547 and $66,023 and lease liabilities totaled $67,067 and $69,549, respectively. The table below provides the components of lease cost and supplemental information for the periods presented.

	Year ended December 31,
	2021			2020
Operating lease cost (cost resulting from lease payments)	$	8,868		$	10,826
Short-term lease cost	93			161
Variable lease cost (cost excluded from lease payments)	1,195			1,776
Sublease income	(658)			(583)
Net lease cost	$	9,498		$	12,180
Operating lease - operating cash flows (fixed payments)	8,666			9,811
Operating lease - operating cash flows (liability reduction)	6,640			7,187
Weighted average lease term - operating leases (in years) (at period end)	17.25			15.99
Weighted average discount rate - operating leases (at period end)	3.01		%	3.17		%
Right-of-use assets obtained in exchange for new lease liabilities - operating leases	$	8,142		$	9,393

The maturities of the lessee arrangements outstanding at December 31, 2021 are presented in the table below.

2022	$	8,402
2023	7,605
2024	7,092
2025	5,696
2026	4,997
Thereafter	54,507
Total undiscounted cash flows	88,299
Discount on cash flows	21,232
Total operating lease liabilities	$	67,067

Rental expense was $8,298, $10,044, and $9,159 for 2021, 2020, and 2019, respectively.

For more information on lease accounting, see Note 1, “Significant Accounting Policies” and on lease financing receivables, see Note 3, “Non Purchased Loans.”

Leases

Leases

(In Thousands)

The Company enters into leases in both lessor and lessee capacities.

Lessor Arrangements

As of December 31, 2021 and 2020, the net investment in these leases was $24,979 and $20,804, comprised of $19,646 and $16,012 in lease receivables, $8,323 and $7,532 in residual balances and $2,990 and $2,740 in deferred income, respectively. In order to mitigate potential exposure to residual asset risk, the Company utilizes first amendment or terminal rental adjustment clause leases.

For the twelve months ended December 31, 2021 and 2020, the Company generated $698 and $554 in income from these leases, respectively, which is included in interest income on loans on the Consolidated Statements of Income.

The maturities of the lessor arrangements outstanding at December 31, 2021 is presented in the table below.

2022	$	433
2023	970
2024	1,335
2025	1,363
2026	1,173
Thereafter	19,705
Total lease receivables	$	24,979

Lessee Arrangements

As of December 31, 2021 and 2020, right-of-use assets totaled $63,547 and $66,023 and lease liabilities totaled $67,067 and $69,549, respectively. The table below provides the components of lease cost and supplemental information for the periods presented.

	Year ended December 31,
	2021			2020
Operating lease cost (cost resulting from lease payments)	$	8,868		$	10,826
Short-term lease cost	93			161
Variable lease cost (cost excluded from lease payments)	1,195			1,776
Sublease income	(658)			(583)
Net lease cost	$	9,498		$	12,180
Operating lease - operating cash flows (fixed payments)	8,666			9,811
Operating lease - operating cash flows (liability reduction)	6,640			7,187
Weighted average lease term - operating leases (in years) (at period end)	17.25			15.99
Weighted average discount rate - operating leases (at period end)	3.01		%	3.17		%
Right-of-use assets obtained in exchange for new lease liabilities - operating leases	$	8,142		$	9,393

The maturities of the lessee arrangements outstanding at December 31, 2021 are presented in the table below.

2022	$	8,402
2023	7,605
2024	7,092
2025	5,696
2026	4,997
Thereafter	54,507
Total undiscounted cash flows	88,299
Discount on cash flows	21,232
Total operating lease liabilities	$	67,067

Rental expense was $8,298, $10,044, and $9,159 for 2021, 2020, and 2019, respectively.

For more information on lease accounting, see Note 1, “Significant Accounting Policies” and on lease financing receivables, see Note 3, “Non Purchased Loans.”