Leases

9 Months Ended

Sep. 30, 2022

Leases

Leases

Note 9 — Leases

As of September 30, 2022 and December 31, 2021, we had operating right-of-use (“ROU”) assets of $113.4 million and $110.3 million, respectively, and operating lease liabilities of $121.1 million and $115.9 million, respectively. We maintain operating leases on land and buildings for our operating centers, branch facilities and ATM locations. Most leases include one or more options to renew, with renewal terms extending up to 22 years. The exercise of renewal options is based on the sole judgment of management and what they consider to be reasonably certain given the environment today. Factors in determining whether an option is reasonably certain of exercise include, but are not limited to, the value of leasehold improvements, the value of renewal rate compared to market rates, and the presence of factors that would cause a significant economic penalty to us if the option is not exercised. Leases with an initial term of 12 months or less are not recorded on the balance sheet and instead are recognized in lease expense on a straight-line basis over the lease term.

The Company also holds a small number of finance leases assumed in connection to the CenterState Bank Corporation (“CenterState”) merger. These leases are all real estate leases. Terms and conditions are similar to those real estate operating leases described above. Lease classifications from the acquired institutions were retained.

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30,				September 30,
	2022		2021		2022		2021
Lease Cost Components:
Amortization of ROU assets - finance leases	$	117	$	117	$	350	$	350
Interest on lease liabilities - finance leases		12		14		37		43
Operating lease cost (cost resulting from lease payments)		4,550		4,292		13,419		12,977
Short-term lease cost		218		116		592		327
Variable lease cost (cost excluded from lease payments)		615		783		1,813		2,073
Total lease cost	$	5,512	$	5,322	$	16,211	$	15,770
Supplemental Cash Flow and Other Information Related to Leases:
Finance lease - operating cash flows	$	12	$	14	$	37	$	43
Finance lease - financing cash flows		109		107		325		320
Operating lease - operating cash flows (fixed payments)		4,356		4,127		12,982		12,440
Operating lease - operating cash flows (net change asset/liability)		(3,466)		(3,215)		(10,313)		(9,691)
New ROU assets - operating leases		—		4,196		12,616		5,494
New ROU assets - finance leases		—		—		—		—
Weighted - average remaining lease term (years) - finance leases						5.67		6.66
Weighted - average remaining lease term (years) - operating leases						10.13		10.96
Weighted - average discount rate - finance leases						1.7%		1.7%
Weighted - average discount rate - operating leases						3.0%		3.3%
Operating lease payments due:
2022 (excluding the nine months ended September 30, 2022)					$	4,303
2023						16,727
2024						15,343
2025						13,902
2026						13,246
Thereafter						79,764
Total undiscounted cash flows						143,285
Discount on cash flows						(22,174)
Total operating lease liabilities					$	121,111

As of September 30, 2022, we determined that the number and dollar amount of our equipment leases was immaterial. As of September 30, 2022, we have no additional operating leases that have not yet commenced.