Leases Leases

12 Months Ended

Dec. 31, 2021

Leasing

Lessor Arrangements

Webster leases certain types of machinery and equipment to its customers through direct financing leases as part of its equipment financing portfolio. These leases generally have remaining lease terms of 1 to 10 years, and include options for the lessee to purchase the lease asset near or at the end of the lease term. Webster recognized interest income from its lessor activities of $7.5 million, $7.1 million, and $5.5 million for the years ended December 31, 2021, 2020, and 2019, respectively. Additional information regarding Webster's equipment financing portfolio can be found within Note 5: Loans and Leases.

The following table summarizes the components of Webster's net investment in its direct financing leases:


	At December 31,
(In thousands)	2021		2020
Lease receivables	$	196,632	$	207,508
Unguaranteed residual values	19,748		28,609
Total net investment	$	216,380	$	236,117

The undiscounted scheduled maturities reconciled to the total net investment are as follows:


(In thousands)	At December 31, 2021

2022	$	68,008
2023	59,554
2024	39,325
2025	29,534
2026	21,687
Thereafter	16,636
Total lease payments receivable	234,744
Present value adjustment	(18,364)
Total net investment	$	216,380

Lessee Arrangements

Webster enters into operating leases in the normal course of business, primarily for office space, banking centers, and other operational activities. These leases generally have remaining lease terms of one to fifteen years. Webster does not have any significant sub-leases nor finance leases in which it is the lessee.

The following table summarizes Webster's ROU lease assets and operating lease liabilities:


		At December 31,
(In thousands)	Consolidated Balance Sheet Line Item	2021		2020
ROU lease assets	Premises and equipment, net	$	119,926	$	127,481
Operating lease liabilities	Operating lease liabilities	144,804		158,280

ROU lease asset impairments totaled $1.2 million and $12.0 million for the years ended December 31, 2021 and 2020, respectively, which is recorded in occupancy on the accompanying Consolidated Statements of Income. The increased charge in 2020 was due to Webster's decision to close leased banking centers as part of its strategic initiatives. There were no ROU lease asset impairments during the year ended December 31, 2019.

The following table summarizes the components of operating lease expense and other relevant information:


	At or for the Years ended December 31,
(In thousands)	2021			2020			2019
Lease Cost:
Operating lease costs	$	26,076		$	30,339		$	29,908
Variable lease costs	4,860			5,577			4,889
Sublease income	(554)			(557)			(577)
Total operating lease expense	$	30,382		$	35,359		$	34,220

Other Information:
Cash paid for amounts included in the measurement of operating lease liabilities	$	30,487		$	31,212		$	31,223
ROU lease assets obtained in exchange for operating lease liabilities	15,226			9,211			22,948
Weighted-average remaining lease term (years)	7.50			8.04			8.39
Weighted-average discount rate	3.04		%	3.19		%	3.31		%

The undiscounted scheduled maturities reconciled to total operating lease liabilities are as follows:


(In thousands)	At December 31, 2021
2022	$	25,895
2023	26,539
2024	23,767
2025	21,792
2026	18,656
Thereafter	48,009
Total operating lease payments	164,658
Present value adjustment	(19,854)
Total operating lease liabilities	$	144,804