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LEASES
 12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
LEASES
10. LEASES
As a lessee, the Company enters into leases for its bank branches, corporate offices, and certain equipment. As a lessor, the Company primarily provides financing through its equipment leasing business.
Lessee
The Company's ongoing leases have remaining lease terms of less than 1 year to 39 years, which includes renewal options that are exercised at its discretion. The Company's lease terms to calculate the lease liability and right-of-use asset include options to extend the lease when it is reasonably certain that the Company will exercise the option. The lease liability and right-of-use asset is included in Other liabilities and Other assets, respectively, in the Consolidated Statement of Financial Condition. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense is recognized on a straight-line basis over the lease term. Operating lease expense is included in Occupancy expense in the Consolidated Statement of Income. The Company accounts for lease components separately from nonlease components and subleases certain real estate to third parties.
The components of the Company's ongoing operating lease cost were as follows:
Twelve months ended
(Dollars in thousands)December 31, 2022December 31, 2021December 31, 2020
Operating lease cost (1)
$20,123 $18,564 $18,690 
Sublease income(280)(365)(372)
Net lease cost$19,843 $18,199 $18,318 
(1)Includes variable lease cost and short-term lease cost.
Supplemental balance sheet information related to operating leases was as follows:
(Dollars in thousands)December 31, 2022December 31, 2021
Right-of-use assets$138,182 $144,134 
Lease liabilities$158,269 $159,526 
Lease term and discount rate of operating leases
Weighted average remaining lease term (in years)17.9119.17
Weighted average discount rate4.25 %4.27 %
Maturities of operating lease liabilities were as follows:
(Dollars in thousands)December 31, 2022
2023$19,372 
202418,107 
202518,158 
202614,670 
202713,538 
After 2027157,493 
Total lease payments241,338 
Less: Interest(83,069)
Present value of lease liabilities$158,269 
Supplemental cash flow information related to leases was as follows:
Twelve months ended
(Dollars in thousands)December 31, 2022December 31, 2021December 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$20,987 $17,834 $18,452 
Right of use assets obtained in exchange for new operating lease liabilities (non-cash)13,707 — — 
Lessor Equipment Leasing
The Company provides equipment and small business lease financing through its leasing subsidiary, NewLane Finance®, acquired from its Beneficial acquisition. Interest income from direct financing leases where the Company is a lessor is recognized in Interest and fees on loans and leases on the Consolidated Statements of Income. The allowance for credit losses on finance leases are included within Provision for (recovery of) credit losses on the Consolidated Statements of Income.
The components of direct finance lease income are summarized in the table below:
Twelve months ended
(Dollars in thousands)December 31, 2022December 31, 2021December 31, 2020
Direct financing leases:
Interest income on lease receivable$42,542 $21,947 $15,805 
(Amortization)/accretion of deferred fees and costs(3,718)(1,963)433 
Total direct financing lease income$38,824 $19,984 $16,238 
Equipment leasing receivables relate to direct financing leases. The composition of the net investment in direct financing leases was as follows:
(Dollars in thousands)December 31, 2022December 31, 2021
Lease receivables$642,369 $399,688 
Unearned income(95,683)(55,066)
Deferred fees and costs12,295 7,654 
Net investment in direct financing leases$558,981 $352,276 
Future minimum lease payments to be received for direct financing leases were as follows:
(Dollars in thousands)December 31, 2022
2023$206,375 
2024173,070 
2025128,281 
202685,130 
202740,335 
After 20279,178 
Total lease payments$642,369 
LEASES
10. LEASES
As a lessee, the Company enters into leases for its bank branches, corporate offices, and certain equipment. As a lessor, the Company primarily provides financing through its equipment leasing business.
Lessee
The Company's ongoing leases have remaining lease terms of less than 1 year to 39 years, which includes renewal options that are exercised at its discretion. The Company's lease terms to calculate the lease liability and right-of-use asset include options to extend the lease when it is reasonably certain that the Company will exercise the option. The lease liability and right-of-use asset is included in Other liabilities and Other assets, respectively, in the Consolidated Statement of Financial Condition. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense is recognized on a straight-line basis over the lease term. Operating lease expense is included in Occupancy expense in the Consolidated Statement of Income. The Company accounts for lease components separately from nonlease components and subleases certain real estate to third parties.
The components of the Company's ongoing operating lease cost were as follows:
Twelve months ended
(Dollars in thousands)December 31, 2022December 31, 2021December 31, 2020
Operating lease cost (1)
$20,123 $18,564 $18,690 
Sublease income(280)(365)(372)
Net lease cost$19,843 $18,199 $18,318 
(1)Includes variable lease cost and short-term lease cost.
Supplemental balance sheet information related to operating leases was as follows:
(Dollars in thousands)December 31, 2022December 31, 2021
Right-of-use assets$138,182 $144,134 
Lease liabilities$158,269 $159,526 
Lease term and discount rate of operating leases
Weighted average remaining lease term (in years)17.9119.17
Weighted average discount rate4.25 %4.27 %
Maturities of operating lease liabilities were as follows:
(Dollars in thousands)December 31, 2022
2023$19,372 
202418,107 
202518,158 
202614,670 
202713,538 
After 2027157,493 
Total lease payments241,338 
Less: Interest(83,069)
Present value of lease liabilities$158,269 
Supplemental cash flow information related to leases was as follows:
Twelve months ended
(Dollars in thousands)December 31, 2022December 31, 2021December 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$20,987 $17,834 $18,452 
Right of use assets obtained in exchange for new operating lease liabilities (non-cash)13,707 — — 
Lessor Equipment Leasing
The Company provides equipment and small business lease financing through its leasing subsidiary, NewLane Finance®, acquired from its Beneficial acquisition. Interest income from direct financing leases where the Company is a lessor is recognized in Interest and fees on loans and leases on the Consolidated Statements of Income. The allowance for credit losses on finance leases are included within Provision for (recovery of) credit losses on the Consolidated Statements of Income.
The components of direct finance lease income are summarized in the table below:
Twelve months ended
(Dollars in thousands)December 31, 2022December 31, 2021December 31, 2020
Direct financing leases:
Interest income on lease receivable$42,542 $21,947 $15,805 
(Amortization)/accretion of deferred fees and costs(3,718)(1,963)433 
Total direct financing lease income$38,824 $19,984 $16,238 
Equipment leasing receivables relate to direct financing leases. The composition of the net investment in direct financing leases was as follows:
(Dollars in thousands)December 31, 2022December 31, 2021
Lease receivables$642,369 $399,688 
Unearned income(95,683)(55,066)
Deferred fees and costs12,295 7,654 
Net investment in direct financing leases$558,981 $352,276 
Future minimum lease payments to be received for direct financing leases were as follows:
(Dollars in thousands)December 31, 2022
2023$206,375 
2024173,070 
2025128,281 
202685,130 
202740,335 
After 20279,178 
Total lease payments$642,369