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LEASES
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
LEASES
9. 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 one year to 22 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, 2023December 31, 2022December 31, 2021
Operating lease cost (1)
$18,972 $20,123 $18,564 
Sublease income(161)(280)(365)
Net lease cost$18,811 $19,843 $18,199 
(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, 2023December 31, 2022
Right-of-use assets$130,601 $138,182 
Lease liabilities$151,596 $158,269 
Lease term and discount rate of operating leases
Weighted average remaining lease term (in years)13.0117.91
Weighted average discount rate5.20 %4.25 %
Maturities of operating lease liabilities were as follows:
(Dollars in thousands)December 31, 2023
2023$17,730 
202417,494 
202516,656 
202615,281 
202715,282 
After 2027128,885 
Total lease payments211,328 
Less: Interest(59,732)
Present value of lease liabilities$151,596 
Supplemental cash flow information related to leases was as follows:
Twelve months ended
(Dollars in thousands)December 31, 2023December 31, 2022December 31, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$19,104 $20,987 $17,834 
Right of use assets obtained in exchange for new operating lease liabilities (non-cash)— 13,707 — 
As of December 31, 2023, the Company had not entered into any material leases that have not yet commenced.
Lessor Equipment Leasing
The Company provides equipment and small business lease financing through its leasing subsidiary, NewLane Finance®. 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, 2023December 31, 2022December 31, 2021
Direct financing leases:
Interest income on lease receivable$53,572 $42,542 $21,947 
Amortization of deferred fees and costs(6,301)(3,718)(1,963)
Total direct financing lease income$47,271 $38,824 $19,984 
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, 2023December 31, 2022
Lease receivables$721,338 $642,369 
Unearned income(114,341)(95,683)
Deferred fees and costs16,625 12,295 
Net investment in direct financing leases$623,622 $558,981 
Future minimum lease payments to be received for direct financing leases were as follows:
(Dollars in thousands)December 31, 2023
2023$230,902 
2024195,576 
2025147,645 
202694,239 
202744,019 
After 20278,957 
Total lease payments$721,338 
LEASES
9. 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 one year to 22 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, 2023December 31, 2022December 31, 2021
Operating lease cost (1)
$18,972 $20,123 $18,564 
Sublease income(161)(280)(365)
Net lease cost$18,811 $19,843 $18,199 
(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, 2023December 31, 2022
Right-of-use assets$130,601 $138,182 
Lease liabilities$151,596 $158,269 
Lease term and discount rate of operating leases
Weighted average remaining lease term (in years)13.0117.91
Weighted average discount rate5.20 %4.25 %
Maturities of operating lease liabilities were as follows:
(Dollars in thousands)December 31, 2023
2023$17,730 
202417,494 
202516,656 
202615,281 
202715,282 
After 2027128,885 
Total lease payments211,328 
Less: Interest(59,732)
Present value of lease liabilities$151,596 
Supplemental cash flow information related to leases was as follows:
Twelve months ended
(Dollars in thousands)December 31, 2023December 31, 2022December 31, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$19,104 $20,987 $17,834 
Right of use assets obtained in exchange for new operating lease liabilities (non-cash)— 13,707 — 
As of December 31, 2023, the Company had not entered into any material leases that have not yet commenced.
Lessor Equipment Leasing
The Company provides equipment and small business lease financing through its leasing subsidiary, NewLane Finance®. 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, 2023December 31, 2022December 31, 2021
Direct financing leases:
Interest income on lease receivable$53,572 $42,542 $21,947 
Amortization of deferred fees and costs(6,301)(3,718)(1,963)
Total direct financing lease income$47,271 $38,824 $19,984 
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, 2023December 31, 2022
Lease receivables$721,338 $642,369 
Unearned income(114,341)(95,683)
Deferred fees and costs16,625 12,295 
Net investment in direct financing leases$623,622 $558,981 
Future minimum lease payments to be received for direct financing leases were as follows:
(Dollars in thousands)December 31, 2023
2023$230,902 
2024195,576 
2025147,645 
202694,239 
202744,019 
After 20278,957 
Total lease payments$721,338