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LEASES
 12 Months Ended
Dec. 31, 2024
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 21 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, 2024December 31, 2023December 31, 2022
Operating lease cost (1)
$16,830 $18,972 $20,123 
Sublease income(117)(161)(280)
Net lease cost$16,713 $18,811 $19,843 
(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, 2024December 31, 2023
Right-of-use assets$131,126 $130,601 
Lease liabilities$152,364 $151,596 
Lease term and discount rate of operating leases
Weighted average remaining lease term (in years)12.6213.01
Weighted average discount rate5.28 %5.20 %
Maturities of operating lease liabilities were as follows:
(Dollars in thousands)December 31, 2024
2025$18,083 
202617,447 
202716,571 
202816,471 
202916,052 
After 2029127,885 
Total lease payments212,509 
Less: Interest(60,145)
Present value of lease liabilities$152,364 
Supplemental cash flow information related to leases was as follows:
Twelve months ended
(Dollars in thousands)December 31, 2024December 31, 2023December 31, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$19,488 $19,104 $20,987 
Right of use assets obtained in exchange for new operating lease liabilities (non-cash)— — 13,707 
As of December 31, 2024, 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 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, 2024December 31, 2023December 31, 2022
Direct financing leases:
Interest income on lease receivable$62,881 $53,572 $42,542 
Amortization of deferred fees and costs(7,977)(6,301)(3,718)
Total direct financing lease income$54,904 $47,271 $38,824 
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, 2024December 31, 2023
Lease receivables$749,968 $721,338 
Unearned income(122,846)(114,341)
Deferred fees and costs20,394 16,625 
Net investment in direct financing leases$647,516 $623,622 
Future minimum lease payments to be received for direct financing leases were as follows:
(Dollars in thousands)December 31, 2024
2025$246,265 
2026204,537 
2027151,729 
202895,712 
202942,896 
After 20298,829 
Total lease payments$749,968 
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 21 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, 2024December 31, 2023December 31, 2022
Operating lease cost (1)
$16,830 $18,972 $20,123 
Sublease income(117)(161)(280)
Net lease cost$16,713 $18,811 $19,843 
(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, 2024December 31, 2023
Right-of-use assets$131,126 $130,601 
Lease liabilities$152,364 $151,596 
Lease term and discount rate of operating leases
Weighted average remaining lease term (in years)12.6213.01
Weighted average discount rate5.28 %5.20 %
Maturities of operating lease liabilities were as follows:
(Dollars in thousands)December 31, 2024
2025$18,083 
202617,447 
202716,571 
202816,471 
202916,052 
After 2029127,885 
Total lease payments212,509 
Less: Interest(60,145)
Present value of lease liabilities$152,364 
Supplemental cash flow information related to leases was as follows:
Twelve months ended
(Dollars in thousands)December 31, 2024December 31, 2023December 31, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$19,488 $19,104 $20,987 
Right of use assets obtained in exchange for new operating lease liabilities (non-cash)— — 13,707 
As of December 31, 2024, 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 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, 2024December 31, 2023December 31, 2022
Direct financing leases:
Interest income on lease receivable$62,881 $53,572 $42,542 
Amortization of deferred fees and costs(7,977)(6,301)(3,718)
Total direct financing lease income$54,904 $47,271 $38,824 
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, 2024December 31, 2023
Lease receivables$749,968 $721,338 
Unearned income(122,846)(114,341)
Deferred fees and costs20,394 16,625 
Net investment in direct financing leases$647,516 $623,622 
Future minimum lease payments to be received for direct financing leases were as follows:
(Dollars in thousands)December 31, 2024
2025$246,265 
2026204,537 
2027151,729 
202895,712 
202942,896 
After 20298,829 
Total lease payments$749,968