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Leases
 9 Months Ended
Sep. 30, 2022
Leases [Abstract]  
Leases Leases
The Company accounts for its leases in accordance with ASC 842, which requires the Company to record liabilities for future lease obligations, as well as assets representing the right to use the underlying leased asset. The Company’s leases primarily represent future obligations to make payments for the use of buildings or space for its operations. Liabilities to make future lease payments are recorded in accrued expenses and other liabilities, while right-of-use assets are recorded in other assets in the Company’s consolidated statements of financial condition. At September 30, 2022, all of the Company’s leases were classified as operating leases or short-term leases. Short-term leases are leases that have a term of 12 months or less at commencement.

Liabilities to make future lease payments and right-of-use assets are determined based on the total contractual base rents for each lease, which include options to extend or renew each lease, where applicable, and where the Company believes it has an economic incentive to extend or renew the lease. Future contractual base rents are discounted using the rate implicit in the lease or the Company’s estimated incremental borrowing rate if the rate implicit in the lease is not readily determinable. Liabilities to make future lease payments on operating leases are reduced by periodic contractual lease payments net of periodic interest accretion. Right-of-use assets for operating leases are amortized over the term of the associated lease by amounts that represent the difference between periodic straight-line lease expense and periodic interest accretion on the related liability to make future lease payments. The Company recognizes expense for both operating leases and short-term leases on a straight-line basis.

The Company’s lease expense is recorded in premises and occupancy expense in the consolidated statements of income. The following table presents the components of lease expense for the periods indicated:

Three Months EndedNine Months Ended
(Dollars in thousands)September 30, 2022June 30, 2022September 30, 2021September 30, 2022September 30, 2021
Operating lease$4,603 $4,614 $4,826 $13,955 $14,725 
Short-term lease495 388 433 1,373 1,263 
Total lease expense$5,098 $5,002 $5,259 $15,328 $15,988 

The following table presents supplemental information related to operating leases as of and for nine months ended:
(Dollars in thousands)September 30, 2022December 31, 2021
Balance Sheet:
Operating lease right-of-use assets$54,062 $64,009 
Operating lease liabilities61,852 72,541 
Nine Months Ended
(Dollars in thousands)September 30, 2022September 30, 2021
Cash Flows:
Operating cash outflow from operating leases$15,024 $15,512 
The following table provides information related to minimum contractual lease payments and other information associated with the Company’s leases as of the dates indicated:

(Dollars in thousands)20222023202420252026ThereafterTotal
September 30, 2022
Operating leases$4,954 $19,383 $17,368 $11,657 $5,996 $9,619 $68,977 
Short-term leases53 40 — — — — 93 
Total contractual base rents (1)
$5,007 $19,423 $17,368 $11,657 $5,996 $9,619 $69,070 
Total liability to make lease payments$61,852 
Difference in undiscounted and discounted future lease payments7,125 
Weighted average discount rate5.07 %
Weighted average remaining lease term (years)4.3
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(1) Contractual base rents reflect options to extend and renewals, and do not include property taxes and other operating expenses due under respective lease agreements.

The Company from time to time leases portions of space it owns to other parties. Income received from these transactions is recorded on a straight-line basis over the term of the sublease. For the three months ended September 30, 2022, June 30, 2022, and September 30, 2021, rental income totaled $77,000, $86,000, and $176,000, respectively. For the nine months ended September 30, 2022 and September 30, 2021, rental income totaled $288,000 and $528,000, respectively.