Leases

9 Months Ended

Sep. 30, 2023

LEASES

Operating Leases as a Lessee

Our lease expense is a component of "Occupancy expense" on our condensed consolidated statements of earnings. The following table presents the components of lease expense for the periods indicated:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
	(In thousands)
Operating lease expense:
Fixed costs	$	8,580	$	8,682	$	24,749	$	26,203
Variable costs	115		33		180		92
Short-term lease costs	148		379		770		1,122
Sublease income	(273)		(955)		(1,518)		(3,108)
Net lease expense	$	8,570	$	8,139	$	24,181	$	24,309

The following table presents supplemental cash flow information related to leases for the periods indicated:


	Nine Months Ended
	September 30,
	2023		2022
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	27,609	$	26,643
ROU assets obtained in exchange for lease obligations:
Operating leases	$	20,909	$	28,420

The following table presents supplemental balance sheet and other information related to operating leases as of the dates indicated:


	September 30,			December 31,
	2023			2022
	(Dollars in thousands)
Operating leases:
Operating lease right-of-use assets, net	$	121,980		$	126,255
Operating lease liabilities	$	144,027		$	148,401

Weighted average remaining lease term (in years)	6.5			6.6
Weighted average discount rate	2.97		%	2.64		%

The following table presents the maturities of operating lease liabilities as of the date indicated:


	September 30, 2023
	(In thousands)
Period ending December 31,
2023	$	7,836
2024	31,371
2025	28,274
2026	23,384
2027	17,284
Thereafter	53,077
Total operating lease liabilities	161,226
Less: Imputed interest	(17,199)
Present value of operating lease liabilities	$	144,027

Operating Leases as a Lessor

We provide equipment financing to our customers through operating leases where we facilitate the purchase of equipment leased to our customers. The equipment is shown on the condensed consolidated balance sheets as "Equipment leased to others under operating leases" and is depreciated to its estimated residual value at the end of the lease term, shown as "Leased equipment depreciation" in the condensed consolidated statements of earnings, according to our fixed asset accounting policy. We receive periodic rental income payments under the leases, which are recorded as "Noninterest Income" in the condensed consolidated statements of earnings. The equipment is tested periodically for impairment. No impairment was recorded on "Equipment leased to others under operating leases" during the nine months ended September 30, 2023 and 2022.

The following table presents the rental payments to be received on operating leases as of the date indicated:


	September 30, 2023
	(In thousands)
Period ending December 31,
2023	$	9,856
2024	45,411
2025	38,580
2026	33,848
2027	25,786
Thereafter	79,739
Total undiscounted cash flows	$	233,220

Leases