Leases

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Leases

Leases

Lessor Arrangements

The Company has lessor arrangements which consist of sales-type leases for equipment (Equipment Finance). Such arrangements may include options to renew or to purchase the leased equipment at the end of the lease term. For the years ended December 31, 2023, 2022 and 2021, interest earned on Equipment Finance was $8.9 million, $10.2 million and $10.8 million, respectively, and is included in “Interest and fees on loans and leases held for investment” on the Income Statement.

The components of Equipment Finance assets are as follows:

December 31,	2023		2022
Lease receivables	$	92,546	$	137,969
Unguaranteed residual asset values	28,913		39,262
Unearned income	(11,072)		(17,786)
Deferred fees	605		874
Total	$	110,992	$	160,319

Future minimum lease payments based on maturity of the Company’s lessor arrangements as of December 31, 2023 were as follows:

2024	$	38,583
2025	27,289
2026	16,411
2027	7,845
2028	4,053
Thereafter	1,545
Total lease payments	$	95,726
Discount effect	(3,180)
Present value of future minimum lease payments	$	92,546

Lessee Arrangements

The Company has various operating leases, including with respect to its headquarters in San Francisco, California, and office spaces in the Salt Lake City, Utah, and Boston, Massachusetts areas. As of December 31, 2023, the lease agreements have remaining lease terms ranging from approximately two years to five years. Some of the lease agreements include options to extend the lease term for up to an additional fifteen years. As of December 31, 2023, the Company pledged $0.4 million of cash and $1.1 million in letters of credit as security deposits in connection with its lease agreements.

Balance sheet information related to leases was as follows:

ROU Assets and Lease Liabilities	Balance Sheet Classification	December 31, 2023		December 31, 2022
Operating lease assets	Other assets	$	26,611	$	63,872
Operating lease liabilities	Other liabilities	$	37,869	$	77,291

Components of net lease costs were as follows:

		Year Ended December 31,
Net Lease Costs	Income Statement Classification	2023		2022		2021
Operating lease costs	Occupancy	$	(11,963)	$	(15,189)	$	(18,773)
Sublease revenue	Other non-interest income	—		2,847		6,149
Net lease costs		$	(11,963)	$	(12,342)	$	(12,624)

Supplemental cash flow information related to the Company’s operating leases was as follows:

Year Ended December 31,	2023		2022		2021
Non-cash operating activity:
Leased assets obtained or adjusted in exchange for new, amended, and modified operating lease liabilities (1)	$	(29,745)	$	(3,650)	$	12,914

(1)    Amounts include noncash remeasurements of the operating lease ROU asset.

The Company’s future minimum undiscounted lease payments under operating leases as of December 31, 2023 were as follows:

	Operating Lease Payments
2024	$	12,798
2025	13,129
2026	7,228
2027	4,265
2028	3,922
Thereafter	909
Total lease payments	$	42,251
Discount effect	4,382
Present value of future minimum lease payments	$	37,869

The weighted-average remaining lease term and discount rate used in the calculation of the Company’s operating lease assets and liabilities were as follows:

Lease Term and Discount Rate	December 31, 2023
Weighted-average remaining lease term (in years)	3.72
Weighted-average discount rate	5.04	%

Leases

Leases

Lessor Arrangements

The Company has lessor arrangements which consist of sales-type leases for equipment (Equipment Finance). Such arrangements may include options to renew or to purchase the leased equipment at the end of the lease term. For the years ended December 31, 2023, 2022 and 2021, interest earned on Equipment Finance was $8.9 million, $10.2 million and $10.8 million, respectively, and is included in “Interest and fees on loans and leases held for investment” on the Income Statement.

The components of Equipment Finance assets are as follows:

December 31,	2023		2022
Lease receivables	$	92,546	$	137,969
Unguaranteed residual asset values	28,913		39,262
Unearned income	(11,072)		(17,786)
Deferred fees	605		874
Total	$	110,992	$	160,319

Future minimum lease payments based on maturity of the Company’s lessor arrangements as of December 31, 2023 were as follows:

2024	$	38,583
2025	27,289
2026	16,411
2027	7,845
2028	4,053
Thereafter	1,545
Total lease payments	$	95,726
Discount effect	(3,180)
Present value of future minimum lease payments	$	92,546

Lessee Arrangements

The Company has various operating leases, including with respect to its headquarters in San Francisco, California, and office spaces in the Salt Lake City, Utah, and Boston, Massachusetts areas. As of December 31, 2023, the lease agreements have remaining lease terms ranging from approximately two years to five years. Some of the lease agreements include options to extend the lease term for up to an additional fifteen years. As of December 31, 2023, the Company pledged $0.4 million of cash and $1.1 million in letters of credit as security deposits in connection with its lease agreements.

Balance sheet information related to leases was as follows:

ROU Assets and Lease Liabilities	Balance Sheet Classification	December 31, 2023		December 31, 2022
Operating lease assets	Other assets	$	26,611	$	63,872
Operating lease liabilities	Other liabilities	$	37,869	$	77,291

Components of net lease costs were as follows:

		Year Ended December 31,
Net Lease Costs	Income Statement Classification	2023		2022		2021
Operating lease costs	Occupancy	$	(11,963)	$	(15,189)	$	(18,773)
Sublease revenue	Other non-interest income	—		2,847		6,149
Net lease costs		$	(11,963)	$	(12,342)	$	(12,624)

Supplemental cash flow information related to the Company’s operating leases was as follows:

Year Ended December 31,	2023		2022		2021
Non-cash operating activity:
Leased assets obtained or adjusted in exchange for new, amended, and modified operating lease liabilities (1)	$	(29,745)	$	(3,650)	$	12,914

(1)    Amounts include noncash remeasurements of the operating lease ROU asset.

The Company’s future minimum undiscounted lease payments under operating leases as of December 31, 2023 were as follows:

	Operating Lease Payments
2024	$	12,798
2025	13,129
2026	7,228
2027	4,265
2028	3,922
Thereafter	909
Total lease payments	$	42,251
Discount effect	4,382
Present value of future minimum lease payments	$	37,869

The weighted-average remaining lease term and discount rate used in the calculation of the Company’s operating lease assets and liabilities were as follows:

Lease Term and Discount Rate	December 31, 2023
Weighted-average remaining lease term (in years)	3.72
Weighted-average discount rate	5.04	%