Lease Investments

9 Months Ended

Sep. 30, 2021

As a lessor, the Company’s loan and lease portfolio includes direct finance leases, which are included in commercial and agricultural, solar, auto and light truck, medium and heavy duty truck, aircraft, and construction equipment on the Consolidated Statements of Financial Condition. The Company also finances various types of construction equipment, medium and heavy duty trucks, automobiles and other equipment under leases classified as operating leases, which are included in Equipment Owned Under Operating Leases, net, on the Consolidated Statements of Financial Condition.

The following table shows interest income recognized from direct finance lease payments and operating lease equipment rental income and related depreciation expense.


	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in thousands)	2021		2020		2021		2020
Direct finance leases:
Interest income on lease receivable	$	1,629	$	1,880	$	4,880	$	6,310

Operating leases:
Income related to lease payments	$	3,946	$	5,593	$	12,830	$	18,213
Depreciation expense	3,239		4,694		10,562		15,263

Income related to reimbursements from lessees for personal property tax on operating leased equipment for the three months ended September 30, 2021 and 2020 was $0.02 million and $0.02 million, respectively and for the nine months ended September 30, 2021 and 2020 was $0.40 million and $0.44 million, respectively. Expense related to personal property tax payments on operating leased equipment for the three months ended September 30, 2021 and 2020 was $0.02 million and $0.02 million, respectively and for the nine months ended September 30, 2021 and 2020 was $0.40 million and $0.44 million, respectively.