Premises and equipment

12 Months Ended

Dec. 31, 2021

Property Plant And Equipment [Abstract]

Premises and equipment

6.    Premises and equipment

The detail of premises and equipment was as follows:

	December 31
	2021		2020
	(In thousands)
Land	$	93,862	$	94,929
Buildings		512,988		513,290
Leasehold improvements		304,825		302,246
Furniture and equipment — owned		880,153		807,701
Furniture and equipment — capital leases		115		8,630
		1,791,943		1,726,796
Less: accumulated depreciation and amortization
Owned assets		1,026,842		971,979
Capital leases		38		5,933
		1,026,880		977,912
Right of use assets — operating leases		379,702		412,674
Premises and equipment, net	$	1,144,765	$	1,161,558

The right-of-use assets and lease liabilities relate to banking offices and other space occupied by the Company and use of certain equipment under noncancelable operating lease agreements. As of December 31, 2021 and 2020, the Company recognized $431 million and $467 million respectively, of operating lease liabilities as a component of “accrued interest and other liabilities” in the consolidated balance sheet. In calculating the present value of lease payments, the Company utilized its incremental secured borrowing rate based on lease term.

The Company’s noncancelable operating lease agreements expire at various dates over the next 20 years.  Real estate leases generally consist of fixed monthly rental payments with certain leases containing escalation clauses.  Any variable lease payments or payments for nonlease components are recognized in the consolidated statement of income as a component of “equipment and net occupancy” expense based on actual costs incurred.  Some leases contain lessee options to extend the term.  Those options are included in the lease term when it is determined that it is reasonably certain the option will be exercised.    

The Company has noncancelable operating lease agreements for certain equipment related to ATMs, servers, printers and mail machines that are used in the normal course of operations.  The ATM leases are either based on the rights to a specific square footage or a license agreement whereby the Company has the right to operate an ATM in a landlord's location.  The lease terms generally contain both fixed payments and variable payments that are transaction-based. Given the transaction-based nature of the variable payments, such payments are excluded from the measurement of the right-of-use asset and lease liability and are recognized in the consolidated statement of income as a component of “equipment and net occupancy” expense when incurred.

The following table presents information about the Company’s lease costs for operating leases recorded in the consolidated balance sheet, cash paid toward lease liabilities, and the weighted-average remaining term and discount rates of the operating leases.

	Year Ended December 31,
	2021			2020			2019
	(Dollars in thousands)
Lease cost
Operating lease cost	$	101,353		$	104,158		$	100,669
Short-term lease cost		111			198			105
Variable lease cost		4,103			1,565			2,332
Total lease cost	$	105,567		$	105,921		$	103,106
Other information
Right-of-use assets obtained in exchange for      new operating lease liabilities	$	57,760		$	70,754		$	132,219
Cash paid toward lease liabilities		106,586			104,396			101,869
Weighted-average remaining lease term	6 years			7 years			7 years
Weighted-average discount rate		2.51	%		2.74	%		3.01	%

Minimum lease payments under noncancelable operating leases are summarized in the following table.

	(In thousands)
Year ending December 31:
2022	$	102,417
2023		86,467
2024		71,321
2025		56,413
2026		42,634
Later years		107,652
Total lease payments		466,904
Less: imputed interest		35,792
Total	$	431,112

  All other operating leasing activities were not material to the Company’s consolidated results of operations. Minimum lease payments required under capital leases are not material.