Leases |
Note 9 — Leases As of September 30, 2021 and December 31, 2020, we had operating right-of-use (“ROU”) assets of $110.9 million and $113.4 million, respectively, and operating lease liabilities of $116.4 million and $118.3 million, respectively. We maintain operating leases on land and buildings for our operating centers, branch facilities and ATM locations. Most leases include one or more options to renew, with renewal terms extending up to 23 years. The exercise of renewal options is based on the sole judgment of management and what they consider to be reasonably certain given the environment today. Factors in determining whether an option is reasonably certain of exercise include, but are not limited to, the value of leasehold improvements, the value of renewal rate compared to market rates, and the presence of factors that would cause a significant economic penalty to us if the option is not exercised. Leases with an initial term of 12 months or less are not recorded on the balance sheet and instead are recognized in lease expense on a straight-line basis over the lease term. The Company also holds a small number of finance leases assumed in connection to the CSFL merger. These leases are all real estate leases. Terms and conditions are similar to those real estate operating leases described above. Lease classifications from the acquired institutions were retained. | | | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | | (Dollars in thousands) | | September 30, | | September 30, | | | | | 2021 | 2020 | | 2021 | 2020 | | | Lease Cost Components: | | | | | | | | | | | | | | | Amortization of ROU assets - finance leases | | $ | 117 | | $ | 125 | | $ | 350 | | $ | 172 | | | Interest on lease liabilities - finance leases | | | 14 | | | 19 | | | 43 | | | 24 | | | Operating lease cost (cost resulting from lease payments) | | | 4,292 | | | 4,557 | | | 12,977 | | | 9,873 | | | Short-term lease cost | | | 116 | | | 253 | | | 327 | | | 450 | | | Variable lease cost (cost excluded from lease payments) | | | 783 | | | 370 | | | 2,073 | | | 739 | | | Total lease cost | | $ | 5,322 | | $ | 5,324 | | $ | 15,770 | | $ | 11,258 | | | Supplemental Cash Flow and Other Information Related to Leases: | | | | | | | | | | | | | | | Finance lease - operating cash flows | | $ | 14 | | $ | 19 | | $ | 43 | | $ | 27 | | | Finance lease - financing cash flows | | | 107 | | | 109 | | | 320 | | | 150 | | | Operating lease - operating cash flows (fixed payments) | | | 4,127 | | | 4,307 | | | 12,440 | | | 8,763 | | | Operating lease - operating cash flows (net change asset/liability) | | | (3,215) | | | (3,290) | | | (9,691) | | | (5,968) | | | New ROU assets - operating leases | | | 4,196 | | | 1,475 | | | 5,494 | | | 41,211 | | | New ROU assets - finance leases | | | — | | | — | | | — | | | 5,374 | | | Weighted - average remaining lease term (years) - finance leases | | | | | | | | | 6.66 | | | 7.66 | | | Weighted - average remaining lease term (years) - operating leases | | | | | | | | | 10.96 | | | 11.60 | | | Weighted - average discount rate - finance leases | | | | | | | | | 1.7% | | | 1.7% | | | Weighted - average discount rate - operating leases | | | | | | | | | 3.3% | | | 3.3% | | | | | | | | | | | | | | | | | | Operating lease payments due: | | | | | | | | | | | | | | | 2021 (excluding the nine months ended September 30, 2021) | | | | | | | | $ | 4,081 | | | | | | 2022 | | | | | | | | | 15,550 | | | | | | 2023 | | | | | | | | | 14,856 | | | | | | 2024 | | | | | | | | | 13,125 | | | | | | 2025 | | | | | | | | | 11,597 | | | | | | Thereafter | | | | | | | | | 82,061 | | | | | | Total undiscounted cash flows | | | | | | | | | 141,270 | | | | | | Discount on cash flows | | | | | | | | | (24,909) | | | | | | Total operating lease liabilities | | | | | | | | $ | 116,361 | | | | | |
As of September 30, 2021, we determined that the number and dollar amount of our equipment leases was immaterial. As of September 30, 2021, we have additional operating leases that have not yet commenced of $0.4 million. These operating leases will commence in the fourth quarter of 2021 with a lease term of 10 years.
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