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Leases
 12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Capital Leases in Financial Statements of Lessee Disclosure
Note 7 Leases
The Corporation has operating leases for retail and corporate offices, land, and equipment. The Corporation also has a finance lease for retail and corporate offices.
These leases have original terms of 1 year or longer with remaining maturities up to 40 years, some of which include options to extend the lease term. An analysis of the lease options has been completed and any purchase options or optional periods that the Corporation is reasonably likely to extend have been included in the capitalization.
The discount rate used to capitalize the operating leases is the Corporation's FHLB borrowing rate on the date of lease commencement. When determining the rate to discount specific lease obligations, the repayment period and term are considered.
Operating and finance lease costs and cash flows resulting from these leases are presented below:
Twelve Months Ended December 31,
($ in Thousands)202220212020
Operating Lease Costs$6,812 $8,712 $11,450 
Finance Lease Costs119 107 154 
Operating Lease Cash Flows8,440 11,183 11,276 
Finance Lease Cash Flows125 137 122 
The lease classifications on the consolidated balance sheets were as follows:
Consolidated Balance Sheets Category
($ in Thousands)December 31, 2022December 31, 2021
Operating lease right-of-use assetPremises and equipment$25,617 $28,299 
Finance lease right-of-use assetOther assets455 143 
Operating lease liabilityAccrued expenses and other liabilities28,357 31,345 
Finance lease liabilityOther long-term funding469 163 
The lease payment obligations, weighted-average remaining lease term, and weighted-average original discount rate were as follows:
December 31, 2022December 31, 2021
($ in Thousands)Lease paymentsWeighted-average lease term (in years)Weighted-average discount rateLease paymentsWeighted-average lease term (in years)Weighted-average discount rate
Operating leases
Retail and corporate offices$26,140 5.922.62 %$29,008 5.563.26 %
Land4,766 7.593.14 %5,551 8.293.12 %
Equipment— 0.00— %192 1.500.45 %
Total operating leases$30,906 6.172.70 %$34,751 5.943.22 %
Finance leases
Retail and corporate offices$485 5.251.32 %$112 1.251.32 %
Land— 0.00— %51 0.671.07 %
Total finance leases$485 5.251.32 %$164 1.071.24 %
Contractual lease payment obligations for each of the next five years and thereafter, in addition to a reconciliation to the Corporation’s lease liability, were as follows:
($ in Thousands)Operating LeasesFinance LeasesTotal Leases
Twelve Months Ending December 31, 2023$6,187 $92 $6,279 
20245,685 93 5,777 
20254,512 93 4,605 
20264,246 93 4,339 
20273,807 93 3,899 
Beyond 20276,469 23 6,492 
Total lease payments$30,906 $485 $31,391 
Less: interest2,549 16 2,566 
Present value of lease payments$28,357 $469 $28,826 
At both December 31, 2022 and 2021, additional operating leases, primarily retail and corporate offices, that had not yet commenced totaled $13 million. The leases that had not yet commenced as of December 31, 2022 will commence between January 2023 and January 2024 with lease terms of 1 year to 6 years.
The Corporation conducts a portion of its business through certain facilities and equipment under non-cancelable operating leases. The Corporation also leases a subdivision of some of its facilities and receives rental income from such lease agreements. The approximate minimum annual rental payments and rental receipts under non-cancelable agreements and leases with remaining terms in excess of one year are as follows:
($ in Thousands)PaymentsReceipts
2023$5,969 $2,879 
20245,748 3,056 
20254,670 2,765 
20264,403 2,451 
20273,943 2,051 
Beyond 20276,488 6,531 
Total$31,220 $19,733 
Total rental expense under leases, net of lease income, totaled $3 million in 2022, and $5 million 2021 and 2020, respectively.