Leases

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Lessee, Operating Leases

Leases

Park is a lessee in several noncancellable operating lease arrangements, primarily for retail branches, administrative and warehouse buildings, ATMs, and certain office equipment within its Ohio, North Carolina, South Carolina, and Kentucky markets. Certain of these leases contain renewal options for periods ranging from one to five years. Park’s leases generally do not include termination options for either party to the lease or restrictive financial or other covenants. Payments due under the lease arrangements include fixed payments plus, for many of Park’s real estate leases, variable payments such as Park's proportionate share of property taxes, insurance and common area maintenance.

Park's operating lease ROU asset and lease liability are presented in “Operating lease right-of-use asset" and "Operating lease liability," respectively, on Park's Consolidated Balance Sheets. The carrying amounts of Park's ROU asset and lease liability at December 31, 2022 were $17.6 million and $19.3 million, respectively. At December 31, 2021, the carrying amounts of Park's ROU assets and lease liability were $13.4 million and $14.3 million, respectively. Park's operating lease expense is recorded in "Occupancy expense" on the Company's Consolidated Statements of Income.

Other information related to operating leases for the years ended December 31, 2022, 2021 and 2020 follows:

(In thousands)	Year ended December 31, 2022		Year ended December 31, 2021		Year ended December 31, 2020
Lease cost
Operating lease cost	$	3,073	$	2,827	$	3,463
Sublease income	(252)		(253)		(352)
Total lease cost	$	2,821	$	2,574	$	3,111
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	3,116	$	3,199	$	3,553
ROU assets obtained in exchange for new operating lease liabilities	$	7,867	$	1,190	$	7,821
Reductions to ROU assets resulting from reductions to lease obligations	$	(2,812)	$	(2,865)	$	(3,084)

Park's operating leases had a weighted average remaining term of 10.0 years and 6.8 years at December 31, 2022 and 2021, respectively. The weighted average discount rate of Park's operating leases was 3.3% and 2.3% at December 31, 2022 and 2021, respectively.

Undiscounted cash flows included in lease liabilities at December 31, 2022 have expected contractual payments as follows:

(In thousands)	December 31, 2022
2023	$	3,599
2024	2,485
2025	2,142
2026	2,097
2027	2,030
Thereafter	11,020
Total undiscounted minimum lease payments	$	23,373
Less: imputed interest	(4,082)
Total lease liabilities	$	19,291