Leases

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Lessee, Operating Leases [Text Block]

Leases

Lease Commitments 

The Company’s lease commitments consist primarily of leased locations under various non-cancellable operating leases that expire between 2022 and 2043. The majority of the leases contain renewal options and provisions for increases in rental rates based on an agreed upon index or predetermined escalation schedule.

The following table shows the details of the Company’s operating lease right-of-use asset and the associated lease liability for the period indicated:

		December 31,
Item	Balance Sheet Location	2021		2020
		(in thousands)
Operating lease asset	Other assets	$	60,296	$	61,863
Operating lease liability	Other liabilities	$	66,375	$	67,503

At December 31, 2021, the Company’s operating leases have a weighted average remaining lease term of 7.5 years and a weighted average discount rate of 2.4%. Cash paid for amounts included in the measurement of operating lease liabilities was $12.5 million and $11.2 million for the years ended December 31, 2021 and 2020, respectively. Right-of-use assets obtained in exchange for new operating lease liabilities during the years ended December 31, 2021 and 2020 were $7.2 million and $13.9 million, respectively.

The following table shows the components of net lease costs:

		Years Ended December 31,
Item	Statement of Income Location	2021		2020		2019
		(in thousands)
Operating lease cost (1)	Occupancy	$	11,760	$	11,073	$	10,851
Variable lease cost	Occupancy	1,800		1,732		1,805
Sublease income	Occupancy	(1,562)		(1,454)		(1,182)
Net lease cost		$	11,998	$	11,351	$	11,474

__________

(1) Includes short-term lease costs, which are immaterial.

The following table shows the maturity analysis for operating leases as of December 31, 2021:

	Years Ending December 31,
	(in thousands)
2022	$	12,477
2023	10,845
2024	9,926
2025	8,616
2026	7,395
Thereafter	23,753
Total future minimum lease payments	73,012
Amounts representing interest	(6,637)
Present value of minimum lease payments	$	66,375

Sale-leaseback transactions:

In 2019, the Company sold one of its Washington facilities and leased back a portion of the facility utilized for branch operations. The lease term is through September 2022, with monthly payments of approximately $19 thousand. The sale-leaseback transaction resulted in a pre-tax gain of $5.9 million in the year ended December 31, 2019.

For additional detail regarding the lease guidance, see Note 1, “Summary of Significant Accounting Policies and Reclassifications.”