Leases

12 Months Ended

Dec. 31, 2022

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 2023 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	2022		2021
		(in thousands)
Operating lease asset	Other assets	$	53,156	$	60,296
Operating lease liability	Other liabilities	$	58,543	$	66,375

At December 31, 2022, the Company’s operating leases have a weighted average remaining lease term of 7.0 years and a weighted average discount rate of 2.5%. Cash paid for amounts included in the measurement of operating lease liabilities was $12.6 million and $12.5 million for the years ended December 31, 2022 and 2021, respectively. Right-of-use assets obtained in exchange for new operating lease liabilities during the years ended December 31, 2022 and 2021 were $1.9 million and $7.2 million, respectively.

The following table shows the components of net lease costs:

		Years Ended December 31,
Item	Statement of Income Location	2022		2021		2020
		(in thousands)
Operating lease cost (1)	Occupancy	$	12,133	$	11,760	$	11,073
Variable lease cost	Occupancy	1,987		1,800		1,732
Sublease income	Occupancy	(1,634)		(1,562)		(1,454)
Net lease cost		$	12,486	$	11,998	$	11,351

__________

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

The following table shows the maturity analysis for operating leases as of December 31, 2022:

	Years Ending December 31,
	(in thousands)
2023	$	11,597
2024	10,454
2025	9,110
2026	7,898
2027	6,851
Thereafter	18,269
Total future minimum lease payments	64,179
Amounts representing interest	(5,636)
Present value of minimum lease payments	$	58,543

Sale-leaseback transactions:

In 2022, the Company sold one of its Oregon facilities and leased back two suites within the building. The lease terms are through September 2032 and September 2024, with monthly payments of approximately $13 thousand and $9 thousand, respectively. The sale-leaseback transaction resulted in a pre-tax gain of $3.7 million in the year ended December 31, 2022.

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