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Lease Commitments

12 Months Ended

Dec. 31, 2022

Note 21—Lease Commitments

Our outstanding lease agreements are for real estate properties, including retail branch locations, operations and administration locations and stand-alone ATM locations. We have determined the number and dollar amount of our equipment leases is not material.

As of December 31, 2022 and 2021, we had operating ROU assets of $108.0 million and $110.3 million, respectively, and operating lease liabilities of $115.6 million and $115.9 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 21 years. The exercise of renewal options is based on the sole judgment of management and what is considered to be reasonably certain given the current environment. 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. We do not sublease any portion of these locations to third parties.



(Dollars in thousands)	Year Ended December 31,
	2022		2021		2020
Lease Cost Components:
Amortization of ROU assets - finance leases	$	466	$	466	$	289
Interest on lease liabilities - finance leases		49		56		44
Operating lease cost (cost resulting from lease payments)		17,782		17,236		14,266
Short-term lease cost		820		446		404
Variable lease cost (cost excluded from lease payments)		2,399		2,768		1,081
Total lease cost	$	21,516	$	20,972	$	16,084
Supplemental Cash Flow and Other Information Related to Leases:
Finance lease - operating cash flows	$	49	$	56	$	42
Finance lease - financing cash flows		434		427		255
Operating lease - operating cash flows (fixed payments)		17,253		16,435		12,876
Operating lease - operating cash flows (net change asset/liability)		(13,723)		(12,790)		(9,123)
New ROU assets - operating leases		12,635		9,623		43,583
New ROU assets - finance leases		—		—		5,374
Weighted - average remaining lease term (years) - finance leases		5.42		6.41		7.40
Weighted - average remaining lease term (years) - operating leases		10.03		10.95		11.51
Weighted - average discount rate - finance leases		1.7%		1.7%		1.7%
Weighted - average discount rate - operating leases		3.0%		3.2%		3.3%

Operating lease payments due:
2023	$	16,280
2024		14,909
2025		13,546
2026		13,135
2027		12,172
Thereafter		66,551
Total undiscounted cash flows		136,593
Discount on cash flows		(20,983)
Total operating lease liabilities	$	115,610

As of December 31, 2022, the Company held a small number of finance leases assumed in connection to the CenterState merger completed in 2020. These leases were 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. At December 31, 2022, we did not maintain any leases with related parties, and determined that the number and dollar amount of equipment leases was immaterial. As of December 31, 2022, we had no additional operating leases that had not yet commenced.

See further discussion in Note 1—Summary of Significant Accounting Policies on page F-17 on accounting for leases.