XML 26 R15.htm IDEA: XBRL DOCUMENT
v3.24.1.u1

Leases | 3 Months Ended
--- | ---
Mar. 31, 2024
Leases |
Leases | ​ Note 7 — Leases As of March 31, 2024 and December 31, 2023, we had operating right-of-use (“ROU”) assets of $99.7 million and $100.3 million, respectively, and operating lease liabilities of $107.7 million and $108.3 million, respectively. We maintain operating leases on land and buildings for some of our operating centers, branch facilities and ATM locations. Most leases include one or more options to renew, with renewal terms extending up to 20 years. The exercise of renewal options is based on the sole judgment of management and what they consider to be reasonably certain given the environment today. 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. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended | ​
​ | ​ | March 31, | ​
(Dollars in thousands) |  | 2024 | 2023 |
Lease Cost Components: | ​ | ​ | ​ | ​ | ​ | ​ | ​
Amortization of ROU assets – finance leases | ​ | $ | 117 | ​ | $ | 117 | ​
Interest on lease liabilities – finance leases | ​ | ​ | 9 | ​ | ​ | 11 | ​
Operating lease cost (cost resulting from lease payments) | ​ | ​ | 4,277 | ​ | ​ | 4,240 | ​
Short-term lease cost | ​ | ​ | 139 | ​ | ​ | 109 | ​
Variable lease cost (cost excluded from lease payments) | ​ |  | 797 | ​ |  | 634 | ​
Total lease cost | ​ | $ | 5,339 | ​ | $ | 5,111 | ​
Supplemental Cash Flow and Other Information Related to Leases: | ​ | ​ | ​ | ​ | ​ | ​ | ​
Finance lease – operating cash flows | ​ | $ | 9 | ​ | $ | 11 | ​
Finance lease – financing cash flows | ​ | ​ | 119 | ​ | ​ | 110 | ​
Operating lease – operating cash flows (fixed payments) | ​ | ​ | 4,193 | ​ | ​ | 4,097 | ​
Operating lease – operating cash flows (net change asset/liability) | ​ | ​ | (3,367) | ​ | ​ | (3,287) | ​
New ROU assets – operating leases | ​ | ​ | 2,544 | ​ | ​ | — | ​
New ROU assets – finance leases | ​ | ​ | — | ​ | ​ | — | ​
Weighted – average remaining lease term (years) – finance leases | ​ | ​ | 4.18 | ​ | ​ | 5.18 | ​
Weighted – average remaining lease term (years) – operating leases | ​ |  | 9.09 | ​ | ​ | 9.88 | ​
Weighted – average discount rate - finance leases | ​ | ​ | 1.7% | ​ | ​ | 1.7% | ​
Weighted – average discount rate - operating leases | ​ |  | 3.2% | ​ |  | 3.0% | ​
​ | ​ |  | ​ | ​ |  | ​ | ​
Operating lease payments due: | ​ | ​ | ​ | ​ | ​ | ​ | ​
2024 (excluding 3 months ended March 31, 2024) | ​ | $ | 12,323 | ​ | ​ | ​ | ​
2025 | ​ |  | 15,057 | ​ | ​ | ​ | ​
2026 | ​ |  | 14,594 | ​ | ​ | ​ | ​
2027 | ​ |  | 13,532 | ​ | ​ | ​ | ​
2028 | ​ | ​ | 12,891 | ​ | ​ | ​ | ​
Thereafter | ​ |  | 57,389 | ​ | ​ | ​ | ​
Total undiscounted cash flows | ​ |  | 125,786 | ​ | ​ | ​ | ​
Discount on cash flows | ​ | ​ | (18,051) | ​ | ​ | ​ | ​
Total operating lease liabilities | ​ | $ | 107,735 | ​ | ​ | ​ | ​
​ As of March 31, 2024, the Company held a small number of finance leases assumed in connection to the CenterState merger completed in 2020. These leases are 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 March 31, 2024, we did not maintain any leases with related parties, and determined that the number and dollar amount of our equipment leases was immaterial. As of March 31, 2024, we had no additional operating leases that have not yet commenced. ​ Equipment Lessor SouthState has an Equipment Finance Group which goes to market through intermediaries. The Equipment Finance Group is primarily focused on serving the construction and utility segments. Lease terms typically range from 24 months to 120 months. At the end of the lease term, the lessee has the option to renew the lease, return the equipment, or purchase the equipment. In the event the equipment is returned, there is a remarketing agreement with the intermediary to sell the equipment. The Equipment Finance Group offers the following lease products: TRAC Leases, Split-TRAC Leases, and FMV Leases. Direct finance equipment leases are included in commercial and industrial loans on the Consolidated Balance Sheets. ​ The estimated residual values for direct finance leases are established by approved intermediary who utilizes internally developed analyses, external studies, and/or third-party appraisals to establish a residual position. FMV and Split-TRAC leases have residual risk due to their unguaranteed residual value whereas TRAC leases have a guaranteed residual value. Expected credit losses on direct financing leases and the related estimated residual values are included in the Commercial and Industrial loan segment for the ACL. ​ The following table summarizes lease receivables and investment in operating leases and their corresponding balance sheet location at March 31, 2024: ​
​ | ​ | ​ | ​ | ​ | ​
​ | ​ | March 31, |  | ​
(Dollars in thousands) |  | 2024 |  |
Direct financing leases: | ​ | ​ | ​ | ​ | ​
Lease receivables | ​ | $ | 14,161 | ​ | ​
Guaranteed residual values | ​ | ​ | 1,057 | ​ | ​
Unguaranteed residual values | ​ | ​ | 1,997 | ​ | ​
Initial direct costs | ​ | ​ | 544 | ​ | ​
Unearned income | ​ |  | 3,087 | ​ | ​
Total net investment in direct financing leases | ​ | $ | 20,846 | ​ | ​
Direct financing lease income | ​ | ​ | ​ | ​ | ​
Interest income | ​ | $ | 163 | ​ | ​
​ | ​ |  | ​ | ​ | ​
Remaining lease payments receivable: | ​ | ​ | ​ | ​ | ​
2024 (excluding 3 months ended March 31, 2024) | ​ | $ | 2,321 | ​ | ​
2025 | ​ | ​ | 3,094 | ​ | ​
2026 | ​ | ​ | 3,094 | ​ | ​
2027 | ​ | ​ | 3,107 | ​ | ​
2028 | ​ | ​ | 3,579 | ​ | ​
Thereafter | ​ | ​ | 2,053 | ​ | ​
Total undiscounted cash flows | ​ | ​ | 17,248 | ​ | ​
Less: unearned interest income | ​ | ​ | (3,087) | ​ | ​
Total operating lease liabilities | ​ | $ | 14,161 | ​ | ​
​ See Note 1 — Summary of Significant Accounting Policies, under the “Leases” section, of our Annual Report on Form 10-K for the year ended December 31, 2023 on accounting for leases.

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration