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Leasing | 12 Months Ended
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Dec. 31, 2024
Leases [Abstract] |
Leasing | Leasing Lessor Arrangements The Company leases certain types of machinery and equipment to its customers through sales-type and direct financing leases as part of its equipment financing portfolio. These leases generally have remaining lease terms of one to ten years, some of which include renewal options and/or options for the lessee to purchase the asset near or at the end of the lease term. The Company recognized interest income from its sales-type and direct financing lessor activities of $19.3 million, $18.7 million, and $15.4 million for the years ended December 31, 2024, 2023, and 2022, respectively. The Company does not have any significant operating leases in which it is the lessor. Additional information regarding the Company’s equipment financing portfolio can be found within Note 4: Loans and Leases. The following table summarizes the components of the Company’s net investment in its sales-type and direct financing leases:
| At December 31,
(In thousands) | 2024 | 2023
Lease receivables | $ | 394,489 | $ | 347,827
Unguaranteed residual values (1) | 63,014 | 60,747
Total net investment | $ | 457,503 | $ | 408,574
(1)The Company performs quarterly reviews of residual values associated with its equipment finance leasing portfolio considering factors such as the subject equipment, structure of the transaction, industry, prior experience with the lessee, and other factors that may impact the residual value to assess for impairment. The following table reconciles undiscounted future lease payments to the total sales-type and direct financing leases’ net investment:
(In thousands) | At December 31, 2024
2025 | $ | 128,790
2026 | 127,483
2027 | 80,011
2028 | 67,809
2029 | 32,470
Thereafter | 77,070
Total lease payments receivable | 513,633
Present value adjustment | (56,130)
Total net investment | $ | 457,503
Lessee Arrangements The Company enters into operating leases in the normal course of business, primarily for office space, banking centers, and other operational activities. These leases generally have remaining lease terms of one to ten years. The Company does not have any finance leases in which it is the lessee, nor any significant sub-lease arrangements. The following table summarizes the Company’s ROU lease assets and operating lease liabilities:
|  |  | At December 31,
(In thousands) | Consolidated Balance Sheet Line Item |  | 2024 | 2023
ROU lease assets | Premises and equipment, net |  | $ | 163,827 | $ | 183,441
Operating lease liabilities | Accrued expenses and other liabilities |  | 193,188 | 222,439
There were no ROU lease asset impairment charges during the years ended December 31, 2024, and 2023. During the year ended December 31, 2022, a $23.1 million ROU asset impairment charge was included in Occupancy on the accompanying Consolidated Statements of Income attributed to the Company’s 2022 corporate real estate consolidation plan. The amount of impairment charge was calculated as the difference between the estimated fair value of the assets, which was determined using a discounted cash flow technique, relative to their book value. The following table summarizes the components of operating lease expense and other relevant information:
| At or for the Years ended December 31,
(In thousands) | 2024 | 2023 | 2022
Lease Cost: |  |  |
Operating lease cost | $ | 36,235 | $ | 33,880 | $ | 38,975
Variable lease cost | 4,880 | 4,617 | 5,679
Sublease income | (909) | (223) | (1,383)
Total operating lease expense | $ | 40,206 | $ | 38,274 | $ | 43,271
Other Information: |  |  |
Cash paid for amounts included in the measurement of operating lease liabilities | $ | 36,080 | $ | 37,615 | $ | 44,767
ROU lease assets obtained in exchange for operating lease liabilities (1) | 10,444 | 22,989 | 27,897
Weighted-average remaining lease term (in years) | 7.08 | 7.46 | 7.72
Weighted-average discount rate | 3.20 | % | 2.96 | % | 2.65 | %
(1)Excludes $0.5 million of ROU lease assets acquired from Ametros for the year ended December 31, 2024, and $100.0 million of ROU lease assets acquired from Sterling for the year ended December 31, 2022. The following table reconciles undiscounted future lease payments to total operating lease liabilities:
(In thousands) | At December 31, 2024 |
2025 | $ | 33,221 |
2026 | 36,103 |
2027 | 31,516 |
2028 | 27,780 |
2029 | 23,408 |
Thereafter | 64,338 |
Total operating lease payments | 216,366 |
Present value adjustment | (23,178) |
Total operating lease liabilities | $ | 193,188 |
Leasing | Leasing Lessor Arrangements The Company leases certain types of machinery and equipment to its customers through sales-type and direct financing leases as part of its equipment financing portfolio. These leases generally have remaining lease terms of one to ten years, some of which include renewal options and/or options for the lessee to purchase the asset near or at the end of the lease term. The Company recognized interest income from its sales-type and direct financing lessor activities of $19.3 million, $18.7 million, and $15.4 million for the years ended December 31, 2024, 2023, and 2022, respectively. The Company does not have any significant operating leases in which it is the lessor. Additional information regarding the Company’s equipment financing portfolio can be found within Note 4: Loans and Leases. The following table summarizes the components of the Company’s net investment in its sales-type and direct financing leases:
| At December 31,
(In thousands) | 2024 | 2023
Lease receivables | $ | 394,489 | $ | 347,827
Unguaranteed residual values (1) | 63,014 | 60,747
Total net investment | $ | 457,503 | $ | 408,574
(1)The Company performs quarterly reviews of residual values associated with its equipment finance leasing portfolio considering factors such as the subject equipment, structure of the transaction, industry, prior experience with the lessee, and other factors that may impact the residual value to assess for impairment. The following table reconciles undiscounted future lease payments to the total sales-type and direct financing leases’ net investment:
(In thousands) | At December 31, 2024
2025 | $ | 128,790
2026 | 127,483
2027 | 80,011
2028 | 67,809
2029 | 32,470
Thereafter | 77,070
Total lease payments receivable | 513,633
Present value adjustment | (56,130)
Total net investment | $ | 457,503
Lessee Arrangements The Company enters into operating leases in the normal course of business, primarily for office space, banking centers, and other operational activities. These leases generally have remaining lease terms of one to ten years. The Company does not have any finance leases in which it is the lessee, nor any significant sub-lease arrangements. The following table summarizes the Company’s ROU lease assets and operating lease liabilities:
|  |  | At December 31,
(In thousands) | Consolidated Balance Sheet Line Item |  | 2024 | 2023
ROU lease assets | Premises and equipment, net |  | $ | 163,827 | $ | 183,441
Operating lease liabilities | Accrued expenses and other liabilities |  | 193,188 | 222,439
There were no ROU lease asset impairment charges during the years ended December 31, 2024, and 2023. During the year ended December 31, 2022, a $23.1 million ROU asset impairment charge was included in Occupancy on the accompanying Consolidated Statements of Income attributed to the Company’s 2022 corporate real estate consolidation plan. The amount of impairment charge was calculated as the difference between the estimated fair value of the assets, which was determined using a discounted cash flow technique, relative to their book value. The following table summarizes the components of operating lease expense and other relevant information:
| At or for the Years ended December 31,
(In thousands) | 2024 | 2023 | 2022
Lease Cost: |  |  |
Operating lease cost | $ | 36,235 | $ | 33,880 | $ | 38,975
Variable lease cost | 4,880 | 4,617 | 5,679
Sublease income | (909) | (223) | (1,383)
Total operating lease expense | $ | 40,206 | $ | 38,274 | $ | 43,271
Other Information: |  |  |
Cash paid for amounts included in the measurement of operating lease liabilities | $ | 36,080 | $ | 37,615 | $ | 44,767
ROU lease assets obtained in exchange for operating lease liabilities (1) | 10,444 | 22,989 | 27,897
Weighted-average remaining lease term (in years) | 7.08 | 7.46 | 7.72
Weighted-average discount rate | 3.20 | % | 2.96 | % | 2.65 | %
(1)Excludes $0.5 million of ROU lease assets acquired from Ametros for the year ended December 31, 2024, and $100.0 million of ROU lease assets acquired from Sterling for the year ended December 31, 2022. The following table reconciles undiscounted future lease payments to total operating lease liabilities:
(In thousands) | At December 31, 2024 |
2025 | $ | 33,221 |
2026 | 36,103 |
2027 | 31,516 |
2028 | 27,780 |
2029 | 23,408 |
Thereafter | 64,338 |
Total operating lease payments | 216,366 |
Present value adjustment | (23,178) |
Total operating lease liabilities | $ | 193,188 |
Leasing | Leasing Lessor Arrangements The Company leases certain types of machinery and equipment to its customers through sales-type and direct financing leases as part of its equipment financing portfolio. These leases generally have remaining lease terms of one to ten years, some of which include renewal options and/or options for the lessee to purchase the asset near or at the end of the lease term. The Company recognized interest income from its sales-type and direct financing lessor activities of $19.3 million, $18.7 million, and $15.4 million for the years ended December 31, 2024, 2023, and 2022, respectively. The Company does not have any significant operating leases in which it is the lessor. Additional information regarding the Company’s equipment financing portfolio can be found within Note 4: Loans and Leases. The following table summarizes the components of the Company’s net investment in its sales-type and direct financing leases:
| At December 31,
(In thousands) | 2024 | 2023
Lease receivables | $ | 394,489 | $ | 347,827
Unguaranteed residual values (1) | 63,014 | 60,747
Total net investment | $ | 457,503 | $ | 408,574
(1)The Company performs quarterly reviews of residual values associated with its equipment finance leasing portfolio considering factors such as the subject equipment, structure of the transaction, industry, prior experience with the lessee, and other factors that may impact the residual value to assess for impairment. The following table reconciles undiscounted future lease payments to the total sales-type and direct financing leases’ net investment:
(In thousands) | At December 31, 2024
2025 | $ | 128,790
2026 | 127,483
2027 | 80,011
2028 | 67,809
2029 | 32,470
Thereafter | 77,070
Total lease payments receivable | 513,633
Present value adjustment | (56,130)
Total net investment | $ | 457,503
Lessee Arrangements The Company enters into operating leases in the normal course of business, primarily for office space, banking centers, and other operational activities. These leases generally have remaining lease terms of one to ten years. The Company does not have any finance leases in which it is the lessee, nor any significant sub-lease arrangements. The following table summarizes the Company’s ROU lease assets and operating lease liabilities:
|  |  | At December 31,
(In thousands) | Consolidated Balance Sheet Line Item |  | 2024 | 2023
ROU lease assets | Premises and equipment, net |  | $ | 163,827 | $ | 183,441
Operating lease liabilities | Accrued expenses and other liabilities |  | 193,188 | 222,439
There were no ROU lease asset impairment charges during the years ended December 31, 2024, and 2023. During the year ended December 31, 2022, a $23.1 million ROU asset impairment charge was included in Occupancy on the accompanying Consolidated Statements of Income attributed to the Company’s 2022 corporate real estate consolidation plan. The amount of impairment charge was calculated as the difference between the estimated fair value of the assets, which was determined using a discounted cash flow technique, relative to their book value. The following table summarizes the components of operating lease expense and other relevant information:
| At or for the Years ended December 31,
(In thousands) | 2024 | 2023 | 2022
Lease Cost: |  |  |
Operating lease cost | $ | 36,235 | $ | 33,880 | $ | 38,975
Variable lease cost | 4,880 | 4,617 | 5,679
Sublease income | (909) | (223) | (1,383)
Total operating lease expense | $ | 40,206 | $ | 38,274 | $ | 43,271
Other Information: |  |  |
Cash paid for amounts included in the measurement of operating lease liabilities | $ | 36,080 | $ | 37,615 | $ | 44,767
ROU lease assets obtained in exchange for operating lease liabilities (1) | 10,444 | 22,989 | 27,897
Weighted-average remaining lease term (in years) | 7.08 | 7.46 | 7.72
Weighted-average discount rate | 3.20 | % | 2.96 | % | 2.65 | %
(1)Excludes $0.5 million of ROU lease assets acquired from Ametros for the year ended December 31, 2024, and $100.0 million of ROU lease assets acquired from Sterling for the year ended December 31, 2022. The following table reconciles undiscounted future lease payments to total operating lease liabilities:
(In thousands) | At December 31, 2024 |
2025 | $ | 33,221 |
2026 | 36,103 |
2027 | 31,516 |
2028 | 27,780 |
2029 | 23,408 |
Thereafter | 64,338 |
Total operating lease payments | 216,366 |
Present value adjustment | (23,178) |
Total operating lease liabilities | $ | 193,188 |

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- 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
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