LEASES (Notes)

12 Months Ended

Dec. 31, 2022

LEASES

As of December 31, 2022, the Company had entered into 117 noncancellable operating lease agreements for office space, parking, space for ATM locations and certain branch locations, several of which contain renewal options to extend lease terms for a period of 1 to 20 years. The Company has no financing leases outstanding and no leases with residual value guarantees.

As of December 31, 2022, the Company did not have any material sub-lease agreements.

The Company's right-of-use asset related to operating leases totaled $58.9 million and $60.2 million at December 31, 2022 and 2021, respectively, and is recognized in the Company's Consolidated Balance Sheet within other assets.

When a decision is made to exit a leased location, the Company may perform a review for lease impairment and/or recognize termination costs associated with the exit. As a result of such exited locations, the Company recognized $4.4 million in termination costs during the year ended December 31, 2022, and impairment charges of $2.3 million and $4.2 million for the years ended December 31, 2021 and 2020, respectively. Exited locations related to the Meridian acquisition were recorded within merger and acquisition expense in the consolidated income statement.

The following table provides information related to the Company's lease costs for the periods indicated:


	Years Ended December 31
	2022			2021			2020
	(Dollars in thousands)




Operating lease costs (1)	$	17,322		$	14,550		$	16,881
Short-term lease costs	72			23			16
Variable lease costs	—			—			—

Total lease costs	$	17,394		$	14,573		$	16,897

Weighted-average remaining lease term - operating leases	5.46 years			5.72 years			5.59 years
Weighted-average discount rate - operating leases	2.43		%	1.97		%	2.13		%

(1) Operating lease cost for the years ended December 31, 2021 and 2020, respectively, is inclusive of impairment charges recognized by the Company in relation to branch closure decisions made during each year. There were no impairment charges recognized by the Company in the year ended December 31, 2022.

The following table sets forth the undiscounted cash flows of base rent related to operating leases outstanding at December 31, 2022 with payments scheduled over the next five years and thereafter, including a reconciliation to the operating lease liability recognized in the Company's Consolidated Balance Sheet in other liabilities:


	(Dollars in thousands)
2023	$	13,712
2024	13,241
2025	12,150
2026	9,874
2027	7,170
Thereafter	8,914
Total minimum lease payments	65,061
Less: amount representing interest	4,354
Present value of future minimum lease payments	$	60,707