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Leases | 3 Months Ended
--- | ---
Mar. 31, 2022
Leases [Abstract] |
Leases | Leases: As of March 31, 2022, the Company was the lessee in 53 operating leases and 1 finance lease of certain branch, mortgage and operations locations, of which 41 operating leases and 1 finance lease currently have remaining terms varying from greater than one year to 33 years. Leases with initial terms of less than one year are not recorded on the consolidated balance sheets. The Company also does not include equipment leases and leases in which the Company is the lessor on the consolidated balance sheets as these are insignificant. Many leases include one or more options to renew, with renewal terms that can extend the lease up to an additional 20 years or more. Certain lease agreements contain provisions to periodically adjust rental payments for inflation. Renewal options that management is reasonably certain to renew and fixed rent escalations are included in the right-of-use asset and lease liability. During the year ended December 31, 2020, the Company entered into a lease for a new corporate headquarters building located in downtown Nashville. The building is currently under construction and anticipated to be completed in late 2022. Upon commencement, the Company estimates recording a ROU asset and operating lease liability of approximately $29,000 and $30,000, respectively, in connection with this lease. Information related to the Company's leases is presented below as of March 31, 2022 and December 31, 2021:
|  |  | March 31, |  | December 31,
| Classification |  | 2022 |  | 2021
Right-of-use assets: |  |  |  |  |
Operating leases | Operating lease right-of-use assets |  | $ | 41,037 |  | $ | 41,686
Finance leases | Premises and equipment, net |  | 1,450 |  | 1,487
Total right-of-use assets |  |  | $ | 42,487 |  | $ | 43,173
Lease liabilities: |  |  |  |  |
Operating leases | Operating lease liabilities |  | $ | 45,528 |  | $ | 46,367
Finance leases | Borrowings |  | 1,488 |  | 1,518
Total lease liabilities |  |  | $ | 47,016 |  | $ | 47,885
Weighted average remaining lease term (in years) - operating |  |  | 12.3 |  | 12.4
Weighted average remaining lease term (in years) - finance |  |  | 13.1 |  | 13.4
Weighted average discount rate - operating |  |  | 2.72 | % |  | 2.73 | %
Weighted average discount rate - finance |  |  | 1.76 | % |  | 1.76 | %
The components of total lease expense included in the consolidated statements of income were as follows:
|  |  |  |  | Three Months Ended
|  |  |  |  | March 31,
| Classification |  |  |  |  |  | 2022 |  |  |  | 2021 |  |  |
Operating lease costs: |  |  |  |  |  |  |  |  |  |  |  |
Amortization of right-of-use asset | Occupancy and equipment |  |  |  |  |  | $ | 1,710 |  |  |  | $ | 1,939 |  |  |
Short-term lease cost | Occupancy and equipment |  |  |  |  |  | 111 |  |  |  | 87 |  |  |
Variable lease cost | Occupancy and equipment |  |  |  |  |  | 256 |  |  |  | 235 |  |  |
Lease impairment | Occupancy and equipment |  |  |  |  |  | — |  |  |  | 38 |  |  |
Gain on lease modifications and terminations | Occupancy and equipment |  |  |  |  |  | (18) |  |  |  | — |  |  |
Finance lease costs: |  |  |  |  |  |  |  |  |  |  |  |
Interest on lease liabilities | Interest expense on borrowings |  |  |  |  |  | 9 |  |  |  | 6 |  |  |
Amortization of right-of-use asset | Occupancy and equipment |  |  |  |  |  | 37 |  |  |  | 28 |  |  |
Total lease cost |  |  |  |  |  |  | $ | 2,105 |  |  |  | $ | 2,333 |  |  |
During the three months ended March 31, 2022, the Company recorded a gain of $18 due to an early lease termination. Additionally, during the three months ended March 31, 2021, the Company recorded $38 in lease modification and impairment on certain vacated locations that were consolidated as a result of previous acquisitions. The Company does not separate lease and non-lease components and instead elects to account for them as a single lease component. Variable lease cost primarily represents variable payments such as common area maintenance, utilities, and property taxes. A maturity analysis of operating and finance lease liabilities and a reconciliation of undiscounted cash flows to the total lease liability as of March 31, 2022 is as follows:
| Operating |  | Finance
| Leases |  | Lease
Lease payments due: |  |  |
March 31, 2023 | $ | 5,542 |  |  | $ | 87 |
March 31, 2024 | 5,959 |  |  | 118 |
March 31, 2025 | 5,140 |  |  | 120 |
March 31, 2026 | 4,823 |  |  | 121 |
March 31, 2027 | 4,700 |  |  | 123 |
Thereafter | 28,730 |  |  | 1,102 |
Total undiscounted future minimum lease payments | 54,894 |  |  | 1,671 |
Less: imputed interest | (9,366) |  |  | (183) |
Lease liability | $ | 45,528 |  |  | $ | 1,488 |
Leases | Leases: As of March 31, 2022, the Company was the lessee in 53 operating leases and 1 finance lease of certain branch, mortgage and operations locations, of which 41 operating leases and 1 finance lease currently have remaining terms varying from greater than one year to 33 years. Leases with initial terms of less than one year are not recorded on the consolidated balance sheets. The Company also does not include equipment leases and leases in which the Company is the lessor on the consolidated balance sheets as these are insignificant. Many leases include one or more options to renew, with renewal terms that can extend the lease up to an additional 20 years or more. Certain lease agreements contain provisions to periodically adjust rental payments for inflation. Renewal options that management is reasonably certain to renew and fixed rent escalations are included in the right-of-use asset and lease liability. During the year ended December 31, 2020, the Company entered into a lease for a new corporate headquarters building located in downtown Nashville. The building is currently under construction and anticipated to be completed in late 2022. Upon commencement, the Company estimates recording a ROU asset and operating lease liability of approximately $29,000 and $30,000, respectively, in connection with this lease. Information related to the Company's leases is presented below as of March 31, 2022 and December 31, 2021:
|  |  | March 31, |  | December 31,
| Classification |  | 2022 |  | 2021
Right-of-use assets: |  |  |  |  |
Operating leases | Operating lease right-of-use assets |  | $ | 41,037 |  | $ | 41,686
Finance leases | Premises and equipment, net |  | 1,450 |  | 1,487
Total right-of-use assets |  |  | $ | 42,487 |  | $ | 43,173
Lease liabilities: |  |  |  |  |
Operating leases | Operating lease liabilities |  | $ | 45,528 |  | $ | 46,367
Finance leases | Borrowings |  | 1,488 |  | 1,518
Total lease liabilities |  |  | $ | 47,016 |  | $ | 47,885
Weighted average remaining lease term (in years) - operating |  |  | 12.3 |  | 12.4
Weighted average remaining lease term (in years) - finance |  |  | 13.1 |  | 13.4
Weighted average discount rate - operating |  |  | 2.72 | % |  | 2.73 | %
Weighted average discount rate - finance |  |  | 1.76 | % |  | 1.76 | %
The components of total lease expense included in the consolidated statements of income were as follows:
|  |  |  |  | Three Months Ended
|  |  |  |  | March 31,
| Classification |  |  |  |  |  | 2022 |  |  |  | 2021 |  |  |
Operating lease costs: |  |  |  |  |  |  |  |  |  |  |  |
Amortization of right-of-use asset | Occupancy and equipment |  |  |  |  |  | $ | 1,710 |  |  |  | $ | 1,939 |  |  |
Short-term lease cost | Occupancy and equipment |  |  |  |  |  | 111 |  |  |  | 87 |  |  |
Variable lease cost | Occupancy and equipment |  |  |  |  |  | 256 |  |  |  | 235 |  |  |
Lease impairment | Occupancy and equipment |  |  |  |  |  | — |  |  |  | 38 |  |  |
Gain on lease modifications and terminations | Occupancy and equipment |  |  |  |  |  | (18) |  |  |  | — |  |  |
Finance lease costs: |  |  |  |  |  |  |  |  |  |  |  |
Interest on lease liabilities | Interest expense on borrowings |  |  |  |  |  | 9 |  |  |  | 6 |  |  |
Amortization of right-of-use asset | Occupancy and equipment |  |  |  |  |  | 37 |  |  |  | 28 |  |  |
Total lease cost |  |  |  |  |  |  | $ | 2,105 |  |  |  | $ | 2,333 |  |  |
During the three months ended March 31, 2022, the Company recorded a gain of $18 due to an early lease termination. Additionally, during the three months ended March 31, 2021, the Company recorded $38 in lease modification and impairment on certain vacated locations that were consolidated as a result of previous acquisitions. The Company does not separate lease and non-lease components and instead elects to account for them as a single lease component. Variable lease cost primarily represents variable payments such as common area maintenance, utilities, and property taxes. A maturity analysis of operating and finance lease liabilities and a reconciliation of undiscounted cash flows to the total lease liability as of March 31, 2022 is as follows:
| Operating |  | Finance
| Leases |  | Lease
Lease payments due: |  |  |
March 31, 2023 | $ | 5,542 |  |  | $ | 87 |
March 31, 2024 | 5,959 |  |  | 118 |
March 31, 2025 | 5,140 |  |  | 120 |
March 31, 2026 | 4,823 |  |  | 121 |
March 31, 2027 | 4,700 |  |  | 123 |
Thereafter | 28,730 |  |  | 1,102 |
Total undiscounted future minimum lease payments | 54,894 |  |  | 1,671 |
Less: imputed interest | (9,366) |  |  | (183) |
Lease liability | $ | 45,528 |  |  | $ | 1,488 |

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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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 -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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