Leases

9 Months Ended

Sep. 30, 2024

LEASES

Operating Leases as a Lessee

Our lease expense is a component of "Occupancy expense" on our condensed consolidated statements of earnings (loss). The following table presents the components of lease expense for the periods indicated:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
	(In thousands)
Operating lease expense:
Fixed costs	$	7,689	$	8,580	$	26,051	$	24,749
Variable costs	299		115		447		180
Short-term lease costs	267		148		407		770
Sublease income	(1,129)		(273)		(3,646)		(1,518)
Net lease expense	$	7,126	$	8,570	$	23,259	$	24,181

The following table presents supplemental cash flow information related to leases for the periods indicated:


	Nine Months Ended
	September 30,
	2024		2023
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	28,689	$	27,609
ROU assets obtained in exchange for lease obligations:
Operating leases	$	3,437	$	20,909

The following table presents supplemental balance sheet and other information related to operating leases as of the dates indicated:


	September 30,			December 31,
	2024			2023
	(Dollars in thousands)
Operating leases:
Operating lease right-of-use assets, net	$	104,173		$	133,126
Operating lease liabilities	$	132,802		$	161,308

Weighted average remaining lease term (in years)	6.0			6.1
Weighted average discount rate	3.50		%	3.40		%

The following table presents the maturities of operating lease liabilities as of the date indicated:


	September 30, 2024
	(In thousands)
Period ending December 31,
2024	$	8,779
2025	32,475
2026	28,073
2027	20,676
2028	16,531
Thereafter	41,606
Total operating lease liabilities	148,140
Less: Imputed interest	(15,338)
Present value of operating lease liabilities	$	132,802

Operating Leases as a Lessor

We provide equipment financing to our customers through operating leases where we facilitate the purchase of equipment leased to our customers. The equipment is shown on the condensed consolidated balance sheets as "Equipment leased to others under operating leases" and is depreciated to its estimated residual value at the end of the lease term, shown as "Leased equipment depreciation" in the condensed consolidated statements of earnings (loss), according to our fixed asset accounting policy. We receive periodic rental income payments under the leases, which are recorded as "Noninterest Income" in the condensed consolidated statements of earnings (loss). The equipment is tested periodically for impairment. No impairment was recorded on "Equipment leased to others under operating leases" during the nine months ended September 30, 2024 and 2023.

The following table presents the rental payments to be received on operating leases as of the date indicated:


	September 30, 2024
	(In thousands)
Year Ending December 31,
2024	$	9,752
2025	40,332
2026	36,111
2027	29,145
2028	25,020
Thereafter	68,751
Total undiscounted cash flows	$	209,111