Leases

3 Months Ended

Mar. 31, 2025

LEASES

Operating Leases as a Lessee

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


	Three Months Ended
	March 31,
	2025		2024
	(In thousands)
Operating lease expense:
Fixed costs	$	6,969	$	9,435
Variable costs	112		48
Short-term lease costs	235		66
Sublease income	(1,132)		(1,196)
Net lease expense	$	6,184	$	8,353

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


	Three Months Ended
	March 31,
	2025		2024
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	8,323	$	7,746
ROU assets obtained in exchange for lease obligations:
Operating leases	$	3,942	$	1,183

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


	March 31,			December 31,
	2025			2024
	(Dollars in thousands)
Operating leases:
Operating lease right-of-use assets, net	$	97,716		$	100,092
Operating lease liabilities	$	120,090		$	124,355

Weighted average remaining lease term (in years)	5.9			5.9
Weighted average discount rate	3.59		%	3.53		%

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


	March 31, 2025
	(In thousands)
Period ending December 31,
2025	$	23,450
2026	28,000
2027	21,490
2028	17,454
2029	13,207
Thereafter	30,403
Total operating lease liabilities	134,004
Less: Imputed interest	(13,914)
Present value of operating lease liabilities	$	120,090

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, 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. The equipment is tested periodically for impairment. No impairment was recorded on "Equipment leased to others under operating leases" during the three months ended March 31, 2025 and 2024.

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


	March 31, 2025
	(In thousands)
Period ending December 31,
2025	$	27,224
2026	34,348
2027	27,971
2028	24,925
2029	23,418
Thereafter	45,229
Total undiscounted cash flows	$	183,115