Leases (Notes)

12 Months Ended

Dec. 31, 2022

LEASES

The Company has banking and limited-service facilities, data centers, and certain equipment under lease agreements. Most of the leases expire between 2023 and 2028 and include one or more renewal options for up to 5 years. One lease expires in 2030 and another in 2031. All leases are classified as operating leases.


	For the year ended December 31,
($ in thousands)	2022		2021
Operating lease cost	$	5,868	$	4,877
Short-term lease cost	814		833


Total lease cost	$	6,682	$	5,710

Payments on operating leases included in the measurement of lease liabilities during the twelve months ended December 31, 2022 and 2021 totaled $5.8 million and $5.2 million, respectively. Right-of-use assets obtained in exchange for lease obligations totaled $9.5 million and $5.7 million during the twelve months ended December 31, 2022 and 2021, respectively. The additions in 2022 were primarily from lease renewals. The additions in 2021 were primarily from the First Choice acquisition. In 2021, an impairment of $1.1 million was recognized on right-of-use assets concurrent with the announced closure of certain leased locations. For further discussion see “Note 7 – Fixed Assets.”

Supplemental balance sheet information related to leases is as follows:


($ in thousands)	December 31, 2022			December 31, 2021
Operating lease right-of-use assets, included in other assets	$	17,355		$	13,483
Operating lease liabilities, included in other liabilities	18,038			14,865

Operating leases
Weighted average remaining lease term	5 years			4 years
Weighted average discount rate	2.5		%	2.0		%

Maturities of operating lease liabilities are as follows:


($ in thousands)
Year	Amount
2023	$	5,352
2024	4,402
2025	3,096
2026	3,148
2027	1,891
Thereafter	1,182
Total operating lease liabilities, payments	19,071
Less: present value adjustment	1,033
Operating lease liabilities	$	18,038

Lessor income was $1.9 million for each of the twelve months ended December 31, 2022, and 2021.