Leases

6 Months Ended

Jun. 30, 2023

Busey as the Lessee

Busey has operating leases consisting primarily of equipment leases and real estate leases for banking centers, ATM locations, and office space. The following table summarizes lease-related information and balances reported in our Consolidated Balance Sheets for the periods presented (dollars in thousands):


	As of
	June 30, 2023			December 31, 2022
Lease balances
Right of use assets	$	11,806		$	12,829
Lease liabilities	12,059			12,995

Supplemental information
Year through which lease terms extend	2037			2037
Weighted average remaining lease term, in years	8.71			8.90
Weighted average discount rate	3.51		%	3.45		%

The following table represents lease costs and cash flows related to leases for the periods presented (dollars in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Lease costs
Operating lease costs	$	593	$	582	$	1,221	$	1,199
Variable lease costs	13		94		18		222
Short-term lease costs	16		6		22		10
Total lease cost1	$	622	$	682	$	1,261	$	1,431

Cash flows related to leases
Cash paid for amounts included in the measurement of lease liabilities:
Operating lease cash flows – Fixed payments	$	564	$	738	$	1,134	$	1,369
Operating lease cash flows – Liability reduction	461		692		940		1,277
Right of use assets obtained during the period in exchange for operating lease liabilities	5		—		9		55

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1.Lease costs are included in net occupancy and equipment expense in the Consolidated Statements of Income.

Busey was obligated under noncancelable operating leases for office space and other commitments, as follows (dollars in thousands):


	As of June 30, 2023
Rent commitments
Remainder of 2023	$	1,089
2024	1,935
2025	1,716
2026	1,442
2027	1,276
2028	1,255
Thereafter	5,476
Total undiscounted cash flows	14,189
Less: Amounts representing interest	2,130
Present value of net future minimum lease payments	$	12,059

Busey as the Lessor

Busey occasionally leases parking lots and office space to outside parties. Revenues recorded in connection with these leases and reported in Other income on our unaudited Consolidated Statements of Income are summarized as follows (dollars in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Rental income	$	183	$	143	$	374	$	373