LEASES

3 Months Ended

Mar. 31, 2024

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 Busey reported in its Consolidated Balance Sheets (Unaudited) for the periods presented (dollars in thousands):


	As of
	March 31, 2024			December 31, 2023
Lease balances
Right of use assets	$	10,590		$	11,027
Lease liabilities	10,896			11,308

Supplemental information
Year through which lease terms extend	2037			2037
Weighted average remaining lease term	8.26 years			8.39 years
Weighted average discount rate	3.61		%	3.59		%

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


	Three Months Ended March 31,
		2024		2023
Lease costs
Operating lease costs		$	535	$	628
Variable lease costs		14		5
Short-term lease costs		13		6
Total lease cost1		$	562	$	639

Cash flows related to leases
Cash paid for amounts included in the measurement of lease liabilities:
Operating lease cash flows – Fixed payments		$	507	$	570
Operating lease cash flows – Liability reduction		411		479
Right of use assets obtained during the period in exchange for operating lease liabilities		—		4

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

Busey was obligated under noncancelable operating leases for office space and other commitments. Future undiscounted lease payments with initial terms of one year or more, are as follows (dollars in thousands):


	As of March 31, 2024
Rent commitments
Remainder of 2024	$	1,515
2025	1,768
2026	1,443
2027	1,277
2028	1,255
2029	1,278
Thereafter	4,200
Total undiscounted cash flows	12,736
Less: Amounts representing interest	1,840
Present value of net future minimum lease payments	$	10,896

Busey as the Lessor

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


	Three Months Ended March 31,
		2024		2023
Rental income		$	202	$	191