v3.23.2

Leases | 6 Months Ended
--- | ---
Jun. 30, 2023
Leases [Abstract] |
Leases | Leases Lessor Arrangements The Company has lessor arrangements which consist of sales-type leases for equipment (Equipment Finance). Such arrangements may include options to renew or to purchase the leased equipment at the end of the lease term. For the second quarter and first half of 2023, interest earned on Equipment Finance was $2.3 million and $5.2 million, respectively, and is included in “Interest and fees on loans and leases held for investment” on the Income Statement. For the second quarter and first half of 2022, interest earned on Equipment Finance was $2.5 million and $5.1 million, respectively. The components of Equipment Finance assets are as follows:
| June 30, 2023 |  | December 31, 2022 |  |
Lease receivables | $ | 120,046 |  |  | $ | 137,969 |  |  |
Unguaranteed residual asset values | 35,105 |  |  | 39,262 |  |  |
Unearned income | (13,816) |  |  | (17,786) |  |  |
Deferred fees | 738 |  |  | 874 |  |  |
Total | $ | 142,073 |  |  | $ | 160,319 |  |  |
Future minimum lease payments based on maturity of the Company’s lessor arrangements as of June 30, 2023 were as follows:
2023 | $ | 24,987 |
2024 | 40,333 |
2025 | 29,078 |
2026 | 17,503 |
2027 | 7,881 |
Thereafter | 5,539 |
Total lease payments | $ | 125,321 |
Discount effect | (5,275) |
Present value of future minimum lease payments | $ | 120,046 |
Lessee Arrangements The Company has various operating leases, including with respect to its headquarters in San Francisco, California, and office spaces in the Salt Lake City, Utah, and Boston, Massachusetts areas. As of June 30, 2023, the lease agreements have remaining lease terms ranging from approximately one year to eight years. Some of the lease agreements include options to extend the lease term for up to an additional fifteen years. As of June 30, 2023, the Company pledged $0.4 million of cash and $1.1 million in letters of credit as security deposits in connection with its lease agreements. Balance sheet information related to leases was as follows:
ROU Assets and Lease Liabilities | Balance Sheet Classification | June 30, 2023 | December 31, 2022 |  |
Operating lease assets | Other assets | $ | 55,436 |  | $ | 63,872 |  |  |
Operating lease liabilities | Other liabilities | $ | 68,095 |  | $ | 77,291 |  |  |
Components of net lease costs were as follows:
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
Net Lease Costs | Income Statement Classification | 2023 |  | 2022 |  | 2023 |  | 2022
Operating lease costs | Occupancy | $ | (3,334) |  |  | $ | (4,366) |  |  | $ | (6,262) |  |  | $ | (8,846) |
Sublease revenue | Other non-interest income | — |  |  | 1,310 |  |  | — |  |  | 2,847 |
Net lease costs |  | $ | (3,334) |  |  | $ | (3,056) |  |  | $ | (6,262) |  |  | $ | (5,999) |
Supplemental cash flow information related to the Company’s operating leases was as follows:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
Non-cash operating activity: |  |  |  |  |  |  |
Leased assets obtained or adjusted in exchange for new, amended, and modified operating lease liabilities | $ | — |  |  | $ | — |  |  | $ | (4,664) |  |  | $ | — |
The Company’s future minimum undiscounted lease payments under operating leases as of June 30, 2023 were as follows:
| Operating Lease Payments |  |  |  |
2023 | $ | 6,434 |  |  |  |  |
2024 | 12,798 |  |  |  |  |
2025 | 13,129 |  |  |  |  |
2026 | 11,710 |  |  |  |  |
2027 | 10,987 |  |  |  |  |
Thereafter | 27,238 |  |  |  |  |
Total lease payments | $ | 82,296 |  |  |  |  |
Discount effect | (14,201) |  |  |  |  |
Present value of future minimum lease payments | $ | 68,095 |  |  |  |  |
The weighted-average remaining lease term and discount rate used in the calculation of the Company’s operating lease assets and liabilities were as follows:
Lease Term and Discount Rate | June 30, 2023 |  |  |  |
Weighted-average remaining lease term (in years) | 6.7 |  |  |  |
Weighted-average discount rate | 5.39 | % |  |  |  |
Leases | Leases Lessor Arrangements The Company has lessor arrangements which consist of sales-type leases for equipment (Equipment Finance). Such arrangements may include options to renew or to purchase the leased equipment at the end of the lease term. For the second quarter and first half of 2023, interest earned on Equipment Finance was $2.3 million and $5.2 million, respectively, and is included in “Interest and fees on loans and leases held for investment” on the Income Statement. For the second quarter and first half of 2022, interest earned on Equipment Finance was $2.5 million and $5.1 million, respectively. The components of Equipment Finance assets are as follows:
| June 30, 2023 |  | December 31, 2022 |  |
Lease receivables | $ | 120,046 |  |  | $ | 137,969 |  |  |
Unguaranteed residual asset values | 35,105 |  |  | 39,262 |  |  |
Unearned income | (13,816) |  |  | (17,786) |  |  |
Deferred fees | 738 |  |  | 874 |  |  |
Total | $ | 142,073 |  |  | $ | 160,319 |  |  |
Future minimum lease payments based on maturity of the Company’s lessor arrangements as of June 30, 2023 were as follows:
2023 | $ | 24,987 |
2024 | 40,333 |
2025 | 29,078 |
2026 | 17,503 |
2027 | 7,881 |
Thereafter | 5,539 |
Total lease payments | $ | 125,321 |
Discount effect | (5,275) |
Present value of future minimum lease payments | $ | 120,046 |
Lessee Arrangements The Company has various operating leases, including with respect to its headquarters in San Francisco, California, and office spaces in the Salt Lake City, Utah, and Boston, Massachusetts areas. As of June 30, 2023, the lease agreements have remaining lease terms ranging from approximately one year to eight years. Some of the lease agreements include options to extend the lease term for up to an additional fifteen years. As of June 30, 2023, the Company pledged $0.4 million of cash and $1.1 million in letters of credit as security deposits in connection with its lease agreements. Balance sheet information related to leases was as follows:
ROU Assets and Lease Liabilities | Balance Sheet Classification | June 30, 2023 | December 31, 2022 |  |
Operating lease assets | Other assets | $ | 55,436 |  | $ | 63,872 |  |  |
Operating lease liabilities | Other liabilities | $ | 68,095 |  | $ | 77,291 |  |  |
Components of net lease costs were as follows:
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
Net Lease Costs | Income Statement Classification | 2023 |  | 2022 |  | 2023 |  | 2022
Operating lease costs | Occupancy | $ | (3,334) |  |  | $ | (4,366) |  |  | $ | (6,262) |  |  | $ | (8,846) |
Sublease revenue | Other non-interest income | — |  |  | 1,310 |  |  | — |  |  | 2,847 |
Net lease costs |  | $ | (3,334) |  |  | $ | (3,056) |  |  | $ | (6,262) |  |  | $ | (5,999) |
Supplemental cash flow information related to the Company’s operating leases was as follows:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
Non-cash operating activity: |  |  |  |  |  |  |
Leased assets obtained or adjusted in exchange for new, amended, and modified operating lease liabilities | $ | — |  |  | $ | — |  |  | $ | (4,664) |  |  | $ | — |
The Company’s future minimum undiscounted lease payments under operating leases as of June 30, 2023 were as follows:
| Operating Lease Payments |  |  |  |
2023 | $ | 6,434 |  |  |  |  |
2024 | 12,798 |  |  |  |  |
2025 | 13,129 |  |  |  |  |
2026 | 11,710 |  |  |  |  |
2027 | 10,987 |  |  |  |  |
Thereafter | 27,238 |  |  |  |  |
Total lease payments | $ | 82,296 |  |  |  |  |
Discount effect | (14,201) |  |  |  |  |
Present value of future minimum lease payments | $ | 68,095 |  |  |  |  |
The weighted-average remaining lease term and discount rate used in the calculation of the Company’s operating lease assets and liabilities were as follows:
Lease Term and Discount Rate | June 30, 2023 |  |  |  |
Weighted-average remaining lease term (in years) | 6.7 |  |  |  |
Weighted-average discount rate | 5.39 | % |  |  |  |

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
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