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		%

X

- References

No definition available.

+ Details

Name:	us-gaap_LeasesAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- 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

Name:	us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The entire disclosure of lessor's sales-type leases.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 842
-SubTopic 30
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//842-30/tableOfContent

+ Details

Name:	us-gaap_LessorSalesTypeLeasesTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration