LEASES (Tables)
|
9 Months Ended |
Sep. 30, 2024 |
|---|
| Leases [Abstract] |
|
| Net Investment in Sales-Type and Direct Financing Lease |
Total net investment in sales-type and direct financing leases are included in “Loans held for investment, net of deferred fees and costs” on the Company’s Consolidated Balance Sheets and consist of the following as of the periods ended (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
September 30, 2024 |
|
|
December 31, 2023 |
Sales-type and direct financing leases: |
|
|
|
|
|
|
|
Lease receivables, net of unearned income and deferred selling profit |
|
$ |
492,868 |
|
|
$ |
409,264 |
Unguaranteed residual values, net of unearned income and deferred selling profit |
|
|
29,874 |
|
|
|
21,484 |
Total net investment in sales-type and direct financing leases |
|
$ |
522,742 |
|
|
$ |
430,748 |
|
| Lessee Lease Portfolio and Other Supplemental Lease Information |
The tables below provide information about the Company’s lessee lease portfolio and other supplemental lease information for the following periods ended (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2024 |
|
|
|
December 31, 2023 |
|
|
|
Operating |
|
|
Finance |
|
|
|
Operating |
|
|
Finance |
|
ROU assets |
|
$ |
75,833 |
|
|
$ |
3,980 |
|
|
|
$ |
71,788 |
|
|
$ |
4,669 |
|
Lease liabilities |
|
|
80,812 |
|
|
|
6,098 |
|
|
|
|
78,043 |
|
|
|
7,052 |
|
Lease Term and Discount Rate of Operating leases: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average remaining lease term (years) |
|
|
11.10 |
|
|
|
4.33 |
|
|
|
|
11.75 |
|
|
|
5.08 |
|
Weighted-average discount rate (1) |
|
|
6.20 |
% |
|
|
1.17 |
% |
|
|
|
6.21 |
% |
|
|
1.17 |
% |
(1) A lease implicit rate or an incremental borrowing rate is used based on information available at commencement date of lease or at remeasurement date.
|
| Other Lease Information |
|
|
|
|
|
|
|
|
|
Nine months ended September 30, |
|
|
2024 |
|
2023 |
Cash paid for amounts included in measurement of lease liabilities: |
|
|
|
|
|
|
Operating Cash Flows from Finance Leases |
|
$ |
57 |
|
$ |
68 |
Operating Cash Flows from Operating Leases |
|
|
10,802 |
|
|
8,902 |
Financing Cash Flows from Finance Leases |
|
|
955 |
|
|
919 |
ROU assets obtained in exchange for lease obligations: |
|
|
|
|
|
|
Operating leases |
|
$ |
4,135 |
|
$ |
38,318 |
|
| Lease Cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30, |
|
Nine months ended September 30, |
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
Net Operating Lease Cost |
|
$ |
3,448 |
|
$ |
2,381 |
|
$ |
9,994 |
|
$ |
7,291 |
Finance Lease Cost: |
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of right-of-use assets |
|
|
230 |
|
|
230 |
|
|
689 |
|
|
689 |
Interest on lease liabilities |
|
|
18 |
|
|
22 |
|
|
57 |
|
|
68 |
Total Lease Cost |
|
$ |
3,696 |
|
$ |
2,633 |
|
$ |
10,740 |
|
$ |
8,048 |
|
| Maturities of Lessor and Lessee Arrangements Outstanding |
The maturities of lessor and lessee arrangements outstanding are presented in the table below for the years ending (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2024 |
|
|
Lessor |
|
Lessee |
|
|
|
Sales-type and Direct Financing |
|
Operating |
|
Finance |
For the remaining three months of 2024 |
|
$ |
31,746 |
|
$ |
3,734 |
|
$ |
346 |
2025 |
|
|
118,884 |
|
|
14,383 |
|
|
1,392 |
2026 |
|
|
108,054 |
|
|
11,726 |
|
|
1,427 |
2027 |
|
|
108,830 |
|
|
10,498 |
|
|
1,462 |
2028 |
|
|
83,386 |
|
|
9,495 |
|
|
1,499 |
Thereafter |
|
|
127,840 |
|
|
67,754 |
|
|
128 |
Total undiscounted cash flows |
|
|
578,740 |
|
|
117,590 |
|
|
6,254 |
Less: Adjustments (1) |
|
|
85,872 |
|
|
36,778 |
|
|
156 |
Total (2) |
|
$ |
492,868 |
|
$ |
80,812 |
|
$ |
6,098 |
(1) Lessor – unearned income and unearned guaranteed residual value; Lessee – imputed interest.
(2) Represents lease receivables for lessor arrangements and lease liabilities for lessee arrangements.
|