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Leases

3 Months Ended

Mar. 31, 2022

7. Leases

The Company has 28 operating leases for branches (including headquarters) and office spaces, 11 operating leases for vehicles, and one operating lease for equipment. Our leases have remaining lease terms ranging from one month to approximately 14 years, none of which has a renewal option reasonably certain of exercise, which has been reflected in the Company’s calculation of lease term.

The Company has elected the short-term lease recognition exemption such that the Company will not recognize Right of Use (“ROU”) assets or lease liabilities for leases with a term of less than 12 months from the commencement date. The Company has two agreements in 2022 and one agreement in 2021 that qualified as short-term leases. Certain leases have escalation clauses for operating expenses and real estate taxes. The Company’s non-cancelable operating lease agreements expire through 2036.

Supplemental balance sheet information related to leases was as follows:


		For the three months ended
(Dollars in thousands)	March 31, 2022			December 31, 2021

Operating lease ROU asset	$	48,475		$	50,200

Operating lease liability	$	52,292		$	54,155

Weighted-average remaining lease term-operating leases		7.2 years			7.4 years
Weighted average discount rate-operating leases		3.1	%		3.1	%

The components of lease expense and cash flow information related to leases were as follows:


		For the three months ended
(Dollars in thousands)	Line Item Presented	March 31, 2022		March 31, 2021

Lease Cost
Operating lease cost	Occupancy and equipment	$	2,097	$	2,080
Operating lease cost	Other operating expenses		2		2
Operating lease cost	Other operating expenses		22		22
Short-term lease cost	Professional Services and Other operating expenses		61		35
Variable lease cost	Occupancy and equipment		200		298
Total lease cost		$	2,382	$	2,437

Other information
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases		$	2,426	$	5,630
Right-of-use assets obtained in exchange for new operating lease liabilities		$	47	$	4,760

The Company’s minimum annual rental payments for Bank facilities due under non-cancelable leases are as follows as of March 31, 2022:


	Minimum Rental
	(In thousands)
Years ended December 31:
2022	$	6,825
2023		9,502
2024		9,336
2025		8,662
2026		7,769
Thereafter		16,277
Total minimum payments required		58,371
Less: implied interest		6,079
Total lease obligations	$	52,292