LEASE COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2021


20. LEASE COMMITMENTS AND CONTINGENCIES

The Company’s operating leases are primarily comprised of a corporate office lease with a remaining lease term of approximately four years. The corporate office lease includes an option to extend for up to five years, however the extension term was not included in the operating lease liability calculation. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. The lease cost for the three and six months ended June 30, 2021 was $0.7 million and $1.6 million, respectively.

Supplemental information related to leases as of and for the six months ended June 30, 2021 was as follows:

Operating Leases

Classification

June 30, 2021

Assets

(dollars in thousands)

Operating lease right-of-use assets

Other assets

11,843

Liabilities

Operating lease liabilities (1)

Other liabilities

15,437

Lease term and discount rate

Weighted average remaining lease term

4.2 years

Weighted average discount rate (1)

2.9%

Cash paid for amounts included in the measurement of lease liabilities

Operating cash flows from operating leases

1,983

(1) As the Company’s leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at adoption date in determining the present value of lease payments.

The following table provides details related to maturities of lease liabilities:


	Maturity of Lease Liabilities
Years ending December 31,	(dollars in thousands)
2021 (remaining)	$	1,935
2022	3,862
2023	3,862
2024	3,862
2025	2,895


Total lease payments	$	16,416
Less imputed interest	979
Present value of lease liabilities	$	15,437

Contingencies

From time to time, the Company is involved in various claims and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material effect on the Company’s consolidated financial statements. There were no material contingencies at June 30, 2021 and December 31, 2020.