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Leases

6 Months Ended

Jun. 30, 2021

Note 9 — Leases

As of June 30, 2021 and December 31, 2020, we had operating right-of-use (“ROU”) assets of $109.4 million and $113.4 million, respectively, and operating lease liabilities of $114.7 million and $118.3 million, respectively. We maintain operating leases on land and buildings for our operating centers, branch facilities and ATM locations. Most leases include one or more options to renew, with renewal terms extending up to 23 years. The exercise of renewal options is based on the sole judgment of Management and what they consider to be reasonably certain given the environment today. Factors in determining whether an option is reasonably certain of exercise include, but are not limited to, the value of leasehold improvements, the value of renewal rate compared to market rates, and the presence of factors that would cause a significant economic penalty to us if the option is not exercised. Leases with an initial term of 12 months or less are not recorded on the balance sheet and instead are recognized in lease expense on a straight-line basis over the lease term.

The Company also holds a small number of finance leases assumed in connection to the CSFL merger. These leases are all real estate leases. Terms and conditions are similar to those real estate operating leases described above. Lease classifications from the acquired institutions were retained.


	Three Months Ended				Six Months Ended
(Dollars in thousands)	June 30,				June 30,
	2021		2020		2021		2020
Lease Cost Components:
Amortization of ROU assets - finance leases	$	117	$	47	$	233	$	47
Interest on lease liabilities - finance leases		14		5		29		5
Operating lease cost (cost resulting from lease payments)		4,342		3,058		8,685		5,316
Short-term lease cost		75		99		211		197
Variable lease cost (cost excluded from lease payments)		643		203		1,291		369
Total lease cost	$	5,191	$	3,412	$	10,449	$	5,934
Supplemental Cash Flow and Other Information Related to Leases:
Finance lease - operating cash flows	$	14	$	8	$	29	$	8
Finance lease - financing cash flows		106		40		213		40
Operating lease - operating cash flows (fixed payments)		4,173		2,784		8,313		4,456
Operating lease - operating cash flows (net change asset/liability)		(3,255)		(2,409)		(6,475)		(2,678)
New ROU assets - operating leases		—		39,278		1,298		39,736
New ROU assets - finance leases		—		5,374		—		5,374
Weighted - average remaining lease term (years) - finance leases						6.91		10.63
Weighted - average remaining lease term (years) - operating leases						11.14		11.81
Weighted - average discount rate - finance leases						1.7%		1.9%
Weighted - average discount rate - operating leases						3.3%		3.3%

Operating lease payments due:
2021 (excluding the six months ended June 30, 2021)					$	8,045
2022						14,992
2023						14,290
2024						12,552
2025						11,016
Thereafter						79,220
Total undiscounted cash flows						140,115
Discount on cash flows						(25,366)
Total operating lease liabilities					$	114,749

As of June 30, 2021, we determined that the number and dollar amount of our equipment leases was immaterial. As of June 30, 2021, we have additional operating leases that have not yet commenced of $5.1 million. These operating leases will commence in the third quarter of 2021 with a lease term of 10 years.