The Company’s operating leases, where the Company is a lessee, include real estate, such as office space and banking centers. Lease expense for operating leases is recognized on a straight-line basis over the term of the lease and is reflected in the consolidated statement of earnings.

While the Company has, as a lessor, certain equipment finance leases, such leases are not material to the Company’s consolidated financial statements.

The following presents the components of lease costs and supplemental information related to leases as of June 30, 2019 and for the three and six months ended June 30, 2019.


	As of June 30, 2019
	(Dollars in thousands)
Lease Assets and Liabilities
ROU assets	$	17,959
Total lease liabilities		21,157



	For the Three Months Ended		For the Six Months Ended
	June 30, 2019
	(Dollars in thousands)
Lease Cost

Operating lease expense (1)	$	1,906	$	4,006
Sublease income		-		-

Total lease expense	$	1,906	$	4,006

(1) Includes short-term leases and variable lease costs, which are immaterial.

Other Information
Cash paid for amounts included in the measurement of lease liabilities:

Operating cash outflows from operating leases	$	2,113	$	4,859


Lease Term and Discount Rate
	As of June 30, 2019

Weighted average remaining lease term (years)		4.11

Weighted average discount rate		3.50	%

The Company’s lease arrangements that have not yet commenced as of June 30, 2019 and the Company’s short-term lease costs and variable lease costs, for the three and six months ended June 30, 2019 are not material to the consolidated financial statements.

The future lease payments required for leases that have initial or remaining

non-cancelable lease terms in excess of one year as of June 30, 2019, excluding property taxes and insurance, are as follows:

	As of June 30, 2019
	(Dollars in thousands)
Year:
2019 (excluding the six months ended June 30, 2019)	$	3,997
2020		6,604
2021		4,806
2022		3,622
2023		1,941
Thereafter		2,241

Total future lease payments		23,211
Less: Imputed interest		(2,054)

Present value of lease liabilities	$	21,157