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 September 30, 2019 and for the three and nine months ended September 30, 2019.


	As of September 30, 2019
	(Dollars in thousands)
Lease Assets and Liabilities

ROU assets	$	17,340

Total lease liabilities		20,558


	For the Three Months Ended		For the Nine Months Ended
	September 30, 2019
	(Dollars in thousands)
Lease Cost

Operating lease expense (1)	$	1,628	$	5,634

Total lease expense	$	1,628	$	5,634


(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, net	$	1,640	$	6,499

Lease Term and Discount Rate

			As of September 30, 2019

Weighted average remaining lease term (years)				4.26

Weighted average discount rate				3.46%

The Company’s lease arrangements that have not yet commenced as of September 30, 2019 and the Company’s short-term lease costs and variable lease costs, for the three and nine months ended September 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 September 30, 2019, excluding property taxes and insurance, are as follows:


	As of September 30, 2019
	(Dollars in thousands)
Year:
2019 (excluding the nine months ended September 30, 2019)	$	1,973
2020		6,941
2021		5,178
2022		4,005
2023		2,336
Thereafter		3,100

Total future lease payments		23,533
Less: Imputed interest		(2,975	)

Present value of lease liabilities	$	20,558