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 December 31, 2019.


	December 31, 2019
	(Dollars in thousands)
Lease Assets and Liabilities
ROU assets	$	18,522
Total lease liabilities		21,392


	Year Ended December 31, 2019
	(Dollars in thousands)
Lease Cost
Operating lease expense (1)	$	7,274
Sublease income		-

Total lease expense	$	7,274

(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	$	8,497

Lease Term and Discount Rate
	December 31, 2019
Weighted average remaining lease term (years)		4.18
Weighted average discount rate		3.34	%

The Company’s lease arrangements that have not yet commenced as of December 31, 2019 and the Company’s short-term lease costs and variable lease costs, for the year ended December 31, 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 December 31, 2019, excluding property taxes and insurance, are as follows:


	December 31, 2019
	(Dollars in thousands)
Year:
2020	$	7,248
2021		5,512
2022		4,325
2023		2,542
2024		1,495
Thereafter		1,781

Total future lease payments		22,903
Less: Imputed interest		(1,511	)

Present value of lease liabilities	$	21,392

Disclosures related to periods prior to adoption of ASC Topic 842

At December 31, 2018, future minimum lease payments under noncancelable operating leases with initial or remaining lease terms in excess of one year as of December 31, 2018 were $9.3 million, $5.9 million,

4.1

million, $

2.8

million, and $

1.2

million for 2019 through 2023, respectively, and $

1.7

million in the aggregate for all years thereafter. These amounts exclude variable lease payments and commitments under leases that have not yet commenced.