Leases

6 Months Ended

Jun. 30, 2020

11. LEASES

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.

Right-of-use

(“ROU”) assets and lease liabilities are included in other assets and other liabilities, respectively, on the Company’s condensed consolidated balance sheet.

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

The tables below present the components of lease costs and supplemental information related to leases as of and for the periods presented.


	June 30, 2020		December 31, 2019
	(Dollars in thousands)
Lease Assets and Liabilities
ROU assets	$	17,269	$	18,522
Total lease liabilities		19,595		21,392


	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
	(Dollars in thousands)				(Dollars in thousands)
Lease Cost
Operating lease expense (1)	$	1,623	$	1,906	$	3,246	$	4,006
Sublease income		-		-		-		-

Total lease expense	$	1,623	$	1,906	$	3,246	$	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, net	$	1,869	$	2,113	$	3,804	$	4,859


	June 30, 2020		December 31, 2019
Lease Term and Discount Rate
Weighted average remaining lease term (years)		4.12		4.18
Weighted average discount rate		3.24%		3.34%

The Company’s lease arrangements that have not yet commenced as of June 30, 2020 and the Company’s short-term lease costs and variable lease costs, for the six months ended June 30, 2020 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, 2020, excluding property taxes and insurance, are as follows:


	June 30, 2020
	(Dollars in thousands)
Year:
2020 (excluding the six months ended June 30, 2020)	$	3,505
2021		5,811
2022		4,634
2023		2,805
2024		1,748
Thereafter		2,425

Total future lease payments		20,928
Less: Imputed interest		(1,333)

Present value of lease liabilities	$	19,595