Leases

9 Months Ended

Sep. 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.


	September 30, 2020		December 31, 2019
	(Dollars in thousands)
Lease Assets and Liabilities
ROU assets	$	19,771	$	18,522
Total lease liabilities		21,939		21,392


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(Dollars in thousands)
Lease Cost
Operating lease expense (1)	$	1,654	$	1,628	$	4,900	$	5,634
Sublease income		-		-		-		-

Total lease expense	$	1,654	$	1,628	$	4,900	$	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	$	1,826	$	1,640	$	5,630	$	6,499


Lease Term and Discount Rate	September 30, 2020			December 31, 2019
Weighted average remaining lease term (years)		4.29			4.18
Weighted average discount rate		2.86	%		3.34	%

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


	September 30, 2020
	(Dollars in thousands)
Year:
2020 (excluding the nine months ended September 30, 2020)	$	1,781
2021		6,656
2022		5,475
2023		3,615
2024		2,428
Thereafter		3,461

Total future lease payments		23,416
Less: Imputed interest		(1,477	)

Present value of lease liabilities	$	21,939