Leases

6 Months Ended

Jun. 30, 2021

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, 2021		December 31, 2020
	(Dollars in thousands)
Lease Assets and Liabilities
ROU assets	$	20,304	$	19,112
Total lease liabilities		22,039		21,164


	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(Dollars in thousands)
Lease Cost
Operating lease expense (1)	$	1,681	$	1,623	$	3,343	$	3,246
Sublease income		-		-		-		-
Total lease expense	$	1,681	$	1,623	$	3,343	$	3,246

(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	$	1,845	$	1,869	$	3,664	$	3,804


	June 30, 2021			December 31, 2020
Lease Term and Discount Rate
Weighted average remaining lease term (years)		4.41			4.16
Weighted average discount rate		2.51	%		2.80	%

The Company’s lease arrangements that have not yet commenced as of June 30, 2021 and the Company’s short-term lease costs and variable lease costs, for the six months ended June 30, 2021 and 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, 2021, excluding property taxes and insurance, are as follows:


	June 30, 2021
	(Dollars in thousands)
Year:
2021 (excluding the six months ended June 30, 2021)	$	3,413
2022		6,291
2023		4,543
2024		3,378
2025		2,710
Thereafter		2,893
Total future lease payments		23,228
Less: Imputed interest		(1,189	)
Present value of lease liabilities	$	22,039