Leases

9 Months Ended

Sep. 30, 2019

LEASES

The Company has banking and limited-service facilities, datacenters, and certain equipment leased under agreements. Most of the leases expire between 2019 and 2024 and include one or more renewal options of up to five years. One lease expires in 2030. All leases are classified as operating leases.



	For the three months ended		For the nine months ended
(in thousands)	September 30, 2019		September 30, 2019
Operating lease cost	$	821	$	2,434
Short-term lease cost	81		215
Total lease cost	$	902	$	2,649

Payments on operating leases included in the measurement of lease liabilities during the nine months ended September 30, 2019 totaled $2.4 million. Right-of-use assets obtained in exchange for lease obligations totaled $0.4 million during the nine months ended September 30, 2019.

Supplemental balance sheet information related to leases was as follows:



	As of
(in thousands)	September 30, 2019
Operating lease right-of-use assets, included in other assets	$	13,849
Operating lease liabilities, included in other liabilities	14,440

Operating leases
Weighted average remaining lease term	5 years
Weighted average discount rate	3.0		%

Maturities of operating lease liabilities were as follows:



(in thousands)
Year	Amount
2019	$	818
2020	3,329
2021	3,355
2022	2,795
2023	2,191
Thereafter	3,143
Total operating lease liabilities, payments	15,631
Less: present value adjustment	1,191
Operating lease liabilities	$	14,440

As of September 30, 2019, the Company has an operating lease amendment for the expansion of an existing facility that has not yet commenced. This amendment is expected to commence in 2019 with a lease term of 8 years.

Lessor income was immaterial during the three and nine months ended September 30, 2019. During the second quarter of 2019, the Company executed an agreement, as landlord, to lease a portion of an owned building. The agreement commenced in the third quarter of 2019 with current payments prorated for partial occupancy. The initial term is for 7 years, with an annual rental income of $1.3 million.