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Leases

9 Months Ended

Sep. 30, 2021

Note 16: Leases

The Company has operating leases consisting primarily of equipment leases and real estate leases for banking centers, ATM locations, and office space. The following table summarizes lease-related information and balances the Company reported in its unaudited Consolidated Balance Sheets for the periods presented (dollars in thousands):


	As of
	September 30,			December 31,
	2021			2020
Lease balances
Right of use assets	$	11,068		$	7,714
Lease liabilities		11,120			7,757

Supplemental information
Year through which lease terms extend		2031			2032
Weighted average remaining lease term (in years)		6.60			5.93
Weighted average discount rate		2.15	%		2.82	%

The following tables represents lease costs and cash flows related to leases for the periods presented (dollars in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Lease costs
Operating lease costs	$	656	$	622	$	1,828	$	1,877
Variable lease costs		94		99		394		401
Short-term lease costs		9		15		43		45
Total lease cost	$	759	$	736	$	2,265	$	2,323

Cash flows related to leases
Cash paid for amounts included in the measurement of lease liabilities:
Operating lease cash flows – Fixed payments	$	620	$	616	$	1,756	$	1,839
Operating lease cash flows – Liability reduction		569		546		1,610		1,610
Right of use assets obtained during the period in exchange for operating lease liabilities⁽¹⁾		3,408		—		5,018		128

(1)

The nine months ended September 30, 2021, includes $371 related to a lease obtained in the acquisition of CAC.

As of September 30, 2021, the Company was obligated under noncancelable operating leases for office space and other commitments. Rent expense under operating leases, included in net occupancy and equipment expense, was $0.8 million and $2.3 million for the three and nine months ended September 30, 2021, respectively, compared to $0.7 million and $2.3 million for the three and nine months ended September 30, 2020, respectively.

Rent commitments were as follows (dollars in thousands):


	As of
	September 30,
	2021
Rent commitments
Remainder of 2021	$	621
2022		2,288
2023		2,071
2024		1,645
2025		1,416
Thereafter		3,921
Amounts representing interest		(842)
Present value of net future minimum lease payments	$	11,120