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Leases
 12 Months Ended
Dec. 31, 2020
Leases [Abstract]  
Leases Leases
A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. The Company’s leases are comprised of real estate property for branches, ATM locations and office space with terms extending through 2050. The Company has one existing finance lease, which was acquired in the Sun acquisition and has a lease term through 2029.
The following table represents the classification of the Company’s ROU assets and lease liabilities on the consolidated statements of financial condition (in thousands):
December 31, 2020December 31, 2019
Lease ROU AssetsClassification
Operating lease ROU assetOther assets$22,555 $18,682 
Finance lease ROU assetPremises and equipment, net1,694 1,534 
Total lease ROU asset$24,249 $20,216 
Lease Liabilities
Operating lease liabilityOther liabilities$22,990 $18,893 
Finance lease liabilityOther borrowings2,100 1,953 
Total lease liability$25,090 $20,846 
The calculated amount of the ROU assets and lease liabilities are impacted by the lease term and the discount rate used to calculate the present value of the minimum lease payments. Lease agreements often include one or more options to renew the lease at the Company’s discretion. If the exercise of a renewal option is considered to be reasonably certain, the Company includes the extended term in the calculation of the ROU asset and lease liability. For the discount rate, Leases (Topic 842) requires the Company to use the rate implicit in the lease, provided the rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate, at lease inception, over a similar term. For operating leases existing prior to January 1, 2019, the Company used the incremental borrowing rate for the remaining lease term as of January 1, 2019. For the finance lease, the Company utilized its incremental borrowing rate at lease inception.
December 31, 2020December 31, 2019
Weighted-Average Remaining Lease Term
Operating leases7.77 years9.69 years
Finance lease8.59 years9.60 years
Weighted-Average Discount Rate
Operating leases3.01 %3.45 %
Finance lease5.63 %5.63 %
The following table represents lease expenses and other lease information (in thousands):
For Year Ended December 31, 2020For Year Ended December 31, 2019
Lease Expense
Operating lease expense$6,438 $3,904 
Finance lease expense:
Amortization of ROU assets174 274 
Interest on lease liabilities(1)
110 174 
Total$6,722 $4,352 
Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$6,298 $3,625 
Operating cash flows from finance leases110 174 
Financing cash flows from finance leases187 263 
(1)Included in borrowed funds interest expense on the consolidated statements of income. All other costs are included in occupancy expense.
Future minimum payments for the finance lease and operating leases with initial or remaining terms of one year or more as of December 31, 2020 were as follows (in thousands):
Finance LeaseOperating Leases
For the Twelve Months Ended December 31,
2021$307 $5,725 
2022307 4,713 
2023307 3,285 
2024307 2,723 
2025307 2,281 
Thereafter1,105 7,592 
Total2,640 26,319 
Less: Imputed interest(540)(3,329)
Total lease liabilities$2,100 $22,990 
Leases Leases
A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. The Company’s leases are comprised of real estate property for branches, ATM locations and office space with terms extending through 2050. The Company has one existing finance lease, which was acquired in the Sun acquisition and has a lease term through 2029.
The following table represents the classification of the Company’s ROU assets and lease liabilities on the consolidated statements of financial condition (in thousands):
December 31, 2020December 31, 2019
Lease ROU AssetsClassification
Operating lease ROU assetOther assets$22,555 $18,682 
Finance lease ROU assetPremises and equipment, net1,694 1,534 
Total lease ROU asset$24,249 $20,216 
Lease Liabilities
Operating lease liabilityOther liabilities$22,990 $18,893 
Finance lease liabilityOther borrowings2,100 1,953 
Total lease liability$25,090 $20,846 
The calculated amount of the ROU assets and lease liabilities are impacted by the lease term and the discount rate used to calculate the present value of the minimum lease payments. Lease agreements often include one or more options to renew the lease at the Company’s discretion. If the exercise of a renewal option is considered to be reasonably certain, the Company includes the extended term in the calculation of the ROU asset and lease liability. For the discount rate, Leases (Topic 842) requires the Company to use the rate implicit in the lease, provided the rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate, at lease inception, over a similar term. For operating leases existing prior to January 1, 2019, the Company used the incremental borrowing rate for the remaining lease term as of January 1, 2019. For the finance lease, the Company utilized its incremental borrowing rate at lease inception.
December 31, 2020December 31, 2019
Weighted-Average Remaining Lease Term
Operating leases7.77 years9.69 years
Finance lease8.59 years9.60 years
Weighted-Average Discount Rate
Operating leases3.01 %3.45 %
Finance lease5.63 %5.63 %
The following table represents lease expenses and other lease information (in thousands):
For Year Ended December 31, 2020For Year Ended December 31, 2019
Lease Expense
Operating lease expense$6,438 $3,904 
Finance lease expense:
Amortization of ROU assets174 274 
Interest on lease liabilities(1)
110 174 
Total$6,722 $4,352 
Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$6,298 $3,625 
Operating cash flows from finance leases110 174 
Financing cash flows from finance leases187 263 
(1)Included in borrowed funds interest expense on the consolidated statements of income. All other costs are included in occupancy expense.
Future minimum payments for the finance lease and operating leases with initial or remaining terms of one year or more as of December 31, 2020 were as follows (in thousands):
Finance LeaseOperating Leases
For the Twelve Months Ended December 31,
2021$307 $5,725 
2022307 4,713 
2023307 3,285 
2024307 2,723 
2025307 2,281 
Thereafter1,105 7,592 
Total2,640 26,319 
Less: Imputed interest(540)(3,329)
Total lease liabilities$2,100 $22,990