Leases Leases

12 Months Ended

Dec. 31, 2020

The Company's noncancelable operating lease agreements relate to certain banking offices, back-office operational facilities, office equipment, and sublease agreements. The majority of the leases contain renewal options and provisions for increases in rental rates based on an agreed upon index or predetermined escalation schedule. As of December 31, 2020 and December 31, 2019, the Company’s operating lease ROU asset was $18.0 million and $23.0 million, respectively, and the related operating lease ROU liability was $19.3 million and $24.2 million, respectively. The Company does not have any leases designated as finance leases.

The table below summarizes the net lease cost recognized during the periods presented:


	Year Ended December 31,
	2020		2019
	(In thousands)
Operating lease cost	$	4,717	$	4,950
Short-term lease cost	49		95
Variable lease cost	967		781
Sublease income	(55)		(71)
Total net lease cost	$	5,678	$	5,755

Comparative disclosure of rental expense of leased premises and equipment calculated under ASC 840 methodology was $6.1 million for the year ended December 31, 2018 and is included in Occupancy and equipment expense on the Consolidated Statements of Income.

The tables below summarize other information related to the Company's operating leases during the periods presented:


	Year Ended December 31,
	2020		2019
	(In thousands)
Operating cash used for amounts included in the measurement of lease liabilities	$	4,881	$	4,858
ROU assets obtained in exchange for lease liabilities, excluding adoption impact	1,265		1,505


	December 31, 2020		December 31, 2019
Weighted average remaining lease term of operating leases, in years	7.2		8.1
Weighted average discount rate of operating leases	3.12	%	3.27	%

The following table outlines lease payment obligations as of December 31, 2020 as outlined in the Company’s lease agreements for each of the next five years and thereafter in addition to a reconciliation to the Company’s ROU liability at the date indicated:


	Year Ending December 31,
	(In thousands)
2021	$	3,547
2022	3,136
2023	3,105
2024	2,759
2025	2,508
Thereafter	6,611
Total lease payments	21,666
Implied interest	(2,391)
ROU liability	$	19,275

During the year ended December 31, 2019, the Company entered into a $7.7 million lease agreement to renew, restructure and add additional leased space at one of its branch locations commencing on January 1, 2021. The lease agreement is not included in the lease payment obligations table above. The new agreement replaced a lease included in the table above that terminated on December 31, 2020.