Lease Obligations

3 Months Ended

Mar. 31, 2021

Note 13 – Lease Obligations

The Company leases 28 of its offices under various operating lease agreements. The leases have remaining terms of one year to 12 years. The leases contain provisions for the payment by the Company of its pro-rata share of real estate taxes, insurance, common area maintenance and other variable expenses. The Company will allocate payments made under such leases between lease and non-lease components. Some leases contain renewal options and options to purchase the assets.

The Company has elected not to recognize a lease liability and a right of use asset for leases with a lease term of 12 or fewer months.

The following tables present certain information related to the Company’s leases (in thousands):


		Three Months Ended March 31, 2021		Three Months Ended March 31, 2020
Operating lease cost	$	952	$	854
Variable lease cost-operating leases	$	246	$	202

		At March 31, 2021		At December 31, 2020
Supplemental balance sheet information related to leases:
Operating Leases
Operating lease right-of-use assets	$	14,328	$	14,988

Current liabilities	$	3,020	$	2,992
Operating lease liabilities (noncurrent portion)		11,569		12,232
Total operating lease liabilities	$	14,589	$	15,224

The weighted average remaining lease term for operating leases at March 31, 2021 and December 31, 2020 was 6.40 years and 6.57 years, respectively. The weighted average discount rate for operating leases at March 31, 2021 and December 31, 2020 was 2.65 percent and 2.67 percent, respectively.

The following table summarizes the Company’s maturity of lease obligations for operating leases at March 31, 2021 and December 31, 2020 (in thousands):


Maturities of lease liabilities:
		At March 31, 2021		At December 31, 2020
		Operating Leases		Operating Leases
One year or less	$	3,358	$	3,348
Over one year through three years		5,225		5,424
Over three years through five years		3,269		3,459
Over five years		4,065		4,415
Gross Operating Lease Liabilities	$	15,917	$	16,646
Deferred Expenses		(1,328)		(1,422)
Total Operating Lease Liabilities	$	14,589	$	15,224