LEASE COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

LEASE COMMITMENTS AND CONTINGENCIES

21. LEASE COMMITMENTS AND CONTINGENCIES

The Company adopted ASU 2016-02, Leases (Topic 842) on January 1, 2019 with no impact to retained earnings or other components of equity. The Company’s operating leases are primarily comprised of a corporate office lease with a remaining lease term of five years. The corporate office lease includes an option to extend for up to five years, however the extension term was not included in the operating lease liability calculation. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. The lease cost for the year ended December 31, 2020 was $3.2 million.

Supplemental information related to leases as of and for the year ended December 31, 2020 was as follows:

Operating Leases	Classification	December 31, 2020
Assets	(dollars in thousands)
Operating lease right-of-use assets	Other assets	$	13,167
Liabilities
Operating lease liabilities (1)	Other liabilities	$	17,184
Lease term and discount rate
Weighted average remaining lease term		4.7 years
Weighted average discount rate (1)		2.9%
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases		$	3,799
(1)     As the Company’s leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at adoption date in determining the present value of lease payments.

The following table provides details related to maturities of lease liabilities:

	Maturity of Lease Liabilities
Years ended December 31,	(dollars in thousands)
2021	$	3,918
2022	3,862
2023	3,862
2024	3,862
2025	2,895
Later years	—
Total lease payments	$	18,399
Less imputed interest	1,215
Present value of lease liabilities	$	17,184

Contingencies

From time to time, the Company is involved in various claims and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material effect on the Company’s consolidated financial statements. There were no material contingencies at December 31, 2020 and 2019.