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Leases
 12 Months Ended
Dec. 31, 2020
Leases [Abstract]  
Leases Leases
A lease is defined as 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. On January 1, 2019, the Company adopted ASU No. 2016-2 “Leases” (Topic 842) and all subsequent ASUs that modified ASC 842. For the Company, ASC 842 primarily affected the accounting treatment for operating lease agreements in which the Company is the lessee.
Substantially all of the leases in which the Company is the lessee are comprised of real estate property for branch offices, ATM locations, and corporate office space. Substantially all of our leases are classified as operating leases, and as such, were previously not recognized on the Company’s consolidated balance sheets. With the adoption of ASC 842, operating lease agreements were required to be recognized on the consolidated balance sheets as a right-of-use (“ROU”) asset and a corresponding lease liability.
As of December 31, 2020, the Company had $25.2 million of operating lease ROU assets and $28.0 million of operating lease liabilities on the Company’s Consolidated Balance Sheet. The Company has elected not to recognize ROU assets and lease liabilities arising from short-term leases, leases with initial terms of twelve months or less, or equipment leases (deemed immaterial) on the Consolidated Balance Sheets.
Our leases contain terms and conditions of options to extend or terminate the lease which are recognized as part of the ROU assets and lease liabilities when an economic benefit to exercise the option exists and there is a 90% probability that the Company will exercise the option. If these criteria are not met, the options are not included in our ROU assets and lease liabilities.
As of December 31, 2020, our leases do not contain material residual value guarantees or impose restrictions or covenants related to dividends or the Company’s ability to incur additional financial obligations. As of December 31, 2020, the Company signed two new leases for which occupancy had not yet commenced as of December 31, 2020. The Company oversaw construction of landlord-owned leasehold improvements to prepare the property for its intended use. The Company expects to occupy the leased spaces starting in the first quarter of 2021.
The following table presents lease costs and other lease information.
Years Ended
(dollars in thousands)December 31, 2020December 31, 2019
Lease cost  
Operating lease cost (cost resulting from lease payments)$8,411 $7,829 
Variable lease cost (cost excluded from lease payments)971 1,090 
Sublease income(347)(348)
Net lease cost$9,035 $8,571 
Operating lease - operating cash flows (fixed payments)$9,232 $8,542 
Right-of-use assets - operating leases$25,237 $27,372 
Weighted average lease term - operating leases6.20yrs4.94yrs
Weighted average discount rate - operating leases4.00 %4.00 %
Future minimum payments for operating leases with initial or remaining terms of one year or more as of December 31, 2020 were as follows:
(dollars in thousands)
Twelve Months Ended:  
December 31, 2021$8,342 
December 31, 20226,832 
December 31, 20235,909 
December 31, 20245,137 
December 31, 20254,146 
Thereafter9,500 
Total Future Minimum Lease Payments39,866 
Amounts Representing Interest(11,844)
Present Value of Net Future Minimum Lease Payments$28,022