The Company’s operating leases, where the Company is a lessee, include real estate, such as office space and banking centers. Lease expense for operating leases is recognized on a straight-line basis over the term of the lease and is reflected in the consolidated statement of earnings.

Right-of-use

(“ROU”) assets and lease liabilities are included in other assets and other liabilities, respectively, on the Company’s condensed consolidated balance sheet.

While the Company has, as a lessor, certain equipment finance leases, such leases are not material to the Company’s consolidated financial statements.

The tables below present the components of lease costs and supplemental information related to leases as of and for the periods presented.


	December 31,
	2020		2019
	(Dollars in thousands)
Lease Assets and Liabilities
ROU assets	$	19,112	$	18,522
Total lease liabilities		21,164		21,392


	Year Ended December 31,
	2020		2019
	(Dollars in thousands)
Lease Cost
Operating lease expense (1)	$	6,558	$	7,274
Sublease income		—		—

Total lease expense	$	6,558	$	7,274

(1) Includes short-term leases and variable lease costs, which are immaterial.


Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases, net	$	7,387	$	8,497


	December 31,
	2020			2019
Lease Term and Discount Rate
Weighted average remaining lease term (years)		4.16			4.18
Weighted average discount rate		2.80	%		3.34	%

The Company’s lease arrangements that have not yet commenced as of December 31, 2020 and the Company’s short-term lease costs and variable lease costs, for the year ended December 31, 2020 are not material to the consolidated financial statements. The future lease payments required for leases that have initial or remaining

non-cancelable

lease terms in excess of one year as of December 31, 2020, excluding property taxes and insurance, are as follows:


	December 31, 2020
	(Dollars in thousands)
Year:
2021	$	6,800
2022		5,622
2023		3,767
2024		2,584
2025		1,888
Thereafter		1,721

Total future lease payments		22,382
Less: Imputed interest		(1,218	)

Present value of lease liabilities	$	21,164