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Lease Obligations
 9 Months Ended
Sep. 30, 2021
Leases [Abstract]  
Lease Obligations LEASE OBLIGATIONS
The significant accounting policies related to lease obligations are presented in Note 1, "Summary of Significant Accounting Policies" to the Consolidated Financial Statements in the Company's 2020 10-K.
The Company has the right to utilize certain premises under non-cancelable operating leases with varying maturity dates through the year ending December 31, 2059. As of September 30, 2021, the weighted-average remaining lease term on these leases was 9.2 years. Various leases contain renewal or termination options controlled by the Company or options to purchase the leased property during or at the expiration of the lease period at specific prices. Some leases contain escalation clauses calling for rentals to be adjusted for increased real estate taxes and other operating expenses or proportionately adjusted for increases in consumer or other price indices. Variable payments for real estate taxes and other operating expenses are considered to be non-lease components and are excluded from the determination of the lease liability. In addition, the Company leases or subleases certain real estate to third-parties. The following summary reflects the future minimum payments by year required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year and a reconciliation of those payments to the Company's lease liability as of September 30, 2021.
Lease Liability
(Dollar amounts in thousands)
 As of  
 September 30, 2021
Year Ending December 31,
2021$5,670 
202222,517 
202322,624 
202422,502 
202521,317 
2026 and thereafter96,149 
Total minimum lease payments190,779 
Discount(1)
(23,349)
Lease liability(2)
$167,430 
(1)Represents the net present value adjustment related to minimum lease payments.
(2)Included in accrued interest payable and other liabilities in the Consolidated Statements of Financial Condition.
The discount rate for the Company's operating leases is the rate implicit in the lease and, if that rate cannot be readily determined, the Company's incremental borrowing rate. The weighted-average discount rate on the Company's operating leases was 2.71% as of September 30, 2021.
As of September 30, 2021, right-of-use assets of $140.2 million associated with lease liabilities were included in accrued interest receivable and other assets in the Consolidated Statements of Financial Condition.
During 2020, the Company initiated certain actions that include optimizing its retail branch network and delivery model through the consolidation of 17 branches, or approximately 15% of its branch network, which were completed in the first quarter of 2021. These actions resulted in pre-tax costs of $19.9 million, including $9.1 million of right-of-use asset impairment charges and $8.9 million of impairment charges on branch locations, furniture, and equipment associated with valuation adjustments related to locations identified for closure, among other items, and were recorded within optimization costs within noninterest expense during the third and fourth quarters of 2020.
The following table presents net operating lease expense for the quarters and nine months ended September 30, 2021 and 2020.
Net Operating Lease Expense
(Dollar amounts in thousands)
 Quarters Ended 
 September 30,		Nine Months Ended 
 September 30,
 2021202020212020
Lease expense charged to operations $4,558 $4,739 $13,610 $14,253 
Rental income from premises leased to others (1)
(71)(158)(293)(556)
Net operating lease expense$4,487 $4,581 $13,317 $13,697 
(1)Included as reductions to net occupancy and equipment expense in the Condensed Consolidated Statements of Income.