Leases

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Leases

Leases

The Corporation has committed to rent premises used in business operations under non-cancelable operating leases and determines if an arrangement meets the definition of a lease upon inception. Operating lease ROU assets amounted to $29.5 million and $26.8 million, respectively, as of December 31, 2020 and 2019. Operating lease liabilities totaled $31.7 million and $28.9 million, respectively, as of December 31, 2020 and 2019.

As of December 31, 2020, there were no operating leases that had not yet commenced, compared to one operating lease that had not yet commenced as of December 31, 2019.

Rental expense for operating leases is recognized on a straight-line basis over the lease term and amounted to $4.0 million, $3.8 million and $3.7 million, respectively, for the years ended December 31, 2020, 2019 and 2018. Variable lease components, such as consumer price index adjustments, are expensed as incurred and not included in ROU assets and operating lease liabilities.

The following table presents information regarding the Corporation’s operating leases:

At December 31,	2020		2019
Weighted average discount rate	3.34	%	3.67	%
Range of lease expiration dates	7 months - 20 years		4 months - 21 years
Range of lease renewal options	1 year - 5 years		1 year - 5 years
Weighted average remaining lease term	13.4 years		14.0 years

The following table presents the undiscounted annual lease payments under the terms of the Corporation’s operating leases at December 31, 2020, including a reconciliation to the present value of operating lease liabilities recognized in the Consolidated Balance Sheets:

(Dollars in thousands)
Years ending December 31:	2021	$3,922
	2022	3,890
	2023	3,830
	2024	3,618
	2025	2,879
	2026 and thereafter	22,046
Total operating lease payments (1)		40,185
Less: interest		8,468
Present value of operating lease liabilities (2)		$31,717

(1)Includes $2.1 million related to options to extend lease terms that are reasonably certain of being exercised.

(2)Includes short-term operating lease liabilities of $2.9 million.

The following table presents the components of total lease expense and operating cash flows:

(Dollars in thousands)
Year ended December 31,	2020	2019
Lease Expense:
Operating lease expense	$3,921	$3,724
Variable lease expense	56	49
Total lease expense (1)	$3,977	$3,773
Cash Paid:
Cash paid reducing operating lease liabilities	$3,791	$3,586

(1)Included in net occupancy expenses in the Consolidated Income Statement.