Leases

12 Months Ended

Dec. 31, 2021

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 right-of-use (“ROU”) assets amounted to $26.7 million and $29.5 million, respectively, as of December 31, 2021 and 2020. Operating lease liabilities totaled $29.0 million and $31.7 million, respectively, as of December 31, 2021 and 2020.

As of December 31, 2021, there were two operating leases that had not yet commenced. As of December 31, 2020, there were no operating leases that had not yet commenced.

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

At December 31,	2021		2020
Weighted average discount rate	3.36	%	3.34	%
Range of lease expiration dates	7 months - 19 years		7 months - 20 years
Range of lease renewal options	3 years - 5 years		1 year - 5 years
Weighted average remaining lease term	12.9 years		13.4 years

The following table presents the undiscounted annual lease payments under the terms of the Corporation’s operating leases at December 31, 2021, including a reconciliation to the present value of operating lease liabilities recognized in the Consolidated Balance Sheets:

(Dollars in thousands)
Years ending December 31:	2022	$3,957
	2023	3,857
	2024	3,652
	2025	2,932
	2026	2,331
	2027 and thereafter	19,769
Total operating lease payments (1)		36,498
Less: interest		7,488
Present value of operating lease liabilities (2)		$29,010

(1)Includes $1.4 million related to options to extend lease terms that are reasonably certain of being exercised.

(2)Includes short-term operating lease liabilities of $3.1 million.

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

(Dollars in thousands)
Year ended December 31,	2021	2020	2019
Lease Expense:
Operating lease expense	$4,015	$3,921	$3,724
Variable lease expense	69	56	49
Total lease expense (1)	$4,084	$3,977	$3,773
Cash Paid:
Cash paid reducing operating lease liabilities	$3,888	$3,791	$3,586

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