13. LEASES

The Company has operating leases for certain branch locations, corporate offices and equipment. Certain leases contain rent escalation clauses, which are reflected in the Company’s operating lease liabilities. The Company’s lease agreements do not contain any material residual value guarantees, restrictions or covenants.

The components of lease cost were as follows:


	Three Months Ended		Six Months Ended
(In thousands)	June 30, 2019		June 30, 2019
Lease cost
Operating lease cost	$	1,688	$	3,351
Sublease income		(15)		(39)
Total lease cost	$	1,673	$	3,312

The Company reports lease cost in occupancy and equipment expense in the consolidated statements of income. The Company subleases a portion of its leased properties to commercial sublessees. Sublease income is included in other operating income in the consolidated statements of income.

Supplemental cash flow and balance sheet information related to operating leases were as follows:


	Six Months Ended
(Dollars in thousands)	June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	3,441
Operating right-of-use assets obtained in exchange for lease liabilities	$	39,825


	June 30, 2019
Weighted-average remaining lease term-operating leases		8.2	years
Weighted-average discount rate-operating leases (1)		3.41	%

The Company computes the present value of operating lease liabilities using its incremental borrowing rate as the discount rate.

Certain leases contain renewal options which are not reflected in the tables below. The exercise of renewal options, which extend the lease term from five to ten years, is at the Company’s discretion.

The maturities of operating lease liabilities were as follows:


(In thousands)	June 30, 2019
2019	$	3,088
2020		6,046
2021		5,946
2022		5,742
2023		4,759
Thereafter		21,124
Total operating lease payments	$	46,705
Less: Interest		(6,442)
Present value of operating lease liabilities	$	40,263


(In thousands)	December 31, 2018
2019	$	7,248
2020		6,504
2021		6,185
2022		5,903
2023		4,695
Thereafter		18,687
Total operating lease payments	$	49,222