LEASES

9 Months Ended

Sep. 30, 2020

LEASES

LEASES

12. 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				Nine Months Ended
(In thousands)	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Lease cost
Operating lease cost	$	1,898	$	1,679	$	5,703	$	5,030
Sublease income		(11)		(32)		(33)		(71)
Total lease cost	$	1,887	$	1,647	$	5,670	$	4,959

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:

	Nine Months Ended
(Dollars in thousands)	September 30, 2020		September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	5,442	$	5,180
Operating right-of-use assets obtained in exchange for lease liabilities	$	5,716	$	39,825

	September 30, 2020			December 31, 2019
Weighted-average remaining lease term-operating leases		7.8	years	7.8	years
Weighted-average discount rate-operating leases (1)		3.00	%	3.20	%

1) 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)	September 30, 2020		December 31, 2019
2020	$	1,834	$	7,011
2021		7,461		6,974
2022		7,341		6,802
2023		6,444		5,853
2024		6,190		5,595
Thereafter		24,067		20,324
Total operating lease payments	$	53,337	$	52,559
Less: Interest		(5,954)		(6,582)
Present value of operating lease liabilities	$	47,383	$	45,977