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LEASES

12 Months Ended

Dec. 31, 2020

6. 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:


	Year Ended December 31,
(In thousands)	2020		2019
Lease cost
Operating lease cost	$	7,643	$	7,038
Sublease income		(37)		(95)
Total lease cost	$	7,606	$	6,943

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:


		Year Ended December 31,
(Dollars in thousands)	2020		2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	7,363	$	7,019
Operating right-of-use assets obtained in exchange for lease liabilities	$	7,843	$	48,101


	December 31, 2020			December 31, 2019
Weighted-average remaining lease term-operating leases		7.6	years	7.8	years
Weighted-average discount rate-operating leases ⁽¹⁾		2.91	%	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)	December 31, 2020
2021	$	7,387
2022		7,260
2023		6,548
2024		6,297
2025		6,177
Thereafter		18,649
Total operating lease payments	$	52,318
Less: Interest		(5,605)
Present value of operating lease liabilities	$	46,713