LEASES

6 Months Ended

Jun. 30, 2021

LEASES

LEASES

9.LEASES

As a result of the Merger, the Company acquired $45.6 million of operating lease assets and $45.3 million of operating lease liabilities on the Merger Date.

The Company recognizes operating lease assets and corresponding lease liabilities related to its office facilities and retail branches. The operating lease assets represent the Company’s right to use an underlying asset for the lease term, and the lease liability represents the Company’s obligation to make lease payments over the lease term.

The operating lease asset and lease liability are determined at the commencement date of the lease based on the present value of the lease payments. As most of our leases do not provide an implicit rate, the Company used its incremental borrowing rate, the rate of interest to borrow on a collateralized basis for a similar term, at the lease commencement date.

The Company made a policy election to exclude the recognition requirements of ASU 2016-02 to short-term leases, those leases with original terms of 12 months or less. Short-term lease payments are recognized in the income statement on a straight-line basis over the lease term. Certain leases may include one or more options to renew. The exercise of lease renewal options is typically at the Company’s discretion and are included in the operating lease liability if it is reasonably certain that the renewal option will be exercised. Certain real estate leases may contain lease and non-lease components, such as common area maintenance charges, real estate taxes, and insurance, which are generally accounted for separately and are not included in the measurement of the lease liability since they are generally able to be segregated. The Company does not sublease any of its leased properties. The Company does not lease properties from any related parties.

Maturities of the Company’s operating lease liabilities at June 30, 2021 are as follows:

	Rent to be
(In thousands)	Capitalized
2021	$	11,833
2022		11,215
2023		9,520
2024		9,405
2025		9,160
Thereafter		25,876
Total undiscounted lease payments		77,009
Less amounts representing interest		4,839
Operating lease liabilities	$	72,170

Other information related to operating leases was as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In thousands)	2021		2020		2021		2020
Operating lease cost	$	4,008	$	1,628	$	7,166	$	3,231
Cash paid for amounts included in the measurement of operating lease liabilities		3,722		1,739		6,772		3,550

The weighted average remaining lease term at June 30, 2021 and June 30, 2020 was 6.5 years and 7.7 years. The weighted average discount rate at June 30, 2021 and June 30, 2020 was 1.92% and 3.23% respectively.