Leases

3 Months Ended

Mar. 31, 2021

(7.)

LEASES

ASC 842, Leases (“ASC 842”), establishes a right of use model that requires a lessee to record a right of use asset and a lease liability for all leases with terms longer than 12 months. The Company is obligated under a number of non-cancellable operating lease agreements for land, buildings and equipment with terms, including renewal options reasonably certain to be exercised, extending through 2047. One building lease is subleased for terms extending through 2021.

The following table represents the consolidated statements of financial condition classification of the Company’s right of use assets and lease liabilities:

		March 31,			December 31,
	Balance Sheet Location	2021			2020
Operating Lease Right of Use Assets:
Gross carrying amount	Other assets	$	24,557		$	23,697
Accumulated amortization	Other assets		(4,241	)		(3,741	)
Net book value		$	20,316		$	19,956

Operating Lease Liabilities:
Right of use lease obligations	Other liabilities	$	21,908		$	21,507

The weighted average remaining lease term for operating leases was 21.1 years at March 31, 2021 and the weighted-average discount rate used in the measurement of operating lease liabilities was 3.78%. The Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term for the discount rate.

The following table represents lease costs and other lease information:

	Three months ended March 31,
	2021			2020
Lease costs:
Operating lease costs	$	680		$	677
Variable lease costs ⁽¹⁾		98			101
Sublease income		(11	)		(11	)
Net lease costs	$	767		$	767

Other information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	661		$	648
Right of use assets obtained in exchange for new operating lease liabilities	$	864		$	334

⁽¹⁾	Variable lease costs primarily represent variable payments such as common area maintenance, insurance, taxes and utilities.

Future minimum payments under non-cancellable operating leases with initial or remaining terms of one year or more, are as follows at March 31, 2021 (in thousands):

Twelve months ended March 31,
2022	$	2,372
2023		1,979
2024		1,514
2025		1,308
2026		1,233
Thereafter		24,858
Total future minimum operating lease payments		33,264
Amounts representing interest		(11,356	)
Present value of net future minimum operating lease payments	$	21,908