Leases

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Lessee, Operating Leases [Text Block]

Leases

Lease Commitments 

The Company’s lease commitments consist primarily of leased locations under various non-cancellable operating leases that expire between 2021 and 2043. The majority of the leases contain renewal options and provisions for increases in rental rates based on an agreed upon index or predetermined escalation schedule.

The following table shows the details of the Company’s operating lease right-of-use asset and the associated lease liability for the period indicated:

		December 31,
Item	Balance Sheet Location	2020		2019
		(in thousands)
Operating lease asset	Other assets	$	61,863	$	57,226
Operating lease liability	Other liabilities	$	67,503	$	63,030

At December 31, 2020, the Company’s operating leases have a weighted average remaining lease term of 8.2 years and a weighted average discount rate of 2.6%. Cash paid for amounts included in the measurement of operating lease liabilities was $11.2 million for both the years ended December 31, 2020 and 2019. Right-of-use assets obtained in exchange for new operating lease liabilities during the years ended December 31, 2020 and 2019 were $13.9 million and $20.6 million, respectively.

The following table shows the components of net lease costs:

		Years Ended December 31,
Item	Statement of Income Location	2020		2019
		(in thousands)
Operating lease cost (1)	Occupancy	$	11,073	$	10,851
Variable lease cost	Occupancy	1,732		1,805
Sublease income	Occupancy	(1,454)		(1,182)
Net lease cost		$	11,351	$	11,474

__________

(1) Includes short-term lease costs, which are immaterial.

Total rental expense on buildings and equipment, net of rental income of $1.2 million was $9.6 million for the year ended December 31, 2018.

The following table shows the maturity analysis for operating leases as of December 31, 2020:

	Year ending December 31,
	(in thousands)
2021	$	11,224
2022	10,860
2023	9,612
2024	8,689
2025	7,423
Thereafter	27,354
Total future minimum lease payments	75,162
Amounts representing interest	(7,659)
Present value of minimum lease payments	$	67,503

Sale-leaseback transactions:

In 2019, the Company sold one of its Washington facilities and leased back a portion of the facility utilized for branch operations. The lease term is through September 2022, with monthly payments of approximately $19 thousand. The sale-leaseback transaction resulted in a pre-tax gain of $5.9 million in the year ended December 31, 2019.

For additional detail regarding the lease guidance, see Note 1, “Summary of Significant Accounting Policies and Reclassifications.”