Right-Of-Use Lease Assets and Lease Liabilities

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Right-Of-Use Lease Assets and Lease Liabilities

RIGHT-OF-USE LEASE ASSETS AND LEASE LIABILITIES

The Company accounts for its leases in accordance with ASC Topic 842, Leases, which requires recognition of most leases, including operating leases, with a term greater than 12 months on the balance sheet. At lease commencement, the lease contract is reviewed to determine whether the contract is a finance lease or an operating lease; a lease liability is recognized on a discounted basis, related to the Company’s obligation to make lease payments; and a right-of-use asset is also recognized related to the Company’s right to use, or control the use of, a specified asset for the lease term. The Company accounts for lease and non-lease components (such as taxes, insurance and common area maintenance costs) separately as such amounts are generally readily determinable under the lease contracts. Lease payments over the expected term are discounted using the Company’s FHLB advance rates for borrowings of similar term. If it is reasonably certain that a renewal or termination option will be exercised, the effects of such options are included in the determination of the expected lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term.

The Company’s leases are classified as operating leases with a term, including expected renewal or termination options, greater than one year, and are related to certain office facilities and office equipment. The following table presents information related to the Company’s right-of-use lease assets, included in premises and equipment, and lease liabilities, included in other liabilities, at December 31, 2021 and 2020.

(Dollars in thousands)	2021			2020
Right-of-use lease assets	$	48,855		$	31,348
Lease liabilities	$	49,321		$	31,433
Weighted average remaining lease term	7.96 years			6.55 years
Weighted average discount rate	2.00		%	3.09		%

Operating lease cost for the years ended December 31, 2021, 2020 and 2019 was $11,530,000, $13,103,000, and $13,560,000, respectively.

The Company’s remaining undiscounted minimum lease payments on operating leases as of December 31, 2021 are as follows:

Year	(In thousands)
2022	$	11,441
2023	8,850
2024	6,786
2025	5,483
2026	4,549
Thereafter	16,773
Total undiscounted minimum lease payments	53,882
Less: Net present value adjustment	4,561
Lease liability included in other liabilities	$	49,321