Note 8 - Leases

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

8. Leases

The Company has

19

operating leases for branches and office spaces,

nine

operating leases for vehicles, and

two

operating leases for equipment. Our leases have remaining lease terms ranging from

one

month to

13

years,

none

of which has a renewal option reasonably certain of exercise, which has been reflected in the Company’s calculation of lease term.

The Company has elected the short-term lease recognition exemption such that the Company will

not

recognize ROU assets or lease liabilities for leases with a term of less than

12

months from the commencement date. The Company has

one

agreement that qualifies as a short-term lease with expense totaling

$34,000

for the

three

months ended

March 31, 2019,

included in Professional services on the Consolidated Statements of Income. The Company has

$0.2

million in variable lease payments, which include insurance and real estate tax expenses for the

three

months ended

March 31, 2019.

At

March 31, 2019,

the weighted-average remaining lease term for our operating leases is

eight

years and the weighted average discount rate is

3.8%.

At

March 31, 2019,

there were

no

significant leases entered into but

not

yet commenced. Our lease agreements do

not

contain any residual value guarantees.

(Dollars in thousands)	Three months ended March 31, 2019
Operating lease ROU assets	$	44,033
Operating lease liabilities	$	52,510
Lease Cost
Operating lease cost	$	1,892
Short-term lease cost		34
Variable lease cost		246
Total lease cost	$	2,172
Other information
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	2,025
Right-of-use assets obtained in exchange for new operating lease liabilities	$	21
Weighted-average remaining lease term-operating leases (in years)		8.0
Weighted average discount rate-operating leases		3.8	%

The Company’s minimum annual rental payments for Bank facilities due under non-cancelable leases are as follows:

		Minimum Rental
		(In thousands)
Years ended December 31:
2019	$	5,783
2020		8,289
2021		7,501
2022		7,090
2023		7,229
Thereafter		25,490
Total minimum payments required		61,382
Less: implied interest		8,872
Total lease obligations	$	52,510

Certain leases have escalation clauses for operating expenses and real estate taxes. The Company’s non-cancelable operating lease agreements expire through

2032.