Note 8 - Leases

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

8.     Leases

The Company has 20 operating leases for branches (including headquarters) and office spaces, nine operating leases for vehicles, and one operating lease for equipment. Our leases have remaining lease terms ranging from five months 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 approximately $34,000 and $102,000 for the three months and the nine months ended September 30, 2019, respectively, included in Professional services on the Consolidated Statements of Income. The Company has $0.2 million and $0.6 million in variable lease payments, which include insurance and real estate tax expenses, for the three months and nine months ended September 30, 2019, respectively. At September 30, 2019, the weighted-average remaining lease term for our operating leases is approximately eight years and the weighted average discount rate is 3.8%. Our lease agreements do not contain any residual value guarantees. At September 30, 2019, the Company is evaluating the lease portfolio to assess present and future contracts, including but not limited to, real estate, vehicles and equipment.

	At or for the			At or for the
	three months ended			nine months ended
(Dollars in thousands)	September 30, 2019			September 30, 2019
Operating lease ROU assets	$	42,400		$	42,400
Operating lease liabilities	$	50,626		$	50,626
Lease Cost
Operating lease cost	$	1,891		$	5,676
Short-term lease cost		34			102
Variable lease cost		267			757
Total lease cost	$	2,192		$	6,535
Other information
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	2,002		$	6,052
Right-of-use assets obtained in exchange for new operating lease liabilities	$	1,253		$	1,295
Weighted-average remaining lease term-operating leases (years)		7.7			7.7
Weighted average discount rate-operating leases		3.8	%		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	$	1,694
2020		8,397
2021		7,644
2022		7,229
2023		7,366
Thereafter		26,378
Total minimum payments required		58,708
Less: implied interest		8,082
Total lease obligations	$	50,626

Certain leases have escalation clauses for operating expenses and real estate taxes. The Company’s non-cancelable operating lease agreements expire through 2032.