Leases

3 Months Ended

Mar. 31, 2020

Leases [Abstract]

Leases

10. Leases

Due to the merger with UCFC, on January 31, 2020, the Company performed a valuation on UCFC’s leases to determine an initial right of use asset (ROU asset) and lease liability.  The Company recorded an initial ROU asset of $5.0 million and a lease liability of $5.1 million for these leases.  

The Company’s lease agreements have maturity dates ranging from December 2020 to September 2044, some of which include options for multiple five and ten year extensions.  The weighted average remaining life of the lease term for these leases was 17.58 years as of March 31, 2020 and 17.07 years as of December 31, 2019.  The weighted average discount rate for leases was 2.55% as of March 3, 2020 and 3.17% as of December 31, 2019.

The total operating lease costs were $517,000 for the three months ended March 31, 2020, and $243,000 for the three months ended March 31, 2019, respectively. The right-of-use asset, included in other assets, was $17.7 million and $8.9 million at March 31, 2020 and December 31, 2019, respectively.  The lease liabilities, included in other liabilities, were $18.2 million and $9.5 million as of March 31, 2020 and December 31, 2019, respectively.

Undiscounted cash flows included in lease liabilities have expected contractual payments as follows:

(in thousands)	March 31, 2020
2020	$	1,913
2021		2,295
2022		1,944
2023		1,539
2024		1,311
Thereafter		14,911
Total undiscounted minimum lease payments	$	23,913
Present value adjustment		(5,687	)
Total lease liabilities	$	18,226