LEASES

6 Months Ended

Jun. 30, 2021

NOTE 8 – LEASES

The Company has operating leases for bank locations, ATMs, corporate offices, and certain other arrangements, which have remaining lease terms of 1 year to 14 years. Some of the Company’s operating leases include options to extend the leases for up to 10 years.

Operating leases in which we are the lessee must be recorded as right-of-use assets with corresponding lease liabilities. The right-of-use asset represents our right to utilize the underlying asset during the lease term, while the lease liability represents the present value of the obligation of the Company to make periodic lease payments over the life of the lease. The associated operating lease costs are comprised of the amortization of the right-of-use asset and the implicit interest accreted on the lease liability, which is recognized on a straight-line basis over the life of the lease. As of June 30, 2021, operating lease right-of-use assets were $15,179 and liabilities were $15,551, and as of December 31, 2020, lease assets and liabilities were $13,291 and $13,539

respectively, and were included within the accompanying consolidated balance sheets as components of other assets and accrued interest and other liabilities, respectively.

Operating lease expense for operating leases accounted for under ASC 842 for the six months ended June 30, 2021 and 2020 was approximately $1,146 and $921, respectively, and is included as a component of occupancy expenses within the accompanying consolidated statements of earnings.

The table below summarizes other information related to our operating leases as of:


	June 30, 2021			December 31, 2020
Operating leases
Operating lease right-of-use assets	$	15,179		$	13,291
Operating lease liabilities		15,551			13,539

Weighted average remaining lease term
Operating leases		9 years			9 years
Weighted average discount rate
Operating leases		1.96	%		2.19	%

The Company leases some of its banking facilities under non-cancelable operating leases expiring in various years through 2024 and thereafter. Minimum future lease payments under these non-cancelable operating leases in excess of one year as of June 30, 2021, are as follows:


Year Ended December 31,	Amount
2021	$	1,107
2022		2,110
2023		2,049
2024		2,008
2025		1,868
Thereafter		7,440

Total lease payments		16,582
Less: interest		(1,031	)

Present value of lease liabilities	$	15,551