Leases

3 Months Ended

Mar. 31, 2021

The following table represents the consolidated statements of financial condition classification of the Company’s right-of use-assets and lease liabilities at March 31, 2021 and December 31, 2020 (in thousands):


	Classification	March 31, 2021		December 31, 2020
Lease Right-of-Use Assets:
Operating lease right-of-use assets	Other assets	$	40,960	$	41,142
Lease Liabilities:
Operating lease liabilities	Other liabilities	$	42,323	$	42,042

The calculated amount of the right-of-use assets and lease liabilities in the table above are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If at lease inception the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the right-of-use asset and lease liability. Generally, the Company considers the first renewal option to be reasonably certain and includes it in the calculation of the right-of use asset and lease liability. Regarding the discount rate, Topic 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception based upon the term of the lease. For operating leases existing prior to January 1, 2019, the rate for the remaining lease term as of January 1, 2019 was applied.

All of the leases in which the Company is the lessee are classified as operating leases and are primarily comprised of real estate properties for branches and administrative offices with terms extending through 2040.

At March 31, 2021, the weighted-average remaining lease term and the weighted-average discount rate for the Company's operating leases were 8.8 years and 3.14%, respectively.

The following tables represent lease costs and other lease information for the Company's operating leases. The variable lease cost primarily represents variable payments such as common area maintenance and utilities (in thousands):


	Three months ended March 31, 2021		Three months ended March 31, 2020
Lease Costs
Operating lease cost	$	2,812	$	2,130

Variable lease cost	803		607

Total lease cost	$	3,615	$	2,737


Cash paid for amounts included in the measurement of lease liabilities:	Three months ended March 31, 2021		Three months ended March 31, 2020

Operating cash flows from operating leases	$	2,345	2,125

Future minimum payments for operating leases with initial or remaining terms of one year or more as of March 31, 2021 were as follows (in thousands):


	Operating leases
Twelve months ended:
Remainder of 2021	$	6,472
2022	6,391
2023	5,878
2024	5,475
2025	4,887
Thereafter	20,027
Total future minimum lease payments	49,130
Amounts representing interest	6,807
Present value of net future minimum lease payments	$	42,323