Leases:

As of March 31, 2020, the Company was the lessee in 35 operating leases of certain branch, mortgage and operations locations with terms varying from greater than one year to 36 years. Leases with initial terms of less than one year are not recorded on the balance sheet. The Company also does not include equipment leases and leases in which the Company is the lessor on the consolidated balance sheets as these are insignificant.

Many leases include one or more options to renew, with renewal terms that can extend the lease up to an additional 20 years or more. Certain lease agreements contain provisions to periodically adjust rental payments for inflation. Renewal options that management is reasonably certain to renew are included in the right-of-use ("ROU") asset and lease liability.

Information related to the Company's operating leases is presented below:



	March 31,			December 31,
	2020			2019
Right-of-use assets	$	31,628		$	32,539
Lease liabilities	34,572			35,525
Weighted average remaining lease term (in years)	13.99			14.07
Weighted average discount rate	3.45		%	3.44		%

The components of lease expense included in Occupancy and equipment expense were as follows:



	Three Months Ended
	March 31,
	2020		2019
Operating lease cost ⁽¹⁾	$	1,289	$	1,112
Short-term lease cost	136		224
Variable lease cost	138		100
Total lease cost	$	1,563	$	1,436

(1) Includes amortization of favorable lease intangible

The Company does not separate lease and non-lease components and instead elects to account for them as a single lease component. Variable lease cost primarily represents variable payments such as common area maintenance, utilities, and property taxes.

A maturity analysis of operating lease liabilities and a reconciliation of undiscounted cash flows to the total operating lease liability is as follows:



	March 31,
	2020
Lease payments due on or before:
March 31, 2021	$	5,474
March 31, 2022	4,948
March 31, 2023	4,058
March 31, 2024	3,736
March 31, 2025	3,152
Thereafter	23,389
Total undiscounted cash flows	44,757
Discount on cash flows	(10,185		)
Total lease liability	$	34,572