Leases

6 Months Ended

Jun. 30, 2020

Leases [Abstract]

Leases

Leases:

As of June 30, 2020, the Company was the lessee in 45 operating leases of certain branch, mortgage and operations locations, of which 36 operating leases currently have remaining terms varying from greater than one year to 35 years. Leases with initial terms of less than one year are not recorded on the consolidated balance sheets. 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.

The Company entered into a lease for a new corporate headquarters building located in downtown Nashville. The lease agreement, comprising approximately 52,000 square feet of rentable space, includes signage rights, and is anticipated to commence in the fourth quarter of 2022. Upon commencement, the Company estimates recording a ROU asset and operating lease liability of approximately $29,000 and $30,000, respectively, as well as associated deferred taxes, in connection with this lease.

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

	June 30,			December 31,
	2020			2019
Right-of-use assets	$	30,447		$	32,539
Lease liabilities	$	33,803		$	35,525
Weighted average remaining lease term (in years)	13.93			14.07
Weighted average discount rate	3.44		%	3.40		%

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

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Operating lease cost(1)	$	1,389	$	1,421	$	2,678	$	2,533
Short-term lease cost	30		260		166		484
Variable lease cost	160		99		298		199
Total lease cost	$	1,579	$	1,780	$	3,142	$	3,216

(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:

	June 30,
	2020
Lease payments due:
June 30, 2021	$	5,432
June 30, 2022	4,807
June 30, 2023	4,075
June 30, 2024	3,624
June 30, 2025	3,057
Thereafter	22,713
Total undiscounted future minimum lease payments	43,708
Discount on cash flows	(9,905)
Total lease liability	$	33,803