Lease Commitments. The Company is obligated under various lease agreements covering its main office, branch offices, and other locations. These agreements are accounted for as operating leases and their terms expire between 2019 and 2030 and, in some instances, contain options to renew for periods up to 30 years.

The Company adopted Accounting Standards Update No. 2016-02 - Leases (“ASU 2016-02”) during the first quarter of 2019 and began recognizing its operating leases on its balance sheet by recording a lease liability, representing the Company’s legal obligation to make lease payments, and a Right-Of-Use (ROU) Asset, representing the Company’s legal right to use the leased office space and banking centers. The Company, by policy, does not include renewal options for leases as part of its right-of-use assets and lease liabilities unless they are deemed reasonably certain to exercise. The Company does not have any material sub-lease agreements.

The following table summarizes information related to the Company’s right-of-use asset and net lease liability:

	December 31, 2019
	Operating Leases		Balance Sheet Location
	(dollars in thousands)
Right-of-use asset	$	33,587	Right-of-use asset operating leases
Lease liability	$	35,054	Operating lease liabilities

Operating lease expenses are comprised of operating lease costs and variable lease costs, net of sublease income. The pattern and measurement of expense recognition of these costs were not significantly impacted by ASU 2016-02 and subsequent ASUs issued to amend this Topic.

Variable lease payments that are not dependent on an index or a rate or changes in variable payments based on an index or rate after the commencement date are excluded from the measurement of the lease liability, recognized in the period incurred and included within variable lease costs below.

The Company determines whether a contract contains a lease based on whether a contract, or a part of a contract, conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The discount rate is determined as either the rate implicit in the lease or when a rate cannot be readily determined, the Company’s incremental borrowing rate. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term.

The components of operating lease cost and other related information are as follows:

		Twelve Months Ended December 31,
		2019
	(dollars in thousands)
Operating lease cost		$	5,280
Short-term lease cost			—
Variable lease cost (Cost excluded from lease payments)			2
Sublease income			(64	)
Total Operating Lease Cost		$	5,218
Other Information
Cash paid for amounts included in the measurement of lease liabilities - operating cash flows from operating leases		$	5,027
Operating Lease - Operating Cash Flows (Liability reduction)			3,868
Right-of-use assets obtained in exchange for new operating lease liabilities			37,728
Weighted average lease term - operating leases		8.15 Years
Weighted average discount rate - operating leases			3.39	%

The total minimum lease payments due in future periods under these agreements in effect at December 31, 2019 and December 31, 2018 were as follows:

Year Ended	Future Minimum
December 31, 2019	Lease Payments
	(dollars in thousands)
2020	$	5,478
2021		5,523
2022		5,371
2023		5,021
2024		4,355
Thereafter		14,553
Total minimum lease payments		40,301
Less: interest		(5,247	)
Total lease liability	$	35,054

Year Ended	Future Minimum
December 31, 2018	Lease Payments
	(dollars in thousands)
2019	$	4,448
2020		4,661
2021		4,662
2022		4,553
2023		4,455
Thereafter		17,128
Total minimum lease payments	$	39,907

Several lease agreements contain clauses calling for escalation of minimum lease payments contingent on increases in real estate taxes, gross income adjustments, percentage increases in the consumer price index, and certain ancillary maintenance costs. Total rental expense was $5.7 million, $4.7 million, and $4.7 million for the years ended December 31, 2019, 2018 and 2017, respectively.

Change in Control Agreements. The Company has entered into agreements with its Chief Executive Officer and with certain other senior officers, whereby, following the occurrence of a change in control of the Company, if employment is terminated (except because of death, retirement, disability, or for “cause” as defined in the agreements) or is voluntarily terminated for “good reason,” as defined in the agreements, said officers will be entitled to receive additional compensation, as defined in the agreements.