Leases

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Leases

Leases

(In Thousands)

The Company enters into leases in both lessor and lessee capacities.

Lessor Arrangements

As of December 31, 2020 and 2019, the net investment in these leases was $20,804 and $12,441, comprised of $16,012 and $10,735 in lease receivables, $7,532 and $2,739 in residual balances and $2,740 and $1,033 in deferred income, respectively. In order to mitigate potential exposure to residual asset risk, the Company utilizes first amendment or terminal rental adjustment clause leases.

For the twelve months ended December 31, 2020 and 2019, the Company generated $554 and $331 in income from these leases, respectively, which is included in interest income on loans on the Consolidated Statements of Income.

The maturities of the lessor arrangements outstanding at December 31, 2020 is presented in the table below.

2021	$	603
2022	1,221
2023	1,602
2024	2,105
2025	398
Thereafter	14,875
Total lease receivables	$	20,804

Lessee Arrangements

As of December 31, 2020 and 2019, right-of-use assets totaled $66,023 and $84,754 and lease liabilities totaled $69,549 and $88,494, respectively. The table below provides the components of lease cost and supplemental information for the periods presented.

	Year ended December 31,
	2020			2019
Operating lease cost (cost resulting from lease payments)	$	10,826		$	10,149
Short-term lease cost	161			67
Variable lease cost (cost excluded from lease payments)	1,776			1,612
Sublease income	(583)			(560)
Net lease cost	$	12,180		$	11,268
Operating lease - operating cash flows (fixed payments)	9,811			9,678
Operating lease - operating cash flows (liability reduction)	7,187			8,407
Weighted average lease term - operating leases (in years) (at period end)	15.99			17.39
Weighted average discount rate - operating leases (at period end)	3.17		%	3.40		%
Right-of-use assets obtained in exchange for new lease liabilities - operating leases	$	9,393		$	38,881

The maturities of the lessee arrangements outstanding at December 31, 2020 are presented in the table below.

2021	$	8,607
2022	7,960
2023	7,556
2024	7,037
2025	5,609
Thereafter	54,106
Total undiscounted cash flows	90,875
Discount on cash flows	21,326
Total operating lease liabilities	$	69,549

Rental expense was $10,044, $9,159, and $6,157 for 2020, 2019, and 2018, respectively.

For more information on lease accounting, see Note 1, “Significant Accounting Policies” and on lease financing receivables, see Note 3, “Non Purchased Loans.”

Leases

Leases

(In Thousands)

The Company enters into leases in both lessor and lessee capacities.

Lessor Arrangements

As of December 31, 2020 and 2019, the net investment in these leases was $20,804 and $12,441, comprised of $16,012 and $10,735 in lease receivables, $7,532 and $2,739 in residual balances and $2,740 and $1,033 in deferred income, respectively. In order to mitigate potential exposure to residual asset risk, the Company utilizes first amendment or terminal rental adjustment clause leases.

For the twelve months ended December 31, 2020 and 2019, the Company generated $554 and $331 in income from these leases, respectively, which is included in interest income on loans on the Consolidated Statements of Income.

The maturities of the lessor arrangements outstanding at December 31, 2020 is presented in the table below.

2021	$	603
2022	1,221
2023	1,602
2024	2,105
2025	398
Thereafter	14,875
Total lease receivables	$	20,804

Lessee Arrangements

As of December 31, 2020 and 2019, right-of-use assets totaled $66,023 and $84,754 and lease liabilities totaled $69,549 and $88,494, respectively. The table below provides the components of lease cost and supplemental information for the periods presented.

	Year ended December 31,
	2020			2019
Operating lease cost (cost resulting from lease payments)	$	10,826		$	10,149
Short-term lease cost	161			67
Variable lease cost (cost excluded from lease payments)	1,776			1,612
Sublease income	(583)			(560)
Net lease cost	$	12,180		$	11,268
Operating lease - operating cash flows (fixed payments)	9,811			9,678
Operating lease - operating cash flows (liability reduction)	7,187			8,407
Weighted average lease term - operating leases (in years) (at period end)	15.99			17.39
Weighted average discount rate - operating leases (at period end)	3.17		%	3.40		%
Right-of-use assets obtained in exchange for new lease liabilities - operating leases	$	9,393		$	38,881

The maturities of the lessee arrangements outstanding at December 31, 2020 are presented in the table below.

2021	$	8,607
2022	7,960
2023	7,556
2024	7,037
2025	5,609
Thereafter	54,106
Total undiscounted cash flows	90,875
Discount on cash flows	21,326
Total operating lease liabilities	$	69,549

Rental expense was $10,044, $9,159, and $6,157 for 2020, 2019, and 2018, respectively.

For more information on lease accounting, see Note 1, “Significant Accounting Policies” and on lease financing receivables, see Note 3, “Non Purchased Loans.”