Right-Of-Use Assets and Lease Liabilities

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

RIGHT-OF-USE ASSETS AND LEASE LIABILITIES

RIGHT-OF-USE ASSETS AND LEASE LIABILITIES

We have 51 lease contracts, including 48 operating leases and three finance leases. These leases are for our branch, loan production and support services facilities. Included in the lease expense for premises are leases with one S&T director, which totaled approximately $0.2 million for each of the three years 2020, 2019 and 2018.

The following table presents our lease expense for finance and operating leases for the years ended December 31:

(dollars in thousands)	2020		2019			2018
Operating lease expense	$	5,711	$	4,221		$	3,850
Amortization of ROU assets - finance leases	224		101			44
Interest on lease liabilities - finance leases (1)	84		74			11
Total Lease Expense	$	6,019	$	4,396		$	3,905
(1) Included in borrowings interest expense in our Consolidated Statements of Net Income. All other lease costs in this table are included in net occupancy expense.
The following table presents our ROU assets, weighted average term and the discount rates for finance and operating leases as of December 31:
(dollars in thousands)			2020			2019
Operating Leases
ROU assets			$	46,245		$	47,686
Operating cash flows			$	6,489		$	5,028
Finance Leases
ROU assets			$	1,278		$	1,513
Operating cash flows			$	84		$	47
Financing cash flows			$	180		$	57
Weighted Average Lease Term - Years
Operating leases			18.70			19.18
Finance leases			12.09			12.16
Weighted Average Discount Rate
Operating leases			5.90		%	5.94		%
Finance leases			5.81		%	5.73		%

Leases acquired from the DNB merger were remeasured at the acquisition date resulting in a ROU asset of $10.9 million at December 31, 2019.

As of December 31, 2020, two operating leases were considered abandoned due to branch closures and the right-of-use asset values were reduced by $0.5 million to zero and the related liabilities were reduced by $0.2 million. We recognized additional expense of $0.3 million at the date of abandonment for these two leases.

The following table presents the maturity analysis of lease liabilities for finance and operating leases as of December 31, 2020:

(dollars in thousands)
Maturity Analysis	Finance		Operating			Total
2021	$	269		$	4,789	$	5,058
2022	225			4,855		5,080
2023	129			4,759		4,888
2024	130			4,752		4,882
2025	132			4,787		4,919
Thereafter	1,145			66,409		67,554
Total	2,030			90,351		92,381
Less: Present value discount	(636)			(38,402)		(39,038)
Lease Liabilities	$	1,394		$	51,949	$	53,343

RIGHT-OF-USE ASSETS AND LEASE LIABILITIES

RIGHT-OF-USE ASSETS AND LEASE LIABILITIES

We have 51 lease contracts, including 48 operating leases and three finance leases. These leases are for our branch, loan production and support services facilities. Included in the lease expense for premises are leases with one S&T director, which totaled approximately $0.2 million for each of the three years 2020, 2019 and 2018.

The following table presents our lease expense for finance and operating leases for the years ended December 31:

(dollars in thousands)	2020		2019			2018
Operating lease expense	$	5,711	$	4,221		$	3,850
Amortization of ROU assets - finance leases	224		101			44
Interest on lease liabilities - finance leases (1)	84		74			11
Total Lease Expense	$	6,019	$	4,396		$	3,905
(1) Included in borrowings interest expense in our Consolidated Statements of Net Income. All other lease costs in this table are included in net occupancy expense.
The following table presents our ROU assets, weighted average term and the discount rates for finance and operating leases as of December 31:
(dollars in thousands)			2020			2019
Operating Leases
ROU assets			$	46,245		$	47,686
Operating cash flows			$	6,489		$	5,028
Finance Leases
ROU assets			$	1,278		$	1,513
Operating cash flows			$	84		$	47
Financing cash flows			$	180		$	57
Weighted Average Lease Term - Years
Operating leases			18.70			19.18
Finance leases			12.09			12.16
Weighted Average Discount Rate
Operating leases			5.90		%	5.94		%
Finance leases			5.81		%	5.73		%

Leases acquired from the DNB merger were remeasured at the acquisition date resulting in a ROU asset of $10.9 million at December 31, 2019.

As of December 31, 2020, two operating leases were considered abandoned due to branch closures and the right-of-use asset values were reduced by $0.5 million to zero and the related liabilities were reduced by $0.2 million. We recognized additional expense of $0.3 million at the date of abandonment for these two leases.

The following table presents the maturity analysis of lease liabilities for finance and operating leases as of December 31, 2020:

(dollars in thousands)
Maturity Analysis	Finance		Operating			Total
2021	$	269		$	4,789	$	5,058
2022	225			4,855		5,080
2023	129			4,759		4,888
2024	130			4,752		4,882
2025	132			4,787		4,919
Thereafter	1,145			66,409		67,554
Total	2,030			90,351		92,381
Less: Present value discount	(636)			(38,402)		(39,038)
Lease Liabilities	$	1,394		$	51,949	$	53,343