Leases

9 Months Ended

Sep. 30, 2020

Leases

Leases

Note 9 — Leases

As of September 30, 2020, we had operating right-of-use (“ROU”) assets of $121.6 million and operating lease liabilities of $126.1 million. We maintain operating leases on land and buildings for our operating centers, branch facilities and ATM locations. Most leases include one or more options to renew, with renewal terms extending up to 24 years. The exercise of renewal options is based on the sole judgment of Management and what they consider to be reasonably certain given the environment today. Factors in determining whether an option is reasonably certain of exercise include, but are not limited to, the value of leasehold improvements, the value of renewal rate compared to market rates, and the presence of factors that would cause a significant economic penalty to us if the option is not exercised. Leases with an initial term of 12 months or less are not recorded on the balance sheet and instead are recognized in lease expense on a straight-line basis over the lease term.

The Company also holds a small number of finance leases assumed in connection to the CSFL merger. These leases are all real estate leases. Terms and conditions are similar to those real estate operating leases described above. Lease classifications from the acquired institutions were retained.

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30,				September 30,
	2020		2019		2020		2019
Lease Cost Components:
Amortization of ROU assets - finance leases	$	125	$	—	$	172	$	—
Interest on lease liabilities - finance leases		19		—		24		—
Operating lease cost (cost resulting from lease payments)		4,557		2,241		9,873		6,560
Short-term lease cost		253		120		450		396
Variable lease cost (cost excluded from lease payments)		370		151		739		337
Total lease cost	$	5,324	$	2,512	$	11,258	$	7,293
Supplemental Cash Flow and Other Information Related to Leases:
Finance lease - operating cash flows	$	19	$	—	$	27	$	—
Finance lease - financing cash flows		109		—		150		—
Operating lease - operating cash flows (fixed payments)		4,307		1,996		8,763		5,804
Operating lease - operating cash flows (net change asset/liability)		(3,290)		248		(5,968)		504
New ROU assets - operating leases		1,475		5,289		41,211		10,239
New ROU assets - finance leases		—		—		5,374		—
Weighted - average remaining lease term (years) - finance leases						7.66		—
Weighted - average remaining lease term (years) - operating leases						11.6		14.30
Weighted - average discount rate - finance leases						1.7%		—
Weighted - average discount rate - operating leases						3.3%		3.9%
Operating lease payments due:
2020 (excluding the nine months ended September 30, 2020)					$	4,257
2021						16,381
2022						15,054
2023						14,041
2024						12,789
Thereafter						92,814
Total undiscounted cash flows						155,336
Discount on cash flows						(29,278)
Total operating lease liabilities					$	126,058

As of September 30, 2020, we determined that the number and dollar amount of our equipment leases was immaterial. As of September 30, 2020, we did not have additional operating leases that have not yet commenced from an amendment to a current lease.