LEASES

3 Months Ended

Mar. 31, 2020

Leases

LEASES

7. LEASES

Right-of-use assets are included in the other assets line item and lease liabilities are included in the other liabilities line item of the consolidated balance sheet. We determine if a contract contains a lease at inception and recognize operating lease right-of-use assets and operating lease liabilities based on the present value of the future minimum lease payments at the commencement date. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. Lease agreements may include options to extend or terminate. The options are exercised at our discretion and are included in operating lease liabilities if it is reasonably certain the option will be exercised. Lease agreements have lease and non-lease components, which are accounted for as a single lease component. Lease expense is recognized on a straight-line basis over the lease term.

The Company’s operating lease obligations are for branch office facilities. Our leases have remaining lease terms of 1 to 15 years. The components of lease expense and other lease information as of and during the three-month periods ended March 31, 2020 and 2019 are as follows:

	For the Three-Month Period Ended
(in thousands)	March 31, 2020		March 31, 2019
Operating lease cost	$	1,406	$	1,481
Cash paid for amounts included in measurement of lease liabilities
Operating cash flows from operating leases	$	1,486	$	1,395
Right-of-use assets obtained in exchange for new operating lease liabilities	$	15	$	719
Other non-cash reductions to right-of-use assets	$	1,192	$	-

(in thousands)	March 31, 2020			December 31, 2019
Operating lease right-of-use assets	$	19,889		$	22,335
Operating lease liabilities	$	23,141		$	24,475
Weighted-average remaining lease term - operating leases		4.48	years		4.69	years
Weighted-average discount rate - operating leases		2.34	%		2.33	%

Future minimum lease payments under non-cancellable leases as of March 31, 2020 were as follows:

(in thousands)	March 31, 2020
2020	$	4,505
2021		5,976
2022		5,904
2023		4,386
2024		2,334
Thereafter		1,365
Total future minimum lease payments	$	24,470
Less imputed interest		(1,329)
Total operating lease liability	$	23,141