Premises and Equipment

12 Months Ended

Dec. 31, 2020

Property, Plant and Equipment [Abstract]

Premises and Equipment

Premises and Equipment

Premises and equipment, net of accumulated depreciation, consist of the following:

(Dollars in thousands)	December 31, 2020		December 31, 2019
Land	$	56,842	52,738
Buildings and construction in progress	259,389		251,151
Furniture, fixtures and equipment	102,749		96,576
Leasehold improvements	13,364		11,144
Accumulated depreciation	(159,555)		(148,373)
Net premises and equipment, excluding ROU assets	272,789		263,236
ROU assets	52,546		47,073
Net premises and equipment	$	325,335	310,309

Leases

The Company leases certain land, premises and equipment from third parties. Effective January 1, 2019, ROU assets for operating and finance leases are included in net premises and equipment and lease liabilities are included in other liabilities and other borrowed funds, respectively, on the Company’s statements of financial condition. The following table summarizes the Company’s leases:

	December 31, 2020					December 31, 2019
(Dollars in thousands)	Finance Leases			Operating Leases		Finance Leases		Operating Leases
ROU assets	$	5,999				6,537
Accumulated depreciation	(273)					(917)
Net ROU assets	$	5,726		46,820		5,620		41,453
Lease liabilities	$	5,891		49,675		5,671		43,904
Weighted-average remaining lease term	24 years			17 years		24 years		19 years
Weighted-average discount rate	2.6		%	3.4	%	3.0	%	3.7	%

Maturities of lease liabilities consist of the following:

	December 31, 2020
(Dollars in thousands)	Finance Leases		Operating Leases
Maturing within one year	$	260	4,639
Maturing one year through two years	266		4,407
Maturing two years through three years	272		3,979
Maturing three years through four years	280		3,987
Maturing four years through five years	285		3,932
Thereafter	6,736		47,434
Total lease payments	8,099		68,378
Present value of lease payments
Short-term	109		3,023
Long-term	5,782		46,652
Total present value of lease payments	5,891		49,675
Difference between lease payments and present value of lease payments	$	2,208	18,703

The components of lease expense consist of the following:

	Year ended
(Dollars in thousands)	December 31, 2020	December 31, 2019
Finance lease cost
Amortization of ROU assets	235	101
Interest on lease liabilities	159	34
Operating lease cost	4,807	4,063
Short-term lease cost	331	431
Variable lease cost	1,270	896
Sublease income	(12)	(6)
Total lease expense	6,790	5,519

Supplemental cash flow information related to leases is as follows:

	Year ended
	December 31, 2020			December 31, 2019
(Dollars in thousands)	Finance Leases		Operating Leases	Finance Leases	Operating Leases
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows	$	159	2,742	34	2,136
Financing cash flows	93		N/A	98	N/A

______________________________

N/A - Not applicable

The Company also leases office space to third parties through operating leases. Rent income from these leases for the year ended December 31, 2020 and 2019 was not significant.