Leases

6 Months Ended

Jun. 30, 2021

Leases [Abstract]

Leases

Leases

The Company leases certain land, premises and equipment from third parties. 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:

	June 30, 2021					December 31, 2020
(Dollars in thousands)	Finance Leases			Operating Leases		Finance Leases		Operating Leases
ROU assets	$	5,999				5,999
Accumulated depreciation	(396)					(273)
Net ROU assets	$	5,603		45,273		5,726		46,820
Lease liabilities	$	5,837		48,296		5,891		49,675
Weighted-average remaining lease term	23 years			17 years		24 years		17 years
Weighted-average discount rate	2.6		%	3.4	%	2.6	%	3.4	%

Maturities of lease liabilities consist of the following:

	June 30, 2021
(Dollars in thousands)	Finance Leases		Operating Leases
Maturing within one year	$	263	4,742
Maturing one year through two years	269		4,214
Maturing two years through three years	275		3,938
Maturing three years through four years	283		3,895
Maturing four years through five years	289		3,792
Thereafter	6,591		45,582
Total lease payments	7,970		66,163
Present value of lease payments
Short-term	114		3,176
Long-term	5,723		45,120
Total present value of lease payments	5,837		48,296
Difference between lease payments and present value of lease payments	$	2,133	17,867

The components of lease expense consist of the following:

	Three Months ended			Six Months ended
(Dollars in thousands)	June 30, 2021		June 30, 2020	June 30, 2021	June 30, 2020
Finance lease cost
Amortization of ROU assets	$	62	58	123	115
Interest on lease liabilities	38		40	75	81
Operating lease cost	1,302		1,191	2,581	2,299
Short-term lease cost	82		88	168	178
Variable lease cost	234		328	495	713
Sublease income	(10)		(1)	(21)	(3)
Total lease expense	$	1,708	1,704	3,421	3,383

Supplemental cash flow information related to leases is as follows:

	Three Months ended
	June 30, 2021			June 30, 2020
(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	$	38	786	40	673
Financing cash flows	27		N/A	21	N/A

	Six Months ended
	June 30, 2021			June 30, 2020
(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	$	75	1,566	81	1,288
Financing cash flows	54		N/A	44	N/A

The Company also leases office space to third parties through operating leases. Rent income from these leases for the six months ended June 30, 2021 and 2020 was not significant.

Leases

Leases

The Company leases certain land, premises and equipment from third parties. 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:

	June 30, 2021					December 31, 2020
(Dollars in thousands)	Finance Leases			Operating Leases		Finance Leases		Operating Leases
ROU assets	$	5,999				5,999
Accumulated depreciation	(396)					(273)
Net ROU assets	$	5,603		45,273		5,726		46,820
Lease liabilities	$	5,837		48,296		5,891		49,675
Weighted-average remaining lease term	23 years			17 years		24 years		17 years
Weighted-average discount rate	2.6		%	3.4	%	2.6	%	3.4	%

Maturities of lease liabilities consist of the following:

	June 30, 2021
(Dollars in thousands)	Finance Leases		Operating Leases
Maturing within one year	$	263	4,742
Maturing one year through two years	269		4,214
Maturing two years through three years	275		3,938
Maturing three years through four years	283		3,895
Maturing four years through five years	289		3,792
Thereafter	6,591		45,582
Total lease payments	7,970		66,163
Present value of lease payments
Short-term	114		3,176
Long-term	5,723		45,120
Total present value of lease payments	5,837		48,296
Difference between lease payments and present value of lease payments	$	2,133	17,867

The components of lease expense consist of the following:

	Three Months ended			Six Months ended
(Dollars in thousands)	June 30, 2021		June 30, 2020	June 30, 2021	June 30, 2020
Finance lease cost
Amortization of ROU assets	$	62	58	123	115
Interest on lease liabilities	38		40	75	81
Operating lease cost	1,302		1,191	2,581	2,299
Short-term lease cost	82		88	168	178
Variable lease cost	234		328	495	713
Sublease income	(10)		(1)	(21)	(3)
Total lease expense	$	1,708	1,704	3,421	3,383

Supplemental cash flow information related to leases is as follows:

	Three Months ended
	June 30, 2021			June 30, 2020
(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	$	38	786	40	673
Financing cash flows	27		N/A	21	N/A

	Six Months ended
	June 30, 2021			June 30, 2020
(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	$	75	1,566	81	1,288
Financing cash flows	54		N/A	44	N/A

The Company also leases office space to third parties through operating leases. Rent income from these leases for the six months ended June 30, 2021 and 2020 was not significant.