Leases

9 Months Ended

Sep. 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:

	September 30, 2021					December 31, 2020
(Dollars in thousands)	Finance Leases			Operating Leases		Finance Leases		Operating Leases
ROU assets	$	5,999				5,999
Accumulated depreciation	(457)					(273)
Net ROU assets	$	5,542		44,480		5,726		46,820
Lease liabilities	$	5,810		47,590		5,891		49,675
Weighted-average remaining lease term	23 years			17 years		24 years		17 years
Weighted-average discount rate	2.6		%	3.5	%	2.6	%	3.4	%

Maturities of lease liabilities consist of the following:

	September 30, 2021
(Dollars in thousands)	Finance Leases		Operating Leases
Maturing within one year	$	66	1,219
Maturing one year through two years	266		4,625
Maturing two years through three years	272		3,973
Maturing three years through four years	280		3,932
Maturing four years through five years	285		3,859
Thereafter	6,736		47,447
Total lease payments	7,905		65,055
Present value of lease payments
Short-term	28		1,527
Long-term	5,782		46,063
Total present value of lease payments	5,810		47,590
Difference between lease payments and present value of lease payments	$	2,095	17,465

The components of lease expense consist of the following:

	Three Months ended			Nine Months ended
(Dollars in thousands)	September 30, 2021		September 30, 2020	September 30, 2021	September 30, 2020
Finance lease cost
Amortization of ROU assets	$	61	59	184	174
Interest on lease liabilities	38		40	113	121
Operating lease cost	1,302		1,254	3,883	3,553
Short-term lease cost	93		88	261	266
Variable lease cost	264		264	759	977
Sublease income	(11)		(2)	(32)	(5)
Total lease expense	$	1,747	1,703	5,168	5,086

Supplemental cash flow information related to leases is as follows:

	Three Months ended
	September 30, 2021			September 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	813	40	706
Financing cash flows	27		N/A	23	N/A

	Nine Months ended
	September 30, 2021			September 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	$	113	2,379	121	1,994
Financing cash flows	81		N/A	67	N/A

The Company also leases office space to third parties through operating leases. Rent income from these leases for the nine months ended September 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:

	September 30, 2021					December 31, 2020
(Dollars in thousands)	Finance Leases			Operating Leases		Finance Leases		Operating Leases
ROU assets	$	5,999				5,999
Accumulated depreciation	(457)					(273)
Net ROU assets	$	5,542		44,480		5,726		46,820
Lease liabilities	$	5,810		47,590		5,891		49,675
Weighted-average remaining lease term	23 years			17 years		24 years		17 years
Weighted-average discount rate	2.6		%	3.5	%	2.6	%	3.4	%

Maturities of lease liabilities consist of the following:

	September 30, 2021
(Dollars in thousands)	Finance Leases		Operating Leases
Maturing within one year	$	66	1,219
Maturing one year through two years	266		4,625
Maturing two years through three years	272		3,973
Maturing three years through four years	280		3,932
Maturing four years through five years	285		3,859
Thereafter	6,736		47,447
Total lease payments	7,905		65,055
Present value of lease payments
Short-term	28		1,527
Long-term	5,782		46,063
Total present value of lease payments	5,810		47,590
Difference between lease payments and present value of lease payments	$	2,095	17,465

The components of lease expense consist of the following:

	Three Months ended			Nine Months ended
(Dollars in thousands)	September 30, 2021		September 30, 2020	September 30, 2021	September 30, 2020
Finance lease cost
Amortization of ROU assets	$	61	59	184	174
Interest on lease liabilities	38		40	113	121
Operating lease cost	1,302		1,254	3,883	3,553
Short-term lease cost	93		88	261	266
Variable lease cost	264		264	759	977
Sublease income	(11)		(2)	(32)	(5)
Total lease expense	$	1,747	1,703	5,168	5,086

Supplemental cash flow information related to leases is as follows:

	Three Months ended
	September 30, 2021			September 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	813	40	706
Financing cash flows	27		N/A	23	N/A

	Nine Months ended
	September 30, 2021			September 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	$	113	2,379	121	1,994
Financing cash flows	81		N/A	67	N/A

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