Note 8 - Leases

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

8.     Leases

The Company has 19 operating leases for branches and office spaces, nine operating leases for vehicles, and two operating leases for equipment. Our leases have remaining lease terms ranging from 1 month to 13 years, none of which has a renewal option reasonably certain of exercise, which has been reflected in the Company’s calculation of lease term.

The Company has elected the short-term lease recognition exemption such that the Company will not recognize right-of-use assets or lease liabilities for leases with a term of less than 12 months from the commencement date. The Company has one agreement that qualifies as a short-term lease with expense totaling $34,000 and $68,000 for the three and six months ended June 30, 2019, respectively, included in Professional services on the Consolidated Statements of Income. The Company has $0.2 million and $0.4 million in variable lease payments, which include insurance and real estate tax expenses for the three and six months ended June 30, 2019, respectively. At June 30, 2019, the weighted-average remaining lease term for our operating leases is 8 years and the weighted average discount rate is 3.8%. At June 30, 2019, there were no significant leases entered into but not yet commenced. Our lease agreements do not contain any residual value guarantees.

	For the three months ended			For the six months ended
(Dollars in thousands)	June 30, 2019			June 30, 2019
Operating lease ROU assets	$	42,557		$	42,557
Operating lease liabilities	$	50,898		$	50,898
Lease Cost
Operating lease cost	$	1,893		$	3,785
Short-term lease cost		34			68
Variable lease cost		244			423
Total lease cost	$	2,171		$	4,276
Other information
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	2,025		$	4,050
Right-of-use assets obtained in exchange for new operating lease liabilities	$	21		$	42
Weighted-average remaining lease term-operating leases (in years)	8.0			8.0
Weighted average discount rate-operating leases		3.8	%		3.8	%

The Company’s minimum annual rental payments for Bank facilities due under non-cancelable leases are as follows:

	Minimum Rental
	(In thousands)
Years ended December 31:
2019	$	3,700
2020		8,259
2021		7,508
2022		7,093
2023		7,229
Thereafter		25,490
Total minimum payments required		59,279
Less: implied interest		8,381
Total lease obligations	$	50,898

Certain leases have escalation clauses for operating expenses and real estate taxes. The Company’s non-cancelable operating lease agreements expire through 2032.