Leases
 12 Months Ended
Dec. 31, 2020
Leases [Abstract]  
Leases Leases:
On January 1, 2019, the Company adopted ASU 2016-02 "Leases" (Topic 842) and all subsequent updates that modified Topic 842. For the Company, the adoption primarily affected the accounting treatment for operating lease agreements in which the Company is the lessee. Substantially all the leases for which the Company is the lessee are comprised of real estate for branches, mortgage, and operations locations.
As of December 31, 2020, the Company was the lessee in 58 operating leases and 1 finance lease of certain branch, mortgage and operations locations, of which 49 operating leases and 1 finance lease currently have remaining terms varying from greater than one year to 35 years. Leases with initial terms of less than one year are not recorded on the consolidated balance sheets. The Company also does not include equipment leases and leases in which the Company is the lessor on the consolidated balance sheets as these are insignificant.
Many leases include one or more options to renew, with renewal terms that can extend the lease up to an additional 20 years or more. Certain lease agreements contain provisions to periodically adjust rental payments for inflation. Renewal options that management is reasonably certain to renew and fixed rent escalations are included in the right-of-use ("ROU") asset and lease liability.
During the year ended December 31, 2020, the Company recorded $23,972 in ROU assets and liabilities for operating leases assumed in the Franklin and FNB transactions. Additionally, the Company also assumed a finance lease in the Franklin transaction amounting to $1,630 included in premises and equipment and borrowings on the consolidated balance sheets.
During the year ended December 31, 2020, the Company entered into a lease for a new corporate headquarters building located in downtown Nashville. The building is currently under construction and anticipated to be completed in late 2022.
Upon commencement, the Company estimates recording a ROU asset and operating lease liability of approximately $29,000 and $30,000, respectively, in connection with this lease.

Information related to the Company's leases is presented below:
December 31,
Classification20202019
Right-of-use assets:
Operating leasesOperating lease right-of-use assets$49,537$32,539
Finance leasesPremises and equipment, net1,588— 
Total right-of-use assets$51,125$32,539
Lease liabilities:
Operating leasesOperating lease liabilities$55,187$35,525
Finance leasesBorrowings 1,598—
Total lease liabilities $56,785$35,525
Weighted average remaining lease term (in years) -
operating
12.214.1
Weighted average remaining lease term (in years) - finance14.40.0
Weighted average discount rate - operating2.65 %3.44 %
Weighted average discount rate - finance1.76 %— %

The components of total lease expense included in the consolidated statements of income were as follows:
Year Ended
December 31,
Classification2020 2019 
Operating lease costs
Amortization of right-of-use assetOccupancy and equipment $6,228 $5,057 
Short-term lease costOccupancy and equipment456 365 
Variable lease costOccupancy and equipment602 682 
Finance lease costs
Interest on lease liabilitiesInterest expense on borrowings11 — 
Amortization of right-of-use assetOccupancy and equipment43 — 
Lease impairment Merger costs2,142 — 
Total lease cost$9,482 $6,104 

The Company does not separate lease and non-lease components and instead elects to account for them as a single lease component. Variable lease cost primarily represents variable payments such as common area maintenance, utilities, and property taxes.
Prior to the adoption of ASU 2016-02 on January 1, 2019, lease expense and amortization of a favorable lease intangible included in occupancy and equipment expense during the year ended December 31, 2018 amounted to $5,019 and $90, respectively.
A maturity analysis of operating and finance lease liabilities and a reconciliation of undiscounted cash flows to the total lease liability as of December 31, 2020 is as follows:
OperatingFinance
Leases Leases
Lease payments due:
December 31, 2021$8,042 $115 
December 31, 20227,693 116 
December 31, 20236,302 118 
December 31, 20245,625 120 
December 31, 20254,972 121 
Thereafter34,053 1,225 
     Total undiscounted future minimum lease payments66,687 1,815 
Less: imputed interest(11,500)(217)
     Net lease liability$55,187 $1,598 
Leases Leases:
On January 1, 2019, the Company adopted ASU 2016-02 "Leases" (Topic 842) and all subsequent updates that modified Topic 842. For the Company, the adoption primarily affected the accounting treatment for operating lease agreements in which the Company is the lessee. Substantially all the leases for which the Company is the lessee are comprised of real estate for branches, mortgage, and operations locations.
As of December 31, 2020, the Company was the lessee in 58 operating leases and 1 finance lease of certain branch, mortgage and operations locations, of which 49 operating leases and 1 finance lease currently have remaining terms varying from greater than one year to 35 years. Leases with initial terms of less than one year are not recorded on the consolidated balance sheets. The Company also does not include equipment leases and leases in which the Company is the lessor on the consolidated balance sheets as these are insignificant.
Many leases include one or more options to renew, with renewal terms that can extend the lease up to an additional 20 years or more. Certain lease agreements contain provisions to periodically adjust rental payments for inflation. Renewal options that management is reasonably certain to renew and fixed rent escalations are included in the right-of-use ("ROU") asset and lease liability.
During the year ended December 31, 2020, the Company recorded $23,972 in ROU assets and liabilities for operating leases assumed in the Franklin and FNB transactions. Additionally, the Company also assumed a finance lease in the Franklin transaction amounting to $1,630 included in premises and equipment and borrowings on the consolidated balance sheets.
During the year ended December 31, 2020, the Company entered into a lease for a new corporate headquarters building located in downtown Nashville. The building is currently under construction and anticipated to be completed in late 2022.
Upon commencement, the Company estimates recording a ROU asset and operating lease liability of approximately $29,000 and $30,000, respectively, in connection with this lease.

Information related to the Company's leases is presented below:
December 31,
Classification20202019
Right-of-use assets:
Operating leasesOperating lease right-of-use assets$49,537$32,539
Finance leasesPremises and equipment, net1,588— 
Total right-of-use assets$51,125$32,539
Lease liabilities:
Operating leasesOperating lease liabilities$55,187$35,525
Finance leasesBorrowings 1,598—
Total lease liabilities $56,785$35,525
Weighted average remaining lease term (in years) -
operating
12.214.1
Weighted average remaining lease term (in years) - finance14.40.0
Weighted average discount rate - operating2.65 %3.44 %
Weighted average discount rate - finance1.76 %— %

The components of total lease expense included in the consolidated statements of income were as follows:
Year Ended
December 31,
Classification2020 2019 
Operating lease costs
Amortization of right-of-use assetOccupancy and equipment $6,228 $5,057 
Short-term lease costOccupancy and equipment456 365 
Variable lease costOccupancy and equipment602 682 
Finance lease costs
Interest on lease liabilitiesInterest expense on borrowings11 — 
Amortization of right-of-use assetOccupancy and equipment43 — 
Lease impairment Merger costs2,142 — 
Total lease cost$9,482 $6,104 

The Company does not separate lease and non-lease components and instead elects to account for them as a single lease component. Variable lease cost primarily represents variable payments such as common area maintenance, utilities, and property taxes.
Prior to the adoption of ASU 2016-02 on January 1, 2019, lease expense and amortization of a favorable lease intangible included in occupancy and equipment expense during the year ended December 31, 2018 amounted to $5,019 and $90, respectively.
A maturity analysis of operating and finance lease liabilities and a reconciliation of undiscounted cash flows to the total lease liability as of December 31, 2020 is as follows:
OperatingFinance
Leases Leases
Lease payments due:
December 31, 2021$8,042 $115 
December 31, 20227,693 116 
December 31, 20236,302 118 
December 31, 20245,625 120 
December 31, 20254,972 121 
Thereafter34,053 1,225 
     Total undiscounted future minimum lease payments66,687 1,815 
Less: imputed interest(11,500)(217)
     Net lease liability$55,187 $1,598