Leases

3 Months Ended

Mar. 31, 2020

Leases [Abstract]

Leases

Note 4: Leases

As of March 31, 2020 and December 31, 2019, the Company had operating right of use (“ROU”) assets of $13.1 million and $13.2 million, respectively, and operating lease liabilities of $13.1 million and $13.2 million, respectively. The Company maintains operating leases on land, branch facilities, and parking. Most of the leases include one or more options to renew, with renewal terms extending up to 20 years. Leases with an initial term of 12 months or less are not recorded on the balance sheet and are recognized in lease expense.

The weighted average remaining lease term is 17.77 years. The weighted average incremental borrowing rate is 4.34%.

The table below shows lease expense components for the three months ended March 31, 2020.

Lease Expense Components
Operating lease expense	$	233,959
Short-term lease expense		—
Total lease expense	$	233,959

Total rental expense was $233,959 and $155,992 for the three months ended March 31, 2020 and 2019, respectively, and was included in net occupancy expense within the consolidated statements of income.

As of March 31, 2020 and December 31, 2019, we did not maintain any finance leases and we determined that the number and dollar amount of equipment leases was immaterial. As of March 31, 2020 and December 31, 2019, we have no additional operating leases that have not yet commenced.