Leases

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Leases

Note 4: Leases

As of September 30, 2020 and December 31, 2019, the Company had operating right of use (“ROU”) assets of $12.9 million and $13.2 million, respectively, and operating lease liabilities of $12.9 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 17.31 years. The weighted average incremental borrowing rate is 4.35%.

The table below shows lease expense components for the three months ended September 30, 2020.

Lease Expense Components
Operating lease expense	$	243,298
Short-term lease expense		—
Total lease expense	$	243,298

The table below shows lease expense components for the nine months ended September 30, 2020.

Lease Expense Components
Operating lease expense	$	727,379
Short-term lease expense		—
Total lease expense	$	727,379

Total rental expense was $243,298 and $160,919 for the three months ended September 30, 2020 and 2019, respectively, and $727,379 and $478,778 for the nine months ended September 30, 2020 and 2019, respectively, and was included in net occupancy expense within the consolidated statements of income.

As of September 30, 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 September 30, 2020 and December 31, 2019, we have no additional operating leases that have not yet commenced.