LEASES

6 Months Ended

Jun. 30, 2021

Leases

LEASES

4. LEASES

As of June 30, 2021 and December 31, 2020, the Company had operating right of use (“ROU”) assets of $12.5 million and $12.7 million, respectively, and operating lease liabilities of $12.5 million and $12.7 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 17.05 years. The weighted average incremental borrowing rate is 4.35%.

The table below shows lease expense components for the three months ended June 30, 2021 and 2020.

	June 30, 2021		June 30, 2020
Operating lease expense	$	279,592	$	250,121
Short-term lease expense		—		—
Total lease expense	$	279,592	$	250,121

The table below shows lease expense components for the six months ended June 30, 2021 and 2020.

	June 30, 2021		June 30, 2020
Operating lease expense	$	581,129	$	484,080
Short-term lease expense		—		—
Total lease expense	$	581,129	$	484,080

Total rental expense was $279,592 and $250,121 for the three months ended June 30, 2021 and 2020, respectively, and $581,129 and $484,080 for the six months ended June 30, 2021 and 2020, respectively, and was included in net occupancy expense within the consolidated statements of income.

As of June 30, 2021, and December 31, 2020, we did not maintain any finance leases, and we determined that the number and dollar amount of equipment leases was immaterial. As of June 30, 2021, and December 31, 2020, we have no additional operating leases that have not yet commenced.