Effective January 1, 2019, the Company adopted ASU 2016-02, “Leases (Topic 842)”. As of September 30, 2020, we leased seven of our offices under various operating lease agreements. The lease agreements have maturity dates ranging from February 2022 to October 2029, some of which include options for multiple five-year extensions. The weighted average remaining life of the lease term for these leases was 7.46 years as of September 30, 2020.

The discount rate used in determining the lease liability for each individual lease was the FHLB fixed advance rate which corresponded with the remaining lease term as of January 1, 2019 for leases that existed at adoption and as of the lease commencement date for leases subsequently entered into. The weighted average discount rate for leases was 2.72% as of September 30, 2020.

The total operating lease costs were $616,000 and $533,000 for the three months ended September 30, 2020 and 2019, respectively, and $1.8 million and $1.6 million for the nine months ended September 30, 2020 and 2019, respectively. The right-of-use (ROU) asset, included in property and equipment, and lease liability, included in other liabilities, was $20.2 million and $21.0 million as of September 30, 2020, respectively, compared to $19.5 million and $20.1 million as of December 31, 2019, respectively. The ROU asset and lease liability are recognized at lease commencement by calculating the present value of lease payments over the lease term.

Maturities of lease liabilities as of September 30, 2020 were as follows:


	Operating
(dollars in thousands)	Leases
2020	$	599
2021		2,400
2022		1,655
2023		1,534
2024		1,573
Thereafter		18,446
Total undiscounted lease payments		26,207
Discount effect of cash flows		5,223
Total lease liability	$	20,984