Effective January 1, 2019, the Company adopted ASU 2016-02, “Leases (Topic 842)”. Upon adoption, the Company elected practical expedients including existing leases retaining their classification as operating leases and combining lease and non-lease components. The Company also elected to not recognize right-of-use assets and lease liabilities arising from short-term leases. As of December 31, 2020, the Company leased six 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 7.30 years and 7.97 years as of December 31, 2020 and 2019, respectively.

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 in to. The weighted average discount rate for leases was 2.70% and 2.86% as of December 31, 2020 and 2019, respectively.

Total operating lease costs were $2.4 million and $2.2 million for the years ended December 31, 2020 and 2019, respectively. The ROU asset, included in property and equipment, and lease liability, included in other liabilities, were $18.8 million and $19.5 million as of December 31, 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 December 31, 2020 were as follows:


	Operating
(dollars in thousands)	Leases
2021	$	2,335
2022		1,587
2023		1,462
2024		1,501
2025		1,544
Thereafter		15,886
Total undiscounted lease payments		24,315
Discount effect of cash flows		4,783
Total lease liability	$	19,532