7. Leases

3 Months Ended

Mar. 31, 2019

Leases [Abstract]

7. Leases

As of March 31, 2019 the Company had operating ROU assets of $4.2 million and operating lease liabilities of $4.2 million. The Company maintains operating leases on land and buildings for some of the Bank’s branch facilities and Loan Production Offices. Most leases include one option to renew, with renewal terms extending up to 15 years. The exercise of renewal options is based on the judgment of management as to whether or not the renewal option is reasonably certain to be exercised. Factors in determining whether an option is reasonably certain of exercise include, but are not limited to, the value of leasehold improvements, the value of renewal rate compared to market rates, and the presence of factors that would cause a significant economic penalty to the Company if the option is not exercised. As allowed by the standard, leases with a term of 12 months or less are not recorded on the balance sheet and instead are recognized in lease expense on a straight-line basis over the lease term.

The following table presents lease cost and other lease information as of March 31, 2019. 

(Dollars in thousands)
	March 31, 2019
Operating lease cost:
Operating lease cost	$	4,392
Amortization of right-of-use assets		(199	)
Interest on lease liability		-
Variable lease cost		-
Total operating lease cost	$	4,193
Other information:
Cash paid for amounts included in the measurement of lease liabilities		214
Operating cash flows from operating leases		-
Right-of-use assets obtained in exchange for new finance operating liabilities		-
Weighted-average remaining lease term - operating leases	4.42 years
Weighted-average discount rate - operating leases		2.90	%

 The following table presents lease maturities as of March 31, 2019.

(Dollars in thousands)
Maturity Analysis of Operating Lease Liabilities:	March 31, 2019
2020	$	865
2021		804
2022		728
2023		473
2024		370
Thereafter		1,539
Total	$	4,779
Less: Imputed Interest		(586	)
Operating Lease Liability	$	4,193