Leases

6 Months Ended

Jun. 30, 2020

The Company leases land and premises for its branch banking offices, administration facilities, and ATMs. The initial terms of these leases expire at various dates through 2025. Under the provisions of most of these leases, the Company has the option to extend the leases beyond their original terms at rental rates adjusted for changes reported in certain economic indices or as reflected by market conditions. Lease terms may include options to extend or terminate the lease when it is reasonably certain the Company will exercise that option. As of June 30, 2020, the Company had 12 operating leases and no financing leases.

The components of lease expense were as follows:


(in 000's)	June 30, 2020		June 30, 2019



Operating lease expense	$	380	$	378
Short-term lease expense	—		—
Variable lease expense	117		108
Sublease income	—		—
Total	$	497	$	486

Supplemental balance sheet information related to leases was as follows:


(in 000's)	June 30, 2020




Operating cash flows from operating leases	$	380

ROU assets obtained in exchange for new operating lease liabilities	—

Weighted-average remaining lease term in years for operating leases	6.02

Weighted-average discount rate for operating leases	5.15		%

Maturities of lease liabilities were as follows:


	Six Months Ended
(in 000's)	June 30, 2020
2021	$	708
2022	658
2023	667
2024	625
2025	406
Thereafter	624
Total undiscounted cash flows	3,688
Less: present value discount	(520)
Present value of net future minimum lease payments	$	3,168