Leases

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, 2019, the Company had 13 operating leases and no financing leases.

The components of lease expense were as follows:



(in 000's)	June 30, 2019
Operating lease expense	378
Short-term lease expense	—
Variable lease expense	—
Sublease income	—
Total	$	378

Supplemental balance sheet information related to leases was as follows:



(in 000's)	June 30, 2019
Operating cash flows from operating leases	$	354
ROU assets obtained in exchange for new operating lease liabilities	$	3,836
Weighted-average remaining lease term in years for operating leases	6.59
Weighted-average discount rate for operating leases	5.09		%

Maturities of lease liabilities were as follows:



	Six Months Ended
(in 000's)	June 30, 2019
2020	$	810
2021	764
2022	715
2023	690
2024	638
Thereafter	1,030
Total undiscounted cash flows	4,647
Less: present value discount	(709		)
Present value of net future minimum lease payments	$	3,938