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 September 30, 2019, the Company had 13 operating leases and no financing leases.

The components of lease expense were as follows:



(in 000's)	September 30, 2019
Operating lease expense	$	575
Short-term lease expense	—
Variable lease expense	—
Sublease income	—
Total	$	575

Supplemental balance sheet information related to leases was as follows:



(in 000's)	September 30, 2019
Operating cash flows from operating leases	$	549
ROU assets obtained in exchange for new operating lease liabilities	3,610
Weighted-average remaining lease term in years for operating leases	6.43
Weighted-average discount rate for operating leases	5.15		%

Maturities of lease liabilities were as follows:



	Nine Months Ended
(in 000's)	September 30, 2019
2020	$	798
2021	720
2022	698
2023	666
2024	562
Thereafter	927
Total undiscounted cash flows	4,371
Less: present value discount	(657		)
Present value of net future minimum lease payments	$	3,714