(15) Leases

The Company leases most of its premises and some vehicles and equipment under operating leases expiring on various dates through 2029. The majority of lease agreements relate to real estate and generally provide that the Company pay taxes, insurance, maintenance and certain other operating expenses applicable to the leased premises. Variable lease components and nonlease components are not included in the Company’s computation of the right-of-use (ROU) asset or lease liability. The Company also does not include short-term leases in the computation of the ROU asset or lease liability. Short-term leases are leases with a term at commencement of 12 months or less. Short-term lease expense is recorded on a straight-line basis over the term of the lease. Lease agreements do not contain any residual value guarantees or restrictive covenants.

Certain leases have renewal options at the expiration of the lease terms. Generally, option periods are not included in the computation of the lease term, ROU asset or lease liability because the Company is not reasonably certain to exercise renewal options at the expiration of the lease terms. The Company has elected to use the package of practical expedients to: a) not reassess whether any expired or existing contracts are or contain leases, b) not reassess the lease classification for any expired or existing leases, and c) not reassess initial direct costs for any existing leases. The Company has also chosen the option to not restate comparative periods prior to the adoption of the new lease accounting standard.

Because the discount rates implicit in our leases are not known, discount rates have been estimated using the rates for fixed-rate, amortizing advances from the Federal Home Loan Bank (FHLB) for the approximate terms of the leases. FHLB advances are collateralized by a blanket pledge of the Bank’s assets that are not otherwise pledged.

The table below presents lease costs and other information for the periods indicated:


	Three Months Ended
	March 31,
(Dollars in thousands)	2020		2019
Lease Costs:
Operating lease costs	$	815	$	783
Short-term lease costs		6		6
Variable lease costs		41		25
Total lease costs	$	862	$	814

Cash paid for amounts included in measurement of lease liabilities		802		773
ROU assets obtained in exchange for new operating lease liabilities		1,768		12,995

At March 31, 2020, future minimum rental commitments under noncancellable operating leases are as follows:


(Dollars in thousands)
2020	$	2,368
2021		2,631
2022		2,373
2023		2,087
2024		1,800
Thereafter		3,112
Total		14,371
Less present value discount		1,130
Present value of leases	$	13,241

The table below presents other lease related information:


	March 31,			March 31,
	2020			2019
Weighted-average remaining lease term (years)		5.79			6.51
Weighted-average discount rate		2.75	%		2.91	%