OPERATING LEASES

6 Months Ended

Jun. 30, 2020

OPERATING LEASES

OPERATING LEASES

NOTE 15: OPERATING LEASES

The Company’s lease liabilities represent the Company’s liability to make lease payments under operating leases of office space, stand-alone buildings and land leases, on a discounted basis. At June 30, 2020, the Company’s lease liabilities totaled $17.0 million. The weighted-average discount rate for the six months ended June 30, 2020 was 2.70%.

Right-of-use assets represent the Company’s right to use, or control the use of, leased assets for their lease term and, at June 30, 2020, totaled $14.1 million. During the six months ended June 30, 2020, the right-of-use asset increased $878,000 in exchange for new operating lease liabilities related to a new lease commenced in that period. In addition, two leases were modified during the six months ended June 30, 2020 and $1.0 million was added to both the right-of-use asset and lease liability. The weighted-average remaining lease term for operating leases outstanding at June 30, 2020 was 11.3 years. Cash paid for amounts included in the measurement of operating lease liabilities for the six months ended June 30, 2020 totaled $1.1 million.  

Lease costs for the period shown below were as follows:

	Six Months Ended June 30,
(Dollars in thousands)	2020		2019
Operating lease cost	$	993	$	921
Short-term lease cost		28		42
Sublease income		(63)		(92)
Total lease cost	$	958	$	871

A maturity analysis of operating lease liabilities as of the date shown below was as follows:

(Dollars in thousands)	June 30, 2020
2020	$	765
2021		2,106
2022		2,226
2023		2,227
2024		1,929
Thereafter		11,163
Total undiscounted lease liability		20,416
Less:
Discount on cash flows		(3,201)
Lease signed, but not yet commenced		(1,098)
Lease terminated after quarter-end		866
Total operating lease liability	$	16,983

The Company terminated a lease in July 2020 related to a branch and the related future liability is not reflected in the maturity information in the table above.