NOTE 7 - LEASES

The Company has operating leases for retail bank and home lending branches, and certain equipment. The ROU assets obtained in exchange for operating lease obligations totaled $5.1 million at January 1, 2019, the adoption date for ASU No. 2016-02. During 2019, the Company obtained additional ROU assets of $1.0 million related to operating lease obligations. The Company’s leases have remaining lease terms of four months to eight years, some of which include options to extend the leases for up to five years.

The components of lease cost (included in occupancy expense on the Consolidated Statements of Income) are as follows for the year ended December 31, 2019:


	Year Ended
	December 31, 2019
Lease cost:
Operating lease cost	$	1,285
Short-term lease cost		166
Total lease cost	$	1,451

The following table provides supplemental information related to operating leases at or for the year ended December 31, 2019:


	At or For the Year Ended
	December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,331
Weighted average remaining lease term- operating leases		5.3	years
Weighted average discount rate- operating leases		3.0	%

The Company’s leases typically do not contain a discount rate implicit in the lease contract. As an alternative, the discount rate used in determining the lease liability for each individual lease was the FHLB of Des Moines’ fixed advance rate which corresponded with the remaining lease term as of December 31, 2018, for leases that existed at adoption and at the lease commencement date for leases entered into subsequent to adoption. Prior to the adoption of ASU 2016-02, rent expense for the year ending December 31, 2018 was $1.2 million.

Maturities of operating lease liabilities at December 31, 2019 for future periods are as follows:



2020	$	1,298
2021		1,169
2022		1,065
2023		674
2024		614
Thereafter		884
Total lease payments		5,704
Less imputed interest		(490)
Total	$	5,214