Operating Leases

On January 1, 2019, the Company adopted ASU 2016-02, Leases (Topic 842), and all subsequent ASUs that are related to Topic 842. The Company, as lessee, leases certain assets for use in its operations. Leased assets primarily include retail branches and operation centers. For each lease with an original term greater than 12 months, the Company records a lease liability and a corresponding right of use ("ROU") asset. At December 31, 2019, the Company's ROU assets included in other assets and lease liabilities included in other liabilities were $4.6 million and $3.7 million, respectively.

Total costs incurred by the Company, as a lessee, were $505,000 for the year ended December 31, 2019, and principally related to contractual lease payments on operating leases. The Company's leases do not impose significant covenants or other restrictions on the Company.

The Bank has lease agreements with unaffiliated parties for six locations. The lease terms for four full-service branches, one loan production office, and one support center are not individually material. Lease expirations range from one to twenty years, with additional renewal options on certain leases ranging from two to ten years.

The following table presents amounts relevant to the Company's assets leased for use in its operations for the year ended December 31, 2019:



	(In Thousands)
Operating cash flows from operating leases	505
Right of use assets obtained in exchange for new operating lease liabilities	—

The following table presents the weighted-average remaining lease terms and discount rates of the Company's assets leased for use in its operations at December 31, 2019:



Weighted-average remaining lease term of operating leases (in years)	13.8
Weighted-average discount rate of operating leases	3.5%

All lease agreements require the Bank to pay its pro-rata share of building operating expenses. The minimum annual lease payments under non-cancelable operating leases with initial or remaining terms of one year or more through the initial lease term are as follows:



	December 31,
Twelve-month period ending:	(In thousands)
2020	$	385
2021	376
2022	304
2023	309
2024	324
Thereafter	2,947
Total minimum payments required	$	4,645
Less imputed interest	989
Present value of lease liabilities	$	3,656