The Company’s operating leases are real estate leases which are comprised of its headquarters and office facilities from nonaffiliated parties with remaining lease terms ranging from four months to nine years as of March 31, 2021. Certain lease arrangements contain extension options which are typically around five years. As these extension options are not generally considered reasonably certain of exercise, they are not included in the lease term.

At March 31, 2021 and December 31, 2020, operating right-of-use (“ROU”) assets were $6.4 million $6.8 million, respectively, and related liabilities were $8.0 million and $8.4 million, respectively. Short-term operating leases, which are defined as leases with term of twelve months or less, were not recognized as ROU assets with related lease liabilities as permitted under ASU No. 2016-02. The lease payments on short-term operating leases are immaterial. The Company did not have any finance leases at March 31, 2021 and December 31, 2020.

Operating lease ROU assets represent the Company’s right to use the underlying asset during the lease term, and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at the lease commencement date based on the present value of the remaining lease payments using the Company’s incremental borrowing rate at the lease commencement date. Operating lease expense, which is comprised of amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term and is recorded in occupancy and equipment expense in the consolidated statements of income. The Company’s occupancy and equipment expense also includes variable lease costs which is comprised of the Company's share of actual costs for utilities, common area maintenance, property taxes, and insurance that are not included in lease liabilities and are expensed as incurred. Variable lease costs can also include rent escalations based on changes to indices, such as the Consumer Price Index, where the Company estimates future rent increases and records the actual difference to variable costs.

The table below summarized the Company’s total lease cost for the associated period:

	Three Months Ended March 31,
(Dollars in thousands)	2021		2020
Operating lease cost	$	420	$	444
Variable lease cost		218		184
Total lease cost	$	638	$	628

The table below summarizes supplemental information related to the Company’s operating leases, as of the associated period:

(Dollars in thousands)	March 31, 2021			December 31, 2020
Operating right-of-use assets	$	6,443		$	6,786
Operating lease liabilities		8,016			8,429

Weighted average remaining lease term - operating leases	4.8 years			5.0 years
Weighted average discount rate - operating leases		2.99	%		2.99	%

	Three Months Ended March 31,
(Dollars in thousands)	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	505	$	500

Rent expense was $638,000 and $628,000 for the three months ended March 31, 2021 and 2020, respectively.

The table below summarizes the remaining contractually obligated lease payments and a reconciliation to the lease liability reported on the consolidated balance sheet as of March 31, 2021:

(Dollars in thousands)	March 31, 2021
2021 remaining	$	1,536
2022		2,032
2023		1,811
2024		1,700
2025		676
Thereafter		956
Total lease payments		8,711
Discount to present value		(695	)
Total lease liability	$	8,016