10. Leases

As of March 31, 2020, the Company leases real estate for seven branch offices under various lease agreements. All of our leases are classified as operating leases, and therefore, were previously not recognized on the Company’s Consolidated Statements of Financial Condition. With the adoption of Topic 842, operating lease agreements are required to be recognized on the Consolidated Statements of Financial Condition as a right-of-use (“ROU”) asset and a corresponding lease liability.

The calculated amount of the ROU assets and lease liabilities are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Company’s leases have maturities which range from 2020 to 2035, some of which include lessee options to extend the lease term. If the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. The weighted average remaining life of the lease terms for these leases was 13.3 years as of March 31, 2020. As most of our leases do not provide an implicit rate, the Company used its incremental borrowing rate, the rate of interest to borrow on a collateralized basis for a similar term, at the lease commencement date. The Company utilized a weighted average discount rate of 2.62% in determining the lease liability as of March 31, 2020.

For the three months ended March 31, 2020, total operating lease costs were $155 and is included in occupancy expense. Deferred rent liability was $204,000 at March 31, 2020 and $213,000 at December 31, 2019. The right-of-use asset, included in other assets, was $6.6 million and the corresponding lease liability, included in accrued expenses and other liabilities was $6.6 million as of March 31, 2020, respectively.

Future minimum payments for operating leases with initial or remaining terms of one year or more as of March 31, 2020 were as follows:


Years ending December 31:
2020	$	476
2021		637
2022		593
2023		570
2024		566
Thereafter		5,086
Total future minimum lease payments		7,928
Amounts representing interest		(1,290)
Present Value of Net Future Minimum Lease Payments	$	6,638