9. Leases

As of December 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 2021 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 12.7 years as of December 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 2.61% in determining the lease liability as of December 31, 2020.

For the year ended December 31, 2020, total operating lease costs were $588 and were included in occupancy and other expense. Deferred rent liability was $176 at December 31, 2020 and $213 at December 31, 2019. The right-of-use asset, included in other assets, was $6,289 and the corresponding lease liability, included in accrued expenses and other liabilities was $6,289 as of December 31, 2020.

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


Years ending December 31:
2021	$	637
2022		593
2023		570
2024		566
2025		579
Thereafter		4,507
Total future minimum lease payments		7,452
Amounts representing interest		(1,163)
Present Value of Net Future Minimum Lease Payments	$	6,289