Leases

6 Months Ended

Jun. 30, 2019

Leases

Leases

Note 15: Leases

The Company has operating leases consisting primarily of equipment leases and real estate leases. The Company leases real estate property for bank branches, ATM locations, and office space with terms extending through 2032. As of June 30, 2019, the Company reported $10.4 million of right-of-use asset and $10.5 million lease liability in its unaudited Consolidated Balance Sheets.

The following tables represents lease costs and other lease information for the periods presented (dollars in thousands):

	Three Months Ended		Six Months Ended
Lease Costs	June 30, 2019		June 30, 2019
Operating lease costs	$	584	$	1,117
Variable lease costs		119		230
Short-term lease costs		8		23
Sublease income		-		-
Net lease cost	$	711	$	1,370
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating lease cash flows – Fixed payments	$	570	$	1,083
Operating lease cash flows – Liability reduction		490		953
Right of use assets obtained during the period in exchange for operating lease liabilities		764		764
Weighted average lease term (in years)		6.81		6.81
Weighted average discount rate		3.04%		3.04%

At June 30, 2019, the Company was obligated under noncancelable operating leases for office space and other commitments. Rent expense under operating leases, included in net occupancy and equipment expense, was $0.7 million for the three months ended June 30, 2019 and 2018. Rent expense under operating leases, included in net occupancy and equipment expense, was $1.4 million for the six months ended June 30, 2019 and 2018.

Rent commitments were as follows (dollars in thousands):

	June 30, 2019
2019	$	1,150
2020		2,342
2021		1,730
2022		1,375
2023		1,217
Thereafter		3,896
Amounts representing interest		(1,179)
Present value of net future minimum lease payments	$	10,531