Leases

3 Months Ended

Mar. 31, 2020

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 banking centers, ATM locations, and office space with terms extending through 2032. As of March 31, 2020, the Company reported $9.1 million of right-of-use asset and $9.2 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 March 31,
Lease Costs	2020		2019
Operating lease costs	$	620	$	533
Variable lease costs		171		111
Short-term lease costs		15		15
Sublease income		-		-
Net lease cost	$	806	$	659
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating lease cash flows – Fixed payments	$	611	$	513
Operating lease cash flows – Liability reduction		530		463
Right of use assets obtained during the period in exchange for operating lease liabilities		128		—
Weighted average lease term (in years)		6.51		8.33
Weighted average discount rate		3.05%		3.11%

At March 31, 2020, 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 $0.8 million and $0.7 million for the three months ended March 31, 2020 and 2019, respectively.

Rent commitments were as follows (dollars in thousands):

		Three Months Ended
		March 31, 2020
Remainder of 2020	$	1,830
2021		1,814
2022		1,411
2023		1,254
2024		1,022
Thereafter		2,876
Amounts representing interest		(1,057)
Present value of net future minimum lease payments	$	9,150