Leases

6 Months Ended

Jun. 30, 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 June 30, 2020, the Company reported $8.5 million of right-of-use asset and $8.6 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 June 30,				Six Months Ended June 30,
Lease Costs	2020		2019			2020	2019
Operating lease costs	$	635	$	584	$	1,255	$	1,117
Variable lease costs		131		119		302		230
Short-term lease costs		15		8		30		23
Sublease income		-		-		-		-
Net lease cost	$	781	$	711	$	1,587	$	1,370
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating lease cash flows – Fixed payments	$	612	$	570	$	1,223	$	1,083
Operating lease cash flows – Liability reduction		534		490		1,064		953
Right of use assets obtained during the period in exchange for operating lease liabilities		—		764		128		764
Weighted average lease term (in years)		6.44		6.81		6.44		6.81
Weighted average discount rate		3.06%		3.04%		3.06%		3.04%

At June 30, 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 for the three months ended June 30, 2020 and 2019, respectively and $1.6 million and $1.4 million for the six months ended June 30, 2020 and 2019, respectively.

Rent commitments were as follows (dollars in thousands):

		Six Months Ended
		June 30, 2020
Remainder of 2020	$	1,218
2021		1,814
2022		1,411
2023		1,254
2024		1,022
Thereafter		2,876
Amounts representing interest		(994)
Present value of net future minimum lease payments	$	8,601