Lessee, Operating Leases

12 Months Ended

Dec. 31, 2019

Notes

Lessee, Operating Leases

Note 9. Leases    Certain subsidiaries of the Company are obligated under operating lease agreements for office space and office equipment.  

The Company had right-of-use assets amounting to $6,672,000 and corresponding lease liabilities of $7,243,000 related to its operating leases, which are included in other assets and other liabilities,  

respectively, in the Consolidated Balance Sheet on December 31, 2019. The weighted average discount rate used to measure lease liabilities was 6.70%. The leases have remaining lease terms of 1 to 8 years, some of which include options to extend the leases for up to 5 years. The weighted average remaining lease term is 5 years. Variable lease costs consist primarily of the Company’s proportionate share of real estate taxes and operating expenses related to leased premises. The following table summarizes information pertaining to our lease obligations for the year ended as indicated (in thousands):

		2019
Operating lease costs	$	2,277
Short-term lease costs		194
Variable lease costs		456
Total lease costs	$	2,927
Other information:
Operating cash flows from operating leases	$	(2,392)
Right-of-use assets obtained for operating leases	$	1,688

Total rental expense for the year ended December 31, 2018 for operating leases was $2,300,000.

The Company assumed $435,000 of right-of-use assets in connection with acquisitions in 2019, as discussed in Note 7. 

Maturities of operating lease liabilities at December 31, 2019 were as follows:

Due in the next year	$	2,381
Due in two years		1,750
Due in three years		1,715
Due in four years		889
Due in five years		619
Due in remaining years		1,079
Total payments due		8,433
Present value discount		(1,190)
Operating lease liability	$	7,243