11.

Leases

Effective

January 1, 2019,

the Corporation adopted ASU

2016

02,

Leases (Topic

842

). As of

June 30, 2020

, the Corporation leases real estate for

five

branch offices under various operating lease agreements. The lease agreements have maturity dates ranging from

August 2025

December 2056,

including all extension periods. The Corporation has assumed that there are currently

circumstances in which the leases would be terminated before expiration. The weighted average remaining life of the lease term for these leases was

12.70

years as of

June 30, 2020

compared to

13.40

years as of

June 30, 2019

The discount rate used in determining the lease liability for each individual lease was the FHLB fixed advance rate which corresponded with the remaining lease term as of

January 1, 2019

for leases that existed at adoption. This methodology will be continued for the commencement of any subsequent lease agreements. The weighted average discount rate for the leases was

3.50%

as of

June 30, 2020

compared to

3.48%

as of

June 30, 2019

The total operating lease costs were

$48,000

and

$96,000,

respectively, for the

three

and

six

months ended

June 30, 2020

and

$48,000

and

$97,000,

respectively, for the

three

and

six

months ended

June 30, 2019

. The right-of-use asset, included in premises and equipment, and lease liability, included in other liabilities, was

$1.4

million and

$1.6

million, respectively, as of

June 30, 2020

, and

$1.6

million and

$1.8

million, respectively, as of

June 30, 2019

Total estimated rental commitments for the operating leases were as follows as of

June 30, 2020

(Dollar amounts in thousands)
Year ending December 31:
2020 (excluding six months)	$	106
2021		217
2022		222
2023		222
2024		227
Thereafter		1,063
Total minimum lease payments		2,057
Discount effect of cash flows		(427	)
Present value of lease liabilities	$	1,630