(

)

Leases

January 1, 2019,

the Company adopted

ASU

2016

02,

Leases (Topic

842

)

and a

$4.5

million right-of-use asset and an offsetting lease payment obligation liability were recorded on the consolidated balance sheet in other assets and other liabilities, respectively.

Operating lease right-of-use assets represent the Company’s right to use an underlying asset during the lease term and operating lease liabilities represent its obligation to make lease payments arising from the lease. Right-of-use assets and operating lease liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents the Company’s incremental borrowing rate at the lease commencement date. Because the Company only has operating leases and the right-of-use asset is offset by a lease payment obligation liability, the lease payments are the only amount that is recorded in occupancy expense in the consolidated statements of comprehensive income.

The Company’s leases relate to office space and bank branches with remaining lease terms between

three

and

seven

years. Certain leases contain extension options which typically range from

three

ten

years. Because these extension options are

not

considered reasonably certain of exercise, they are

not

included in the lease term. As of

March 31, 2020,

right-of-use assets and operating lease liabilities were

$3.8

million. The operating lease cost for both the

three

month periods ended

March 31, 2020

and

March 31, 2019

was

$0.2

million.

The table below summarizes other information related to the Company’s operating leases:

(Dollars in thousands)	Three Months Ended March 31, 2020			Three Months Ended March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	222			225
Weighted-average remaining lease term – operating leases, in years		4.5			5.4
Weighted-average discount rate – operating leases		2.19	%		2.60	%

The table below summarizes the maturity of remaining lease liabilities at

March 31, 2020:

(Dollars in thousands)	March 31, 2020
2020	$	665
2021		897
2022		932
2023		807
2024		729
2025 and thereafter		15
Total lease payments		4,045
Less: Interest		(199	)
Present value of lease liabilities	$	3,846