7. RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES

The Company records as operating lease liabilities the present value of its required minimum lease payments plus any amounts probable of being owed under a residual value guarantee. Offsetting these operating lease liabilities, the Company records right-of-use assets for the underlying leased property.

At March 31, 2020, the Company was under 49 separate and distinct operating lease contracts to lease the land and/or buildings for 38 of its offices, with 15 such operating leases contracted with a related party of the Company. As of March 31, 2020, payments on 25 of the Company’s operating leases were considered variable because such payments were adjustable based on periodic changes in the Consumer Price Index.

Prior to the release of these financial statements, the Company had not executed an operating lease that had not commenced.

The following table presents information concerning the Company’s operating lease expense recorded as a noninterest expense within the category “Occupancy and equipment, net” for the three months ended March 31, 2020 and 2019:


	Three Months Ended
	March 31,
(in thousands)	2020		2019

Operating lease expense:
Related Party:
Variable lease expense	$	1,182	$	1,158
Fixed lease expense		10		23
Third Party:
Variable lease expense		180		224
Fixed lease expense		368		361
Short-term lease expense		13		15
Total operating lease expense	$	1,753	$	1,781

Other information concerning operating leases:
Cash paid for amounts included in the measurement of operating lease liabilities	$	1,838	$	1,803
Short-term lease payments not included in the measurement of lease liabilities		13		15

The following table presents the weighted average remaining term and weighted average discount rate for the Company’s non-short-term operating leases as of March 31, 2020 and December 31, 2019:


	March 31, 2020			December 31, 2019

Weighted average remaining term in years		7.91			8.02
Weighted average discount rate		3.44	%		3.46	%

The following table presents a maturity schedule of the Company’s operating lease liabilities based on undiscounted cash flows, and a reconciliation of those undiscounted cash flows to the operating lease liabilities recognized on the Company’s balance sheet as of March 31, 2020:


Year (in thousands)	Related Party		Third Party		Total

2020	$	3,445	$	1,893	$	5,338
2021		4,194		2,360		6,554
2022		3,332		1,955		5,287
2023		3,332		1,435		4,767
2024		3,205		1,008		4,213
Thereafter		12,718		1,905		14,623
Total undiscounted cash flows	$	30,226	$	10,556	$	40,782
Discount applied to cash flows		(4,324)		(921)		(5,245)
Total discounted cash flows reported as operating lease liabilities	$	25,902	$	9,635	$	35,537