On January 1, 2019, the Company adopted FASB issued ASU No. 2016-02, “Leases” (Topic 842), which establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability for all leases with terms longer than 12 months. The Company adopted the new lease guidance using the modified retrospective approach and elected the transition option issued under ASU 2018-11, Leases (Topic 842) Targeted Improvements, which allows entities to continue to apply the legacy guidance in ASC 840, Leases, to prior periods, including disclosure requirements. Accordingly, prior period financial results and disclosures have not been adjusted.

The Company maintains certain property and equipment under direct financing and operating leases. Upon adoption of the new lease guidance, on January 1, 2019, the Company recorded a ROU asset and corresponding lease liability of $7.9 million and $8.2 million, respectively, on the consolidated statement of condition. As of December 31, 2019, the Company's operating lease ROU asset and operating lease liability totaled $12.1 million and $12.4 million, respectively. A weighted average discount rate of 3.05% was used in the measurement of the ROU asset and lease liability as of December 31, 2019.

The Company's leases have remaining lease terms between five months to 17 years, with a weighted average lease term of 6.33 years, at December 31, 2019. The Company’s lease agreements may include options to extend or terminate the lease. The Company’s decision to exercise renewal options is based on an assessment of its current business needs and market factors at the time of the renewal.

Total operating lease costs were $2.8 million for the year ended December 31, 2019. The variable lease costs were $329,000 for the year ended December 31, 2019.

The following is a schedule of the Company's operating lease liabilities by contractual maturity as of December 31, 2019:

(In thousands)
2020	$	2,859
2021		2,408
2022		1,886
2023		1,597
2024		1,192
Thereafter		2,638
Total lease payments		12,580
Less: imputed interest		157
Total present value of lease payments	$	12,423

The following table shows the supplemental cash flow information related to the Company’s direct finance and operating leases for the year ended December 31, 2019:

(In thousands)
Right-of-use asset obtained in exchange for lease obligation	$	7,012
Operating cash flows from operating leases		2,623
Operating cash flows from direct finance leases		382
Financing cash flows from direct finance leases		748