Leases Leases (Notes)

9 Months Ended

Sep. 30, 2019

Leases of Lessee Disclosure [Text Block]

Leases

Effective January 1, 2019, the Company adopted ASU 2016-02, Leases (Topic 842) and all subsequent ASUs that modified Topic 842. The Company leases real estate for its main office, nine branch offices and office space for operations departments under various operating lease agreements. The lease agreements have maturity dates ranging from May 2021 to February 2033, some of which include options to renew at the Company's discretion. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the measurement of the right-of-use asset and lease liability. The weighted average remaining life of the term of these leases was 7.9 years as of September 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 and as of the lease commencement date for leases entered into subsequent to January 1, 2019. The weighted average discount rate used in the measurement of the operating lease liability was 3.16% as of September 30, 2019.

The total operating lease costs were $418 and $1,212 for the three and nine months ended September 30, 2019, respectively. The right-of-use asset and lease liability were $9,216 and $9,449 as of September 30, 2019, respectively.

Total estimated rental commitments for the operating leases were as follows as of September 30, 2019.



2019	$	421
2020	1,681
2021	1,627
2022	1,583
2023	1,565
Thereafter	3,882
Total lease payments	10,759
Less: interest	(1,310		)
Present value of lease liability	$	9,449