Leases

9 Months Ended

Sep. 30, 2020

We have operating leases for branch locations, a loan production office, our corporate office and certain equipment. The lease term for our leases begins on the date we become legally obligated for the rent payments or we take possession of the building, whichever is earlier. Generally, our real estate leases have initial terms of three to 10 years and typically include one renewal option. Our leases have remaining lease terms of 1 year to 10 years. The operating leases generally contain renewal options and require us to pay property taxes and operating expenses for the properties.

The following table represents the lease right-of-use assets and lease liabilities recorded on the condensed consolidated balance sheet at September 30, 2020 and December 31, 2019 (in thousands):


	September 30, 2020		December 31, 2019
Operating lease right-of-use assets	$	6,945	$	7,641
Operating lease liabilities	$	7,348	$	8,010

The following table represents the components of lease expense (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Operating lease expense
Office leases	$	268	$	306	$	882	$	916
Equipment leases	5		5		15		15
Sublease income	(3)		(3)		(9)		(9)
Net lease expense	$	270	$	308	$	888	$	922

The following table represents the maturity of lease liabilities:


	September 30, 2020
	Office leases		Equipment leases
Operating Lease Commitments
Remainder of 2020	$	257	$	5
2021	1,042		20
2022	1,017		9
2023	989		—
2024	968		—
Thereafter	3,897		—
Total lease payments	8,170		34
Less: Present value discount	856		—
Present value of lease liabilities	$	7,314	$	34

Lease term and discount rate by lease type consist of the following:


	September 30, 2020
Weighted-average remaining lease term (in years):
Office leases	8.11
Equipment leases	1.67
Weighted-average discount rate (annualized):
Office leases	2.65	%
Equipment leases	1.62	%

Supplemental cash flow information related to leases was as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Cash paid for amounts included in the measurement of lease liabilities for operating leases:
Operating cash flows
Office leases	$	257	$	290	$	839	$	808
Equipment leases	$	5	$	5	$	15	$	15