The Company enters into leases in the normal course of business primarily for its banking facilities and branches. The Company’s operating leases have varying maturity dates through year end 2042, some of which include renewal or termination options to extend the lease. In addition, the Company leases or subleases real estate to third parties. The Company includes lease extension and termination options in the lease term if, after considering relevant economic factors, it is reasonably certain the Company will exercise the option. In addition, the Company has elected to account for any non-lease components in its real estate leases as part of the associated lease component. The Company has also elected not to recognize leases with original lease terms of 12 months or less (short-term leases) on the Company’s balance sheet.

Leases are classified at the lease commencement date. Lease expense for operating leases and short-term leases is recognized on a straight-line basis over the lease term. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term.

The following table summarizes the amount and balance sheet line item for our operating lease right-of-use asset and liability as of March 31, 2021:

	Balance Sheet Line Item	March 31, 2021
Operating lease right-of-use asset	Accrued interest receivable and other assets	$	9,672
Operating lease liability	Accrued interest payable and other liabilities		12,273

The Company uses its incremental borrowing rate at lease commencement to calculate the present value of lease payments when the rate implicit in a lease is not known. The Company’s incremental borrowing rate is based on the FHLB regular advance rate, adjusted for the lease term and other factors. At March 31, 2021, the weighted-average discount rate of operating leases was 0.76% and the weighted average remaining life of operating leases was 6.1 years.

The future minimum lease payments for operating leases, subsequent to March 31, 2021, as recorded on the balance sheet, are summarized as follows:

	Operating Lease Commitments
2021	$	2,958
2022		3,024
2023		1,731
2024		1,490
2025		777
Thereafter		2,865
Total undiscounted lease payments		12,845
Less: imputed interest		(572	)
Net lease liabilities	$	12,273

The Company’s rental expenses for the three months ended March 31, 2021 and 2020 were $1.4 million and $1.7 million, respectively. For the three months ended March 31, 2021 and 2020, the Company received $154,000 and $182,000, respectively, in sublease income. The total amount of minimum rentals to be received in the future on these subleases is approximately $812,000, and the leases have contractual lives extending through 2025. In addition to the above required lease payments, the Company has contractual obligations related primarily to information technology contracts and other maintenance contracts.