The Company is obligated under operating leases for its branch loan offices and home office locations. The operating leases are recorded as operating lease right-of-use (“ROU”) assets and operating lease liabilities. The ROU asset is included in other assets and the corresponding liability is included in accounts payable and accrued expenses on the Company’s condensed consolidated statement of financial position.

ROU assets represent the Company’s right to use an underlying asset during the lease term and the operating lease liabilities represent the Company’s obligations for lease payments in accordance with the lease. Recognition of ROU assets and liabilities are recognized at the lease commitment based on the present value of the remaining lease payments using a discount rate that represents the Company’s incremental borrowing rate at the lease commitment date or adoption date. Operating lease expense, which is comprised of amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term and is recorded in occupancy expense in the condensed consolidated statement of income.

Remaining lease terms range from 1 to 10 years. The Company’s leases are not complex and do not contain residual value guarantees, variable lease payments, or significant assumptions or judgments made in applying the requirements of Topic 842. Operating leases with a term of 12 months or less are not recorded on the balance sheet and the related lease expense is recognized on a straight-line basis over the lease term. At September 30, 2019, the operating lease ROU assets and liabilities were $30.3 million and $30.6 million, respectively.

The table below summarizes our lease expense and other information related to the Company’s operating leases with respect to FASB ASC 842:

	Three Months Ended Sept. 30, 2019
Operating lease expense	$ 1,697,444
Other Information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 1,653,642

	Nine Months Ended Sept. 30, 2019
Operating lease expense	$ 4,975,191
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	4,843,874
Weighted-average remaining lease term – operating leases (in years)	6.80
Weighted-average discount rate – operating leases	5.78 %

Lease Maturity Schedule as of September 30, 2019:	Amount
Remainder of 2019	$ 1,691,811
2020	6,560,469
2021	5,867,403
2022	5,254,912
2023	4,461,878
2024 and beyond	13,159,595
Total	36,996,068
Less: Interest	(6,365,567)
Present Value of Lease Liability	$ 30,630,501

Lease maturity schedule as of December 31, 2018:	Amount
2019	$ 7,015,801
2020	5,930,343
2021	4,361,351
2022	2,836,961
2023	1,357,035
2024 and beyond	103,754
Total	$ 21,605,245