Effective January 1, 2019, the Company adopted ASU 2016-02, Leases (Topic 842). As of September 30, 2020, substantially all the Company's leases are operating leases for real estate property for bank branches, ATM locations, and office space.

These leases are generally for periods of 1 to 25 years with various renewal options. The Company elected the optional transition method permitted by Topic 842. Under this method, the Company recognizes and measures leases that exist at the application date and prior comparative periods are not adjusted. In addition, the Company elected the package of practical expedients:

The Company has also elected the practical expedient, which may be elected separately or in conjunction with the package noted above, to use hindsight in determining the lease term and in assessing the right-of-use assets. This expedient must be applied consistently to all leases. Lastly, the Company has elected to use the practical expedient to include both lease and non-lease components as a single component and account for it as a lease. In addition, The Company has elected to not include short-term leases (i.e. Leases with terms of twelve months or less) or equipment leases (primarily copiers) deemed immaterial, on the consolidated balance sheets.

For leases in effect at January 1, 2019 and for leases commencing thereafter, the Company recognizes a lease liability and a right-of-use asset, based on the present value of lease payments over the lease term. The discount rate used in determining present value was the Company's incremental borrowing rate which is the FHLB fixed advance rate based on the remaining lease term as of January 1, 2019, or the commencement date for leases subsequently entered into. The following table contains supplemental balance sheet information related to leases (dollars in thousands):

	September 30, 2020			September 30, 2019			December 31, 2019
Operating lease right-of-use assets	$	16,703		$	12,544		$	17,006
Operating lease liabilities		16,817			12,557			17,007
Weighted-average remaining lease term (in years)		6.5			5.3		7.3
Weighted-average discount rate		2.81	%		3.21	%		3.07	%

Certain of the Company's leases contain options to renew the lease; however, not all renewal options are included in the calculation of lease liabilities as they are not reasonably certain to be exercised. The Company's leases do not contain residual value guarantees or material variable lease payments. The Company does not have any other material restrictions or covenants imposed by leases that would impact the Company's ability to pay dividends or cause the Company to incur additional financial obligations.

Year ending December 31,
2020	$	734
2021		2,575
2022		2,357
2023		2,086
2024		1,711
Thereafter		9,914
Total lease payments		19,377
Less imputed interest		(2,560	)
Total lease liability	$	16,817

The components of lease expense for the nine months ended September 30, 2020 and 2019 were as follows (in thousands):

	Three months ended September 30,						Nine months ended September 30,
	2020			2019			2020			2019
Operating lease cost	$	762		$	466		$	2,207		$	1,802
Short-term lease cost		14			221			42			266
Variable lease cost		180			103			376			741
Total lease cost		956			790			2,625			2,809
Income from subleases		(185	)		(189	)		(577	)		(650	)
Net lease cost	$	771		$	601		$	2,048		$	2,159

As the Company elected not to separate lease and non-lease components, the variable lease cost primarily represents variable payment such as common area maintenance and copier expense. The Company does not have any material sub-lease agreements. Cash paid for amounts included in the measurement of lease liabilities was (in thousands):