Leases

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Leases

Note 14 – Leases

On January 1, 2019, the Company adopted Accounting Standards Update (“ASU”) No. 2016-02 – “Leases (ASC Topic 842).” The Company leases certain premises under operating leases. As of September 30, 2019, the Company had lease liabilities of $7,019,000 and right-of-use assets of $6,241,000. Lease liabilities and right-of-use assets are reflected in other liabilities and other assets, respectively. Presented within occupancy expense on the Consolidated Statements of Income for the three months ended September 30, 2019, operating lease cost was $419,000, short-term lease cost was $33,000, and there was no variable lease cost. For the nine months ended September 30, 2019, operating lease cost was $1,259,000, short-term lease cost was $107,000, and there was no variable lease cost. For the period ended September 30, 2019, the weighted average remaining lease term for the operating leases was 6.8 years and the weighted average discount rate used in the measurement of operating lease liabilities was 5.5%. Certain of the Company’s leases contain options to renew the lease; however, these renewal options are not included in the calculation of the lease liabilities as they are not reasonably certain to be exercised. There has been no significant change in the Company’s expected future minimum lease payments since December 31, 2018. See the Company’s 2018 Annual Report on Form 10-K for information regarding these commitments.

A maturity analysis of operating lease liabilities and undiscounted cash flows as of September 30, 2019 was as follows:

(In thousands)	September 30, 2019
Lease payments due
Less than 1 year	$	1,759
1-2 years		1,665
2-3 years		1,525
3-4 years		902
4-5 years		390
Over 5 years		2,070
Total undiscounted cash flows		8,311
Discount on cash flows		1,292
Total lease liability	$	7,019

There were no sale and leaseback transactions, leveraged leases, or lease transactions with related parties during the nine months ended September 30, 2019. At September 30, 2019, the Company had one lease that had not yet commenced, but is expected to create approximately $800,000 of additional lease liabilities and right-of-use assets for the Company. This lease is anticipated to commence in 2020.