LEASES

As of January 1, 2019, the Company adopted ASU 2016-02 (Topic 842) on a prospective basis using the effective date method. The adoption of the new standard did not have a material impact on MidSouth's financial statements; however, additional disclosures have been added in accordance with the ASU. See Note 2 for additional information on this new accounting standard.

We have operating leases for branches and corporate offices. Our leases have remaining lease terms from 1 to 40 years, some of which have options to extend the leases up to 5 years, and some which include options to terminate the leases within 1 year. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight -line basis over the lease term. We rent or sublease certain real estate to third parties.

The following is a summary of net lease cost and other selected information related to operating leases (cost, in thousands):



	Three Months Ended June 30, 2019			Six Months Ended June 30, 2019
Net lease cost:
Operating lease cost	$	466		$	932
Variable lease cost	(43		)	(89		)
Sub lease income	(44		)	(88		)
Net lease cost	$	379		$	755

Weighted average remaining lease term (years)	14			14
Weighted average discount rate	3.4		%	3.4		%

Maturities of leases payments, undiscounted cash flow, lease liability were as follows (in thousands):



	Lease Payments		Undiscounted Cash Flow		Lease Liability
2019	$	908	$	126	$	782
2020	1,820		210		1,610
2021	1,364		158		1,206
2022	554		134		420
2023	378		124		254
Thereafter	5,248		1,704		3,544
	$	10,272	$	2,456	$	7,816