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Leases
6 Months Ended
Jun. 30, 2019
Leases [Abstract]  
Leases

(6)

LEASES

Lessee

On January 1, 2019, the Company adopted ASU No. 2016-02, “Leases - (Topic 842),” which requires the recognition of the Company’s operating leases on its balance sheet. See Note (1) for additional information.

 

The Company has operating leases, which primarily consist of office space in buildings, ATM locations, storage facilities, parking lots and land on which it owns certain buildings. Rent expense for all operating leases totaled approximately $343,000 and $395,000 for the three months ended June 30, 2019 and June 30, 2018, respectively. Rent expense for all operating leases totaled approximately $700,000 and $776,000 for the six months ended June 30, 2019 and June 30, 2018, respectively. As of June 30, 2019, a right of use lease asset included in accrued interest receivable and other assets on the balance sheet totaled $5.3 million, and a related lease liability included in accrued interest payable and other liabilities on the balance sheet totaled $5.2 million. There have been no significant changes in our expected future minimum lease payments since December 31, 2018, which are disclosed in Note (19) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. As of June 30, 2019, our operating leases have a weighted-average remaining lease term of 4.5 years and a weighted-average discount rate of 3.6 percent.

 

 

Maturity of Operating Lease Liabilities

 

 

 

June 30, 2019

 

 

 

(Dollars in thousands)

 

2019 (six months)

 

$

55

 

2020

 

 

829

 

2021

 

 

114

 

2022

 

 

1,542

 

2023

 

 

636

 

Thereafter

 

 

2,072

 

Operating Lease Liability

 

$

5,248

 

 

Lessor

 

The Company is a lessor of operating leases, which primarily consist of office space in buildings and parking lots. These assets are classified on the balance sheet as premises and equipment. The Company had operating lease revenue of $1.5 million for the three months ended June 30, 2019 and $3.1 million for the six months ended June 30, 2019, which is included in occupancy, net on the consolidated statement of comprehensive income.

 

Future Minimum Lease Payments to be received

The Company does not have operating leases that extend beyond 2024. The following table presents the scheduled minimum future contractual rent to be received under the remaining non-cancelable term of the operating leases:

 

 

 

June 30, 2019

 

 

 

(Dollars in thousands)

 

2019 (six months)

 

$

2,129

 

2020

 

 

2,681

 

2021

 

 

1,788

 

2022

 

 

1,141

 

2023

 

 

681

 

2024

 

 

75

 

Total Future Minimum Lease Payments

 

$

8,495