	December 31,
	2020			2019
	(In Thousands)
Cost:
Land	$	13,382		$	8,137
Land improvements		1,326			1,326
Buildings		58,426			44,707
Leasehold improvements		3,616			969
Furniture, fixtures and equipment		37,138			25,703
Construction in process		2,538			990
		116,426			81,832
Less allowances for depreciation and amortization		(57,761	)		(42,269	)
	$	58,665		$	39,563

Depreciation expense was $6.5 million, $4.2 million and $3.7 million for the years ended December 31, 2020, 2019 and 2018, respectively.

Effective January 1, 2019, the Company adopted ASU 2016-02, Leases (Topic 842) using a modified retrospective transition approach applying several of available practical expedients at the date of initial application. These practical expedients included carryover of historical lease determination and classification conclusions, carryover of historical initial direct cost balances for existing leases and accounting for lease and non-lease components in contracts in which the Company is a lessee as a single lease component. All periods presented after January 1, 2019 are under ASC 842 whereas periods presented prior to January 1, 2019 are in accordance with prior lease accounting of ASC 840. Financial information was not updated and the disclosures required under ASC 842 were not provided for dates and periods before January 1, 2019.

On January 31, 2020, the Company performed a valuation on UCFC’s leases to determine an initial right of use asset (ROU asset) and lease liability in connection with the Merger. The Company recorded an initial ROU asset of $5.0 million and a lease liability of $5.1 million for these leases.

The Company’s lease agreements have maturity dates ranging from January 2021 to September 2044, some of which include options for multiple five and ten year extensions. The weighted average remaining life of the lease term for these leases was 15.09 and 17.07 years as of December 31, 2020 and 2019, respectively.

The discount rate used in determining the lease liability for each individual lease was the FHLB fixed advance rate or swap rate which corresponded with the remaining lease term as of January 1, 2019 for leases that existed at adoption and as of the lease commencement date for leases subsequently entered into. The weighted average discount rate for leases was 2.61% and 3.17% as of December 31, 2020 and 2019, respectively.

The total operating lease costs were $2.3 million and $945,000 for the years ended December 31, 2020 and 2019, respectively. Rent expense for operating leases was $1.0 million in 2018. The right-of-use asset, included in other assets, was $16.9 million and $8.9 million at December 31, 2020 and 2019, respectively. The lease liabilities, included in other liabilities, were $17.8 million and $9.5 million as of December 31, 2020 and 2019, respectively.

Undiscounted cash flows included in lease liabilities have expected contractual payments at December 31, 2020 as follows:

(in thousands)
2021	$	2,429
2022		2,413
2023		2,021
2024		1,638
2025		1,412
Thereafter		15,020
Total undiscounted minimum lease payments	$	24,933
Present value adjustment		(7,167	)
Total lease liabilities	$	17,766