On January 1, 2019, the Company adopted FASB issued ASU No. 2016-02, “Leases” (Topic 842), which establishes a right of use model that requires a lessee to record a ROU asset and a lease liability for all leases with terms longer than 12 months. The Company adopted the new lease guidance using the modified retrospective approach and elected the transition option issued under ASU 2018-11, Leases (Topic 842) Targeted Improvements, which allows entities to continue to apply the legacy guidance in ASC 840, Leases, to prior periods, including disclosure requirements. Accordingly, prior period financial results and disclosures have not been adjusted.

The Company maintains certain property and equipment under direct financing and operating leases. Upon adoption of the new lease guidance, on January 1, 2019, the Company recorded a ROU asset and corresponding lease liability of $7.9 million and $8.2 million, respectively, on the consolidated statement of condition. As of June 30, 2019, the Company's operating lease ROU asset and operating lease liability totaled $11.0 million and $11.3 million, respectively. A weighted average discount rate of 3.35% was used in the measurement of the ROU asset and lease liability as of June 30, 2019.

The Company's leases have remaining lease terms between one to 18 years, with a weighted average lease term of 6.06 years at June 30, 2019. The Company’s lease agreements may include options to extend or terminate the lease. The Company’s decision to exercise renewal options is based on an assessment of its current business needs and market factors at the time of the renewal.

Total operating lease costs were $757 thousand and $1.4 million for the three and six months ended June 30, 2019, respectively. The variable lease costs were $82 thousand and $155 thousand for the three and six months ended June 30, 2019, respectively.

The following is a schedule of the Company's operating lease liabilities by contractual maturity as of June 30, 2019:

(In thousands)
2019	$	2,666
2020		2,506
2021		1,715
2022		1,459
2023		999
Thereafter		2,112
Total lease payments		11,457
Less: imputed interest		188
Total present value of lease payments		11,269

The following table shows the supplemental cash flow information related to the Company’s direct finance and operating leases for the six months ended June 30, 2019:

(In thousands)
Right-of-use asset obtained in exchange for lease obligation	$	7,862
Operating cash flows from operating leases		1,140
Operating cash flows from direct finance leases		196
Financing cash flows from direct finance leases		374