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 September 30, 2020, the Company's operating lease ROU asset and operating lease liability totaled $10.0 million and $10.3 million, respectively. As of December 31, 2019, the Company's operating lease ROU asset and operating lease liability totaled $12.1 million and $12.4 million, respectively. A weighted average discount rate of 3.09% and 3.05% was used in the measurement of the ROU asset and lease liability as of September 30, 2020 and December 31, 2019, respectively.

The Company's leases have remaining lease terms between three months to 16 years, with a weighted average lease term of 5.99 years at September 30, 2020. The Company's leases had remaining lease terms between five months to 17 years, with a weighted average lease term of 6.33 years, at December 31, 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 $789,000 and $756,000 for the three months ended September 30, 2020 and 2019, respectively. The variable lease costs were $82,000 and $83,000 for the three months ended September 30, 2020 and 2019, respectively.

Total operating lease costs were $2.4 million and $2.1 million for the nine months ended September 30, 2020 and 2019, respectively. The variable lease costs were $259,000 and $238,000 for the nine months ended September 30, 2020 and 2019, respectively.

The following is a schedule of the Company's operating lease liabilities by contractual maturity as of September 30, 2020:

(In thousands)
2020	$	2,921
2021		2,262
2022		1,849
2023		1,382
2024		1,196
Thereafter		2,087
Total lease payments		11,697
Less: imputed interest		1,379
Total present value of lease payments	$	10,318

The following table shows the supplemental cash flow information related to the Company’s direct finance and operating leases for the nine months ended September 30, 2020 and 2019:

	For the Nine Months Ended
(In thousands)	2020		2019
Right-of-use asset obtained in exchange for lease obligation	$	455	$	7,862
Operating cash flows from operating leases		2,139		1,844
Operating cash flows from direct finance leases		261		290
Financing cash flows from direct finance leases		561		561