7. Operating lease commitments and contingencies:

The Company is obligated under non-cancelable operating leases for certain branch locations and its loan production office. We determine if an arrangement is a lease at inception by assessing whether a contract contains a right to control an identified asset for a period of time in exchange for consideration. For all leases, we recognize a right-of-use asset and lease liability at the effective date of the lease. Operating leases right-of-use assets are included in premises and equipment, and lease liabilities are included in other liabilities in the consolidated balance sheet commencing at January 1, 2019. We have no finance leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet and the related lease expense is recognized on a straight-line basis over the lease term.

Certain leases include options to renew, with renewal terms generally containing one or more five-year renewal options. At December 31, 2019, the Company’s leases have remaining renewal terms that can extend the lease term from three years to twenty-two years that are reasonably certain of being exercised. The weighted average remaining lease term is sixteen years. The discount rate used in determining the lease liability for each individual lease was the FHLB fixed advance 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 after January 1, 2019. At December 31, 2019, discount rates ranged from 2.89% to 3.85% with an-average discount rate of 3.46%.

At December 31, 2019, right-of-use assets of $6,125 were included in premises and equipment, and the related lease liability totaled $6,194 and was included in other liabilities in the consolidated balance sheet. The lease liability decreased due to payments of $578 offset by $249 of lease expense. Rent expense for the years ended December 31, 2019, 2018 and 2017 amounted to $601, $492, and $407, respectively, and are included in occupancy expenses.

Future minimum lease payments under operating leases are summarized as follows:


2020	$	597
2021		585
2022		589
2023		508
2024		435
Thereafter		5,513
Total future minimum lease payments		8,227
Less amount representing interest		(2,033)
Present value of future minimum lease payments	$	6,194