Leases

Leases - The Bank leases certain of its branch facilities and administrative offices under noncancelable operating leases with terms extending through 2028. Leases with an initial term of twelve months or less are not recorded on the balance sheet. Operating lease cost is comprised of lease expense recognized on a straight-line basis, the amortization of the right-of-use asset and the implicit interest accreted on the operating lease liability. Operating lease cost is included in occupancy and equipment expense on our consolidated statements of income. We evaluate the lease term by assuming the exercise of options to extend that are reasonably assured and those option periods covered by an option to terminate the lease, if deemed not reasonably certain to be exercised. The lease term is used to determine the straight-line expense and limits the depreciable life of any related leasehold improvements. Certain leases require us to pay real estate taxes, insurance, maintenance and other operating expenses associated with the leased premises. These expenses are classified in occupancy and equipment expense on our consolidated statements of income, consistent with similar costs for owned locations, but is not included in operating lease cost below. We calculate the lease liability using a discount rate that represents our incremental borrowing rate at the lease commencement date.

Future minimum lease payments on noncancelable operating leases are as follows (in thousands):



Years Ending December 31,
2019 (remaining)	$	2,142
2020	1,820
2021	1,697
2022	1,363
2023	1,242
Thereafter	3,936
Total lease payments	12,200
Less: imputed interest	(1,728		)
Present value of operating lease liabilities	$	10,472

Minimum future rental payments under noncancelable operating leases as of December 31, 2018, prior to adoption of ASU 2016-02, are as follows (in thousands):



	Minimum future rental payments
2019	2,384
2020	2,078
2021	1,805
2022	1,552
2023	1,448
Thereafter	4,334
	$	13,601

The table below summarizes the total lease cost:



(Dollars in thousands)	For the Quarter Ended March 31,
Operating lease cost	$	552
Short-term lease cost	20
Variable lease cost	53
Total lease cost	$	625

The table below summarizes other information related to our operating leases:



	For the Quarter Ended March 31,
Weighted average remaining lease term, in years	7
Weighted average discount rate	2.91	%

The table below shows operating lease right of use assets and operating lease liabilities as of March 31, 2019



(Dollars in thousands)
Operating lease right-of-use assets	$	9,810
Operating lease liabilities	10,472