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LEASES

12 Months Ended

Dec. 31, 2020

7. LEASES

The Company leases 19 branches under noncancelable operating leases. These leases expire on various dates through 2030. The Company’s leases often have an option to renew one or more times, at the Company’s discretion, following the expiration of the initial term. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. The Company uses the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term.

The below maturity schedule represents the undiscounted lease payments for the five-year period and thereafter as of December 31, 2020.


Year ending December 31,
2021	$	3,118
2022		2,508
2023		2,025
2024		1,424
2025		992
Thereafter		3,332
Total undiscounted cash flows		13,399
Less: interest		(1,071)
Present value of lease payments	$	12,328

The following table presents the remaining weighted average lease term and discount rate at the date indicated:


	December 31, 2020
Weighted-average remaining lease term	6.1	years
Weighted-average discount rate	2.72	%

Rental expense included in occupancy and equipment on the consolidated statements of income totaled $3.3 million, $3.0 million and $2.5 million for the years ended December 31, 2020, 2019 and 2018, respectively.