The Company has committed to rent premises used in business operations under non-cancelable operating leases and determines if an arrangement meets the definition of a lease upon inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities on the Company’s balance sheet.

Operating lease ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company’s leases do not provide an implicit rate, therefore the Company used its incremental collateralized borrowing rates commensurate with the underlying lease terms to determine present value of operating lease liabilities. The Company’s lease terms may include lease extension and termination options when it is reasonably certain that the Company will exercise the option. The Company recognized right-of-use assets totaling $4.3 million and $3.7 million and operating lease liabilities totaling $4.5 million and $3.9 million at December 31, 2020 and December 31, 2019, respectively. The lease liabilities recognized by the Company represent two leased branch locations and one loan production office.

Lease expense for lease payments is recognized on a straight-line basis over the lease term. Variable lease components, such as fair market value adjustments, are expensed as incurred and not included in ROU assets and operating lease liabilities. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. For the year ended December 31, 2020 and 2019, rent expense for the operating leases totaled $307,000 and $375,000, respectively.

The following table presents information regarding the Company’s operating leases:


	December 31,		December 31,
	2020		2019
Weighted-average discount rate		3.54%		3.78%
Range of lease expiration dates		2 - 15 years		4.5 - 16 years
Range of lease renewal options		5 - 20 years		20 years
Weighted-average remaining lease term		27.6 years		31.9 years

The following table presents the undiscounted annual lease payments under the terms of the Company's operating leases at December 31, 2020, including a reconciliation to the present value of operating lease liabilities recognized in the unaudited Consolidated Balance Sheets:


(In thousands)
2021	$	258
2022		261
2023		264
2024		270
2025		280
Years thereafter		6,325
Total lease payments		7,658
Less imputed interest		(3,170)
Total lease liabilities	$	4,488