NOTE 8: Leases

The Corporation’s leases comprise primarily leases of real estate and office equipment in which the Corporation is the lessee, and all of which are classified as operating leases. Lease cost for the year ended December 31, 2019 is as follows:


	Year Ended
(Dollars in thousands)	December 31, 2019
Operating lease cost	$	1,681
Short-term lease cost		128
Variable lease cost		43
Total lease cost	$	1,852

Variable lease payments primarily represent payments for common area maintenance related to real estate leases and taxes and fees related to equipment leases.

Cash paid for amounts included in the measurement of lease liabilities during the year ended December 31, 2019 was $1.72 million. As of December 31, 2019, the weighted average remaining lease term and discount rate for the Corporation’s leases were 3.0 years and 3.2 percent, respectively. Right-of-use assets and lease liabilities of $2.78 million and $2.81 million were included in other assets and other liabilities, respectively, as of December 31, 2019. During the year ended December 31, 2019, the Corporation obtained right-of-use assets in exchange for lease liabilities of $1.14 million.

The Corporation adopted ASC 842 effective January 1, 2019. Prior to January 1, 2019, the Corporation measured lease expense in accordance with ASC Topic 840. During the years ended December 31, 2018 and 2017, the Corporation recognized lease expense of $1.68 million and $1.77 million, respectively.

Certain of the Corporation’s leases contain options to extend the lease term beyond the initial term. Options to extend the lease term are recognized as part of the Corporation’s lease liabilities and right-of-use assets at the commencement of a lease to the extent the Corporation is reasonably certain to exercise such options.

Maturities of the Corporation’s lease liabilities are as follows:



(Dollars in thousands)	December 31, 2019
2020	$	1,385
2021		906
2022		292
2023		128
2024		104
Thereafter		121
Total		2,936
Imputed interest		(123)
Lease liabilities	$	2,813

The table above excludes payments of $7.92 million related to two lease agreements that have been executed where the Corporation has not obtained control of the real estate properties under lease as of December 31, 2019 and has therefore not recognized a lease liability or right-of-use asset.