13.

LEASES

The Bank and ALC are involved in a number of operating leases, primarily for branch locations. Branch leases have remaining lease terms ranging from less than

one

year to

years, some of which include options to extend the leases for up to

five

years, and some of which include an option to terminate the lease within

one

year. The Bank leases certain office facilities to

third

parties and classifies these leases as operating leases.

The following table provides a summary of the components of lease expense, as well as the reporting location in the Condensed Consolidated Statements of Operations for the

three

months ended

March 31, 2019

and

2018:

	Location in the Condensed	Three Months Ended
	Consolidated Statements of Operations	March 31, 2019		March 31, 2018
		(Dollars in Thousands)
Operating lease expense (1)	Net occupancy and equipment	$	210	$	158
Operating lease income (2)	Other income, net	$	209	$	34

(

)

Includes short-term lease costs. For both of the

three

month periods ended

March 31, 2019

and

2018,

short-term lease costs were nominal in amount.

(

)

Operating lease income includes rental income from owned properties.

The following table provides supplemental lease information for operating leases on the Condensed Consolidated Balance Sheet as of

March 31, 2019:

	Location in the Condensed
	Consolidated Balance Sheet	March 31, 2019
		(Dollars in Thousands)
Operating lease right-of-use assets	Other assets	$	3,945
Operating lease liabilities	Other liabilities	$	3,953
Weighted-average remaining lease term (in years)			7.53
Weighted-average discount rate			3.19	%

The following table provides supplemental lease information for the Condensed Consolidated Statements of Cash Flows for the

three

months ended

March 31, 2019

and

2018:

		Three Months Ended
		March 31, 2019	March 31, 2018
		(Dollars in Thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	192	$	115

The following table is a schedule of remaining future minimum lease payments for operating leases that had an initial or remaining non-cancellable lease term in excess of

one

year as of

March 31, 2019:

	Minimum Rental Payments
	(Dollars in Thousands)
2019	$	564
2020		677
2021		574
2022		512
2023		453
2024 and thereafter		1,714
Total future minimum lease payments	$	4,494
Less: Imputed interest		541
Total operating lease liabilities	$	3,953