Leases

9 Months Ended

Sep. 30, 2019

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 15 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 and nine months ended September 30, 2019 and 2018:

	Location in the Condensed	Three Months Ended				Nine Months Ended
	Consolidated Statements of Operations	September 30, 2019		September 30, 2018		September 30, 2019		September 30, 2018
		(Dollars in Thousands)				(Dollars in Thousands)
Operating lease expense ⁽¹⁾	Net occupancy and equipment	$	206	$	136	$	627	$	431
Operating lease income ⁽²⁾	Other income, net	$	212	$	10	$	633	$	44

⁽¹⁾	Includes short-term lease costs. For the three- and nine-month periods ended September 30, 2019 and 2018, short-term lease costs were nominal in amount.

⁽²⁾	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 September 30, 2019:

	Location in the Condensed
	Consolidated Balance Sheet	September 30, 2019
		(Dollars in Thousands)
Operating lease right-of-use assets	Other assets	$	3,609
Operating lease liabilities	Other liabilities	$	3,633
Weighted-average remaining lease term (in years)			7.03
Weighted-average discount rate			3.19	%

The following table provides supplemental lease information for the Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2019 and 2018:

	Nine Months Ended
	September 30, 2019		September 30, 2018
	(Dollars in Thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	574	$	370

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 September 30, 2019:

	Minimum Rental Payments
	(Dollars in Thousands)
2019	$	190
2020		677
2021		574
2022		512
2023		453
2024 and thereafter		1,714
Total future minimum lease payments	$	4,120
Less: Imputed interest		487
Total operating lease liabilities	$	3,633