b'NOTE 19.LEASE AGREEMENTOn January 1, 2019, CNB adopted ASU No. 2016-02 Leases (Topic 842) and all subsequent ASUs that modified Topic 842.The Bank elected the prospective application approach provided by ASU 2018-11 and did not adjust prior periods for ASC 842.Financial results and disclosures for reporting periods beginning on or after January 1, 2019 are presented under the Topic 842 requirements, while prior period amounts and disclosures are not adjusted and continue to be reported in accordance with previous guidance.CNB also elected certain practical expedients within the standard and consistent with such elections did not reassess whether any expired or existing contracts are or contain leases, did not reassess the lease classification for any expired or existing leases, and did not reassess any initial direct costs for existing leases.Adoption of the new standard resulted in recognition of a right-of-use asset and lease liability of $1,410,146 at the date of adoption, which is related to the Banks lease of premises used in operations.Since the calculated right of use asset and lease liability were materially the same, a cumulative effect adjustment to retained earnings as of the implication date was not recorded.Lease liabilities represent the Banks obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows.Cash flows are discounted at CNBs incremental borrowing rate in effect at the commencement date of the lease.Right-of-use assets represent the Banks right to use the underlying asset for the lease term and are calculated as the sum of the lease liability and if applicable, prepaid rent, initial direct costs and any incentives received from the lessor.CNBs long-term lease agreements are classified as operating leases.Certain of these leases offer the option to extend the lease term and the Bank has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised.The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations.The following tables present information about CNBs leases:December 31, 2019Lease liabilities $ 2,248,132Right-of-use assets $ 2,232,107Weighted average remaining lease term 7.73 yearsWeighted average discount rate 3.05% The weighted average discount rate is calculated based on Federal Home Loan Bank (FHLB) liquidity and funding advance fixed rates for borrowings with terms similar to the expected lease terms in effect at the date of lease inception.The operating lease cost for the year ended December 31, 2019 is $238,274.There are no variable or short-term lease costs for the year ended December 31, 2019.Cash paid for amounts included in the measure of lease liability totaled $213,933 for the year ended December 31, 2019.37'