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Leases
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
LEASES LEASES
Lease liabilities represent the Company’s 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 the Company’s incremental borrowing rate in effect at the commencement date of the lease. Right-of-use assets represent the Company’s 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.
The Company’s long-term lease agreements are classified as operating leases. Some of these leases offer the option to extend the lease term and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably certain 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.
During the third quarter of 2023, the Company acquired long-term branch leases and equipment leases due to the acquisition of TCFC. These leases were reassessed by management as of the Acquisition Date, which included updating the incremental borrowing rates and remaining lease terms.
The following tables present information about the Company’s leases as of and for the years ended December 31, 2023 and December 31, 2022.
(Dollars in thousands)December 31, 2023December 31, 2022
Lease liabilities$12,857 $9,908 
Right-of-use assets$12,487 $9,629 
Weighted average remaining lease term 10.88 years12.55 years
Weighted average discount rate3.24 %2.50 %
Remaining lease term - min0.39 years0.16 years
Remaining lease term - max17.68 years18.68 years
For the Year Ended
Lease cost (in thousands)December 31, 2023December 31, 2022
Operating lease cost$1,645 $1,355 
Short-term lease cost— — 
Total lease cost$1,645 $1,355 
Cash paid for amounts included in the measurement of lease liabilities$1,553 $1,268 
The following table presents a maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total of operating lease liabilities at December 31, 2023.
Lease payments due (in thousands)As of
December 31, 2023
2024$1,801 
20251,617 
20261,575 
20271,469 
20281,419 
Thereafter7,261 
Total undiscounted cash flows$15,142 
Discount2,285 
Lease liabilities$12,857 
Total gross rental income was $1.2 million and $1.3 million for the years ended December 31, 2023 and December 31, 2022, respectively. The following table presents our minimum future annual rental income on such leases at December 31, 2023.
(In thousands)As of
December 31, 2023
2024$833 
2025854 
2026876 
2027562 
2028578 
Thereafter2,521 
Total$6,224 
LEASES LEASES
Lease liabilities represent the Company’s 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 the Company’s incremental borrowing rate in effect at the commencement date of the lease. Right-of-use assets represent the Company’s 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.
The Company’s long-term lease agreements are classified as operating leases. Some of these leases offer the option to extend the lease term and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably certain 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.
During the third quarter of 2023, the Company acquired long-term branch leases and equipment leases due to the acquisition of TCFC. These leases were reassessed by management as of the Acquisition Date, which included updating the incremental borrowing rates and remaining lease terms.
The following tables present information about the Company’s leases as of and for the years ended December 31, 2023 and December 31, 2022.
(Dollars in thousands)December 31, 2023December 31, 2022
Lease liabilities$12,857 $9,908 
Right-of-use assets$12,487 $9,629 
Weighted average remaining lease term 10.88 years12.55 years
Weighted average discount rate3.24 %2.50 %
Remaining lease term - min0.39 years0.16 years
Remaining lease term - max17.68 years18.68 years
For the Year Ended
Lease cost (in thousands)December 31, 2023December 31, 2022
Operating lease cost$1,645 $1,355 
Short-term lease cost— — 
Total lease cost$1,645 $1,355 
Cash paid for amounts included in the measurement of lease liabilities$1,553 $1,268 
The following table presents a maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total of operating lease liabilities at December 31, 2023.
Lease payments due (in thousands)As of
December 31, 2023
2024$1,801 
20251,617 
20261,575 
20271,469 
20281,419 
Thereafter7,261 
Total undiscounted cash flows$15,142 
Discount2,285 
Lease liabilities$12,857 
Total gross rental income was $1.2 million and $1.3 million for the years ended December 31, 2023 and December 31, 2022, respectively. The following table presents our minimum future annual rental income on such leases at December 31, 2023.
(In thousands)As of
December 31, 2023
2024$833 
2025854 
2026876 
2027562 
2028578 
Thereafter2,521 
Total$6,224