LEASES

12 Months Ended

Dec. 31, 2022

LEASES

LCNB has capitalized operating leases for its Union Village, Fairfield, Barron Street, and Worthington offices, for the land at its Oxford and Oakwood offices, for certain office equipment, and for its ATMs. The Oakwood lease has a remaining term of fifteen years with options to renew for six additional periods of five years each. The Oxford lease has a remaining term of thirty-eight years with no renewal options. The other leases have remaining terms of less than one year up to nine years, some of which contain options to renew the leases for additional five-year periods.

Lease expenses for offices are included in the Consolidated Statements of Income in occupancy expense, net and lease expenses for equipment and ATMs are included in equipment expenses. Components of lease expense for the years ended December 31 are as follows (in thousands):


	2022		2021
Operating lease expense	$	616	840
Short-term lease expense	243		48
Variable lease expense	4		4
Other	11		10
Total lease expense	$	874	902

Other information related to leases at December 31, 2022 is as follows (dollars in thousands):


Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	623
Right-of-use assets obtained in exchange for new operating lease liabilities	$	370
Weighted average remaining lease term in years for operating leases	33.4
Weighted average discount rate for operating leases	3.46		%

Future payments due under operating leases as of December 31, 2022 are as follows (in thousands):


2023	$	665
2024	675
2025	471
2026	333
2027	311
Thereafter	9,966
	12,421
Less effects of discounting	6,051
Operating lease liabilities recognized	$	6,370

Rental expense for all leased branches and equipment was approximately $874,000 in 2022, $902,000 in 2021, and $731,000 in 2020.