Leases

3 Months Ended

Mar. 31, 2023

Leases

Leases

(6) Leases

As of March 31, 2023, the Bank had operating right of use assets of $4.9 million and operating lease liabilities of $5.0 million. The Bank maintains operating leases on land and buildings for some of the Bank’s branch facilities and loan production offices. Most leases include one option to renew, with renewal terms extending up to 15 years. The exercise of renewal options is based on the judgment of management as to whether or not the renewal option is reasonably certain to be exercised. Factors in determining whether an option is reasonably certain of exercise include, but are not limited to, the value of leasehold improvements, the value of renewal rates compared to market rates, and the presence of factors that would cause a significant economic penalty to the Bank if the option is not exercised. Leases with a term of 12 months or less are not recorded on the balance sheet and instead are recognized in lease expense on a straight-line basis over the lease term.

The following table presents lease cost and other lease information as of March 31, 2023 and 2022.

(Dollars in thousands)
	March 31, 2023			March 31, 2022
Operating lease cost	$	206		$	189
Other information:
Cash paid for amounts included in the measurement of lease liabilities		204			575
Operating cash flows from operating leases		-			-
Right-of-use assets obtained in exchange for new lease liabilities - operating leases		-			1,759
Weighted-average remaining lease term - operating leases		9.12			8.92
Weighted-average discount rate - operating leases		2.60	%		2.04	%

The following table presents lease maturities as of March 31, 2023.

(Dollars in thousands)
Maturity Analysis of Operating Lease Liabilities:	March 31, 2023
2023	$	605
2024		750
2025		694
2026		577
2027		536
Thereafter		2,580
Total		5,742
Less: Imputed Interest		(709	)
Operating Lease Liability	$	5,033