Leases

3 Months Ended

Mar. 31, 2023

The Company leases land and premises for its branch banking offices, administration facilities, and ITMs. The initial terms of these leases expire at various dates through 2032. Under the provisions of most of these leases, the Company has the option to extend the leases beyond their original terms at rental rates adjusted for changes reported in certain economic indices or as reflected by market conditions. Lease terms may include options to extend or terminate the lease when it is reasonably certain the Company will exercise that option. As of March 31, 2023, the Company had 14 operating leases and no financing leases. At March 31, 2022, the Company had 13 operating leases and no financing leases.

The components of lease expense are as follows:


	Three Months Ended
(In thousands)	March 31, 2023		March 31, 2022



Operating lease expense	$	178	$	184
Variable lease expense	—		—

Total	$	178	$	184

Supplemental information related to leases are as follows:


	Three Months Ended
(In thousands)	March 31, 2023			March 31, 2022




Operating cash flows from operating leases	$	179		$	184



Weighted-average remaining lease term in years for operating leases	4.38			4.89

Weighted-average discount rate for operating leases	5.12		%	5.13		%

Maturities of lease liabilities are as follows:


(In thousands)	March 31, 2023
2023	$	723
2024	519
2025	335
2026	159
2027	110
Thereafter	291
Total undiscounted cash flows	2,137
Less: present value discount	(222)
Present value of net future minimum lease payments	$	1,915