LEASES

12 Months Ended

Dec. 31, 2023

Leases

LEASES

12. LEASES

The Company has lease agreements with lease and non-lease components, which are generally accounted for separately. We have not elected the practical expedient to account for lease and non-lease components as one lease component. The Company has operating leases for certain of our banking offices and ATMs. Our leases have remaining lease terms of less than one year to fifteen years, some of which include options to extend the leases for additional five-year terms up to ten years. Operating lease costs were $1.6 million, $1.5 million, and $1.6 million for the years ended December 31, 2023, 2022 and 2021.

Supplemental cash flow information related to leases was as follows:

	Year Ended December 31,
	2023		2022
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,488	$	1,482
ROU assets obtained in exchange for lease obligations:
Operating leases		412		1,714

Supplemental balance sheet information related to leases was as follows:

	December 31, 2023		December 31, 2022
	(In thousands)
Operating lease ROU assets	$	8,201	$	9,224
Operating lease liabilities	$	8,471	$	9,457

The weighted average remaining lease term for our operating leases was 9.1 years with a weighted average discount rate of 3.26% at December 31, 2023. Future undiscounted lease payments for the Company’s operating lease liabilities were as follows (in thousands):

Years Ending December 31,
2024	$	1,474
2025		1,324
2026		1,279
2027		1,018
2028		778
Thereafter		4,020
Total lease payments		9,893
Less imputed interest		(1,422	)
Total	$	8,471