The Company leases certain branch offices under operating or finance leases. Certain lease arrangements contain extension options which are typically for 5 years at the then fair market rental rates. As these extension options are not generally considered reasonably certain of exercise, they are not included in the lease term.

As of December 31, 2023 and 2022, two of the Company’s branch offices were under an operating lease and the Company’s operating lease ROU assets were $231,000 and $373,000, respectively, and its lease liabilities were $242,000 and $390,000, respectively. The ROU assets are recorded under other assets and the lease liabilities are recorded under other liabilities on the consolidated statements of financial condition.

Operating lease costs that were recorded in occupancy and equipment expense on the consolidated statements of income for each of the years ended December 31, 2023 and 2022 were $150,000.

The table below summarizes information related to our lease liabilities at or for the years ended December 31, 2023 and 2022:


	For the Years Ended December 31,
(in thousands, except for percent and period data)		2023			2022

Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases		$	157		$	157
Operating cash flows from finance leases			51			57
Financing cash flows from finance leases			81			69

Weighted-average remaining lease term, operating leases, in years			1.6			2.6
Weighted-average discount rate – operating leases			2.61	%		2.61	%

The Company has one long-term finance lease agreement for a branch location and the outstanding balance of the finance lease (included in other liabilities) at December 31, 2023 and 2022 was $475,000 and $554,000, respectively, with a weighted-average discount rate of 9.22%. The remaining term of this lease is 4.5 years. The asset related to this finance lease is included in premises and equipment and consists of the cost of $1.1 million less accumulated depreciation of $756,000 and $714,000 at December 31, 2023 and 2022, respectively.

The table below summarizes the maturity of remaining lease liabilities as of December 31, 2023:


	Operating			Finance
	Leases			Lease
	(Dollars in thousands)
2024	$	157		$	136
2025		90			136
2026		—			136
2027		—			136
2028		—			56
2028 and thereafter		—			—
Total Lease Payments	$	247		$	600
Less: Amounts representing interest		(5	)		(125	)
Present value of lease liabilities	$	242		$	475