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PREMISES, EQUIPMENT AND LEASES
 12 Months Ended
Dec. 31, 2022
Property, Plant and Equipment [Abstract]  
PREMISES, EQUIPMENT AND LEASES PREMISES, EQUIPMENT AND LEASES
A summary of premises and equipment at December 31, 2022 and 2021 is as follows:
(dollars in thousands)20222021
Land$16,004 $15,696 
Buildings and improvements71,837 67,143 
Furniture and equipment34,081 33,545 
Lease right-of-use assets7,001 8,428 
Total128,923 124,812 
Accumulated depreciation(50,630)(45,592)
Premises and equipment, net$78,293 $79,220 
    Depreciation expense for the years ended December 31, 2022, 2021 and 2020 was $4.8 million, $5.5 million, and $6.9 million, respectively.
The Company closed 13 branches, or 20% of its branch network, and vacated approximately 23,000 square feet of corporate office space between September 3, 2020 and December 31, 2020, recording $12.7 million of asset impairment on existing banking facilities, including $2.4 million of asset impairment on right-of-use assets, and $0.8 million in other related charges, all of which was recognized in other expense in the consolidated statements of income.
The Company has entered into operating leases, primarily for banking offices and operating facilities, which have remaining lease terms of 1 month to 10 years, some of which may include options to extend the lease terms for up to an additional 10 years. The options to extend are included if they are reasonably certain to be exercised. The Company had operating lease right-of-use assets of $7.0 million and $8.4 million as of December 31, 2022 and 2021, respectively, included in other assets on our consolidated balance sheets. The operating lease liabilities of the Company were $8.9 million and $10.7
million as of December 31, 2022 and 2021, respectively, and are included in accrued interest payable and other liabilities on our consolidated balance sheets.
Information related to operating leases for the years ended December 31, 2022 and 2021 was as follows:
Years Ended December 31,
(dollars in thousands)20222021
Operating lease cost$2,096 $2,080 
Operating cash flows from leases2,507 2,566 
Right-of-use assets obtained in exchange for lease obligations502 1,118 
Right-of-use assets derecognized due to terminations or impairment(123)(210)
Weighted average remaining lease term7.2 years7.6 years
Weighted average discount rate2.89 %2.85 %
Net rent expense under operating leases, included in occupancy and equipment expense, was $1.5 million, $1.4 million and $2.3 million for the years ended December 31, 2022, 2021 and 2020, respectively.
The projected minimum rental payments under the terms of the leases as of December 31, 2022 were as follows:
(dollars in thousands)Amount
Year ending December 31:
2023$1,975 
20241,879 
2025975 
2026843 
2027740 
Thereafter3,556 
Total future minimum lease payments9,968 
Less imputed interest(1,023)
Total operating lease liabilities$8,945