OPERATING LEASES

9 Months Ended

Sep. 30, 2022

OPERATING LEASES

OPERATING LEASES

NOTE 15: OPERATING LEASES

The Company leases certain office space, stand-alone buildings and land, which are recognized as operating lease right-of-use assets in the condensed consolidated balance sheets and operating lease liabilities in the condensed consolidated balance sheets represent the Company’s liability to make lease payments under these operating leases, on a discounted basis. The Company excludes short-term leases, defined as lease terms of 12 months or less from its operating lease right-of-use assets and operating lease liabilities.

Lease costs for the periods indicated below were as follows:

	Nine Months Ended September 30,
(Dollars in thousands)	2022		2021
Operating lease cost	$	1,244	$	1,436
Short-term lease cost		15		13
Sublease income		(469)		(472)
Total lease cost	$	790	$	977

Other information related to operating leases for the periods indicated below was as follows:

	Nine Months Ended September 30,
(Dollars in thousands)	2022		2021
Amortization of lease right-to-use assets	$	1,008	$	1,141
Accretion of lease liabilities		260		294
Cash paid for amounts included in the measurement of lease liabilities		1,461		1,566
Weighted-average remaining lease term in years		10.1		10.7
Weighted-average discount rate		2.63%		2.63%

A maturity analysis of operating lease liabilities as of the date indicated below was as follows:

(Dollars in thousands)	September 30, 2022
1 year or less	$	1,775
Over 1 year through 2 years		1,928
Over 2 years through 3 years		1,966
Over 3 years through 4 years		1,928
Over 4 years through 5 years		1,821
Thereafter		6,836
Total undiscounted lease liability		16,254
Less:
Discount on cash flows		(2,506)
Total operating lease liability	$	13,748

During the nine months ended September 30, 2022, the Company terminated a land lease at the request of the lessor. The Company received a payment of $1.5 million from the lessor for the early termination of the lease, which is reflected in other noninterest income in the condensed consolidated income statements.

During the nine months ended September 30, 2022, the operating lease right-of-use asset and liabilities were both increased $809,000 due to a lease modification to extend the term of a lease.