Leases

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Leases

Leases

We have operating leases for branch locations, a loan production office, our corporate office and in the past, for certain equipment. The term for our leases begins on the date we become legally obligated for the rent payments or take possession of the building, whichever is earlier. Generally, our real estate leases have initial terms of three to ten years and typically include one renewal option. Our leases have remaining lease terms of under two to six years. The operating leases generally contain renewal options and require us to pay property taxes and operating expenses for the properties.

The following table presents the lease right-of-use assets and lease liabilities recorded on the Condensed Consolidated Balance Sheets at the dates indicated (in thousands):

	March 31, 2023		December 31, 2022
Operating lease right-of-use assets	$	5,200	$	5,102
Operating lease liabilities	$	5,543	$	5,448

The following table presents the components of lease expense for the periods indicated (in thousands):

	Three Months Ended March 31,
	2023		2022
Operating lease expense
Office leases	$	268	$	273
Sublease income	(3)		(3)
Net lease expense	$	265	$	270

The following table presents the schedule of lease liabilities at the date indicated (in thousands):

	March 31, 2023
Remainder of 2023	$	1,106
2024	1,083
2025	933
2026	944
2027	963
Thereafter	979
Total lease payments	6,008
Less: Present value discount	465
Present value of lease liabilities	$	5,543

Lease term and discount rate by lease type consist of the following at the dates indicated:

	March 31, 2023		December 31, 2022
Weighted-average remaining lease term:
Office leases	6.1 years		6.1 years
Weighted-average discount rate (annualized):
Office leases	2.66	%	2.63	%

Supplemental cash flow information related to leases was as follows for the periods indicated (in thousands):

	Three Months Ended March 31,
	2023		2022
Cash paid for amounts included in the measurement of lease liabilities for operating leases:
Operating cash flows
Office leases	$	271	$	265