Leases

12 Months Ended

Dec. 31, 2022

Leases.

Leases

Note 10: Leases

The Company has operating leases for various locations with terms ranging from two to eleven years. Some operating leases included options to extend. The extensions were included in the right-of-use asset if the likelihood of extension was fairly certain. The Company elected not to separate non-lease components from lease components for its operating leases.

The Company adopted Financial Accounting Standards Board (the “FASB”) ASU 2016-02 - Leases, and recorded an initial right-of-use asset and operating lease liability on January 1, 2022. An operating right-of-use assets was $11.0 million and an operating right-of-use liability was $12.0 million as of December 31, 2022.

Balance sheet, income statement and cash flow detail regarding operating leases follows:

		December 31, 2022
Balance Sheet		(In thousands)
Operating lease right-of-of use asset (in other assets)	$	10,969
Operating lease liability (in other liabilities)		11,992
Weighted average remaining lease term (years)		6.5
Weighted average discount rate		2.65%
Maturities of lease liabilities:
2023	$	2,181
2024		2,321
2025		1,881
2026		1,911
2027		1,853
Thereafter		2,902
Total future minimum lease payments		13,049
Less: imputed interest		1,057
Total	$	11,992
		Year Ended
		December 31, 2022
Income Statement		(In thousands)
Components of lease expense:
Operating lease cost (in occupancy and equipment expense)	$	2,033
		Year Ended
		December 31, 2022
Cash Flow Statement		(In thousands)
Supplemental cash flow information:
Operating cash flows from operating leases	$	1,461

Prior to the adoption of ASU 2016-02 – Leases, the Company had several non-cancellable operating leases, primarily for office space. Rental expense for these leases were $1.5 million and $1.2 million for the years ended December 31, 2021 and 2020, respectively.

Future minimum lease payments under operating leases as of December 31, 2021 were as follows:

	December 31,
	2021
	(In thousands)
Due within one year	$	1,570
Due in one year to two years		1,776
Due in two years to three years		1,568
Due in three years to four years		947
Due in four years to five years		964
Thereafter		2,154
Total minimum lease payments	$	8,979