Leases

3 Months Ended

Mar. 31, 2024

Note 11 – Leases

Operating lease assets represent the Company’s right to use an underlying asset during the lease term and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents the Company’s incremental borrowing rate at the lease commencement date. Operating lease cost, which is comprised of amortization of the operating lease asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term, and is recorded in occupancy expenses in the consolidated statements of income.The Company leases certain full-service branch offices, land, and equipment. Leases with an initial term of twelve months or less are not recorded on the balance sheet. Most leases include one or more options to renew and the exercise of the lease renewal options are at the Company’s sole discretion. The Company includes lease extension and termination options in the lease term if, after considering relevant economic factors, it is reasonably certain the Company will exercise the option.

The following table represents the consolidated statements of condition classification of the Company’s ROU assets and lease liabilities. The Company elected not to include short-term leases (i.e., leases with initial terms of twelve months or less), or equipment leases (deemed immaterial) on the consolidated statements of financial condition.


Lease Right-of-Use Assets	Classification on Consolidated Statement of Condition	March 31, 2024		December 31, 2023
Operating lease right-of-use assets	Other Assets	$	3,104	$	3,243

Lease Liabilities	Classification on Consolidated Statement of Condition	March 31, 2024		December 31, 2023
Operating lease liabilities	Accrued interest payable and other liabilities	$	3,264	$	3,407


	March 31, 2024			December 31, 2023
Weighted-average remaining lease term for operating leases	8.45 Years			8.50 Years
Weighted-average discount rate for operating leases		6.00	%		6.00	%

Future minimum payments for operating leases with initial or remaining terms of one year or more as of March 31, 2024 are as follows:


	Operating Leases
April 1, 2024 - March 31, 2025	$	770
April 1, 2025 - March 31, 2026		648
April 1, 2026 - March 31, 2027		449
April 1, 2027 - March 31, 2028		401
April 1, 2028 - March 31, 2029		333
Afterward		1,667
Total future minimum lease payments		4,268
Amounts representing interest		(1,004	)
Present value of net future minimum lease payments	$	3,264