Leases

12 Months Ended

Dec. 31, 2023

The Company leases certain premises under operating leases. As of December 31, 2023, the Company had lease liabilities of $8.5 million and right-of-use assets of $8.1 million. Lease liabilities and right-of-use assets are reflected in other liabilities and other assets, respectively. Included in occupancy expense on the consolidated statements of income for 2023 was operating lease cost of $1.4 million, short-term lease cost of $278,000, and there was no variable lease cost. The Company paid cash of $1.3 million for operating lease amounts included in the measurement of lease liabilities for the year ended December 31, 2023. No right-of-use assets were obtained in exchange for lease liabilities during the year ended December 31, 2023.

For the year ended December 31, 2023, the weighted average remaining lease term for the operating leases was 7.3 years and the weighted average discount rate used in the measurement of operating lease liabilities was 3.57%. Certain of the Company’s leases contain options to renew the lease; however, these renewal options are not included in the calculation of the lease liabilities as they are not reasonably certain to be exercised.

A maturity analysis of operating lease liabilities and undiscounted cash flows as of December 31, 2023 is as follows:


(In thousands)	December 31, 2023
Lease payments due
Less than 1 year	$	1,327
1-2 years	1,345
2-3 years	1,351
3-4 years	1,357
4-5 years	1,315
Over 5 years	2,904
Total undiscounted cash flows	9,599
Discount on cash flows	1,122
Total lease liability	$	8,477

There were no sale and leaseback transactions, leveraged leases, or lease transactions with related parties during the year ended December 31, 2023. At December 31, 2023, the Company did not have any leases that had not yet commenced.