Leases

3 Months Ended

Mar. 31, 2022

The Company leases certain premises under operating leases. As of March 31, 2022, the Company had lease liabilities of $4,516,000 and right-of-use assets of $4,080,000. Lease liabilities and right-of-use assets are reflected in other liabilities and other assets, respectively. Presented within occupancy expense on the Consolidated Statements of Income for the three months ended March 31, 2022, operating lease cost was $400,000, short-term lease cost was $51,000, and there was no variable lease cost. At March 31, 2022, the weighted average remaining lease term for the operating leases was 6.0 years and the weighted average discount rate used in the measurement of operating lease liabilities was 5.35%. 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. See the Company’s 2021 Annual Report on Form 10-K for information regarding these commitments.

A maturity analysis of operating lease liabilities and undiscounted cash flows as of March 31, 2022 is as follows:


(In thousands)	March 31, 2022
Lease payments due
Less than 1 year	$	1,596
1-2 years	664
2-3 years	547
3-4 years	557
4-5 years	537
Over 5 years	1,365
Total undiscounted cash flows	5,266
Discount on cash flows	750
Total lease liability	$	4,516

There were no sale and leaseback transactions, leveraged leases, or lease transactions with related parties during the three months ended March 31, 2022. At March 31, 2022, the Company has one lease that has not yet commenced, but is expected to create approximately $6,800,000 of additional lease liabilities and right-of-use assets for the Company. This lease is a 10-year lease and will commence in June 2022.