LEASES

12 Months Ended

Dec. 31, 2023

LEASES

LEASES

19.LEASES:

The Corporation leases certain branches under operating leases. At December 31, 2023, the Corporation had lease liabilities totaling $5,456,000 and right-of-use assets totaling $5,392,000 related to these leases. Lease liabilities and right-of-use assets are reflected in other liabilities and other assets, respectively. For the year ended December 31, 2023, the weighted average remaining lease term for operating leases was 9.1 years and the weighted average discount rate used in the measurement of operating lease liabilities was 2.15%.

The calculated amount of the lease liabilities and right-of-use assets are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Corporation’s lease agreements often include one or more options to renew at the Corporation’s discretion. If at lease inception, the Corporation considers the exercising of a renewal option to be reasonably certain, the Corporation will include the extended term in the calculation of the lease liability and right-of-use asset. Regarding the discount rate, the new standard requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Corporation utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term. For operating leases existing prior to January 1, 2019, the rate for the remaining lease term as of January 1, 2019 was used.

The following table represents lease costs and other lease information. As the Corporation elected, not to separate lease and non-lease components and instead to account for them as a single lease component, the variable lease cost primarily represents variable payments such as common area maintenance and utilities.

Lease costs were as follows:

	Year Ended
(Dollar amounts in thousands)	December 31, 2023
Operating lease cost	$	1,006
Short-term lease cost		137
Variable lease cost		12
Total lease cost	$	1,155
Other information:
Cash paid for amounts included in the measurement of operating lease liabilities		967
Right-of-use assets obtained in exchange for new operating lease liabilities		854

Future minimum payments for operating leases with initial or remaining terms of one year or more as of December 31, 2023 were as follows:

(Dollar amounts in thousands)	December 31, 2023
Twelve Months Ended December 31,
2024	$	890
2025		865
2026		798
2027		773
2028		663
Thereafter		2,205
Total Future Minimum Lease Payments		6,194
Amounts Representing Interest		(738)
Present Value of Net Future Minimum Lease Payments	$	5,456