LEASES

9 Months Ended

Sep. 30, 2023

Leases [Abstract]

Leases

NOTE 6 – LEASES

Operating leases in which the Company is the lessee are recorded as operating lease right of use (“ROU”) assets and operating

liabilities, included in other assets and liabilities, respectively, on its Consolidated Statement of Financial Condition. 

The Company’s operating leases primarily relate to banking offices with remaining lease terms from

1

 to

42

 years. The Company’s

leases are not complex and do not contain residual value guarantees, variable lease payments, or significant assumptions or judgments

made in applying the requirements of Topic 842. 

Operating leases with an initial term of 12 months or less are not recorded on the

Consolidated Statement of Financial Condition and the related lease expense is recognized on a straight-line basis over the lease term.

At September 30, 2023, the operating lease ROU assets and liabilities were $

23.8

 million and $

24.2

 million, respectively. At

December 31, 2022, ROU assets and liabilities were $

22.3

 million and $

22.7

 million, respectively. The Company does not have any

finance leases or any significant lessor agreements.

The table below summarizes our lease expense and other information related to the Company’s operating leases.

Three Months Ended

Nine Months Ended

September 30,

September 30,

(Dollars in Thousands)

2023

2022

2023

2022

Operating lease expense

$

710

$

427

$

2,114

$

1,202

Short-term lease expense

167

158

438

495

Total lease expense

$

877

$

585

$

2,552

$

1,697

Other information:

Cash paid for amounts included in the measurement of lease liabilities:

Operating cash flows from operating leases

$

720

$

439

$

2,131

$

1,303

Right-of-use assets obtained in exchange for new operating lease liabilities

55

2,406

3,048

3,598

Weighted average remaining lease term — operating leases (in years)

18.4

22.0

18.4

22.0

Weighted average discount rate — operating leases

3.3%

2.2%

3.3%

2.2%

The table below summarizes the maturity of remaining lease liabilities:

(Dollars in Thousands)

September 30, 2023

2023

$

955

2024

2,723

2025

2,487

2026

2,336

2027

2,246

2028 and thereafter

21,045

Total

$

31,792

Less: Interest

(7,613)

Present Value of Lease liability

$

24,179

At September 30, 2023, the Company had

one

 additional operating lease obligation for a banking office that has not yet commenced. 

A related party is the lessor in an operating lease with the Company. The Company’s minimum payment is $

0.1

 million annually

through 2052, for an aggregate remaining obligation of $

2.3

 million at September 30, 2023.