Leases

12 Months Ended

Dec. 31, 2023

The Bank leases branch offices, parking facilities and certain equipment under operating leases. The leases have remaining lease terms of 1 year to 10.5 years, some of which include options to extend the leases for up to 10 years, and some of which

include options to terminate the leases within 1 year. As the options are reasonably certain to be exercised, they are recognized as part of the right-of-use assets and lease liabilities.

For the years ended December 31, 2023 and 2022, total operating lease expense was $0.50 million and $0.58 million, respectively, and is included in occupancy expenses in the consolidated statement of income. Included in this were $0.43 million and $0.50 million of operating lease costs, respectively, $0.03 million and $0.03 million of short term lease costs, respectively, and $0.04 million and $0.05 million of variable lease costs, respectively.

For the years ended December 31, 2023 and 2022, cash paid for amounts included in the measurement of operating lease liabilities was $0.42 million and $0.50 million, respectively, and right-of-use assets obtained in exchange for lease obligations was $0.31 million and none, respectively.

As of December 31, 2023 and 2022, operating lease right-of-use assets included in other assets were $2.13 million and $2.11 million, respectively. Operating lease liabilities included in other liabilities were $2.22 million and $2.19 million, respectively. The weighted average remaining lease term for operating leases was 8.56 years and 9.72 years, respectively, and the weighted average discount rate for operating leases was 3.69% and 3.54%, respectively. Discount rates used were determined from FHLB borrowing rates for comparable terms.

As of December 31, 2023, maturities of lease liabilities were as follows:


Year ending December 31:	(Amounts In Thousands)
2024	329
2025	332
2026	335
2027	333
2028	295
Thereafter	984
Total lease payments	2,608
Less imputed interest	(385)
Total operating lease liabilities	$	2,223