Leases

6 Months Ended

Jun. 30, 2024

The Bank leases certain of its branch offices, parking facilities and certain equipment under operating leases. The leases have remaining lease terms of 1 year to 10 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 six months ended June 30, 2024 and 2023, total operating lease expense was $0.28 million and $0.26 million respectively, and is included in occupancy expenses in the consolidated statements of income. Included in this for the six months ended June 30, 2024 and 2023 were $0.24 million and $0.22 million, respectively, of operating lease costs, $0.01 million and $0.02 million, respectively, of short term lease costs, and $0.03 million and $0.02 million, respectively, of variable lease costs.

For the six months ended June 30, 2024 and 2023, cash paid for amounts included in the measurement of operating lease liabilities was $0.24 million and $0.22 million, respectively.

As of June 30, 2024 and December 31, 2023, operating lease right-of-use assets included in other assets was $2.00 million and $2.13 million respectively. Operating lease liabilities included in other liabilities were $2.10 million and $2.22 million as of June 30, 2024 and December 31, 2023. As of June 30, 2024 and December 31, 2023, the weighted average remaining lease term for operating leases was 8.16 years and 8.56 years, respectively, and the weighted average discount rate for operating leases was 3.68% and 3.69%, respectively. Discount rates used were determined from FHLB borrowing rates for comparable terms.

As of June 30, 2024, maturities of lease liabilities were as follows:


Year ending December 31:	(Amounts In Thousands)
2024 (excluding the six months ended June 30, 2024)	$	166
2025	332
2026	335
2027	333
2028	295
Thereafter	984
Total lease payments	2,445
Less imputed interest	(347)
Total operating lease liabilities	$	2,098