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LEASES

12 Months Ended

Dec. 31, 2023

NOTE 6 LEASES

Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. Cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. Right-of-use assets represent the Company’s right to use the underlying asset for the lease term and are calculated as the sum of the lease liability and if applicable, prepaid rent, initial direct costs and any incentives received from the lessor.

The Company’s long-term lease agreements are classified as operating leases. Certain of these leases offer the option to extend the lease term and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. The Company has five operating leases for office properties.

The following tables present information about the Company’s leases (dollars in thousands):

	December 31, 2023			December 31, 2022
Lease Liabilities (included in other liabilities)	$	733		$	886
Right-of-use assets (included in other assets)	$	712		$	861
Weighted average remaining lease term	1.53 years			2.54 years
Weighted average discount rate		3.31	%		3.22	%
	2023			2022
Lease cost
Operating lease cost	$	164		$	151
Total lease cost	$	164		$	151

Cash paid for amounts included in the measurement of lease liabilities	$	182		$	177

A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total of operating lease liabilities is as follows (dollars in thousands):

Lease payments due	As of December 31, 2023
Twelve months ending December 31, 2024	$	159
Twelve months ending December 31, 2025		121
Twelve months ending December 31, 2026		70
Twelve months ending December 31, 2027		56
Twelve months ending December 31, 2028		57
Thereafter		405
Total undiscounted cash flows	$	868
Discount		(135	)
Lease liabilities	$	733