Leases

3 Months Ended

Mar. 31, 2023

LEASES

The Company has operating leases on six of its branches. During the three months ended March 31, 2023, the Company made cash payments in the amount of $128,000 for operating leases. The lease expense recognized during this period was $128,000 and was recorded in occupancy expense within the Consolidated Statements of Income. The lease liability had a net decrease of $111,000. At March 31, 2023, the Bank had ROU assets of $1.7 million and a lease liability of $1.8 million recorded on its consolidated balance sheet compared to ROU assets of $1.9 million and a lease liability of $1.9 million at December 31, 2022. The lease agreements have maturity dates ranging from 2023 through 2028, some of which include options for multiple five or ten year extensions. At March 31, 2023, the remaining weighted average lease term was 3.86 years and the weighted average discount rate used was 3.2%.

At March 31, 2023, maturities of operating lease liabilities for future periods were as follows:



Remainder of 2023	$	389,688
2024	522,147
2025	474,815
2026	363,428
2027	149,301
Thereafter	10,371
Total undiscounted lease payments	1,909,750
Less: effect of discounting	(116,161)
Present value of estimated lease payments (lease liability)	$	1,793,589