LEASES

3 Months Ended

Mar. 31, 2022

NOTE 8 – LEASES

Substantially all of the Company’s operating lease right-of-use (“ROU”) assets and operating lease liabilities represent leases for branch buildings and office space to conduct business. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. The lease expense for these leases are recorded on a straight-line basis over the lease term. Leases with initial terms in excess of 12 months are recorded as either operating or financing leases on the consolidated balance sheet. The Company has no finance lease arrangements. Operating leases have remaining lease terms ranging from 13 months to 19 years, some of which include options to extend the leases for up to 15 years. Operating lease ROU assets and operating lease liabilities are valued based on the present value of future minimum lease payments, discounted with an incremental borrowing rate for the same term as the underlying lease. The Company has one lease arrangement that contains variable lease payments that are adjusted periodically for an index.

Balance sheet information related to leases was as follows:

	As of March 31, 2022		As of December 31, 2021
Operating leases:
Operating lease right-of-use assets	$	1,155	$	1,195
Operating lease liabilities		1,155		1,195

The components of lease cost were as follows:

	Three months ended March 31,
	2022		2021
Operating lease cost	$	42	$	39
Short-term lease expense		10		8

Future undiscounted lease payments for operating leases with initial terms of one year or more as of March 31, 2022 are as follows:

	Operating Leases
2022 (remaining)	$	126
2023		127
2024		106
2025		106
2026		107
Thereafter		866
Total lease payments		1,438
Less: Imputed Interest		(283	)
Total operating leases	$	1,155

Other information was as follows:

	As of March 31, 2022			As of December 31, 2021
Weighted-average remaining lease term for operating leases	13.4 years			13.7 years
Weighted-average discount rate for operating leases		2.30	%		2.29	%