Operating leases in which we are the lessee are recorded as operating lease right of use (“ROU”) assets and operating lease liabilities, included in premises and equipment and other liabilities, respectively, on our consolidated balance sheets. Operating lease ROU assets represent our right to use an underlying asset during the lease term and operating lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents our incremental collateralized borrowing rate at the lease commencement date. ROU assets are further adjusted for any lease incentives. Operating lease expense, which is composed of amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term and is recorded in the net occupancy expense in the consolidated statements of income. We do not currently have any finance leases in which we are the lessee.

Our leases relate to four office locations, three of which are branch locations, with remaining terms of two to five years. Certain lease arrangements contain extension options which range from five to ten years at the then fair market rental rates. As these extension options are not generally considered reasonably certain of exercise, they are not included in the lease term. As of June 30, 2024, operating lease ROU assets were $1.3 million and the operating lease liability was $1.4 million, compared to operating lease ROU assets of $1.7 million and an operating lease liability of $1.8 million at June 30, 2023. Lease costs associated with all leases was $106,000 and $212,000 for the three and six months ended June 30, 2024, respectively.

The table below summarizes other information related to our operating leases:


	Six Months Ended June 30,
	2024			2023
	(in thousands except percent and period data)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	221		$	216
Right-of-use assets obtained in exchange for new operating lease liabilities		—			—
Weighted-average remaining lease term - operating leases, in years		3.5			4.4
Weighted-average discount rate - operating leases		2.61	%		2.56	%

The table below summarizes the maturity of remaining lease liabilities:


	June 30, 2024
	(dollars in thousands)
2024	$	224
2025		455
2026		416
2027		260
2028		97
2029 and thereafter		20
Total lease payments		1,472
Less: Interest		(70	)
Present value of lease liabilities		1,402