Leases

3 Months Ended

Mar. 31, 2022

Leases

Leases

Note 4: Leases

As of March 31, 2022 and December 31, 2021, the Company had operating right of use (“ROU”) assets of $13.9 million and $14.0 million, respectively, and had operating lease liabilities of $13.9 million and $14.0 million, respectively. The Company maintains operating leases on land, branch facilities, and parking. Most of the leases include one or more options to renew, with renewal terms extending up to 20 years. Leases with an initial term of 12 months or less are not recorded on the balance sheet and are recognized in lease expense.

As of March 31, 2022, the weighted average remaining lease term was 16.3 years and the weighted average incremental borrowing rate was 4.17%.

The table below shows lease expense components for the three months ended March 31, 2022 and 2021.

	March 31,
	2022		2021
Operating lease expense	$	299,571	$	301,537
Short-term lease expense		—		—
Total lease expense	$	299,571	$	301,537

Total rental expense was $299,571 and $301,537 for the three months ended March 31, 2022 and 2021, respectively and was included in net occupancy expense within the consolidated statements of income.

As of March 31, 2022 and December 31, 2021, we did not maintain any finance leases, and we determined that the number and dollar amount of equipment leases was immaterial. As of March 31, 2022, we had no operating leases that had not yet commenced.