Leases

6 Months Ended

Jun. 30, 2022

Leases

Leases

Note 4: Leases

As of June 30, 2022 and December 31, 2021, the Company had operating right of use (“ROU”) assets of $13.7 million and $14.0 million, respectively, and had operating lease liabilities of $13.7 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 June 30, 2022, the weighted average remaining lease term was 16.1 years and the weighted average incremental borrowing rate was 4.17%.

The table below shows lease expense components for the three months ended June 30, 2022 and 2021.

	June 30,
	2022		2021
Operating lease expense	$	297,764	$	279,592
Short-term lease expense		—		—
Total lease expense	$	297,764	$	279,592

The table below shows lease expense components for the six months ended June 30, 2022 and 2021.

	June 30,
	2022		2021
Operating lease expense	$	597,335	$	581,129
Short-term lease expense		—		—
Total lease expense	$	597,335	$	581,129

Total rental expense was $297,764 and $279,592 for the three months ended June 30, 2022 and 2021, respectively, and $597,335 and 581,129 for the six months ended June 30, 2022 and 2021, respectively, and was included in net occupancy expense within the consolidated statements of income.

As of June 30, 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 June 30, 2022, we had no operating leases that had not yet commenced.