Leases

9 Months Ended

Sep. 30, 2022

Leases

Leases

Note 4: Leases

As of September 30, 2022 and December 31, 2021, the Company had operating right of use (“ROU”) assets of $13.6 million and $14.0 million, respectively, and had operating lease liabilities of $13.6 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 September 30, 2022, the weighted average remaining lease term was 15.8 years and the weighted average incremental borrowing rate was 4.17%.

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

	September 30,
	2022		2021
Operating lease expense	$	296,800	$	269,592
Short-term lease expense		—		—
Total lease expense	$	296,800	$	269,592

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

	September 30,
	2022		2021
Operating lease expense	$	894,135	$	852,624
Short-term lease expense		—		—
Total lease expense	$	894,135	$	852,624

Total rental expense was included in net occupancy expense within the consolidated statements of income.

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