Leases

3 Months Ended

Mar. 31, 2024

Leases [Abstract]

Leases

Leases

Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. Cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. Right-of-use assets represent the Company’s right to use the underlying asset for the lease term and are calculated as the sum of the lease liability and if applicable, prepaid rent, initial direct costs and any incentives received from the lessor.

The Company’s long-term lease agreements are classified as operating leases. Certain leases offer the option to extend the lease term and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably certain of being exercised. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations.

The following tables present information about the Company’s leases.

(Dollars in thousands)	March 31, 2024			December 31, 2023
Lease liabilities	$	12,552		$	12,857
Right-of-use assets	$	12,153		$	12,487
Weighted average remaining lease term	10.72 years			10.88 years
Weighted average discount rate	3.24		%	3.24		%
Remaining lease term - min	0.14 years			0.39 years
Remaining lease term - max	17.43 years			17.68 years

	Three Months Ended March 31,
Lease cost (in thousands)	2024		2023
Operating lease cost	$	492	$	340
Total lease cost	$	492	$	340
Cash paid for amounts included in the measurement of lease liabilities	$	462	$	322

A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total of operating lease liabilities is as follows:

Lease payments due (in thousands)	As of March 31, 2024
Nine months ending December 31, 2024	$	1,347
2025	1,642
2026	1,600
2027	1,472
2028	1,419
Thereafter	7,261
Total undiscounted cash flows	$	14,741
Discount	2,189
Lease liabilities	$	12,552

Total gross rental income was $0.3 million and $0.4 million for the three months ended March 31, 2024 and 2023, respectively.

The following table presents our minimum future annual rental income on such leases as of March 31, 2024.

(In thousands)	As of March 31, 2024
Nine months ending December 31, 2024	$	635
2025	854
2026	876
2027	562
2028	578
Thereafter	2,438
Total	$	5,943