Leases

9 Months Ended

Sep. 30, 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.

($ in thousands)	September 30, 2024			December 31, 2023
Lease liabilities	$	11,816		$	12,857
Right-of-use assets	$	11,384		$	12,487
Weighted average remaining lease term	10.51 years			10.88 years
Weighted average discount rate	3.27		%	3.24		%
Remaining lease term - min	0.08 years			0.39 years
Remaining lease term - max	16.93 years			17.68 years

	Three Months Ended September 30,				Nine Months Ended September 30,
Lease cost ($ in thousands)	2024		2023		2024		2023
Operating lease cost	$	473	$	485	$	1,445	$	1,153
Total lease cost	$	473	$	485	$	1,445	$	1,153
Cash paid for amounts included in the measurement of lease liabilities	$	449	$	459	$	1,367	$	1,090

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 September 30, 2024
Three months ending December 31, 2024	$	431
2025	1,648
2026	1,636
2027	1,517
2028	1,467
Thereafter	7,233
Total undiscounted cash flows	$	13,932
Discount	2,116
Lease liabilities	$	11,816

Total gross rental income was $266 thousand and $253 thousand for the three months ended September 30, 2024 and 2023, respectively. Total gross rental income was $799 thousand and $937 thousand for the nine months ended September 30, 2024 and 2023, respectively.

The following table presents our minimum future annual rental income on such leases as of September 30, 2024.

($ in thousands)	As of September 30, 2024
Three months ending December 31, 2024	$	224
2025	904
2026	927
2027	614
2028	632
Thereafter	2,478
Total	$	5,779