LEASES

12 Months Ended

Dec. 31, 2021

NOTE 12 – LEASES

The Company has operating leases for bank locations, ATMs, corporate offices, and certain other arrangements, which have remaining lease terms of 1 year to 14 years. Some of the Company’s operating leases include options to extend the leases for up to 10 years.

Operating leases in which we are the lessee must be recorded as right-of-use assets with corresponding lease liabilities. The right-of-use asset represents our right to utilize the underlying asset during the lease term, while the lease liability represents the present value of the obligation of the Company to make periodic lease payments over the life of the lease. The associated operating lease costs are comprised of the amortization of the right-of-use asset and the implicit interest accreted on the lease liability, which is recognized on a straight-line basis over the life of the lease. As of December 31, 2021, operating lease right-of-use assets were $14,376 and liabilities were $14,882, and as of December 31, 2020, lease assets and liabilities were $13,291 and $13,539, respectively, and were included within the accompanying consolidated balance sheets as components of other assets and accrued interest and other liabilities, respectively.

Operating lease expense for operating leases accounted for under ASC 842 for the years ended December 31, 2021, 2020 and 2019 was approximately $2,278, $1,954 and $1,881, respectively, and is included as a component of occupancy expenses within the accompanying consolidated statements of earnings.

The table below summarizes other information related to our operating leases as of:


	December 31, 2021			December 31, 2020
Operating leases
Operating lease right-of-use assets	$	14,376		$	13,291
Operating lease liabilities		14,882			13,539

Weighted average remaining lease term
Operating leases	8 years			9 years
Weighted average discount rate
Operating leases		1.95	%		2.19	%

The Company leases some of its banking facilities under non-cancelable operating leases expiring in various years through 2026 and thereafter. Minimum future lease payments under these non-cancelable operating leases as of December 31, 2021, are as follows:


Year Ended December 31,	Amount
2022	$	2,155
2023		2,093
2024		2,039
2025		1,870
2026		1,642
Thereafter		5,855
Total lease payments		15,654
Less: interest		(772	)
Present value of lease liabilities	$	14,882