LEASES

9 Months Ended

Sep. 30, 2023

NOTE 8 – 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 12 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 composed 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 September 30, 2023, operating lease right-of-use assets were $11,997 and liabilities were $12,643, and as of December 31, 2022, lease assets and liabilities were $12,896 and $13,520, 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 nine months ended September 30, 2023 and 2022 was approximately $1,724 and $1,673, 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:


	September 30, 2023			December 31, 2022
Operating leases
Operating lease right-of-use assets	$	11,997		$	12,896
Operating lease liabilities		12,643			13,520

Weighted average remaining lease term
Operating leases	7 years			8 years
Weighted average discount rate
Operating leases		2.09	%		2.00	%

The Company leases some of its banking facilities under non-cancelable operating leases expiring in various years through 2027 and thereafter. Minimum future lease payments under these non-cancelable operating leases as of September 30, 2023, are as follows:


Year Ended December 31,	Amount
2023	$	563
2024		2,212
2025		2,043
2026		1,806
2027		1,615
Thereafter		4,715
Total lease payments		12,954
Less: interest		(311	)
Present value of lease liabilities	$	12,643