Leases

3 Months Ended

Mar. 31, 2022

Leases

6. Leases

(6)  Leases 

As of March 31, 2022, the Bank had operating right of use assets of $6.2 million and operating lease liabilities of $6.3 million. The Bank maintains operating leases on land and buildings for some of the Bank’s branch facilities and loan production offices. Most leases include one option to renew, with renewal terms extending up to 15 years. The exercise of renewal options is based on the judgment of management as to whether or not the renewal option is reasonably certain to be exercised. Factors in determining whether an option is reasonably certain of exercise include, but are not limited to, the value of leasehold improvements, the value of renewal rates compared to market rates, and the presence of factors that would cause a significant economic penalty to the Bank if the option is not exercised. Leases with a term of 12 months or less are not recorded on the balance sheet and instead are recognized in lease expense on a straight-line basis over the lease term.

The following table presents lease cost and other lease information as of March 31, 2022 and 2021.

(Dollars in thousands)
	March 31,2022			March 31,2021
Operating lease cost	$	189		$	195
Other information:
Cash paid for amounts included in the measurement of lease liabilities		575			189
Right-of-use assets obtained in exchange for new lease liabilities - operating leases		1,759			-
Weighted-average remaining lease term - operating leases		8.92			6.95
Weighted-average discount rate - operating leases		2.04	%		2.69	%

The following table presents lease maturities as of March 31, 2022 and December 31, 2021.

(Dollars in thousands)
Maturity Analysis of Operating Lease Liabilities:	March 31, 2022			December 31, 2021
2022	$	690		$	740
2023		922			746
2024		867			691
2025		812			635
2026		694			518
Thereafter		2,975			1,838
Total		6,960			5,168
Less: Imputed Interest		(685	)		(491	)
Operating Lease Liability	$	6,275		$	4,677