Leases

9 Months Ended

Sep. 30, 2024

Leases

Leases

(6)   Leases

As of September 30, 2024, the Bank had operating right of use assets of $4.2 million and operating lease liabilities of $4.3 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 September 30, 2024 and 2023.

(Dollars in thousands)
	September 30, 2024			September 30, 2023
Operating lease cost	$	630		$	605
Other information:
Cash paid for amounts included in the measurement of lease liabilities		613			583
Operating cash flows from operating leases		-			-
Right-of-use assets obtained in exchange for new lease liabilities - operating leases		-			370
Weighted-average remaining lease term - operating leases		8.03			8.61
Weighted-average discount rate - operating leases		2.78	%		2.71	%

The following table presents lease maturities as of September 30, 2024.

(Dollars in thousands)
Maturity Analysis of Operating Lease Liabilities:	September 30, 2024
2024	$	205
2025		773
2026		650
2027		612
2028		510
Thereafter		2,116
Total		4,866
Less: Imputed Interest		(554	)
Operating Lease Liability	$	4,312