Leases

12 Months Ended

Dec. 31, 2023

The Company's lease commitments consist primarily of agreements to lease land and office facilities that it occupies to operate several of its retail branch locations that are classified as operating leases and are recognized on the balance sheet as right-of-use (“ROU”) asset and lease liabilities. As of December 31, 2023, the Company has operating lease ROU assets of $9.1 million and operating lease liabilities of $9.1 million. As of December 31, 2022, the Company has operating lease ROU assets of $9.9 million and operating lease liabilities of $9.9 million. The Company does not have any agreements that are classified as finance leases.

The following table presents additional information about the Company's operating leases:


(In Thousands)	2023		2022
Lease Cost
Operating lease cost(1)	$2,818		$2,737
Short term lease cost(1)	143		37
Total lease cost	$2,961		$2,774

Other information
Operating leases - operating cash flows	$2,628		$2,545
Weighted average lease term - operating leases, in years	10.41		10.52
Weighted average discount rate - operating leases	3.55	%	3.30	%
(1)Expenses are classified within occupancy expense on the Consolidated Statements of Income.

The table below reconciles the remaining undiscounted cash flows for the next five years for each twelve-month period presented and the total of the subsequent remaining years to the operating lease liabilities recorded on the balance sheet:


(In Thousands)			Operating Leases
2024			$2,637
2025			2,285
2026			1,130
2027			731
2028			543
Thereafter			3,876
Total minimum lease payments			$11,202
Less: amount of lease payment representing interest			(2,110)
Present value of future minimum lease payments			$9,092