LEASES

9 Months Ended

Sep. 30, 2022

9. LEASES

The Company leases space, primarily for branch facilities and small equipment under operating leases. The Company’s leases often include one or more options to renew at the Company's discretion, and some of the Company’s leases include options to terminate within one year. When it is reasonably certain that the Company will exercise the option to renew or extend the lease term, that option is included in estimating the value of the ROU asset and lease liability. The Company’s leases contain customary restrictions and covenants and do not contain any residual value guarantees. The Company has certain intercompany leases and subleases between its subsidiaries, and these transactions and balances have been eliminated in consolidation and are not reflected in the tables and information presented below. As of September 30, 2022, the Company had no finance leases.

The balance sheet components of the Company's leases at the date indicated are as follows (dollars in thousands):

	September 30, 2022
Operating lease right of use assets (included in Other assets)	$	8,284
Operating lease liabilities (included in Accrued expenses and other liabilities)		9,234

The Company does not generally enter into leases which contain variable payments, other than due to the passage of time. Operating lease costs, including short-term lease costs were $761 thousand and $2.2 million, respectively, for the three and nine months ended September 30, 2022. Operating lease costs were $648 thousand and $1.8 million, respectively, for the three and nine months ended September 30, 2021.

Supplemental cash flow information related to leases for the periods presented is as follows (dollars in thousands):

	Three Months Ended September 30,		Nine Months Ended September 30,
	2022		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used in operating leases	$	498	$	1,479
Right-of-use assets obtained in exchange for new lease obligations:
Operating leases	$	—	$	—

For operating leases the Company’s weighted average remaining lease terms in years and weighted average discount rate was 9.85 and 4.65%, respectively, as of September 30, 2022.

Maturities of operating lease liabilities at September 30, 2022, under lease agreements that had commenced as of or subsequent to January 1, 2022, are presented below (dollars in thousands).

2022	$	489
2023		1,859
2024		1,416
2025		993
2026		1,026
Thereafter		6,025
Total minimum lease payments		11,808
Less: Amount representing interest		(2,574	)
Lease liabilities	$	9,234

As of September 30, 2022, the Company had no significant additional operating leases that have not yet commenced.