Leases

12 Months Ended

Dec. 31, 2021

LeasesWe lease three retail branches and a parcel of land for a retail branch location. These leases generally have remaining terms of 5 years or less except the land lease, which has a remaining lease term of eighty-four years. Some of the leases may include options to renew the leases. The exercise of lease renewal is at our sole discretion.

Our right-of-use assets and lease liabilities for operating leases are included in other assets and other liabilities on our consolidated balance sheets. We use the interest rate implicit in the lease or incremental borrowing rate in determining the present value of lease payments. At December 31, 2021, we had future minimum lease payments of $26.9 million and imputed interest of $24.9 million and lease liability of $2.1 million. The weighted average remaining lease term was 57.7 years and weighted average discount rate was 7.39% at December 31, 2021, respectively. Our operating lease expense is included in occupancy expenses within non-interest expense in our consolidated statements of income. Total operating lease expense consists of operating lease cost, which is recognized on a straight-line basis over the lease term, and variable lease cost, which is recognized based on actual amounts incurred.

The following table presents information about our operating leases at the year ended December 31, 2021.


Dollars in thousands	2021
Lease right of use assets (ROU)	$	2,062
Lease liabilities	$	2,062

The following table presents future undiscounted cash flows on our operating leases:


Years Ending December 31,	(Dollars in thousands)
2022	$	290
2023	250
2024	262
2025	262
2026	188
Thereafter	25,688
Total undiscounted lease payments	$	26,940