Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. Cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease for a term similar to the length of the lease, including any probable renewal options available. Right-of-use assets represent the Company’s right to use the underlying asset for the lease term and are calculated as the sum of the lease liability and if applicable, prepaid rent, initial direct costs and any incentives received from the lessor.

Lease payments for short-term leases are recognized as lease expense on a straight-line basis over the lease term. Payments for leases with terms longer than twelve months are included in the determination of the lease liability. The right-of-use asset and lease liability are included in other assets and other liabilities, respectively, in the Consolidated Balance Sheets.

Each of the Company’s long-term lease agreements are classified as operating leases. Certain of these leases offer the option to extend the lease term and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations.

The following tables present information about the Company’s leases (dollars in thousands):


	June 30, 2022			June 30, 2021
Lease liability	$	6,925		$	7,833
Right-of-use asset	$	7,343		$	8,371
Weighted average remaining lease term	5.84 years			6.37 years
Weighted average discount rate		1.97	%		1.98	%


	Three Months Ended June 30,				Six Months Ended June 30,
Lease Expense:	2022		2021		2022		2021
Operating lease expense	$	449	$	427	$	894	$	649
Short-term lease expense		139		32		191		61
Total lease expense	$	588	$	459	$	1,085	$	710
Cash paid for amounts included in lease liabilities	$	418	$	389	$	832	$	608

A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total of operating lease liabilities is as follows (dollars in thousands):


Undiscounted Cash Flow	June 30, 2022
Six months ending December 31, 2022	$	817
Twelve months ending December 31, 2023		1,567
Twelve months ending December 31, 2024		1,296
Twelve months ending December 31, 2025		1,091
Twelve months ending December 31, 2026		748
Twelve months ending December 31, 2027		650
Thereafter		1,141
Total undiscounted cash flows	$	7,310
Less: Discount		(385	)
Lease liability	$	6,925