Leases

12 Months Ended

Dec. 31, 2023

Note 7 – Leases

At December 31, 2023, the Company had leased certain of its banking and operations offices, or the land on which such offices were built, under operating lease agreements on terms ranging from 1 to 20 years, most with renewal options. 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. Refer to Note 14 – Related Party Transactions for information regarding leasing transactions with related parties.

The following tables present information about the Company’s leases:


(Dollars in thousands)	December 31, 2023			December 31, 2022
Lease liability	$	6,504		$	6,173
Right-of-use asset	$	6,748		$	6,536
Weighted average remaining lease term	4.71 years			5.77 years
Weighted average discount rate		2.28	%		1.96	%


(Dollars in thousands)	2023		2022
Operating lease expense	$	1,740	$	1,768
Short-term lease expense		332		592
Total lease expense	$	2,072	$	2,360
Cash paid for amounts included in lease liabilities	$	1,542	$	1,534

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)	December 31, 2023
Twelve months ending December 31, 2024	$	1,520
Twelve months ending December 31, 2025		1,437
Twelve months ending December 31, 2026		1,095
Twelve months ending December 31, 2027		999
Twelve months ending December 31, 2028		878
Thereafter		913
Total undiscounted cash flows	$	6,842
Less: Discount		(338	)
Lease liability	$	6,504