Lease Commitments

6 Months Ended

Jun. 30, 2023

Our leases relate primarily to office space and bank branches with remaining lease terms of generally 1 to 15 years. Certain lease arrangements contain extension options which typically range from 5 to 10 years at the then fair market rental rates. As these extension options are not generally considered reasonably certain of exercise, they are not included in the lease term. For leases existing during transition from ASC 840 to ASC 842 at January 1, 2022, extension options were not considered in the remaining lease term.


	June 30, 2023			December 31, 2022
ROU asset on leased property, gross	$	35,416		$	35,212
Accumulated amortization	(9,408)			(6,808)
ROU asset, net (included in Prepaid expenses and other assets in our consolidated balance sheets)	$	26,008		$	28,404
Lease liability (Included in Accrued expenses and other liabilities in our consolidated balance sheets)	$	28,629		$	31,267
Weighted Average Remaining Life - Operating Leases	5.62			5.92
Weighted Average Rate - Operating Leases	1.91		%	1.81		%

The following table reconciles future undiscounted lease payments due under non-cancelable operating leases to the aggregate operating lessee lease liability as of June 30, 2023:


Remainder of 2023	$	7,412
2024	6,593
2025	5,000
2026	3,134
2027	2,347
2028	5,423
Thereafter	342
Total undiscounted operating lease liability	30,251
Imputed interest	1,622
Total operating lease liability included in the accompanying balance sheet	$	28,629

Total lease expense for three months ended June 30, 2023 and 2022 was $1,847 and $2,006, respectively. Total lease expense for the six months ended June 30, 2023 and 2022 was $3,745 and $3,776, respectively. The components of total lease expense for the periods ended June 30, 2023 was as follows:


	For the three months ended June 30,		For the six months ended June 30,
	2023		2023
Operating leases	$	1,886	$	3,755
Short-term leases	54		100

Sublease income	(93)		(110)
Net lease expense	$	1,847	$	3,745

We do not currently have any significant finance leases in which we are the lessee, material related-party leases, leases containing residual value guarantees or restrictive covenants.