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Leases

12 Months Ended

Dec. 31, 2021

11. Leases

As of December 31, 2021, the Company leases real estate for eight branch offices and two administrative offices under various lease agreements. All of our leases are classified as operating leases.

The calculated amount of the ROU assets and lease liabilities are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Company’s leases have maturities which range from 2024 to 2041, some of which include lessee options to extend the lease term. If the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. The weighted average remaining life of the lease terms for these leases was 12.0 and 12.7 years as of December 31, 2021 and 2020, respectively. As most of our leases do not provide an implicit rate, the Company used its incremental borrowing rate, the rate of interest to borrow on a collateralized basis for a similar term, at the lease commencement date. The Company utilized a weighted average discount rate of 2.51% and 2.61% in determining the lease liability as of December 31, 2021 and 2020, respectively.

For the years ended December 31, 2021 and 2020, total operating lease costs were $731 and $588, respectively, and were included in occupancy and other expense. Deferred rent liability was $145 at December 31, 2021 and $176 at December 31, 2020. The right-of-use asset, included in other assets, was $7,839 and $6,289 as of December 31, 2021 and 2020, respectively. The corresponding lease liability, included in accrued expenses and other liabilities was $7,839 and $6,289 as of December 31, 2021 and 2020, respectively.

Future minimum payments for operating leases with initial terms of one year or more as of December 31, 2021 were as follows:


Years ending December 31:
2022	$	850
2023		854
2024		857
2025		833
2026		728
Thereafter		5,070
Total future minimum lease payments		9,192
Amounts representing interest		(1,353)
Present Value of Net Future Minimum Lease Payments	$	7,839