Leases

3 Months Ended

Mar. 31, 2022

Leases

Leases

10.  Leases

As of March 31, 2022, 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 right-of-use 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 right-of-use asset and lease liability. The weighted average remaining life of the lease terms for these leases was 11.8 years and 12.0 years as of March 31, 2022 and December 31, 2021, 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% in determining the lease liability as of March 31, 2022 and December 31, 2021, respectively.

For the three months ended March 31, 2022 and 2021, total operating lease costs were $195 and $155 and were included in occupancy and other expense. Deferred rent liability was $136 and $145 at March 31, 2022 and December 31, 2021, respectively. The right-of-use asset, included in other assets, was $7,677 and $7,839 and the corresponding lease liability, included in accrued expenses and other liabilities, was $7,677 and $7,839 as of March 31, 2022 and December 31, 2021, respectively.

Future minimum payments for operating leases with initial or remaining terms of one year or more as of March 31, 2022 were as follows:

Years ending December 31:
2022	$	640
2023		854
2024		857
2025		833
2026		728
Thereafter		5,070
Total future minimum lease payments		8,982
Amounts representing interest		(1,305)
Present Value of Net Future Minimum Lease Payments	$	7,677