Leases

12 Months Ended

Dec. 31, 2023

Leases

Leases

10.   Leases

As of December 31, 2023, the Company leases real estate for seven 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 (“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 10.1 and 11.6 years as of December 31, 2023 and 2022, 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 calculated a weighted average discount rate of 2.43% and 2.58% in determining the lease liability as of December 31, 2023 and 2022, respectively.

For the years ended December 31, 2023 and 2022, total operating lease costs were $717 and $898, respectively, and were included in occupancy and other expense. Deferred rent liability was $68 at December 31, 2023 and $105 at December 31, 2022. The ROU asset, included in other assets, was $6,307 and $6,896 as of December 31, 2023 and 2022, respectively. The corresponding lease liability, included in accrued expenses and other liabilities was $6,307 and $6,896 as of December 31, 2023 and 2022, respectively.

Future minimum payments for operating leases with initial terms of one year or more as of December 31, 2023 were as follows:

Years ending December 31:
2024	$	764
2025		739
2026		720
2027		676
2028		677
Thereafter		3,717
Total future minimum lease payments		7,293
Amounts representing interest		(986)
Present Value of Net Future Minimum Lease Payments	$	6,307