Leases

9 Months Ended

Sep. 30, 2024

Leases

Leases

8.  Leases

As of September 30, 2024, the Company leased 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 assets and lease liabilities are impacted by the length of the lease term and the discount rate used to present the value of the minimum lease payments. The Company’s leases have maturities which range from 2024 to 2048, 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 15.9 years and 10.8 years as of September 30, 2024 and December 31, 2023, 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 each lease commencement date. The Company utilized a weighted average discount rate of 3.89% and 2.60% in calculating the value of the lease liability as of September 30, 2024 and December 31, 2023, respectively.

For the nine months ended September 30, 2024 and 2023, total operating lease costs were $573 and $537, respectively, and were included in occupancy and other expense. The right-of-use asset, included in other assets, was $7,444 and $6,239 and the corresponding lease liability, included in accrued expenses and other liabilities, was $7,509 and $6,307 as of September 30, 2024 and December 31, 2023, respectively.

Future minimum payments for operating leases with initial or remaining terms of one year or more as of September 30, 2024 were as follows:

Years ending December 31:
2024	$	195
2025		757
2026		745
2027		705
2028		708
Thereafter		7,528
Total future minimum lease payments		10,638
Amounts representing interest		(3,129)
Present Value of Net Future Minimum Lease Payments	$	7,509