OPERATING LEASE ROU ASSETS AND LIABILITIES

3 Months Ended

Mar. 31, 2024

OPERATING LEASE ROU ASSETS AND LIABILITIES

OPERATING LEASE ROU ASSETS AND LIABILITIES

11. OPERATING LEASE ROU ASSETS AND LIABILITIES

Operating lease ROU assets, included in other assets, were $22.4 million and $22.9 million at March 31, 2024 and December 31, 2023, respectively.

Operating lease liabilities, included in other liabilities and accrued expenses, were $24.1 million and $24.5 million at March 31, 2024 and December 31, 2023, respectively. As of March 31, 2024 and December 31, 2023 there were no leases that had not yet commenced. At March 31, 2024, lease expiration dates ranged from one month to 34.4 years and had a weighted average remaining lease term of 16.1 years. At December 31, 2023, lease expiration dates ranged from two months to 34.7 years and had a weighted average remaining lease term of 16.2 years.

Future minimum lease payments under non-cancellable leases and a reconciliation to the amount recorded as operating lease liabilities as of March 31, 2024 were as follows:

	March 31,
	2024
	(in thousands)
2024	$	2,754
2025		2,642
2026		2,485
2027		2,416
2028		2,239
Thereafter		16,588
Total lease payments		29,124
Imputed interest		(5,044)
Total present value of operating lease liabilities	$	24,080

The weighted-average discount rate and remaining lease term for operating leases were as follows:

	March 31, 2024		December 31, 2023
Weighted-average discount rate	2.09	%	2.08	%
Weighted-average remaining lease term (years)	16.10		16.24

Rental expense for operating leases is recognized on a straight-line basis over the lease term. Variable lease components, such as fair-market value adjustments, are expensed as incurred and not included in ROU assets and operating lease liabilities.

The following table presents the components of total lease expense:

	Three Months Ended
	March 31,
	2024		2023
Lease Expense:
Operating lease expense	$	747	$	807
Short-term lease expense		26		30
Variable lease expense		5		2
Sublease income		—		(5)
Total lease expense	$	778	$	834
Other Information
Cash paid for amounts included in the measurement of lease liabilities-
operating cash flows for operating leases		737		835
Operating Lease - Operating cash flows (Liability reduction)		615		680
ROU assets obtained in exchange for new operating lease liabilities		38		—