The Company leases certain office space and stand-alone buildings which are recognized as operating lease right-of-use (“ROU”) assets and operating lease liabilities in the consolidated balance sheets. Lease liabilities represent the Company's liability to make lease payments under these leases, on a discounted basis. For leases with renewal options available, the Company evaluates each lease to determine if exercise of the renewal option is reasonably certain. As of June 30, 2022, the Company's operating lease ROU asset and operating lease liability totaled $12.6 million and $12.6 million, respectively.

In order to calculate its ROU assets and lease liabilities, ASC Topic 842 requires the Company to use the rate of interest implicit in the lease when readily determinable. If the rate implicit in the lease is not readily determinable, the Company is required to use its incremental borrowing rate, which is the rate of interest the Company would have to pay to borrow on a collateralized basis over a

similar term in a similar economic environment. The Company was unable to determine the implicit interest rate in any of the leases and therefore used its incremental borrowing rate.

As of June 30, 2022, the weighted-average discount rate for the Company's operating leases was 4.00%. The Company's lease terms range from five months to one hundred forty-four months. The weighted-average remaining term of the leases was 9.0 years.

Lease costs for the period shown below were as follows:


	June 30,
(Dollars in thousands)	2022
Operating lease cost	$	1,139
Short-term lease cost		322
Total lease cost	$	1,461

Total operating lease expense for the six months ended June 30, 2022 and 2021 was $1,461,000 and $630,000, respectively.

A schedule of the Company's lease liabilities by contractual maturity for operating leases with initial or remaining terms in excess of one year for each year through 2027 and thereafter is presented below:


	June 30,
(Dollars in thousands)	2022
2022 (six months remaining)	$	877
2023		2,068
2024		2,341
2025		2,335
2026		2,385
2027 and thereafter		13,902
Total undiscounted lease liability		23,908
Less:
Discount on cash flows		(2,571	)
Lease signed, but not yet commenced		(8,687	)
Total operating lease liability	$	12,650