LEASES

3 Months Ended

Mar. 31, 2023

The Company leases certain office space, land and equipment under operating leases. These leases have original terms ranging from one year to 40 years. Operating lease liabilities and right-of-use assets are recognized at the lease commencement date based on the present value of the future minimum lease payments over the lease term.

The Company had the following related to operating leases:


	March 31, 2023				December 31, 2022

	(Dollars in thousands)
Right-of-use assets		$	26,320		$	25,906
Lease liabilities		27,799			27,324
Weighted average remaining lease term for operating leases		10.9 years			11.3 years
Weighted average discount rate used in the measurement of lease liabilities		2.27		%	2.19		%

The following table is a summary of the Company’s components of net lease cost for the three months ended March 31, 2023 and 2022. The variable lease cost primarily represents variable payments such as common area maintenance and utilities.


	Three Months Ended March 31,
			2023		2022
		(In thousands)
Operating lease cost			$	840	$	770
Finance lease cost			4		6
Variable lease cost			57		54
Total lease cost included as a component of occupancy and equipment			$	901	$	830

The following table presents supplemental cash flow information related to operating leases:


	Three Months Ended March 31,
			2023		2022
		(In thousands)
Cash paid for amounts included in the measurement of operating lease liabilities:
Operating cash flows from operating leases			$	819	$	757
Operating lease liabilities arising from obtaining right-of-use assets (non-cash):
Operating leases			$	1,107	$	—

Future undiscounted lease payments for operating leases with initial terms of one year or more as of March 31, 2023 are as follows:


Through March 31,	(In thousands)
2024	$	3,280
2025	3,197
2026	2,896
2027	2,868
2028	2,762
Thereafter	16,496
Total undiscounted lease payments	31,499
Less: imputed interest	(3,700)
Total	$	27,799