Leases

6 Months Ended

Jun. 30, 2023

Note 9 – Leases

Leases (Topic 842) establishes a right of use model that requires a lessee to record a right of use asset (“ROU”) and a lease liability for all leases with terms longer than 12 months. The Company is obligated under 26 operating lease agreements for 25 branches and its corporate offices with terms extending through 2039. The Company’s lease agreements include options to renew at the Company’s discretion. The extensions are reasonably certain to be exercised, therefore they were considered in the calculations of the ROU asset and lease liability.

The following table represents the classification of the Company’s right of use and lease liability.


	Statement of Financial Condition Location		June 30, 2023			December 31, 2022

			(In thousands)
Operating Lease Right of Use Asset:
Gross carrying amount			$	16,026		$	17,919
Increased asset from new leases				8,067			—
Accumulated amortization				(1,043	)		(1,893	)

Net book value		Operating lease right-of-use asset	$	23,050		$	16,026

Operating Lease Liability:

Lease liability		Operating lease liability	$	23,805		$	16,772

As of June 30, 2023, the weighted-average remaining lease

terms

for operating leases was 12.6 years and the weighted-average discount rate used in the measurement of operating lease liabilities was 3.35%. The Company used FHLB fixed rate advances or at the time the lease was placed in service for the term most closely aligning with remaining lease term.

Future minimum payments under operating leases with terms longer than 12 months are as follows at June 30, 2023 (in thousands):


Twelve months ended June 30,
2024	$	3,401
2025		3,115
2026		3,009
2027		2,794
2028		2,531
Thereafter		17,546

Total future operating lease payment		32,396
Amounts representing interest		(8,591	)

Present value of net future lease payments	$	23,805


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022

	(In thousands)				(In thousands)
Lease cost:
Operating lease	$	930	$	705	$	1,595	$	1,405
Short-term lease cost		63		10		65		34

Total lease cost	$	993	$	715	$	1,660	$	1,439

Other information:

Cash paid for amounts included in the measurement of lease liabilities	$	696	$	577	$	1,281	$	1,244