Leases

6 Months Ended

Jun. 30, 2022

12. LEASES

Lease Commitments. The Company is obligated under various lease agreements covering its main office, branch offices, and other locations. These agreements are accounted for as operating leases and their terms expire between 2023 and 2032 and, in some instances, contain options to renew for periods up to 30 years.

The components of operating lease cost and other related information are as follows:


	Three Months Ended June 30,
	2022			2021
	(dollars in thousands)
Operating lease cost	$	1,743		$	1,731
Variable lease cost (cost excluded from lease payments)		1			3
Sublease income		(17	)		(17	)
Total operating lease cost	$	1,727		$	1,717
Other Information
Cash paid for amounts included in the measurement of lease liabilities - operating cash flows for operating leases	$	1,805		$	1,780
Operating Lease - operating cash flows (liability reduction)		1,586			1,527
Weighted average lease term - operating leases	5.80 Years			6.56 Years
Weighted average discount rate - operating leases		2.97	%		2.93	%


	Six Months Ended June 30,
	2022			2021
	(dollars in thousands)
Operating lease cost	$	3,486		$	3,499
Variable lease cost (cost excluded from lease payments)		2			6
Sublease income		(33	)		(33	)
Total operating lease cost	$	3,455		$	3,472
Other Information
Cash paid for amounts included in the measurement of lease liabilities - operating cash flows for operating leases	$	3,638		$	3,634
Operating Lease - operating cash flows (liability reduction)		3,191			3,125
Weighted average lease term - operating leases	5.80 Years			6.56 Years
Weighted average discount rate - operating leases		2.97	%		2.93	%

The total minimum lease payments due in future periods for lease agreements in effect at June 30, 2022 were as follows:


	Future Minimum
June 30, 2022	Lease Payments
	(dollars in thousands)
Remainder of 2022	$	7,059
2023		6,654
2024		5,386
2025		4,750
2026		2,703
Thereafter		6,896
Total minimum lease payments	$	33,448
Less: interest		(2,789	)
Total lease liability	$	30,659

Several of the Company’s lease agreements contain clauses calling for escalation of minimum lease payments contingent on increases in real estate taxes, gross income adjustments, percentage increases in the consumer price index, and certain ancillary maintenance costs. Total rental expense was $1.9 million and $1.8 million for the three months ended June 30, 2022 and June 30, 2021, respectively. Total rental expense was $3.7 million for both the six months ended June 30, 2022 and June 30, 2021.