Leases

3 Months Ended

Mar. 31, 2023

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 March 31,
	2023			2022
	(dollars in thousands)
Operating lease cost	$	1,737		$	1,744
Variable lease cost (cost excluded from lease payments)		7			1
Sublease income		(128	)		(16	)
Total operating lease cost	$	1,616		$	1,729
Other Information
Cash paid for amounts included in the measurement of lease liabilities - operating cash flows for operating leases	$	1,843		$	1,833
Operating Lease - operating cash flows (liability reduction)		1,653			1,606
Weighted average lease term - operating leases	5.33 Years			5.96 Years
Weighted average discount rate - operating leases		3.03	%		2.95	%

The total minimum lease payments due in future periods for lease agreements in effect at March 31, 2023 were as follows:


	Future Minimum
March 31, 2023	Lease Payments
	(dollars in thousands)
Remainder of 2023	$	7,057
2024		5,909
2025		5,153
2026		3,425
2027		2,202
Thereafter		5,397
Total minimum lease payments	$	29,143
Less: interest		(3,061	)
Total lease liability	$	26,082

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 for the three months ended March 31, 2023 and $1.8 million for the three months ended March 31, 2022.