Leases

9 Months Ended

Sep. 30, 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 September 30,
	2023			2022
	(dollars in thousands)
Operating lease cost	$	1,696		$	1,742
Variable lease cost (cost excluded from lease payments)		5			11
Sublease income		(128	)		(66	)
Total operating lease cost	$	1,573		$	1,687
Other Information
Cash paid for amounts included in the measurement of lease liabilities - operating cash flows for operating leases	$	1,845		$	1,811
Operating Lease - operating cash flows (liability reduction)		1,661			1,599
Weighted average lease term - operating leases	5.06 Years			5.65 Years
Weighted average discount rate - operating leases		2.99	%		2.99	%


	Nine Months Ended September 30,
	2023			2022
	(dollars in thousands)
Operating lease cost	$	5,106		$	5,228
Variable lease cost (cost excluded from lease payments)		19			30
Sublease income		(384	)		(173	)
Total operating lease cost	$	4,741		$	5,085
Other Information
Cash paid for amounts included in the measurement of lease liabilities - operating cash flows for operating leases	$	5,509		$	5,449
Operating Lease - operating cash flows (liability reduction)		4,951			4,790
Weighted average lease term - operating leases	5.06 Years			5.65 Years
Weighted average discount rate - operating leases		2.99	%		2.99	%

The total minimum lease payments due in future periods under these agreements in effect at September 30, 2023 were as follows:


	Future Minimum
September 30, 2023	Lease Payments
	(dollars in thousands)
Remainder of 2023	$	2,418
2024		6,705
2025		5,719
2026		4,472
2027		2,675
Thereafter		6,286
Total minimum lease payments	$	28,275
Less: interest		(4,079	)
Total lease liability	$	24,196

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 September 30, 2023 and September 30, 2022, respectively. Total rental expense was $5.6 million for the nine months ended September 30, 2023 and $5.5 million for the nine months ended September 30, 2022, respectively.