Leases

3 Months Ended

Mar. 31, 2024

11.

LEASES

The Company is involved in a number of operating leases, primarily for branch locations. Branch leases have remaining lease terms ranging from one year to nine years, some of which include options to extend the leases for up to five years, and some of which include an option to terminate the lease within one year. The Company also leases certain office facilities to third parties and classifies these leases as operating leases.

The following table provides a summary of the components of lease income and expense, as well as the reporting location in the interim condensed consolidated statements of operations, for the three months ended March 31, 2024 and 2023:


	Location in the Condensed	Three Months Ended
	Consolidated Statements of Operations	March 31, 2024		March 31, 2023
		(Dollars in Thousands)
Operating lease income (1)	Lease income	$	257	$	234
Operating lease expense (2)	Net occupancy and equipment	$	156	$	108

(1)

Operating lease income includes rental income from owned properties

(2)

Includes short-term lease costs. For the three months ended March 31, 2024 and 2023, short-term lease costs were nominal in amount.

The following table provides supplemental lease information for operating leases on the interim condensed consolidated balance sheet as of March 31, 2024 and December 31, 2023:


	Location in the Condensed
	Consolidated Balance Sheet	March 31, 2024			December 31, 2023
		(Dollars in Thousands)
Operating lease right-of-use assets	Other assets	$	1,940		$	2,019
Operating lease liabilities	Other liabilities	$	1,980		$	2,055
Weighted-average remaining lease term (in years)			6.12			6.37
Weighted-average discount rate			4.10	%		4.10	%

The following table provides supplemental lease information for the interim condensed consolidated statements of cash flows for the three months ended March 31, 2024 and 2023:


	Three Months Ended
	March 31, 2024		March 31, 2023
	(Dollars in Thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	98	$	107

The following table is a schedule of remaining future minimum lease payments for operating leases that had an initial or remaining non-cancellable lease term in excess of one year as of March 31, 2024:


	Minimum Rental Payments
	(Dollars in Thousands)
2024	$	297
2025		295
2026		302
2027		308
2028		269
2029 and thereafter		930
Total future minimum lease payments	$	2,401
Less: Imputed interest		421
Total operating lease liabilities	$	1,980