Leases

12 Months Ended

Dec. 31, 2023

Note 6 - Leases

The Bank leases space for retail branches, Loan Production Offices (LPOs) and ATMs. Our leases have remaining lease terms of 1 year to 15 years, some of which may include options to renew the leases and some of which may include options to terminate the leases prior to the end date of the lease term. The Bank does receive rental income for the leasing of available space.

The below tables provide information on the Bank’s operating leases:


	(In Thousands)
	December 31, 2023		December 31, 2022		December 31, 2021
Operating lease cost (1)	$	540	$	244	$	197
Operating cash flows (2)	$	45	$	26	$	15

(1) Included in net occupancy expense on Company's consolidated statement of income
(2) Included in customer service fees on Company's consolidated statement of income


	(In Thousands)
	December 31, 2023		December 31, 2022
Operating lease assets (1)	$	5,918	$	1,033
Operating lease liabilities (2)	$	5,918	$	1,033

(1) Included in other assets on Company's consolidated balance sheets
(2) Included in accrued interest and other liabilities on Company's consolidated balance sheets

Operating lease term and discount rates of our lessee arrangements at December 31, 2023 and 2022 were as follows:


	December 31, 2023			December 31, 2022
Weighted average remaining lease term (years)		9.78			11.99
Weighted average discount rate		4.34	%		2.54	%

The future lease payments based on maturity for our lessee liability arrangements at December 31, 2023 are as follows:


	(In Thousands)
2024	$	872
2025		848
2026		814
2027		771
2028		693
2029 and thereafter		3,212
Total future lease payments	$	7,210
Less: interest		1,292
Present value of operating lease liability arrangements	$	5,918