Leases

3 Months Ended

Mar. 31, 2023

Note 9 – Leases

The Company’s long-term lease agreements are classified as operating leases. Certain of these leases offer the option to extend the lease term and such extensions are included in the calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations.

The following tables present information about the Company’s leases as of the dates and for the periods stated.


(Dollars in thousands)	March 31, 2023			December 31, 2022
Right-of-use assets	$	6,470		$	6,903
Lease liabilities	$	7,398		$	7,860
Weighted average remaining lease term (years)		5.62			5.85
Weighted average discount rate		2.42	%		2.40	%


	For the three months ended March 31,
(Dollars in thousands)	2023		2022
Operating lease cost	$	715	$	555
Total lease cost		715		555
Cash paid for amounts included in the measurement of lease liabilities		599		736

The following table presents a maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total of operating lease liabilities as of the date stated.


(Dollars in thousands)	March 31, 2023
Nine months ending December 31, 2023	$	1,484
Twelve months ending December 31, 2024		1,464
Twelve months ending December 31, 2025		1,191
Twelve months ending December 31, 2026		1,073
Twelve months ending December 31, 2027		990
Thereafter		1,786
Total undiscounted cash flows		7,988
Discount		(590	)
Lease liabilities	$	7,398