LEASE COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2023


22. LEASE COMMITMENTS AND CONTINGENCIES

The Company’s operating leases are primarily comprised of corporate office leases with remaining lease terms of approximately two years and four years. The corporate office leases include options to extend for up to five years, however the extension terms were not included in the operating lease liability calculation. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. The lease cost for the year ended December 31, 2023 was $3.3 million.

Supplemental information related to leases as of and for the year ended December 31, 2023 was as follows:

Operating Leases

Classification

December 31, 2023

Assets

(dollars in thousands)

Operating lease right-of-use assets

Other assets

5,945

Liabilities

Operating lease liabilities (1)

Other liabilities

7,511

Lease term and discount rate

Weighted average remaining lease term

2.0 years

Weighted average discount rate (1)

3.3%

Cash paid for amounts included in the measurement of lease liabilities

Operating cash flows from operating leases

4,081

(1) For the Company’s leases that do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at adoption date in determining the present value of lease payments.

The following table provides details related to maturities of lease liabilities:


	Maturity of Lease Liabilities
Years ended December 31,	(dollars in thousands)

2024	$	4,107
2025	3,149
2026	261
2027	269
Later years	22
Total lease payments	$	7,808
Less imputed interest	297
Present value of lease liabilities	$	7,511

Contingencies

From time to time, the Company is involved in various claims and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material effect on the Company’s consolidated financial statements. There were no material contingencies at December 31, 2023 and 2022.