Leases Leases

12 Months Ended

Dec. 31, 2022

The Company's noncancelable operating lease agreements relate to certain banking offices, back-office operational facilities, office equipment and sublease agreements. The majority of the leases contain renewal options and provisions for increases in rental rates based on an agreed upon index or predetermined escalation schedule. As of December 31, 2022 and December 31, 2021, the Company’s operating lease ROU asset was $22.7 million and $27.6 million, respectively and is included in "Prepaid expenses and other assets" on the Consolidated Statements of Financial Condition. The related operating lease ROU liability was $24.4 million and $28.8 million, respectively and is included in "Accrued expenses and other liabilities" on the Consolidated Statements of Financial Condition. The Company does not have any leases designated as finance leases.

The table below summarizes the information about our leases during the periods or at period end presented:


	Year Ended December 31,
	2022			2021
	(In thousands)
Operating lease cost	$	4,942		$	4,758
Short-term lease cost	80			49
Variable lease cost	1,118			947
Sublease income	(87)			(24)
Total net lease cost during the period	$	6,053		$	5,730

Operating cash used for amounts included in the measurement of lease liabilities during the period	$	4,748		$	5,004
ROU assets obtained in exchange for lease liabilities during the period	2,869			13,966

Weighted average remaining lease term of operating leases, in years, at period end	6.5			7.1
Weighted average discount rate of operating leases, at period end	2.42		%	2.32		%

The following table presents the lease payment obligations as of December 31, 2022 as outlined in the Company’s lease agreements for each of the next five years and thereafter, in thousands:




2023	$	4,744
2024	4,314
2025	4,025
2026	3,621
2027	3,243
Thereafter	6,547
Total lease payments	26,494




Implied interest	(2,125)
ROU liability	$	24,369

During the year ended December 31, 2022, the Company entered into two lease agreements for $1.9 million and $3.3 million commencing on January 1, 2023 and May 1, 2023. These lease agreements are not included in the lease payment obligations in the table above.